US - CalPERS' US$11bn real estate portfolio grew by more than 34% for the fiscal year ending June 30, helping the $193bn pension fund to an overall gain of 12.3%.
From the period July 2004 to June 2005, the Dow Jones Wilshire real estate securities asset class was the funds’ best performer, with a one year return of 34.3%, growing 14.2% in Q2 alone.
CalPERS put the strong performance down to high value-added from active management in the fund’s Alternative Investment Management (AIM) Program and the real estate segment.
The equities portfolio returned 11.5% against a benchmark return of 10.7%, while the fixed income portfolio slightly underperformed, returning 10.8% against the benchmark return of 11%.
CalPERS said it had made a significant effort to develop internal strategies and talent to add value to the system’s investment portfolio.
“Many of these strategies have proven successful,” the fund said in its fiscal year 2004 financial report. “However, several segments that have outperformed their respective benchmarks have added little value to the overall performance of the System due to their relatively small weights.”
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