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- March 1, 2018: Vol. 30, Number 3

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CalPERS’ real estate returns 7.8% year-over-year

by Jody Barhanovich

The $329.9 billion California Public Employees’ Retirement System has reported a 7.8 percent total return for its real estate portfolio, beating its benchmark by 110 basis points for the year ended Dec. 31, 2017, according to an executive summary report of CalPERS’ investment performance by Wilshire Associates. (The executive summary report also was reviewed by Pension Consulting Alliance.)

According to the analysis by CalPERS staff, the 110 basis points of one-year outperformance can be attributed primarily to strong returns from core holdings, which comprise 78.7 percent of the real estate portfolio. Particularly strong returns were generated by the industrial, retail and emerging-manager programs. The three-year return of 10.0 percent and the five-year return of 10.9 percent were higher than their benchmarks by 20 basis points and 30 basis points, respectively.

In second half 2017, CalPERS’ real estate portfolio continued its transformation toward a diversifyi

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