Calpers, the largest state pension fund in the US, lost 20 per cent of its assets, or close to $40bn, between July 1 and October 20 this year as a result of the turmoil in financial markets.
The fundâ??s assets fell to $192bn, well below their height of more than $250bn three years ago.
Calpersâ?? drop in value shows how badly US state and corporate pension plans are faring in the current financial environment. Pensions and retirement accounts may have lost as much as $2,000bn since 2007, according to a report this month from the Congressional Budget Office.
Before 2008, Calpers had five years of strong annual returns, posting as much as 19 per cent in the fiscal year to 2007.
The big drop is in part due to the fundsâ?? 60 per cent-plus weighting in equities, which have been especially badly hit this year.
