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Originally Posted by SACMPH
The nice thing about CalPers is that the $210 billion portfolio is free for investment. Companies pay the majority of their revenue out to employees, production costs, etc. Thus, it is pretty evenly dispersed throught the US and world.
Calpers employs as many people in Sacramento as many headquarters do elsewhere (although employees aren't making millions). Also, Sacramento projects are going to have an inside track on funding because CalPers people are going to know about them. It's also better for California if the investments are made in the state, so long as a similar return is anticipated.
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good points. Word of caution though: If CALPERS invests $400M in downtown Sac, they'll probably look to diversify their real estate portfolio a bit and the next few investments wont be in Sac. They wouldn't want to expose themselves to too much exposure in anyone local real estate market, at least I wouldnt think. But I'm not a pension fund manager!
Also, I just quickly looked at the Fortune 10, and it looks like CALPERS compares nicely with most of them with the exception of Citigroup. for heaven's sake, they have $1.5T (that's a T) in assets. I would imagine there's only a few dozen countries on Earth (if that) that could match that! I looked for a list of assets by nation, but couldn't find it. Oh well, off topic, but thought it was interesting.