California Teachers' Retirement Investments: Unveiling The Portfolio

The California State Teachers' Retirement System (CalSTRS) is the largest educator-only pension fund in the world, providing retirement, disability, and survivor benefits for almost a million educators and their families. As of May 2024, CalSTRS's assets totalled approximately $337.9 billion, with investments in stocks, bonds, real estate, and short-term investments. The fund's investment portfolio is broadly diversified into seven asset categories, including private equity, real estate, and sustainable investing. CalSTRS's investment philosophy focuses on long-term patient capital, aiming to buy long-term net cash flows and capital gain potential at a reasonable price. The fund also advances sustainability practices to promote long-term value creation, responsible investment, and stewardship of natural resources.

The California State Teachers' Retirement System (CalSTRS) is the largest educator-only pension fund in the world

CalSTRS is committed to sustainable investing and advancing sustainability practices that promote long-term value creation, responsible investment, and stewardship of natural resources. The fund has also taken action to address climate risk, such as integrating climate scenarios into its asset liability modelling study and divesting from companies that manufacture weapons illegal in California.

As of June 30, 2022, CalSTRS managed a portfolio worth approximately $348 billion, with $48 billion in liabilities, resulting in a net pension position of $300 billion. The fund's investments are diverse, with holdings in over 3,800 North American companies as of May 2009. The Teachers' Retirement Board is responsible for maintaining the Teachers' Retirement Fund, which holds the assets of various programs, including the Defined Benefit Supplement and Cash Balance Benefit.

CalSTRS is the second-largest pension fund in the United States and the eleventh largest public pension fund in the world. The fund's investment portfolio is broadly diversified into seven asset categories, and its investment philosophy focuses on long-term patient capital, buying long-term net cash flows and capital gain potential at a reasonable price.

As of May 2024, CalSTRS had assets worth $337.9 billion

The California State Teachers' Retirement System (CalSTRS) is the largest educator-only pension fund in the world and the second-largest pension fund in the US. It was established by law in 1913 to provide retirement benefits to California's public-school educators from prekindergarten through community college.

CalSTRS's investment philosophy is centred around long-term patient capital, which involves buying long-term net cash flows and capital gain potential at a reasonable price. The fund also prioritises sustainability practices that promote long-term value creation, responsible investment, and stewardship of natural resources.

CalSTRS's key goal in asset allocation is to maximise the likelihood that an investment portfolio's assets will fund plan benefits over the planning horizon. As of June 30, 2022, its asset allocation included 15.5% in private equity, 8.8% in risk-mitigating strategies, 6.1% in inflation-sensitive investments, and 8.8% in innovative strategies and strategic overlays.

The fund's investment portfolio includes stocks, bonds, real estate, and short-term investments

The California State Teachers' Retirement System (CalSTRS) is the largest educator-only pension fund in the world. It was established by law in 1913 to provide retirement, disability, and survivor benefits for California's educators, from pre-kindergarten through community college. As of May 31, 2024, CalSTRS's assets totalled approximately $337.9 billion.

The CalSTRS investment portfolio includes stocks, bonds, real estate, and short-term investments. As of June 30, 2022, the fund's portfolio was worth approximately $348 billion, with $48 billion in liabilities, leaving a net pension position of $300 billion. The fund's investments create a stream of income to add to its assets, which come from contributions by members, employing school districts, investment earnings, and appropriations from the State of California's General Fund.

CalSTRS's investment portfolio is broadly diversified into seven asset categories. The fund's investment philosophy is centred around long-term patient capital, which involves buying long-term net cash flows and capital gain potential at a reasonable price. This approach aims to manage the growth of assets prudently and establish a clear investment policy.

In addition to its financial goals, CalSTRS also prioritises sustainability practices that promote long-term value creation, responsible investment, and stewardship of natural resources. The fund has advanced sustainability initiatives and integrated climate scenarios into its asset liability modelling studies. For example, CalSTRS has supported initiatives for better corporate governance and has divested from gun manufacturers and fossil fuel companies.

CalSTRS has a net pension position of $300 billion as of June 2022

The California State Teachers' Retirement System (CalSTRS) is a pension fund that provides retirement, disability, and survivor benefits for California's educators and their families. As of 2022, CalSTRS is the largest educator-only pension fund in the world, and the second-largest pension fund in the US.

The fund's investment portfolio is broadly diversified, with assets allocated across seven categories, including stocks, bonds, real estate, and short-term investments. The key goal of CalSTRS' asset allocation process is to maximise the likelihood that the investment portfolio's assets will fund plan benefits over the planning horizon. As of June 2022, 15.5% of the portfolio was allocated to private equity, 8.8% to risk-mitigating strategies, 6.1% to inflation-sensitive strategies, and 8.8% to innovative strategies and strategic overlays.

CalSTRS's investment philosophy is centred around long-term patient capital, which involves buying long-term net cash flows and capital gain potential at a reasonable price. The fund also prioritises sustainable investing, advancing practices that promote long-term value creation, responsible investment, and stewardship of natural resources.

The pension fund's net position has grown significantly over time. As of October 31, 2020, CalSTRS managed a portfolio worth $254.7 billion. The growth in assets can be attributed to contributions from members, employing school districts, investment earnings, and appropriations from the State of California's General Fund.

The fund's investments are managed by private equity and hedge funds

The California State Teachers' Retirement System (CalSTRS) is the largest educator-only pension fund in the world, providing retirement, disability, and survivor benefits for California's 965,000 prekindergarten to community college educators and their families. Established in 1913, CalSTRS is also the largest teachers' retirement fund and the eleventh-largest public pension fund in the world.

The Teachers' Retirement Fund is a special trust fund that holds the assets of programs such as the Defined Benefit Supplement and the Cash Balance Benefit. The assets of the fund come from contributions by members, employing school districts, investment earnings, and appropriations from the State of California's General Fund. The fund's investments are managed by private equity and hedge funds, creating a stream of income to add to its assets.

CalSTRS's investment portfolio is broadly diversified into seven asset categories, including stocks, bonds, real estate, and short-term investments. As of May 31, 2024, CalSTRS's assets totaled approximately $337.9 billion. The investment portfolio's performance is closely monitored, with semi-annual and quarterly reports available for review.

The investment philosophy of CalSTRS is centered around long-term patient capital, aiming to buy long-term net cash flows and capital gain potential at a reasonable price. The organization also prioritizes sustainable investing, advancing practices that promote long-term value creation, responsible investment, and stewardship of natural resources.

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