Calpers Chief Sees Lower Returns as Bull Market in Stocks Ebbs
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The California Public Employees’ Retirement System should expect an extended period of lower investment returns as the Federal Reserve pulls back its economic stimulus and raises interest rates, the fund’s chief investment officer said.
A six-year bull market that allowed the fund to earn an average annual 12 percent in the three years ended Dec. 31 appears to be moderating, Ted Eliopoulos told the governing board of the $296 billion pension Monday in Sacramento. Volatility in global stock markets as investors anticipate a Fed shift has sent returns from 18.4 percent last year to a 0.8 percent loss in 2015, he said.