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Sacramento, CA -- The California State Teachers' Retirement System posted
an 18.3 percent return on its investments for the past year. Assets for
the nation's third largest pension fund totaled $110.7 billion on Dec.
31, 1999, a $17.4 billion increase from Dec. 31, 1998.
This is the fifth consecutive year for double digit returns and one of
CalSTRS' best showings compared to most large public pension funds. CalSTRS
outperformed 72 percent of public and corporate pension funds with more
than $1 billion in assets according to the Trust Universe Comparison Service.
The service, which measures relative performance of pension funds, reported
CalSTRS' peer group had a median investment return of 16.61 percent.
"The retirement funds for California's educators have never been
more secure," said CalSTRS Chief Investment Officer Patrick Mitchell.
"These outstanding returns allow us additional flexibility to continue
to improve the retirement package for our members."
The strong performance was primarily driven by the domestic and international
stock markets. As of Dec. 31, CalSTRS had 44 percent of its assets in
domestic stocks and 27 percent in international stocks. Returns were 22.7
percent and 36.1 percent respectively.
CalSTRS held 23 percent of its assets in domestic bonds, which recorded
a -4.1 percent return. Real estate, alternative investments and cash totaled
6 percent of the investment portfolio and had returns of 12.6 percent,
32.0 percent and 5.7 percent respectively.
"One of the best decisions we've made was to increase our equity
holdings in the portfolio 30 months ago and we've reaped the benefits
of the excellent stock market performance," said Teachers' Retirement
Board chair Emma Zink. "However, providence can only carry you so
far and then you have to make your own luck. Our investment staff did
just that with their hard work and skill in implementing the board's strategic
investment plan."
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