Oklahoma Teachers' Retirement System, Oklahoma City, returned 16.6% in fiscal year 2010, ended June 30, according to a news release from the $8.3 billion retirement system.
James Wilbanks, OTRS executive director, attributed the performance to a tactical decision in January 2009 to invest in high-yield bonds, which returned 24.9% in 2010.
“(The board) saw an opportunity to take advantage of dislocated markets, and this strategy provided the biggest return on our investments in fiscal year 2010 and is the reason we performed so well,” he said in the news release.
The system's domestic equity investments returned 18.4% for the year, followed by fixed income at 13.1% and international equity, 10%.
State Treasurer Scott Meacham commended the fund's performance, but noted that it will not alleviate the system's $9.5 billion unfunded liability. “State leaders are going to have to step up and take decisive action to keep the system viable,” he said in the news release.
Mr. Wilbanks could not immediately be reached for further comment.