CalSTRS earns 8.5% net return, exceeds benchmark in fiscal year 2024–25
News release | Barbara Zumwalt
WEST SACRAMENTO, Calif. (July 30, 2025)—The California State Teachers’ Retirement System (CalSTRS) today announced an 8.5% net return on investments for the 2024–25 fiscal year, ending with the total fund value at $367.7 billion as of June 30, 2025.
CalSTRS is a long-term investor with a goal of achieving an average return of 7.0% to meet pension obligations. The 2024–25 return keeps CalSTRS on track, as the 5-,10-, 20- and 30-year returns, including the 9.4% 5-year return, all surpass the actuarial assumption of 7.0% despite inflation, rising interest rates and geopolitical uncertainty.
“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 Chief Executive Officer Cassandra Lichnock. “This strong return marks another step as we continue our steady progress toward achieving full funding.”
CalSTRS is ahead of schedule to reach full funding by 2046. The CalSTRS funded status was 76.7% as of June 30, 2024, the seventh consecutive year the funded status has increased. It has grown more than 14% (from 62.6% to 76.7%) since 2017. Funded status refers to the ratio of CalSTRS’ assets to its total liabilities.
The next actuarial valuation of the Defined Benefit Program, which will include an updated funded status, will be released in May 2026.
“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," Chief Investment Officer Scott Chan said. “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."
Public Equity investments showed the strongest returns, at 16.3%. Private Equity (9.7%), Collaborative Strategies (8.2%), Inflation Sensitive (8.1%) and Fixed Income (6.5%) also reflected positive returns.
CalSTRS exceeded its total fund benchmark in fiscal year 2024–25 by 0.1%. Benchmarks are set by the Teachers’ Retirement Board, which administers CalSTRS. Asset classes and the CalSTRS Investment Portfolio are measured against the benchmarks. Comparing the CalSTRS performance to these benchmarks identifies the contribution or loss caused by manager performance and strategic asset allocation decisions.
CalSTRS fiscal year 2024–25 returns (net of fees)
| CalSTRS asset class/strategy | 10-year % return | 5-year % return | Fiscal year 2024–25 portfolio % return | Fiscal year 2024–25 custom benchmark % return | Fiscal year 2024–25 over/under performance (%) |
|---|---|---|---|---|---|
| Public Equity (1) | 10.3 | 13.8 | 16.3 | 16 | 0.3 |
| Fixed Income (2) | 2.3 | -0.1 | 6.5 | 6.3 | 0.2 |
| Real Estate (1,2) | 6 | 3.2 | -3 | 1.2 | -4.2 |
| Private Equity (1,2) | 12.9 | 17.3 | 9.7 | 8.2 | 1.5 |
| Risk Mitigating Strategies | 1.2 | 1.1 | -7.2 | -4.6 | -2.6 |
| Inflation Sensitive (2) | 7.9 | 10.1 | 8.1 | 5.3 | 2.8 |
| Collaborative Strategies (1,2) | 8.1 | 11.3 | 8.2 | 7.3 | 0.9 |
| Total fund performance | 8.1 | 9.4 | 8.5 | 8.4 | 0.1 |
(1) Includes Sustainable Investment & Stewardship Strategies public and/or private investments.
(2) Private asset valuations are as of March 31, 2025, and adjusted for cash flows through June 30, 2025.
As of June 30, 2025, the CalSTRS Investment Portfolio holdings were 41.25% in U.S. and non-U.S. stocks (Public Equity); 15.14% in Private Equity; 12.78% in Real Estate; 11.96% in Fixed Income; 7.27% in Risk Mitigating Strategies; 6.92% in Inflation Sensitive; 2.84% in Strategic Overlay and Cash, and 1.84% in Collaborative Strategies.
CalSTRS’ public assets are valued through June 30, 2025, while private assets are cashflow-adjusted and valued through March 31, 2025. 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 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 2023–24 fiscal year had 25.2 years of service and a monthly benefit of $5,659. Established in 1913, CalSTRS is the largest educator-only pension fund in the world with $367.7 billion in assets under management as of June 30, 2025.