US - The California State Teachers' Retirement System posted a return of 13.1% for 2004, reaching a record high of US$126.1bn in assets at year-end.
CalSTRS said the gain for 2004 was up US$13.5bn on the previous year, with the investment portfolio outperforming its benchmarks in four of its five asset classes.
“This second year of above average returns shows we are fully recovered from the recent market downturn,” said Christopher J. Ailman, CalSTRS chief investment officer.
“The savvy work by investment staff and managers added US$1.8bn to the portfolio over just copying our benchmarks’ holdings.”
US stocks, fixed income, real estate and alternative investments outperformed with international stocks missing its benchmark by 0.8%.
US stock investments increased by 12.4%, beating the fund’s Russell 3000 (excluding tobacco) index performance of 11.9%. Alternatives rose by 22%, more than doubling its custom benchmark’s return of 9.8%, while the real estate portfolio posted a 15.4% return above CalSTRS’ custom benchmark, which returned 12.44%.
Fixed income assets only just outperformed, inching ahead of the Salomon Large Pension Fund benchmark by 0.1% with a 4.9% return.
CalSTRS said international stocks gained 20.4% last year but this year missed its benchmark, MSCI All Country Free (excluding US) by 0.8%.
The fund’s asset allocation stands at 43.7% US stocks, 23.9% international stocks, 22.5% fixed income, 4.4% real estate, 4.6% alternative investments and 0.9% cash.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.