CalSTRS earns 13.9% net return, exceeds benchmark in fiscal year 2025–26
News release | Barbara Zumwalt
WEST SACRAMENTO, Calif. (August 4, 2026)—The California State Teachers’ Retirement System today announced a 13.9% net return on investments for the 2025–26 fiscal year. The total Teachers’ Retirement Fund was valued at $415.4 billion as of June 30, 2026.
CalSTRS is a long-term investor with a goal of achieving an average return of 7.0% to meet pension obligations. The 2025–26 return keeps CalSTRS on track, as the 5-,10-, 20- and 30-year returns, including the 9.4% 10-year return, all surpass the actuarial assumption of 7.0% despite inflation, stock market volatility and geopolitical uncertainty.
“This strong return reflects the dedication and skill of our investments team and everyone at CalSTRS who supports their work,” Chief Executive Officer Cassandra Lichnock said. “This is a significant step toward achieving full funding, which is vitally important to fulfilling our mission to secure the financial future of California’s public school educators and their beneficiaries.”
CalSTRS is ahead of schedule to reach full funding by 2046. The CalSTRS funded status was 79.3% as of June 30, 2025, the eighth consecutive year the funded status has increased. The funded status has grown nearly 17 percentage points—from 62.6% to 79.3%—since 2017. Funded status refers to the ratio of CalSTRS’ assets to its total pension obligations.
The next actuarial valuation of the Defined Benefit Program, which will include an updated funded status, will be released in May 2027.
“While we’re pleased with this year’s return, we remain focused on creating consistent, decades-long growth,” Chief Investment Officer Scott Chan said. “Our ability to attain returns above 7% over the long term in an increasingly complex market demonstrates the success of our diversified investment approach, risk management and ability to outperform our policy benchmark.”
Global Equity investments, the largest asset class, delivered the strongest returns at 25.1%. The Risk Mitigating Strategies (16.8%) and Inflation Sensitive (13.3%) asset classes also earned double-digit returns.
Private Equity (7.5%), Fixed Income (4.4%), Collaborative Strategies (2.8%) and Real Estate (0.2%) also had positive returns.
CalSTRS exceeded its total fund benchmark in fiscal year 2025–26 by 0.4%. Asset classes and the total CalSTRS Investment Portfolio are measured against benchmarks. Comparing CalSTRS’ performance to these benchmarks identifies the contribution or loss caused by manager and strategic asset allocation decisions.
CalSTRS fiscal year 2025–26 returns (net of fees)
| CalSTRS asset class/strategy | Portfolio % return | Policy benchmark % return | Over/under performance (%) |
|---|---|---|---|
| Global Equity (1) | 25.1 | 24.0 | 1.1 |
| Fixed Income (2) | 4.4 | 3.9 | 0.5 |
| Real Estate (1,2) | 0.2 | 3.1 | -2.9 |
| Private Equity (1,2) | 7.5 | 7.5 | 0.0 |
| Risk Mitigating Strategies | 16.8 | 14.6 | 2.2 |
| Inflation Sensitive (2) | 13.3 | 8.6 | 4.7 |
| Collaborative Strategies (1,2) | 2.8 | 4.8 | -2.0 |
| Total fund performance | 13.9 | 13.5 | 0.4 |
(1) Includes Sustainable Investment & Stewardship Strategies public and/or private investments.
(2) Private asset valuations are as of March 31, 2026, and adjusted for cash flows through June 30, 2026.
As of June 30, 2026, the CalSTRS Investment Portfolio holdings were 43.4% in U.S. and non-U.S. stocks (Global Equity); 13.58% in Private Equity; 12.3% in Fixed Income; 11.88% in Real Estate; 8.52% in Risk Mitigating Strategies; 7.03% in Inflation Sensitive; 1.95% in Collaborative Strategies; and 1.33% in Strategic Overlay and Cash.
CalSTRS’ public assets are valued through June 30, 2026, while private assets are cashflow-adjusted and valued through March 31, 2026. The valuations and benchmark returns for private assets lag three months, per industry standards. Private assets are primarily held within the Real Estate, Private Equity, Collaborative Strategies and Inflation Sensitive portfolios and account for nearly 35% of the CalSTRS Investment Portfolio.
Media contact
Barbara Zumwalt
Phone: 916-414-1440
M–F, 8 a.m. – 5 p.m. PDT
Newsroom@CalSTRS.com
About CalSTRS
CalSTRS provides a secure retirement to more than 1 million members and beneficiaries whose CalSTRS-covered service is not eligible for Social Security participation. On average, members who retired in the 2024–25 fiscal year had 24.9 years of service and a monthly benefit of $5,740. Established in 1913, CalSTRS is the largest educator-only pension fund in the world with $415.4 billion in assets under management as of June 30, 2026.