STRS Ohio Returns Take Investment Assets to a Record High

Preliminary results for the fiscal year ending June 30, 2006, indicate that investment assets for the State Teachers Retirement System of Ohio (STRS Ohio) now exceed $65.1 billion — a record high for the pension fund that was established in 1920. This represents an increase of about $6 billion from the $59.1 billion total at June 30, 2005.

Preliminary figures indicate a total fund return of about 13.6% for the past 12 months, from July 1, 2005, through June 30, 2006, with all asset classes beating their benchmark returns. The total fund performance exceeded its passive fund benchmark by 1.2%, meaning the system’s active management of its funds — rather than relying on index funds — added approximately $650 million in net value during the fiscal year. STRS Ohio manages about 80% of its investments in-house.

The approximate makeup of STRS Ohio’s total investment fund (as of June 30, 2006) is as follows:  domestic equities, 42%; international equities, 26%; real estate, 8%; fixed income, 21%; and alternative investments, 3%.

STRS Ohio serves as the pension fund for more than 439,000 public educators, providing retirement and survivor benefits and disability protection.

Return to the list of STRS Ohio news e-mails sent in 2006.