US - The California State Teachers' Retirement System posted returns of 12.3% for the year ended June 30 but said losses from the financial crisis remain on the books.
The positive returns come after CalSTRS suffered its worst returns in its history in 2009 when returns came in at -25% for the year.
CalSTRS chief investment officer Christopher Ailman (pictured) said: "We've taken steps to position the portfolio for long-term growth, but we're not out of the woods yet. The American economy suffered a near-death experience in 2008, and it's going to take some time to fully recuperate from that. This year's performance is a solid start along that road to recovery."
Since last year, CalSTRS has announced a series of changes to its portfolio meant to manage risk and recoup losses. Among those were changing its target asset allocation ranges to avoid force-selling of assets and temporarily reducing its global fixed income allocation by five percentage points in favour of fixed income, real estate and private equity.
Another 5% was also shaved from global equities in order to create a new absolute return asset class for inflation protection. (Global Pensions, August 7, 2009)
The pension fund also launched an innovation and risk unit.
CalSTRS global equities portfolio returned 14.5% for the year; fixed income, 12.3% and private equity, 21.7%. Real estate, at 10.1%, was the only negative performer with returns of -12.4%.
As of June 30, CalSTRS allocated 51.7% to global equities, 22% to fixed income, 14.5% to private equity, 10.1% to real estate, 0.9% to absolute returns and 0.8% to cash.
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