US - Both of California's giant retirement systems posted losses for the last fiscal year.
The fund said: "The one year decline in total CalPERS market assets will have no immediate or significant impact in and of itself on California employers' budgets next year, or on the pension fund's ability to pay benefits."
Overall, US equity markets were down 14.8% this year according to the Russell 3000 index, although CalPERS only reported a 10.7% loss as a result of under-weighting public stocks last autumn.
The fund said it was capable of withstanding the losses, as it returned double digit growth in the last four years. Over the past five years, annualised returns were 11.4%, well above the benchmark 7.75% needed to cover liabilities.
Anne Stausboll, interim chief investment officer at CalPERS, said: "It was difficult for any investor to make positive returns in stocks this past year, but we realised gains in other areas, ending the year in good financial shape.
"Private equity returns led the way in gains. Fixed income and our new inflation-linked asset class were also in positive territory."
The $162.2bn California State Teachers' Retirement System (CalSTRS) also released its results, reporting a 3.7% loss, despite posting positive returns in three of its five investment asset classes.
Jack Ehnes CEO, CalSTRS, said: "Despite troubled economic times, especially in the equities markets, our portfolio continues to provide long-term stability for our members financial futures.
"The expertise of our investment staff will guide us through this down market and position us to rebound quickly as economic conditions improve."
The fund said three year returns of 9.7% and five year returns (11.5%) were above its 8% average return needed to meet benefit obligations.
As Global Pensions reported last week, the poor performance was the first overall loss in six years (globalpensions.com, 17 July 2008).
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