Among asset classes, private equity was one of the top performers, trailing only public equities (16.9%) and collaborative strategies (11.1%). The report credited direct lending exposure for collaborative strategies' success, while infrastructure and commodities fueled an 8.4% gain in inflation-sensitive assets. Private equity remains a key driver of CalSTRS' long-term returns. Over the past 10 years, the pension fund has posted an annualized return of 7.8%, exceeding its 7.4% benchmark. Its 30-year average stands at 8.1%, well above the 7% target. Currently, CalSTRS allocates 15.4% of its portfolio to private equity, slightly above its 14% target. The fund continues to expand its private equity exposure, using direct investments and partnerships to optimize risk-adjusted returns. While most asset classes performed well, real estate struggled, delivering a -9.7% return and falling short of its -8% benchmark. Fixed income (1.8%) and risk-mitigating strategies (2%) posted modest...
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