CalSTRS Outshines CalPERS in Gains

CalSTRS beat CalPERS in the fiscal year ended June 30.

The California State Teachers’ Retirement System said Thursday that its investment portfolio gained 13.2% in the fiscal year.

That topped the 12.3% return that the California Public Employees’ Retirement System reported for its portfolio Tuesday.

As at CalPERS, the Sacramento-based CalSTRS fund was boosted by strength in real estate, foreign stocks and “alternative” investments.

CalSTRS’ real estate portfolio was up 35.7% in the fiscal year, the pension fund said. Foreign stock assets gained 27%.

Alternative investments, such as money in private equity funds, soared 32%.

By contrast, the fund’s U.S. stock portfolio was up 9.5%.

CalSTRS benefited in part from having more in real estate assets and alternative investments than CalPERS.

About 7% of the CalSTRS fund is invested in real estate, compared with 5% at CalPERS. CalSTRS said it had 5.7% in alternative investments, compared with 5% at CalPERS.

The CalSTRS fund, which provides retirement and other benefits for public school teachers, had $142.7 billion in assets as of June 30. CalPERS had assets of $208 billion.