CalSTRS released its latest semi-annual performance reports to the Teachers’ Retirement Board’s Investment Committee at the March 2025 meeting. These reports—Investment Performance (a summary of each asset class), Real Estate Strategy and Private Equity Performance—aid the Investment Committee in overseeing the Teachers’ Retirement Fund.

The Investment Performance report reflects the six-month period ending December 31, 2024. Due to the nature of the investments and timing of appraisals and partnership reporting, the Real Estate Strategy and Private Equity Performance reports cover the six-month period ending September 30, 2024.

The reports allow the committee to monitor investment performance for the 2024 calendar year and the 3-, 5- and 10-year results ending December 31, 2024. Representatives from consulting firm Meketa Investment Group reminded committee members to focus on the longer-term periods rather than single-year returns, which can be volatile.

Here are highlights from each report:

Investment Performance

For calendar year 2024, the CalSTRS Investment Portfolio gained 7.7% and outperformed its policy benchmark return by 70 basis points (0.7%). During 2024, the value of the CalSTRS total portfolio rose by $22.7 billion (net of fees, contributions and benefits) to $349.7 billion.

The Public Equity Portfolio rose nearly 17%, powered by the U.S. equity market and technology stocks fueled by strong demand for AI and cloud computing. Additionally, the CalSTRS’ Collaborative Strategies Portfolio, bolstered by lending investments like private credit, was up 11.1%.

Real Estate Strategy

The Real Estate Portfolio has outperformed its target return benchmark over the last decade and outperformed inflation over the same period. As of September 30, 2024, the Real Estate Portfolio value was approximately $46.5 billion, which was 13.2% of the total fund.

Private Equity Performance

The Private Equity Portfolio yielded a positive return over the past six months and outperformed the Custom State Street Index, which is used to evaluate performance against other institutional investors. As of September 30, 2024, the Private Equity Portfolio value was approximately $55.2 billion, which was 15.7% of the total fund.

The portfolio continues to be well diversified across different strategy types and geographies.