California Teachers’ Pension Fund Earns 12.69 Percent for the Year

News release

Sacramento, CA–The California State Teachers’ Retirement System recorded a 12.69 percent return on its investments for the past fiscal year. The nation’s third largest pension fund had assets totaling $112.66 billion—a $12.8 billion increase from the previous 12-month period.

This is the sixth straight year for double-digit returns and one of CalSTRS’ best showings compared to most large pension funds. CalSTRS outperformed 75 percent of public 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 9.56 percent.

“Our continuing strong performance is a testament to the system’s commitment to stick with its long-term strategy, which emphasizes diversification among various types of assets,” said CalSTRS Chief Executive Officer James Mosman. “The Teachers’ Retirement Board strongly endorses this strategy.”

CalSTRS’ investment portfolio ended the year with 41.7 percent in U.S. stocks, which had a return of 10.8 percent; 25.3 percent in international stocks, which had an 18 percent return; and 24.2 percent in domestic bonds, which had a 4.13 percent return.

Real estate, alternative investments and cash totaled 8.7 percent of the portfolio and posted returns of 9.13 percent, 78.6 percent and 6.32 percent respectively.

The top investment position at CalSTRS is currently vacant following the July 15 departure of Patrick Mitchell. CalSTRS hopes to complete a process to fill the position within the next 30 to 60 days. Mitchell left after 12 years at the pension fund, the last three as chief investment officer, to serve as principal and managing director at a financial management company.

Established by law in 1913, CalSTRS provides retirement benefits to California’s public school teachers from kindergarten through community college. CalSTRS serves about 471,000 California educators and provides benefits to approximately 161,000 retired or disabled teachers and their families. More information on CalSTRS is available at its Web site,