The California State Teachers’ Retirement System announced on Wednesday an 8.5% investment return for its 2024-25 fiscal year, which ended June 30, outperforming it’s benchmark by one basis point. CalSTRS exceeded its average return target of 7%, which reflects the actuarial assumption of how much the fund’s investments need to earn over time to meet obligations.
The assets of the world’s largest educator pension fund ended the fiscal year with a value of $367.7 billion. One year earlier, CalSTRS’ funded status stood at 76.7%; this year’s figure will be released in May 2026. According to the fund, it is ahead of schedule to become fully funded by 2046. In 2017, the plan had a funded status of 62.6%.
“This return reflects our hard work and innovative approach to protecting the future of more than 1 million California public educators and beneficiaries who rely on us to help secure their financial future,” said CalSTRS CEO Cassandra Lichnock in a statement. “This strong return marks another step as we continue our steady progress toward achieving full funding.”
CalSTRS reported five-, 10-, 20- and 30-year annualized returns of 9.4%, 8.1%, 7.4% and 7.8%, respectively.
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“While the 8.5% return over the past year is a solid result, our true commitment lies in creating consistent, decades-long growth for our members’ pensions,” CalSTRS CIO Scott Chan said in a statement. “Our highly diversified portfolio has yielded a track record of returns above our 7.0% investment assumption and demonstrates our effective approach to investing in an increasingly complex market.”
The fund’s public equity portfolio, its largest holding, returned 16.3%. Private equity investments returned 8.7%, while its collaborative strategies portfolio, which invests in innovative public and private strategies, returned 8.2%.
CalSTRS’ inflation-sensitive strategy returned 8.1%, and fixed income returned 6.5%. Risk-mitigating strategies saw a 7.2% loss, and real estate also fell 3%.
As of June 30, CalSTRS allocated 41.25% of its assets to public stocks, 15.14% to private equity, 12.78% to real estate, 11.96% to fixed income, 7.27% to risk-mitigating strategies, 6.92% to inflation-sensitive assets, 2.84% to its strategic overlay and cash, and 1.84% to collaborative strategies.
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