CalPERS Recovers from Tariff Plunge and Notches a Big Investment Gain

California’s largest public employee pension fund recovered from a spring stock market plunge and notched its second-best investment return in a decade, at least temporarily easing concerns about economic volatility in the new Trump administration.

The California Public Employees’ Retirement System announced today that it gained 11.6% on in its investments over the past financial year, eclipsing its target of 6.8%.

That’s a critical number in California government government finance both because CalPERS funds retirement plans for some 2 million people and because it charges government agencies more money to make up for losses when it misses its annual investment target.

CalPERS saw a steep drop in its portfolio in April after President Donald Trump announced tariffs against nearly every country. CalPERS lost about $25 billion that month, but regained the value and then some as Trump put off his most expensive tariffs and global markets adjusted to his tariff threats.