CalSTRS Achieves 7.7% Return in 2024, Assets Reach $349.7B

The California State Teachers’ Retirement System reported a 7.7% return in 2024, according to public meeting materials for the fund’s March 12 board meeting. Assets of the California pension reached $349.7 billion at the end of the year and had reached $352.9 billion at the end of January.

As of December 31, 2024, the fund allocates 40.5% of its portfolio to public equities, 15.4% to private equity, 13.2% to real estate, 12% to fixed income, 8% to risk mitigating strategies, 6.6% to inflation sensitive assets, 2.6% to cash, 1.8% to collaborative strategies and 0.1% to strategic overlay.

Overall, the fund outperformed its policy benchmark of 7% by 70 basis points. Equities were the fund’s highest-performing asset class, returning 16.9%. Collaborative strategies returned 11.1%, followed by private equity (8.9%), inflation-sensitive assets (8.4%), risk-mitigating assets (2.0%) and fixed income (1.8%). Real estate, the fund’s only asset class with a loss for the year, returned negative 9.7%.

Over the past three, five, 10 and 30 years, the fund has posted annualized returns of 3.1%, 7.7%, 7.8% and 8.1%, respectively. CalSTRS’ goal, according to board meeting documents, is to achieve an average 7% annualized return over the next 30 years.

Want the latest institutional investment industry news and insights? Sign up for CIO newsletters. 

In documents from the pension fund’s investment consultant Meketa, the consultant noted a handful of big risks, tied to the new administration’s fiscal policy initiatives, including tariffs, immigration policy, regulation and tax cuts.

“A meaningful portion of the return generated by U.S. equities since 2019 came from multiple expansion, which is unsustainable in the long term,” board documents noted. “Consequently, valuations have again reached extreme levels relative to market history.”

While equities make up 40.5% of CalSTRS portfolio, the asset class accounts for 54.2% of the fund’s portfolio risk. The fund’s biggest sector portfolio exposure is information technology, making up 25% of the public equity portfolio. The largest equity holdings include Apple (4.4%), Nvidia (3.8%), Microsoft (3.5%) and Amazon (2.4%).

CalSTRS manages the investments and retirement benefits for more than 1 million members and beneficiaries, primarily public school educators in California.

CalSTRS Flexes Co-Investing Muscles

Where CalSTRS’ Scott Chan Sees Opportunities

Tags: California State Teachers’ Retirement System, CalSTRS

Mark Berryman

Outsourced CIO firm Capricorn Investment Group LLC announced Mark Berryman and Nick Flores as new partners in the $12 billion firm. Berryman will join the firm’s investment committee, and Flores takes a role as a client adviser.

The appointments will strengthen Capricorn’s OCIO offerings, according to a statement from the firm, which counts families, foundations and other institutional investors as its clients.

Previously, Berryman was a managing director and member of the investment committee at multi-family office firm Caprock. He is also an adjunct professor of impact investing at the Columbia University Business School and was previously lead investment officer at the International Finance Corp.

Flores also hails from Caprock, where he was a managing director and client adviser, co-leading impact investing initiatives. He was also previously a vice president at Emcor Securities and is a climate fellow at Entrepreneurs for Impact.

Want the latest institutional investment industry news and insights? Sign up for CIO newsletters. 

Nick Flores

“We are thrilled to welcome Mark and Nick to Capricorn,” said William Orum, a partner in and investment committee member at Capricorn Investment Group, in a statement. “They are industry leaders who bring a depth of experience in impact investing and in managing mission-aligned portfolios on behalf of families and foundations.”

Berryman earned a bachelor of business administration degree in accounting from the University of Colorado, Boulder, a master’s degree in international business and diplomacy from Georgetown University and an MBA from the Georgetown University McDonough School of Business.

“Capricorn has built a strong reputation for delivering exceptional investment solutions that align capital with purpose,” Berryman said in a statement. “I am thrilled to join this outstanding team and contribute to its mission of driving strong financial performance alongside meaningful, long-term impact.”

Flores earned a bachelor of arts degree in political science and international relations from Stanford University and an MBA from the Stanford University Graduate School of Business.

“For 25 years, Capricorn has demonstrated unwavering support for mission-aligned families and foundations, while also pursuing competitive financial returns in every asset class,” Flores said in a LinkedIn post. “I’m honored to join their values-aligned team and contribute to their continued market leadership.”