Louisiana Teachers' Retirement System, Baton Rouge, returned 25.5% on its alternative investments year to date since June 30, 2003, Dan Bryant, CIO of the $11.5 billion system, said in a statement. Alternatives earned 5.3% over the nearly three years since June 30, 2001, and 4.8% for the five years beginning June 30, 1999, the statement said. The system's equity and fixed-income portfolios have earned a combined 23.3% year-to-date since June 30, 2003, 2.6% for three years and 3.1% for five years.
"State officials have sharply criticized (the plan) for not applying a more conservative investment strategy. However, to achieve the higher rates of return necessary to meet funding requirements, TRSL must use a somewhat aggressive, but prudent, investment style that includes alternative investments," the statement said.
The plan's asset allocation is 44.9% domestic equity, 20.9% fixed income, 19.8% alternatives, 12% international equity and 2.4% cash.