The California Public Employees’ Retirement System reported Monday a preliminary 14.8% return in the 2025-26 fiscal year, the one-year period ending June 30, with strong returns coming from public and private equity.
As of June 30, CalPERS managed $637.1 billion in assets and saw its funding ratio increase to 85% at the end of fiscal 2025-26 from 79% at the end of fiscal 2024-25.
“Our team has maintained a disciplined approach to building the health of the pension system, and our improved funded status shows this effort is paying off for our 2.4 million members,” CalPERS CEO Marcie Frost said in a statement. “We will maintain this focus as we build toward full funding, resisting external distractions that could increase costs or force us to forgo investment returns.”
Public equities returned 24.1% and fixed income returned 5.9%. Private equity, private debt and real assets, all reported on a one-quarter lag, returned 17%, 11% and 6.3%, respectively.
CalPERS attributed strong private equity returns to its 2022 overhaul of its private equity strategy, overseen by Anton Orlich. At the time, CalPERS shifted its focus on lower-cost structures and diversification away from large-buyout funds and toward venture, growth and middle-market buyout.
Over the past 5-, 10- and 20-year periods, the fund’s returns stand at 6.83%, 8.57% and 6.81%, respectively.
At the beginning of July, CalPERS formally adopted a total portfolio approach, which had been approved by its board in November 2025.
“Our total portfolio approach will mean we will be focusing more on the best investments for the whole portfolio level, rather than just for any individual asset class,” CalPERS CIO Steven Gilmore said in a statement. “We will regularly and publicly measure the performance of our active approach compared with a standard reference portfolio of 75% global equities and 25% U.S. Treasury bonds, ensuring that we are really delivering value for our members.”
CalPERS manages retirement assets for more than 2.4 million members.
Tags: California Public Employees’ Retirement System, CalPERS
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