Fiscal 2023 Investment Plan Projects Returns Near Policy Objective Return of 6.03% in the Year Ahead
During its June presentation to the Retirement Board, STRS Ohio Investment staff shared its Fiscal 2023 Investment Plan. The plan details the investment strategy for each asset class in the system’s portfolio. The plan projects investment returns for fiscal 2023 (July 1, 2022–June 30, 2023) to be at or near STRS Ohio’s 6.03% policy objective, assuming the fund’s current allocation. The plan is available here.
The Retirement Board’s investment consultants, Callan LLC and Cliffwater LLC, expressed their support for the Investment Plan. STRS Ohio’s plan and forecast is designed for a large institutional investor and may not be appropriate to an individual investor’s portfolio allocation, time horizon or risk tolerance. Like all economic forecasts, it should not be relied upon as an indicator of future results. For more personalized assistance, you can reach a Nationwide Retirement Solutions (NRS) retirement specialist toll-free at 866‑332‑3342.
NRS/STRS Ohio Website Offers Helpful Resources for Retirement Planning
No matter what point you are at in your teaching career, STRS Ohio and Nationwide Retirement Solutions (NRS) offer resources to assist in planning for a sound retirement. The NRS/STRS Ohio website offers useful tools and tips, including:
- Secure access to your online account
- Financial tools and calculators
- An online retirement planning tool called My Interactive Retirement PlannerSM that helps you assess your retirement readiness
NRS 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.
STRS Ohio and NRS offer you online access to your defined contribution account. This allows you to see your daily account balance, set allocation for future contributions, exchange existing balances from one investment choice to another, check on the performance of your investment choices and more. You can register for an online account through the NRS/STRS website.
Investment Choice Profile
This quarter’s SmartTALK profiles the STRS MSCI ACWI ex USA Index Choice.
The STRS Russell MSCI ACWI ex USA Index Choice is intended to closely match the return of the Morgan Stanley Capital International (MSCI) ACWI ex USA Index, before fees. This investment choice is based on the share price of approximately 1,900 companies listed on stock exchanges in 22 developed and 24 emerging countries. Companies listed on exchanges in Japan, the United Kingdom, China, Canada, France, Switzerland, Germany and Australia make up about 65% of the index.
This investment option is intended as a long-term investment choice due to the higher volatility of returns of international stocks over short-term periods. Risks of international investments include (but are not limited to) currency fluctuation, political instability and different security exchange regulations, which can adversely affect performance. Intermediate and long-term performance figures for this and all investment choices are provided on the Investment Performance Report.
What is meant by a “bear market”?
A “bear market” is a market downturn — typified by a broad market index loss of 20% or more from a recent high. The S&P 500 recently reached bear market territory in mid-June. A diversified portfolio can be a good defense during a down market, as some asset classes will perform better than others. It’s also important to remember that your contributions throughout the year are invested according to your allocation instructions, so you are dollar-cost averaging, which helps to smooth out fluctuations in your purchase prices over time. When the market is down, you are buying in at lower prices.
If you have questions about your asset allocation, you can talk it over with a Nationwide Retirement Solutions retirement specialist by calling NRS toll-free at 866‑332‑3342.
If you have any questions about the material in this newsletter, please contact STRS Ohio toll-free at 888‑227‑7877. This newsletter is intended merely as a general information reference for members of STRS Ohio. This newsletter is not intended as a substitute for applicable federal or state law, nor will its interpretation prevail should a conflict arise between its contents and applicable federal or state law. Before making decisions regarding your retirement, you should always consult with STRS Ohio as well as your personal tax, legal and financial advisors, as appropriate.