STRS Ohio Returns Take Investment Assets to a Record High

Originally posted July 2, 2007

Preliminary results for the fiscal year ending June 30, 2007, indicate that the market value of investment assets for the State Teachers Retirement System of Ohio (STRS Ohio) now totals about $76.6 billion — a record high for the public pension fund that was established in 1920. This represents an increase of about $11.3 billion from the $65.3 billion total at June 30, 2006.

Preliminary figures indicate a total fund return of 20.4% for the past 12 months, from July 1, 2006, through June 30, 2007, with all asset classes beating their benchmark returns. Overall, the total fund exceeded the composite benchmark return by an estimated 125 basis points or 1.25%. After all direct internal investment costs and external manager costs are subtracted from this gross active management return, the net value added was 110 basis points, or about $675 million for fiscal year 2007. This represents the additional value brought to the funds though active management by STRS Ohio associates and external managers, above and beyond the passive indexing of system assets.

The approximate makeup of STRS Ohio’s total investment fund (as of June 30, 2007) is as follows:  domestic equities, 40%; international equities, 25.5%; real estate, 8%; fixed income, 19%; alternative investments, 3.5%; and liquidity reserves, 4%.