Market Drivers
Top 10 Holdings as of June 30, 2010
On the heels of a tumultuous 2009, the U.S. equity market rallied in fiscal 2010 and posted solid returns. The Russell 1000 Index return of 15.2% was no exception.
Top 10 Holdings
% of Total Index
Exxon Mobil Corp. (XOM)
2.73%
Apple Inc. (AAPL)
2.15%
It is estimated that consumer spending fuels about 70% of the economy. However, with unemployment still hovering near 10%, consumers didn’t lead the recovery in 2010. Instead, many large U.S. companies saw their way through the recession by improving operating efficiencies to increase profit margins. This helped fuel a rise in the equity index, as earnings beat expectations across all industry sectors. The industrials sector led the way with a 26.5% return, followed by consumer discretionary with 25.6%.
Microsoft Corp. (MSFT)
1.66%
Procter & Gamble (PG)
1.62%
Johnson & Johnson (JNJ)
1.53%
International Business Machines Corp. (IBM)
1.49%
General Electric Co. (GE)
1.45%
JPMorgan Chase & Co. (JPM)
1.37%
Bank of America Corp. (BAC)
1.36%
AT&T Inc. (T)
1.34%
Federal stimulus programs also helped prop up the economy during the fiscal year. These efforts are expected to continue into 2011 and should point to steady, but more muted returns.
Top 10 holdings represent 16.70% of the total index.
Sector Weightings as of June 30, 2010 Sector
Weight
STRS Russell 1000 Index Return
Historical Performance as of June 30, 2010
Information Technology
18.37%
Financials
16.69%
Health Care
12.19%
Industrials
10.89%
Consumer Discretionary
10.69%
Energy
10.34%
10%
Consumer Staples
10.32%
5%
Utilities
3.81%
Materials
3.78%
Telecommunication Services
2.92%
Total Russell 1000 Index
25% 20% 15%
15.03%
0%
–9.70%
–0.73%
–1.35%
3 Years
5 Years
10 Years
–5%
100.00% –10% –15%
1 Year
STRS Russell 1000 Index Return The performance shown is based on the underlying index until June 30, 2003, without fees, and the performance of the defined contribution assets after that date with fees.
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