CalSTRS said its investment portfolio returned 13.9% net for the fiscal year ended June 30, pushing total assets to $415.4 billion.
The fund beat its total benchmark by 0.4 percentage points, with all asset classes except real estate and collaborative strategies topping their own benchmarks.
Global equities led performance with a 25.1% return, followed by risk-mitigation strategies at 16.8% and inflation-sensitive assets at 13.3%; real estate returned 0.2%.
CalSTRS needs a 7% average return to meet pension obligations, and reported annualized returns of 7% over five years, 9.4% over 10 years, 7.5% over 20 years and 7.8% over 30 years.
The pension system, which serves more than 1 million beneficiaries, last reported a funded ratio of 79.3% for 2024-25, up from 62.6% in 2016-17; its 2025-26 ratio will be updated in May 2027.