CalSTRS returned 18.66% in the fiscal year ended June 30, the $189.1 billion pension fund announced Monday.
The global equity portfolio was the best performer, with a one-year return of 24.73%, followed by inflation-sensitive at 10.54%, fixed income at 5.79% and absolute-return at 0.13%.
Private equity and real estate — whose returns lag by one quarter — posted 19.61% and 14.52%, respectively, in the year ended March 31.
The overall return fell behind the policy benchmark of 19.17% by 51 basis points. Two of the six asset classes were behind their benchmarks: Private equity was 682 basis points behind the 26.43% benchmark, while absolute return was 94 basis points behind its 1.07% benchmark.
“Our returns this year and last have put us at the top quartile of pension plans in the U.S.,” said Christopher J. Ailman, chief investment officer of the California State Teachers' Retirement System, West Sacramento, in a news release. “For a second year we outperformed our peers and even large university endowments. Four out of six asset classes outperformed their benchmarks.”