Aside from paying member pensions, administering their health benefits, or managing an investment portfolio worth over $500 billion, what else does CalPERS do for the state? A lot, actually!
Here’s one item to consider: According to a recently released report, CalPERS’ investments in California generated an estimated $45.2 billion in economic activity and supported 170,591 jobs across the state in fiscal year 2022-23.
The annual CalPERS for California (PDF) report, presented to the Board of Administration at its quarterly Investment Committee meeting, tallied $60.8 billion of investments in California-based companies and projects in fiscal year 2022-23.
CalPERS’ investment capital allocated to various businesses and projects produces secondary benefits in the form of increased economic activity. Businesses can use the capital to pay their suppliers and employees, who will then spend that money elsewhere. As the economy expands in this way, businesses grow, and greater tax receipts can finance improved community resources and infrastructure.
Many investments were directed toward companies and properties located in central business districts that offer attractive investment opportunities at scale. Consequently, the populations living in these diverse areas have also benefited from the investments.
CalPERS’ private market investments were allocated to a wide variety of industry sectors, such as:
- Real estate
- Information technology
- Financials
- Consumer staples
- Communication services
- Energy
- Entertainment
Another report also found that CalPERS increased its investments in California based companies and projects to $78.7 billion in the 2023-24 fiscal year.
Please review the report for a comprehensive breakdown of the industries CalPERS invested in and to learn where investments were made in California.