CalSTRS logs first negative return since 2009

The California State Teachers’ Retirement System (CalSTRS) has disclosed a –1.3 percent net return on investments for the 2021 to 22 fiscal year — its first negative return since 2009.

CalSTRS said this reflects the ongoing volatility of global financial markets because of inflation, rising interest rates, the COVID-19 pandemic and the war in Ukraine.

Due in part to 2020-21’s record-breaking return of 27.2 percent, CalSTRS is poised to be fully funded by 2046. As of June 30, CalSTRS was 73-percent funded.

“As long-term investors, we think in terms of decades. One-year returns are akin to the pace of running a mile during a marathon,” said Christopher Ailman, CIO of CalSTRS. “In a very challenging and unusual market environment where both equities and bonds were down double digits, our diversified portfolio mitigated losses to produce a net –1.3 percent return. Despite the market turbulence, I’m proud our investment team outperformed our total f