Investments

About 80% of STRS Ohio’s investment assets are managed internally by about 108 Investment Department professionals. These associates oversee diversified portfolios of equity (common and preferred stock), fixed-income, international and real estate investments. The mix of investments is designed to provide high, long-term yields while minimizing exposure to risk.

Average daily transactions in the department include:

• $150 million in liquidity reserves,
• $35 million in fixed income,
• $110 million in domestic equities,
• $60 million in international, and
• $10 million in real estate.

An investment plan is developed annually to govern each year’s investment strategy. A comprehensive investment policy established by the State Teachers Retirement Board provides direction for long-term investment activity.

For the fiscal year ended June 30, 2007, investments provided a 20.73% return, increasing STRS Ohio’s total investment assets (including short-term investments) to $79.6 billion. STRS Ohio’s annualized rate of return over the last three years was 15.51% and 13.17% for the last five years. Similar benchmark returns over the same one-, three- and five-year periods were 19.49%, 14.34% and 12.16%, respectively.