CalPERS Posts 14.8% Preliminary Investment Return for Fiscal Year 2025-26
July 13, 2026
Communications & Stakeholder Relations
Office of Public Affairs
(916) 795-3991 – newsroom@calpers.ca.gov
SACRAMENTO, Calif. — Strong performance in both its public and private equity portfolios helped the California Public Employees’ Retirement System (CalPERS) achieve a preliminary net investment return of 14.8% for the 12-month period ending June 30, 2026, the pension system reported Monday.
The 2025-26 fiscal year return exceeded both last year’s 11.6% performance and the assumed 6.8% rate of return set by the CalPERS Board of Administration. It is also CalPERS’ highest mark in five years and represents a four-year trend of higher year-over-year results.
The Public Employees’ Retirement Fund (PERF) had $637.1 billion in assets as of June 30 and a funded status of 85%, up from 79% at the end of fiscal year 2024-25.
When Chief Executive Officer Marcie Frost arrived at CalPERS in October 2016, the PERF was 68% funded. The funded status represents the total assets in the fund compared with the pension benefits it is obligated to pay in the future.
“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,” Frost said. “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.”
In recent years, CalPERS has increasingly diversified its portfolio into alternative investment categories such as private equity and private debt, which have the potential to deliver higher returns than the overall market while spreading risk.
Public equity produced the highest preliminary return with a 24.1% gain, reflecting a strong finish for the stock market. Private equity achieved a preliminary return of 17%.
Private equity returns have risen steadily since a 2022 strategy overhaul by Anton Orlich, who in June was promoted from Managing Investment Director of Private Equity to Deputy Chief Investment Officer for Private Markets. Orlich refocused CalPERS’ private equity strategy on manager selection, lower-cost structures, and diversification toward companies in venture, growth, and middle-market buyout.
This month, CalPERS launched its Total Portfolio Approach, approved by the board in November 2025. It gives the investment team more flexibility to evaluate each investment strategy for its potential to benefit the entire fund, rather than sticking to set allocations for each asset class.
“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,” said Chief Investment Officer Stephen Gilmore, who previously oversaw a similar approach at the New Zealand Superannuation Fund. 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.”
Preliminary total fund annualized returns for the five-year period ending June 30, 2026, stood at 6.83%; the 10-year period at 8.57%; and the 20-year period at 6.81%.
Asset Class (by size) | Net Rate of Return (in percent) |
|---|---|
Public Equity | 24.1% |
Fixed Income | 5.9% |
Private Equity1 | 17.0% |
Real Assets1 | 6.3% |
Private Debt1 | 11.0% |
1Private market asset valuations lag one quarter and are as of March 31, 2026.
CalPERS investment and finance staff and outside experts will review the portfolio’s performance in the next few months to finalize the fiscal year returns for 2025-26.
The ending value of the PERF for fiscal year 2025-26 will be based on additional factors beyond investment returns, including employer and employee contributions, monthly payments to retirees, and various investment fees.
Once finalized, the fiscal year-end market value of CalPERS’ assets is used to set contribution rates for the State of California and school districts in the 2027-28 fiscal year and for contracting counties, cities, and special districts in the 2028-29 fiscal year.
Under the current provisions of the CalPERS Funding Risk Mitigation Policy, the board is provided the option of lowering the discount rate when investment returns exceed the established 6.8% discount rate. The Board is scheduled to consider the matter in September.
Please review the annual investment report (PDF) for a comprehensive overview of the fund’s assets.
Media Availability
CalPERS senior leaders will be available virtually on Monday, July 13 at approximately 12:00 p.m. PT to discuss the investment returns. Among those scheduled to speak are:
- Chief Executive Officer Marcie Frost
- Chief Investment Officer Stephen Gilmore
- Deputy Chief Investment Officer, Private Markets, Anton Orlich
Credentialed media can email newsroom@calpers.ca.gov for login information.
About CalPERS
CalPERS is the largest defined-benefit public pension in the U.S., with 2.4 million members. Since 1932, CalPERS has provided retirement security for state, school, and public agency employees who invest their life’s work in public service. In 1962, CalPERS expanded its services to include health benefits and now offers quality health plan coverage for more than 1.5 million members and their families.