Yesterday, May 19, the Ohio Retirement Study Council (ORSC) released the final report on ORSC’s fiduciary performance audit of STRS Ohio, conducted by Funston Advisory Services. The report states, “The STRS Board has acted in accordance with its fiduciary duties to ensure the sustainability of the fund for the exclusive benefit of current and future members and beneficiaries.”
The report further noted:
- Overall, STRS is operationally excellent with effective operational policies and processes. The STRS system is a generally well-run, high performing operation.
- Investment performance is in the top 25% and costs are consistent with peers.
- Member services are top 10%, and costs are below peers.
- Investment operations demonstrate excellence. The effective use of lower cost in-house management by STRS is at an advanced level.
- STRS appears to be consistent with leading industry practices in all areas of investment performance measurement and monitoring.
- Benchmark development process for the asset portfolio, the calculation of performance results, and the presentation of performance results to the STRS Board are leading practice.
The full 279-page report includes recommendations for improvement in several areas, including governance policies and practices, organizational structure, and stakeholder engagement.
STRS Ohio Executive Director Bill Neville said, “STRS Ohio appreciates ORSC’s oversight and the guidance the fiduciary audit provides. I look forward to reviewing the report’s recommendations with the State Teachers Retirement Board and staff.”