The portfolio.

Breakdown of Portfolio

Category                          Market Value    Percent
                                   (millions)

Equity Securities                   $86,135
Internal Domestic                   $46,455         54%
External Domestic                    12,078          14
External International               27,602          32

Fixed Income                        $37,904
Corporate Securities                $10,503         28%
Sovereign Securities                    681           2
Government Securities                 8,391          22
Mortgage-Backed Securities           12,089          32
Domestic External Fixed Income        1,196           3
International Fixed Income            5,045          13

Cash & Equivalents                   $1,268
Domestic Cash Equivalents            $2,655         82%
International Cash Equivalents           24         0.7
International Currency                  549          17
Net Payables                         (1,959)

Real Estate                         $11,596 *
Core Investments                     $8,950         77%
Specialized Investments               2,830          24

Alternative Investments              $7,385
Domestic                              7,095         96%
International                           290           4

As of June 30, 2003

* Totals differ due to reporting methods.

Top 20 Company Exposures

(in millions)

                                               EQUITY EXPOSURE

                                                              Exter-
                                                               nally
                                        Internally Managed    Managed

Company Name                             Active    Passive     Active

General Electric                         $23.9    $1,255.2    $323.5
Citigroup                                 24       1,000.3     331.2
Pfizer Inc.                               15.9     1,096.2     374.8
Microsoft Corp.                           24.6     1,102.1     331.1
Exxon Mobil Corp.                          6       1,066.7     303.8
Wal Mart Stores Inc.                      13.5       998.8     260.3
International Business Machines Corp.     10.4       736.8     100
Intel Corp.                               12.4       733.1     244.9
American International Group Inc.          6.1       736.8     104.2
Cisco Systems Inc.                        11.2       626.4     232.7
Verizon                                              402.4     108.9
Johnson & Johnson                          5.2       603.8     170.2
Coca Cola Co.                             11.6       470.1     135
Vodafone Airtouch                                              205.5
HSBC Holdings                                                   92.2
Procter & Gamble Co.                       9.4       511.2     177
Wells Fargo & Co.                          3.4       372.9      78.4
Bank of America                            7.9       470.3     137.7
Comcast                                    6.9       264.5      47.2
Time Warner                                6.5       291.7      53.7

                                            EQUITY EXPOSURE
                                                                 FIXED
                                         Exter-                 INCOME
                                          nally      Total     EXPOSURE
                                         Managed     Equity
                                                     Market     Inter-
Company Name                             Passive     Value        nal

General Electric                                    $1,602.6     $53.2
Citigroup                                            1,355.5      37.4
Pfizer Inc.                                          1,486.9
Microsoft Corp.                                      1,457.8
Exxon Mobil Corp.                                    1,376.5
Wal Mart Stores Inc.                                 1,272.6       9.4
International Business Machines Corp.                  847.1       8.4
Intel Corp.                                            990.3
American International Group Inc.                      847.1      10.9
Cisco Systems Inc.                                     870.4
Verizon                                                511.3     305.1
Johnson & Johnson                                      779.2
Coca Cola Co.                                          616.7     131.7
Vodafone Airtouch                         449.6        655        62
HSBC Holdings                             472.2        563.4     138.1
Procter & Gamble Co.                                   697.6
Wells Fargo & Co.                                      454.7       8.6
Bank of America                                        615.9       6.2
Comcast                                                318.6     281
Time Warner                                            351.9     236

                                         FIXED INCOME EXPOSURE

                                                     Securities
Company Name                             External    Lending *

General Electric                           $3.7         $728
Citigroup                                  23            350
Pfizer Inc.
Microsoft Corp.
Exxon Mobil Corp.
Wal Mart Stores Inc.
International Business Machines Corp.                    140
Intel Corp.
American International Group Inc.          18.9
Cisco Systems Inc.
Verizon
Johnson & Johnson
Coca Cola Co.
Vodafone Airtouch
HSBC Holdings                              12.8
Procter & Gamble Co.
Wells Fargo & Co.                                        175
Bank of America                            11.4
Comcast
Time Warner                                 4.7

                                             FIXED INCOME EXPOSURE

                                          Total Fixed
                                         Income Market    Total Market
Company Name                                 Value           Value

General Electric                             $785           $2,387.6
Citigroup                                     410.4          1,765.9
Pfizer Inc.                                     0            1,486.9
Microsoft Corp.                                 0            1,457.8
Exxon Mobil Corp.                               0            1,376.5
Wal Mart Stores Inc.                            9.4          1,282
International Business Machines Corp.         148.3            995.4
Intel Corp.                                     0              990.3
American International Group Inc.              29.7            876.8
Cisco Systems Inc.                              0              870.4
Verizon                                       305.1            816.4
Johnson & Johnson                               0              779.2
Coca Cola Co.                                 131.7            748.3
Vodafone Airtouch                              62              717
HSBC Holdings                                 150.8            714.2
Procter & Gamble Co.                            0              697.6
Wells Fargo & Co.                             183.6            638.2
Bank of America                                17.6            633.5
Comcast                                       281              599.6
Time Warner                                   240.7            592.6

As of Feb. 28, 2004

* Does not include repos

Internally Managed = Managed by Calpers staff.

Externally Managed = Managed by outside investment advisers.

Active = Investment decisions made through various methods and
analyses.

Passive = Investment decisions tied to index.

Largest Bond Holdings

                                                             Market
                                                   Par       Value
Rank         Security         Maturity   Rate     Value    (millions)

  1    U.S. Treasury Bonds    12/31/99   5.5%     $452.3     $596.2
  2    U.S. Treasury Notes     8/15/25   6.875     541.7      557.6
  3    U.S. Treasury Bond     11/15/21   0       1,126.4      461.2
       Strip Principal
  4    U.S. Treasury Notes     5/15/13   3.625     425.4      428.9
  5    U.S. Treasury Notes     5/15/08   2.625     373.8      377.2
  6    U.S. Treasury Bonds    11/15/21   8         234.7      340.1
  7    Federal National        5/15/29   6.25      253.5      296.8
       Mortgage Association
  8    U.S. Treasury Bonds     2/15/16   9.25      192.8      295.3
  9    U.S. Treasury Bonds     2/15/23   7.125     211.5      283.5
 10    U.S. Treasury Bonds     2/15/31   5.375     243.5      274.3

As of June 30, 2003

Largest Real Estate Investments
                                                             Market
                                                             Value
Rank   Investment                   Category      Cost     (millions)

  1    RREEF--Cal West            Industrial    $1,779.8     $1,735.3
  2    Hines--National Office
         Partners                     Office     1,628.6      1,552.2
  3    LaSalle--Cal East          Industrial       844.6        888.6
  4    National Retail Partners       Retail       740.6        803.3
  5    Pers Managed Malls             Retail       637.8        730.7
  6    Timberland--GetCo              Timber       725.3        716.4
  7    CWP--Fifth Street
         Properties                   Office       493.4        702.4
  8    Eastern Shore Shopping
         Centers                      Retail       614.5        630.9
  9    Extended PREES
         Specialized              Properties       624.1        618.9
 10    SSR Realty Advisors--       Apartment       513.3        594.4
       Western

As of June 30, 2003

Largest Alternative Investments

                                                          Market Value
Rank    Investment                           Shares        (millions)

  1     California Emerging Ventures       549,229,060       $391.5
  2     California Emerging Ventures II    485,043,675        343.2
  3     Lombard/Pacific Partners           311,417,417        182.9
  4     Blackstone Capital Partners III    167,094,880        175.1
  5     Carlyle Group                      175,000,000        175
  6     JEDI II                             91,056,540        155.1
  7     Apollo Investment Fund IV          130,205,216        141.6
  8     CVC European Equity Partners II     99,605,647        125.9
  9     Green Equity Investors III          93,287,377        122.5
 10     Levine Leichtman Capital
          Partners II                      111,013,528        109.7

As of June 30, 2003

Investments in California

Mortgages                                           Amount (millions)

Commercial Loans and Mortgage-Backed Securities                $182
AFL-CIO Housing Investment Trust                                 62.5
ULLICO                                                           52.4
California Community Mortgage Fund                               41.8
Real Estate
CORE--Equity                                                 $3,454.5
National Housing                                                331
California Urban Real Estate                                    215.7
Catellus                                                        126.7
PREES--REITS                                                     94.8
Single-Family Housing                                            72.5
Acquisition & Development of Housing                             31.3
AFL-CIO Building Investment Trust                                30.7
Pacific Vineyards Partners                                       20.4
Senior Housing                                                    4.7
Franchise Finance (CNL)                                           1.1
Equities
Domestic Equities                                            $7,545.6
Alternative Investments/Partnership Component                   969.7
Domestic Fixed Income
Mortgage Pass-Through/CMOs                                   $1,912.5
Corporate Bonds                                                 248.8
External Managed                                                248.8
Treasury Bonds                                                  248.8
Technology
Technology                                                       $9.5
Total in California                                         $15,905.8

As of June 30, 2003

Source: Calpers