Investments

About 80% of STRS Ohio’s investment assets are managed internally by about 115 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, 2008, investments returned –5.44%. Total investments (including short-term investments) decreased to $72.6 billion. STRS Ohio’s annualized rate of return was 9.09% over the last three years and 11.40% for the last five years. Similar benchmark returns over the same one-, three- and five-year periods were –5.79%, 8.11% and 10.38%, respectively.