Ohio State Teachers posts a -3.7% return for the year
For the three-, five-, and ten-year periods ended June 30, the pension fund recorded an annualized net return of 8.6%, 8.4%, and 9.2%, exceeding the respective benchmark returns of 7. 6%, 7.8% and 8.9%.
The pension fund had generated a net return of 29.2% for the year ended June 30, 2021.
For the most recent year, the performance reflects a difficult market environment that public pension funds have faced for public equities and fixed income securities. For the year ended June 30, the Russell 3000 Index and the Bloomberg US Aggregate Bond Index posted returns of -13.9% and -10.3% respectively, compared to returns of 44.2% and 4 .6% for the year ended June 30, 2021.
Over the past year, the pension fund benefited from a combined over 30% exposure to alternative investments and real estate, which generated a net return of 22% and 18.4%, respectively, for the fiscal year ended June 30, above the respective benchmark indices of 17.3% and 13.6% for the period.
The pension fund liquidity reserve asset class generated a net return of 0.2%, equal to its benchmark, while fixed income securities generated a net return of -9.8% (above the benchmark by -9.9%). international equities, a net -11.8% (-14.1%); and domestic equities, -14.9% (-13.9%).
As of June 30, the actual allocation was 26.9% domestic equities, 21.8% international equities, 21.7% alternative investments, 17.1% fixed income securities, 10.8% real estate and 1.7% liquidity reserve.