CalSTRS chalked up a 10.2% return in 2005. Real estate was the best-performing asset class for the $140 billion California State Teachers' Retirement System, Sacramento, returning 36.5%, nearly doubling the fund's benchmark State Street Real Estate index return of 19.1%. Alternative investments returned 34.3%, beating the custom benchmark return of 9%.
International equities returned 17.3%, narrowly beating the MSCI All-Country Free (ex-U.S. and ex-tobacco stocks) by 0.27 percentage points. U.S. stocks returned 6.2%, outperforming the Russell 3000 (ex-tobacco) index return of 5.9%. Fixed-income assets returned 2.7%, slightly more the fund's custom benchmark of 2.4%.