State Teachers’ Fund Posts 10.2% Return

The California State Teachers’ Retirement System, the second-largest U.S. public pension fund, earned 10.2% on its investments last year, helped by returns on real estate and private equity.

The pension fund earned 34.3% on so-called alternative investments and 36.5% on its real estate holdings, according to a news release. The fund, known as CalSTRS, said its assets rose 8.7% to $137.1 billion in 2005 from $126.1 billion a year earlier.

The fund’s returns, although below the 13% earned in 2004, mark the third straight year of 10%-plus gains. They follow three years of losses that sliced $24.5 billion from the pension’s value.