Hayden Recognized for Board Service
At the August meeting of the State Teachers Retirement Board, Chair Robert Stein recognized contributing member Taiyia Hayden for her nearly 13 years of service on the board. Hayden was the longest serving member on the current board. Her service began in December 2006 and ended with the August 2019 meeting. Stein thanked her for her thoughtful, deliberative nature and her ability to work effectively with a diverse group of fellow board members over the years.
STRS Ohio Total Investment Return was +7.13% for Fiscal 2019
STRS Ohio Investment Department staff reported that STRS Ohio’s total investment return for the fiscal year ending June 30, 2019, was +7.13%. This follows returns of +9.57% in fiscal 2018 and +14.29% in fiscal 2017. Total investment assets increased by $1.1 billion during fiscal 2019 and ended at approximately $78.9 billion (after benefit payments of approximately $7.5 billion).
The fiscal 2019 return slightly trailed the assumed investment return of 7.45% and was just below the total investment benchmark return of 7.30%. Despite volatile markets through much of the year, STRS Ohio’s total investment return ranked in the top 20% of Callan’s public fund sponsor database. Callan serves as an investment consultant to the Retirement Board. Callan also shared at the board meeting that STRS Ohio’s total investment returns ranked in the top 10% of its public fund sponsor database for the three-, five-, seven- and 10-year time periods ending June 30, 2019.
During the board’s October meeting, actuarial consultant Cheiron will present the results of its annual pension valuation report. The report will show the actuarial impact of the investment return as well as how other economic and demographic factors affected the retirement system’s funding position. STRS Ohio’s estimated net position (including all system assets and liabilities) is $79.7 billion as of June 30, 2019.
|STRS Ohio Investment Returns Over Various Time Periods|
|5-year total investment return||7.38%|
|10-year total investment return||10.44%|
|20-year total investment return||6.51%|
|30-year total investment return||8.33%|
|Current assumed actuarial rate of return||7.45%|
Fiscal 2019 Operating Expenses Total $1 Million Less Than Budgeted Amount
Final figures for fiscal 2019 show that STRS Ohio’s operating expenses were approximately $1,048,000 less than the operating budget approved for the fiscal year. Administrative expenses totaled $100.7 million for the fiscal year ending June 30, 2019. STRS Ohio posts approved administrative expenses on its website following each board meeting.
The Retirement Board approved 1,242 active members and 131 inactive members for service retirement benefits.