Calpers, the largest US public pension fund, earned 1.1% on its investment portfolio in 2011, severely underperforming its expected long-term annual rate of return, which it decided to keep at 7.75% last year against the advice of its own actuary.

The Los Angeles Times reported that Joseph Dear, chief investor officer, told the board of the $229bn Californian pension fund that it had made 1.1% last year http://lat.ms/wnwxxo.