CalSTRS released its latest semi-annual performance reports to the Teachers’ Retirement Board’s Investment Committee at the September 2024 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 June 30, 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 March 31, 2024.

The reports allow the board to monitor investment performance for fiscal year 2023–24 and the 3-, 5- and 10-year results ending June 30, 2024. Representatives from consulting firm Meketa Investment Group reminded board 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

The CalSTRS Investment Portfolio registered an 8.4% gain in the fiscal year ending June 30, 2024. During the last six months of the fiscal year, the value of CalSTRS' total portfolio rose by $14.4 billion (net of fees, contributions and benefits) to $341.4 billion. In the 12 months ending June 30, 2024, the value of the portfolio rose by $25.8 billion.

Real Estate Strategy

The Real Estate Portfolio has outperformed its target return benchmark over the last decade and outperformed inflation over the 5- and 10-year time horizons. As of March 31, 2024, the Real Estate Portfolio value was approximately $47.3 billion, which was 13.9% 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 March 2024, the Private Equity Portfolio value was approximately $53 billion, which was 15.8% of the total fund.

Semi-annual reports are presented to the board at the March and September meetings.