CalSTRS
PensionCalifornia · as of 2024
AUM
$335B
Held in U.S. securities
$138B
41% of AUM
Return target
7.0% (assumed actuarial return)
Asset allocation policy
Target weights set by the board in the plan's Investment Policy Statement. Each class has a rebalancing range — drift outside the range triggers a rebalance; performance is measured against the listed benchmarks.
| Asset class | Target | Range | Benchmark | $ value |
|---|---|---|---|---|
| Global equity | 42% | 35–49% | MSCI ACWI IMI | $141B |
| Real estate | 15% | 9–21% | Custom NCREIF blend | $50B |
| Private equity | 14% | 8–20% | Custom (Russell 3000 + spread) | $47B |
| Fixed income | 12% | 6–18% | Bloomberg U.S. Aggregate | $40B |
| Risk mitigating strategies | 9% | 3–15% | Composite (Treasuries + trend) | $30B |
| Inflation sensitive | 6% | 0–12% | Composite (TIPS + commodities) | $20B |
| Cash | 2% | 0–7% | 90-day T-bill | $7B |
Holdings overview
Internally managed passive U.S. equity sleeve covers most large-cap exposure. Externally allocated to a small number of factor and active mandates. Real estate is one of the larger allocations among U.S. public pensions.
Board mandates
- Pay benefits to California's public school educators (~1 million members).
- Net Zero by 2050 commitment (2021); Climate Action Plan with interim 2030 targets.
- Divested thermal coal (2017) and is reducing carbon-intensive holdings under the Net Zero pledge.
- Roughly 50% of public equity managed internally; private markets via external managers.
- Engagement-first approach to ESG; uses proxy voting rather than blanket divestment outside coal.
Source: www.calstrs.com