“We’ve built our portfolio for long-term performance, but this year’s results were nothing short of spectacular.”

-Christopher J. Ailman, CalSTRS Chief Investment Officer

WEST SACRAMENTO, Calif. (July 26, 2021) — The California State Teachers’ Retirement System (CalSTRS) today announced a 27.2% net return on investments for the 2020–21 fiscal year, a record high that far exceeded the investment assumption of 7.0%. Growth was driven by strong performance across all markets, despite the global pandemic. As of June 30, 2021, the total fund value was $308.6 billion—double the value from just 10 years ago.“

This year’s record-breaking investment performance is a testament to the long-term sustainability of a pension fund managed by a dedicated investment team and a committed Teachers’ Retirement Board,” said Chief Executive Officer Cassandra Lichnock. “The fiscal-year returns exceeded all expectations. They also offer another measure of how we’re delivering on our promise to provide California’s hard-working teachers and their families with a secure retirement.”

Click HERE to read the full article from CalSTRS.

TRiGroup’s Advice: These are promising developments that have potential to impact how the State expects Districts and individuals to contribute to this retirement system. However, nothing yet has been announced regarding any changes. So, when developing and monitoring your budgets, keep the current assumptions in place.