CalSTRS released its latest semiannual performance reports to the Teachers’ Retirement Board’s Investment Committee during the September meeting. These reports—Investment Performance at-a-Glance (a summary of each asset class) and specific performance reports for Real Estate and Private Equity—aid the Investment Committee in overseeing the Teachers’ Retirement Fund.

The Investment Performance at-a-Glance report reflects the six months ending June 30, 2026. Due to the nature of the investments, timing of appraisals and partnership reporting, Real Estate and Private Equity reports cover the six months ending March 31, 2026.

The board reviewed these reports to monitor investment performance for fiscal year 2025–26 and the 3-, 5-, 10- and 30-year results ending June 30, 2026. As a long-term investor, the focus should be on the 5- and 10-year time periods, which met or exceeded the 7% actuarial assumed rate of returns.

The reports demonstrate that CalSTRS’ long-term investment strategy has resulted in a diversified, resilient portfolio able to weather short-term volatility and uncertainty.

Here are highlights from each report:

Investment performance

The CalSTRS Investment Portfolio gained 13.9% in the fiscal year ending June 30, 2026, outperforming its policy benchmark by approximately 0.4%. During the latest six-month period, the value of the total portfolio rose by $23.2 billion (net of fees, contributions and benefits) to $415.4 billion.

The fund benefited from strong returns in the Private Equity, Inflation Sensitive and Risk Mitigating Strategies portfolios. Regardless of single-year performance, CalSTRS is focused on its role as a long-term investor to fulfill our mission to ensure a secure retirement for California’s public-school educators.

Real Estate performance

The Real Estate Portfolio has outperformed its target return benchmark over the last decade and outperformed inflation over the 10-year time horizon by 0.9%.

As of March 31, 2026, the Real Estate Portfolio value was approximately $49.4 billion, which was 12.6% of the total fund.

Private Equity performance

Despite a slight 1.9% decline over the six months ending March 31, 2026, the long-term performance of the Private Equity Portfolio remains strong on its own as well as compared to benchmarks. The Private Equity Portfolio outperformed the Custom State Street Index, which is used to evaluate performance against other institutional investors, in the 12-month period ending March 31, 2026.

As of March 31, 2026, the Private Equity Portfolio value was approximately $58.7 billion, which was 15% of the total fund.

The board receives semiannual reports at the March and September meetings.