All five of the fund’s asset classes realized positive returns for the year ended June 30, 2005. For example, the US Equity portfolio posted an 8.3% return, beating the overall market return, 7.8%, as measured by the CalSTRS benchmark, the Russell 3000 ex tobacco Index. Meanwhile, non-US Equity posted a 16.5% return, down only three-tenths of a percent from its benchmark. At 7.14%, the Fixed Income portfolio edged its benchmark slightly, with the benchmark coming in at 7.08%. The Alternative Investments portfolio posted a return of 24.9%, more than 18% above its benchmark.
Christopher Ailman, CalSTRS Chief Investment Officer said beating the benchmarks for returns for the past three years has added $600 million a year to the fund’s bottom line.
CalSTRS is the third largest public pension fund in the US, with more than 755,000 members.