California State Teachers Retirement System, Sacramento, now has more than $101.1 billion in assets, growing more than $13 billion since June 1998, the board announced today. This follows Aprils announcement of CalSTRS actuarial valuation results, which showed the fund was fully funded as of June 1998. System officials credited the boards investment management plan and diversified asset allocation strategy.
Separately, the systems investment committee unanimously agreed yesterday to financially back local school bonds in California. The request was made by State Treasurer Philip Angelides, who proposed the Smart Bonds program when he was campaigning for office last year and who sits on the CalSTRS board. The bonds will be issued by the California School Finance Authority, which is chaired by Mr. Angelides.
The systems credit enhancement of the CSFA bonds will provide school districts with lower interest rates for priority construction projects, while increasing CalSTRS revenue through the fees paid by the school districts.
Under the program, selected bonds are issued by CSFA and backed by CalSTRS agreement to guarantee the bonds repayment. To expand the capacity of the program, CalSTRS will be joined by other financial institutions.