STRS Ohio Posts +13.7% Total Fund Return in Fiscal 2013
STRS Ohio’s total fund return was +13.7% for the year ending June 30, 2013. The market value of investment assets as of June 30 was $68.0 billion. The strong return for fiscal 2013 well exceeded the fund’s assumed actuarial return of 7.75%, but trailed the total fund benchmark return. This week, Bloomberg News reported that the median gain for public pension funds was +12.4% for the 12 months ending June 30.
All asset classes beat their benchmarks during fiscal year 2013 except for domestic equities. The S&P 500 Index reached record highs during the year, and STRS Ohio began to underweight the domestic equity portfolio to realize some of those gains and to guard against a market correction.
STRS Ohio’s 2014 Investment Plan calls for only moderate growth in the capital markets in fiscal year 2014. A copy of this plan is available on the STRS Ohio website.