By Muskan Arora
The $341.4bn California State Teachers’ retirement System
has returned 8.4% for the 2024 fiscal year, beating its benchmark of 7.4%.
CalSTRS’ most recent gains also exceeded prior year’s gains
at 6.3% and pension funds’ 7% assumed rate of return.
The system’s funded status was 75.9% as of June 30, 2023, as
its funded status has continuously been increasing for six years.
The pension plan is ahead of its schedule of reaching a
fully funded status by 2046.
Following its trajectory of positive returns, the system
returned 8.5% for its five-year period, 7.7% for its 10 years, 7.6% for its
20-year and 8.1% for its 30-year period, against a benchmark of 7.7%, 7.3%,
7.5% and 7.8%.
A year of strong performance in the global public markets
underscores the importance of our highly diversified portfolio,” said CIO Scott
Chan, in the press release.
The system’s public equity allocations had the strongest
returns at 19%, outperforming its benchmark at 18.6% alongside collaborative
strategies which had a return of 14.4%, against its benchmark of 8.8%.
Positive returns were also delivered by private equity at
8.6% with a benchmark of 6.6%, inflation Sensitive at 6.4% against a benchmark
of 5.2%, fixed income at 3.2%, outperforming benchmark at 3% and risk
mitigating strategies at 2.6% vs 1.8% benchmark.
However, the real estate sleeve returned -9.8%, yet still
exceeded its benchmark at -12%.
