Despite huge Trump rally, CalPERS' long-term returns get even worse - W.C. Varones

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7.14.2017

Despite huge Trump rally, CalPERS' long-term returns get even worse

Until last year, CalPERS used to brag about its distant past returns from the tech bubble and the housing bubble as evidence that its return assumptions weren't crazy.

Today CalPERS is boasting about "smart investing and strong oversight" for having a single good year, thanks to the Trump rally, after decades of underperformance.

But despite this year's 11.2% return, CalPERS' long-term returns are still getting worse, because the 10- and 20-year records are now rolling off huge returns from the 90's and 2000's tech and housing bubbles.


  20-year return 15-year return 10-year return 5-year return 3-year return

6.08% 6.35% 3.39% 8.82% 4.64%

Despite having failed to earn 7% over the past decades, CalPERS still makes taxpayers guarantee 7% in perpetuity to government retirees, in addition to having to pay hundreds of billions for CalPERS' past failures.



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