The California Public Employees’ Retirement System on Monday reported a 20.7% return on investments in early estimates for the fiscal year ending in June.

“This is our best annual performance in 14 years,” Rob Feckner, CalPERS board president, said in a statement.

The retirement system exceeded its long-term annualized earnings target of 7.75% for the second fiscal year in a row.

The net-of-fees performance was CalPERS’ strongest since the 20.1% return in 1997.

It has averaged a net return on investments of 8.4% for 20 years, according to the statement.

As of the end of June, CalPERS’ asset market value was $237.5 billion, up from $200.5 billion a year earlier.

Chief investment officer Joseph Dear said global equity stocks, private equity, fixed income, inflation-linked, and cash equivalents all did well. He said the system’s real estate portfolio is back in positive territory after falling during the recession.

CalPERS is the nations largest public pension fund.

It administers retirement benefits for 1.6 million active and retired state, public school and local governments employees and heath benefits for 1.3 million members.

The average CalPERS pension is $2,220 per month.

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