Ohio State Teachers Retirement returns 10.5% in fiscal 2024

Ohio State Teachers' Retirement System, Columbus, delivered a net return of 10.5% and a gross return of 10,7% for the fiscal year ended June 30, slightly under the benchmark of 10.8%, based on preliminary figures included among materials related to the Aug. 16 board meeting.

In fiscal 2023, STRS posted a net return of 7.6%.

For the three-, five-, and 10--year periods, the $95.3 billion STRS returned a gross annualized 4.7% (above the benchmark of 4%); 8.9% (8.2%); and 8.1% (7.6%), respectively.

For the 1-year period, domestic equity was the best performing asset class, returning a gross 24.4%; followed by international equity (14.9%); alternative investments (6.9%), liquidity reserves (5.6%); and fixed income (3.6%). Real estate incurred a decline, returning a gross -9.4%.

As of June 30, 2024, the fund’s actual asset allocation was 26.1% domestic equity (26% target); 22% fixed income (22%); 21.9% international equity (22%); 19.9% alternative investments (19%); 8.4% real estate (10%); and 1.6% liquidity reserve (1%).

At the meeting, the board approved the adoption of a reference portfolio benchmark that comprises 67% MSCI ACWI index and 33% Bloomberg Aggregate index. This mix “closely aligns with the volatility expectations of the board-approved asset allocation,” the board agenda stated.

The recommendation was made by consulting firm Meketa.