The State Teachers Retirement System of Ohio (STRS Ohio) is one of the nation’s premier public pension funds, managing approximately $90 billion in assets on behalf of Ohio’s public school educators. Established in 1920 and headquartered in Columbus, the system serves over 500,000 active members, inactive members, and benefit recipients across the state.
Investment Strategy
STRS Ohio employs a diversified, multi-asset investment approach designed to generate long-term returns sufficient to meet its pension obligations. The fund allocates across domestic and international equities, fixed income, real estate, and alternative investments. STRS Ohio is notable for its large internal investment management operation, with a significant portion of assets managed in-house by its professional staff. This approach has historically allowed the fund to reduce external management fees while maintaining competitive returns. The fund’s asset allocation targets are reviewed periodically by its Retirement Board and adjusted based on capital market assumptions and liability projections.
Private Markets Approach
STRS Ohio has been an active participant in private markets for decades. The fund’s alternatives portfolio spans private equity, real estate, and opportunistic strategies. In private equity, STRS Ohio invests through a combination of fund commitments to established general partners and co-investment opportunities. The real estate program is one of the largest among US public pensions, encompassing both direct property investments and fund-based allocations across core, value-add, and opportunistic strategies. STRS Ohio’s internal real estate team manages a substantial portion of the direct portfolio. The fund targets private market investments that offer return premiums over public market equivalents while maintaining appropriate diversification and liquidity management. STRS Ohio’s scale allows it to access large-cap buyout funds, growth equity, and sector-specific strategies across North America, Europe, and Asia.
Frequently Asked Questions
What is the State Teachers Retirement System of Ohio?
STRS Ohio is a defined benefit pension fund serving active and retired public educators across Ohio. With approximately $90 billion in assets, it is one of the largest teacher retirement systems in the country.
How does STRS Ohio allocate to alternative investments?
STRS Ohio maintains a diversified portfolio that includes allocations to private equity, real estate, and other alternative asset classes, representing roughly 17% of total assets. The fund uses both direct investments and fund commitments.
Who oversees STRS Ohio's investment decisions?
STRS Ohio is governed by an 11-member Retirement Board composed of active and retired educators, appointed members, and ex-officio members. The board sets investment policy and oversees the internal investment staff.
