CalSTRS released its latest semi-annual performance reports to the Teachers’ Retirement Board’s Investment Committee at the March 2026 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, 2025. Because of 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, 2025.

The reports allow the committee to monitor investment performance for the 2025 calendar year and the 3-, 5- and 10-year results ending December 31, 2025. 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. Meketa, along with State Street Bank Investment Analytics, provided the General Consultant performance report.

Here are highlights from each report:

Investment Performance

For calendar year 2025, the CalSTRS Investment Portfolio gained 13% and outperformed its policy benchmark return by approximately 31 basis points. During 2025, the value of the CalSTRS Investment Portfolio rose by $42.5 billion (net of fees, contributions and benefits) to more than $392 billion.

The Global Equity Portfolio rose 22.8%, led by strong non-U.S. equity market performance. Interest rates fell, driving strong performance in fixed income markets.

Over the longer-term 5- and 10-year periods, the total fund exceeded the 7% assumed actuarial rate of return, supported by strong returns in Global Equity and Private Equity as well as Inflation Sensitive assets. The Inflation Sensitive Portfolio includes assets such as infrastructure and commodities.

Real Estate Strategy

The Real Estate Portfolio has outperformed its target return benchmark over the last decade by 110 basis points, which is equal to 1.1% improved investment performance. As of September 30, 2025, the Real Estate Portfolio value was approximately $47.6 billion, which was 12.4% 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, 2025, the Private Equity Portfolio value was approximately $58.8 billion, which was 15.4% of the total fund.

Staff have increased co-investments, which now represent 24.6% of the Private Equity Portfolio and continue to work toward the goal of 33%. Co-investments are opportunities that require little to no management fees or carried interest. Because of this fee structure, they can enhance returns significantly. The portfolio continues to be well diversified across different strategy types and geographies.