Fiscal 2021 Investment Plan Calls for At-To-Below Policy Returns in the Year Ahead
Each June, STRS Ohio Investment staff presents its Investment Plan for the upcoming fiscal year to the State Teachers Retirement Board. The plan details staff’s investment strategy for each asset class that make up the system’s investment fund. Fiscal year 2021 runs from July 1, 2020–June 30, 2021. The fiscal 2021 Investment Plan projects a combined overall return among all asset classes for the upcoming year at-to-below STRS Ohio’s policy objective investment returns of approximately 6.84% (assuming the total fund’s current asset allocation). The plan forecast is for U.S. inflation to remain low and the economic recovery to be uneven across countries, with several factors — including health-related lockdowns and cautious spending by consumers and businesses — making it difficult to regain all of the lost output from their recessions.
The Retirement Board’s investment consultants, Callan and Cliffwater LLC, reviewed and expressed support for the Investment Plan. The plan is available on the STRS Ohio website or by calling STRS Ohio’s Member Services Center toll-free at 888‑227‑7877.
NRS/STRS Ohio Website Offers Helpful Resources to Members
STRS Ohio has contracted with Nationwide Retirement Solutions (NRS) as administrative service provider for the defined contribution aspects of the STRS Ohio benefits. No matter where you are in your career in education, STRS Ohio and NRS are ready to provide you with the tools you need to reach your retirement goals. The NRS/STRS Ohio website is a useful resource that offers:
- Secure access to your online account
- Instructions on how to read your quarterly statement
- A Learning Center that includes financial tools and calculators
- An online retirement planning tool called My Interactive Retirement PlannerSM that helps you assess your retirement readiness
NRS has a successful history of providing quality service and is committed to achieving the highest quality standards in service for STRS Ohio members. If you need more personalized assistance, you can reach an NRS Retirement Specialist toll-free at 866‑332‑3342.
Target Choice 2020 to Close in December
The STRS Target Choice 2020 allocation option reaches its target date at the end of this calendar year. If you are invested in the STRS Target Choice 2020, you will need to reallocate those assets to other STRS Ohio investment options. If no other option is chosen by the end of December, your accumulated value in the Target Choice 2020 will automatically roll into the Target Choice that immediately precedes your 60th birthday. You can manage your allocation options through your online account or by calling Nationwide Retirement Solutions toll-free at 866‑332‑3342.
Investment Choice Profile
This quarter’s SmartTALK profiles the STRS Russell Midcap Index Choice.
This allocation choice is intended to closely match the return of the Russell Midcap Index, before fees. The Index is composed of approximately 800 stocks chosen for their midsize market capitalization and industry group representation. Companies in the Information Technology, Industrials, Consumer Discretionary, Health Care and Financial sectors make up approximately 70% of the Index. Top holdings include Fiserv Inc, Advanced Micro Devices Inc., Global Payments Inc., Dollar General Corp., Newmont Corp. and L3Harris Technologies Inc. Intermediate and long-term performance figures for this allocation choice are provided in the Investment Performance Report.
The Russell Indices are a trademark of FTSE International Limited (FTSE) and Frank Russell Company (Russell) and their respective subsidiary undertakings, which are members of the London Stock Exchange Group plc group. STRS Ohio investment choices are not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation, warranty or guarantee regarding the use of Russell Indices or the advisability of investing in the investment choices.
How Do the STRS Target Choice Funds Work?
Generally speaking, many experts agree that as your retirement date draws near, a gradual move to lessen the risk in your portfolio makes sense. This can include a shift to greater exposure to fixed-income securities and reduced exposure to equities in an effort to reduce volatility. STRS Ohio offers eight Target Choice allocation options that do just that. These options are blended portfolios with a mix of fixed income, domestic and international equities and real estate. Each of these options targets a date in the future that would roughly match a participant’s expected retirement date. As the target date approaches, the investment mix becomes more conservative. You can learn more about these Target Choice options on the STRS Ohio website, and you can discuss your investment strategy with a retirement specialist at Nationwide Retirement Solutions by calling toll-free 866‑332‑3342.