The California State Teachers’ Retirement System achieved an 8.4% return in its fiscal year 2024, a period ending June 30, the fund announced on Tuesday. Like most other funds this year, that return was boosted by strong public equities returns, for CalSTRS, that asset class returned 19%.
“A year of strong performance in the global public markets underscores the importance of our highly diversified portfolio,” CalSTRS CIO Scott Chan said in a statement. “As long-term investors, we prioritize sustained returns over decades. Our track record of consistent returns, above our 7.0% investment assumption, demonstrates our effective approach to investing.”
The fund also saw strong returns from its collaborative strategies, a set of investments across the public and private markets in unique and innovative opportunities, these investments typically have increased control from CalSTRS and lower fees. This asset class returned 14.4% in the fiscal year, reported on a one quarter lag.
The fund’s private equity portfolio returned 8.6%, inflation sensitive assets returned 3.2%, and risk-mitigating strategies returned 2.6%. The only negative returning asset class, real estate, returned negative 2.8%.
Over the past five, 10, 20 and 30 years, the fund has returned an annualized 8.5%, 7.7%, 7.6%, and 8.1% respectively. The fund aims to surpass an actuarial return assumption of 7%, the fund’s benchmark, and the return needed to meet the fund’s pension obligations.
The fund reported an asset allocation of $41.4% to U.S. equities, 15.5% to private equity, 13.9% to real estate, 11.2$ to fixed income, 8.4% to risk mitigating strategies, 6.3% to inflation sensitive assets, 1.7% to strategic overlay assets and cash, and 1.6% to collaborative strategies.
CalSTRS manages pensions for more than one million beneficiaries, current and retired teachers of California.
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Tags: California, California State Teachers’ Retirement System, CalSTRS, Pension, Pensions, Retirement System, Scott Chan