Investment Approach

CalSTRS is increasingly diversifying its portfolio. Find out how CalSTRS investment assets are allocated across various asset classes.

The California State Teachers' Retirement System, with a portfolio valued at just over $152.9 billion, as of March 31, 2012, is the largest teacher pension fund in the United States. It administers retirement, disability and survivor benefits for California's 856,000 public school educators and their families.

CalSTRS is increasingly diversifying its portfolio into areas such as the Absolute Return asset class, which helps hedge the portfolio against inflation. The strategy using more treasury inflation-protected securities, invests in infrastructure and examines a possible entry into commodities. Also the formation of an innovation and risk office in CalSTRS Investments Branch is charged with looking into new investment strategies, implementing pilot programs and evaluating their effectiveness.