Calpers faces huge losses in property slump, REITs value halved in 6 weeks

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calpersThe California Public Employees’ Retirement System, the nation’s largest public pension fund, suffered $3.3 billion paper losses for the year ended June 30, paying dearly for its aggressive real-estate investments, according to the Los Angeles Times and other news reports.

More recent losses mount from investments Calpers made in over 100 property companies before their value collapsed in the weeks after Oct. 1. REITS shares worth $482 million on Sept 30 are now worth about $245 million, according to Bloomberg.

Michael Corkery adds in the Wall Street Journal that while Calpers reported a 35 percent drop in its investments in land and housing projects across the US to $6 billion, its true losses are probably higher, given the appraisals in the year-end report were done last March.

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