CalPERS posted impressive preliminary investment returns of 12.5% on its investment portfolio for the most recent fiscal year, including a 19% return on its stock market assets. According to CalPERS, "When things got rough we didn’t panic. We stuck with our exposure to growth assets and applied the lessons we learned from the past. The numbers show us that our approach is working."
CalPERS impressive investment return follows up on last year's remarkable 20.7% gain and is well above the 7.5% the fund uses as a projection in its formula for the employers' share. As it stands, CalPERS average annual investment return since 1988 is 8.5%, well above the level promoted by some critics.