Ohio Teacher System Posts Near 23% Return

August 12, 2011 (PLANSPONSOR.com) - Final fiscal year returns show the State Teachers Retirement System of Ohio’s (STRS Ohio) Total Fund returned 22.6% for the year ending June 30, 2011, the system’s best annual return since 1983.

STRS Ohio’s assets stood at $66.2 billion at fiscal year end, an increase of $9.3 billion in the last 12 months.  

A press release said a 33.2% return in the domestic equity portfolio led the performance, as returns in all asset classes beat their respective benchmarks for the year. Four asset classes (domestic equities, international equities, real estate and alternative investments) showed returns greater than 20% for the year.   

STRS Ohio’s Total Fund return beat its performance benchmark by 0.23%, meaning the system’s active management of the funds — rather than relying on index funds — added approximately $122 million in value during the fiscal year.  

STRS Ohio’s Total Fund return has exceeded its benchmark in eight of the past 10 years.  

In addition, final figures for fiscal year 2011 (July 1, 2010–June 30, 2011) show that STRS Ohio’s total operating expenditures were approximately $3.7 million less than budgeted for the year. Less-than-expected expenditures for custodial banking fees and performance incentive payments to Investment staff accounted for most of the savings.