CalSTRS Posts 17.38% Annual Return

July 21, 2004 ( - California State Teachers' Retirement System (CalSTRS) posted its second straight year of positive performance, returning 17.38% for the year ending June 30.

Each of the fund’s five asset classes posted positive returns for the one-year period.   CalSTRS, the nation’s third largest public pension fund, now has $116.2 billion in total assets, according to a news release.

CalSTRS Chief Investment Officer, Christopher Ailman, attributed the fund’s performance to an overweight position in US and non-US equities.   “We bought into the market in the summer and fall of 2002, and we held those positions as the market was bottoming. Our diligent process and discipline paid dividends,” said Ailman.

International Equity returned 30.68% for CalSTRS and the US equity was up 20.95%.   Additionally, strong gains were notched by alternative investments (29.62%) and real estate (13.20%,) while fixed income managed a 0.67% gain for the year.   In fact, real estate and private equity have enjoyed a double-digit return over the five-year period ending June 30, 2004:   10.7% and 11.9%, respectively.