During the webinar, CalPERS executive staff and board members provided an update on the fund and answered questions from employers.
CalPERS CEO Marcie Frost reiterated that the three key priorities of CalPERS continue to be investment risk, employer affordability, and climate risk. In light of the challenges posed by the current state of the economy, Frost noted that a healthy liquidity position and a diversified portfolio put CalPERS in a much stronger position to weather this storm than where CalPERS was at the beginning of the recession.
As of March 31, 2020, CalPERS current assets were valued at $355.62 billion and its current investment returns were at negative 4 percent. In June 2019, CalPERS staff presented to its Board of Administration their plan in the event of a market downturn and elaborated during the webinar that this is the approach they have currently engaged in.
The plan consists of four components:
- Meet all required cash flow obligations
- Assess impacts of drawdown across the portfolio
- Maintain desired risk exposures
- Opportunistically deploy capital
CalPERS described this approach as a prudent response to the current economic conditions and as preparation for an economic downturn. The slides from the CalPERS webinar
are available now and a recording of the webinar will be posted on the League's COVID-19 resource page
as soon as it becomes available.