CalPERS earned an 11.6% return on its investments for the fiscal year ending June 30, 2025, according to preliminary data. This marks the strongest one-year performance of the Public Employees’ Retirement Fund since 2021 and boosted the value (PDF) of the fund’s assets to $556.3 billion.
This is noteworthy as the fund’s investment earnings are the primary revenue source to pay retirees and beneficiaries.
CalPERS made $32.8 billion in retirement payments in the 2023-24 fiscal year, with payments averaging $3,646 per month. We understand that members, who have dedicated their careers to serving California, count on these payments to retire with dignity.
We are committed to delivering on our pension obligations for generations to come and strong returns help to make that happen.
Contributing to a Stronger Fund
The CalPERS funded status, a key statistic used to measure the fund’s ability to meet our obligations, is trending higher.
It jumped from 71.4% in 2023 to nearly 80% in 2025. That also bodes well for the strength of the fund.
This is in large part due to the strong investment returns earned in fiscal year 2024-25 and in the prior year. The 2023-24 returns were 9.3%.
Exceeding Investment Expectations
The 11.6% return is important for two other reasons.
We have estimated that our investments must earn a 6.8% return or more each year over the long-term to fulfill our financial commitments to members. This is known as a discount rate and exceeding it by nearly 5% helps us to achieve that goal.
As a long-term institutional investor, it is important to note that our average annual return over the last 30 years now stands at 7.6%.
Grading Our Work
Finally, investors working at CalPERS need to grade the results of their work—the portfolio’s annual return—against the performance of a similar portfolio made up of stocks, bonds, and other assets. This is a benchmark.
CalPERS’ 11.6% return beat the benchmark by 1.7%.
So, what drove the strong performance?
How We Seized Market Opportunities
The composition of an investment portfolio is a major factor in how well it performs. Diversification is vital for the success of a portfolio.
Our team understands that a diverse portfolio can capture market opportunities and reduce risk. In fact, CalPERS has a fiduciary duty to members to maximize returns under state law.
So, we invest in real estate, publicly and privately held companies, and bonds, and we lend funds to creditworthy businesses operating across the U.S. and the world.
Diversified portfolios tend to be resilient in the face of economic headwinds and generate stable returns over the long-term.
This approach worked well for CalPERS in the 2024-25 fiscal year.
Public and Private Equity Led the Way
Our investments in publicly traded companies, referred to as the global public equity asset class, earned a 16.8% return. This asset class makes up about 39% of the portfolio.
Investments in private equity—companies whose shares cannot be bought on a public stock exchange—also saw strong gains that bolstered the total fund: It achieved a 14.3% preliminary return.
This stems from a private equity strategy (PDF) that allocates investments directly into companies, cutting out the middleman in many transactions. This strategy saves us money and is credited with a 10% cut in the management fee we have had to pay over the last few years.
It is worth pointing out that private equity has also been CalPERS’ top-performing asset class over the last 20 years and was ranked as the best-performing program among our peers in calendar year 2024.
Our private equity assets are valued at nearly $100 billion.
We are confident in private equity’s long-term value and believe it will outperform public equity over time, and that our members deserve access to its higher returns.
Our other asset classes (private debt, fixed income, and real assets) also made gains, further contributing to the strong returns in the 2024-25 fiscal year.
Looking Ahead and More Information
There is more work to be done, but we are proud of the progress we have achieved in the wake of the pandemic and its economic impacts. We remain dedicated to growing and strengthening the fund to benefit our members and beneficiaries.
CalPERS publishes annual reports documenting our finances, investments, and the fees paid to managers to be as transparent as possible about our work. We encourage members to look them over.
You may also visit the CalPERS Investment Office webpage to learn more about our investments.