Key Takeaways
- • STRS Ohio reports $103.3 billion in total investments as of June 30, 2025, with pension assets of $96.3 billion in fiscal 2025.
- • The system manages two-thirds of its assets internally, which it says saves more than $130 million in fees that would otherwise be paid to external managers.
- • Over the 10-year period ending Dec. 31, 2025, STRS Ohio's net total fund investment return was higher than 91% of its investment consultant Meketa's plan sponsor peer group.
- • In fiscal 2025, STRS Ohio invested $1.2 billion in companies headquartered in Ohio.
Summary
STRS Ohio, the Ohio state teachers' pension system, states on its investments page that investment returns account for the majority of a retired educator's lifetime benefit payment, and that the system therefore places a strong emphasis on maximizing returns. As of June 30, 2025, total investments stood at $103.3 billion, and STRS Ohio pension assets were $96.3 billion in fiscal 2025. The page states that the majority of the system's income comes from investments.
The system's published investment beliefs center on maximizing return at a prudent level of risk over the long term. Other stated principles include the importance of good governance, the relevance of cash flows, the benefits of diversification and economies of scale, the importance of cost control, and the view that members are rewarded for taking certain investment risks. STRS Ohio also states that active and passive investing are both appropriate and that internal asset management is a strategic advantage. The portfolio is diversified across multiple asset classes, which the system says provides better risk-adjusted performance and a less volatile return experience, and reduces the impact of losses from any single asset class or security.
On implementation, STRS Ohio says it manages two-thirds of its assets internally, saving more than $130 million in fees that would otherwise go to external investment managers. Incentives are paid to a small number of eligible investment associates as a portion of total compensation. Over the 10-year period ending Dec. 31, 2025, the system's net total fund investment return exceeded that of 91% of the plan sponsor peer group compiled by Meketa, its investment consultant. The page's historical return and asset growth charts (1996–2025) are not reproduced in text, so specific annual return figures are not reported here.
The system's published investment beliefs center on maximizing return at a prudent level of risk over the long term. Other stated principles include the importance of good governance, the relevance of cash flows, the benefits of diversification and economies of scale, the importance of cost control, and the view that members are rewarded for taking certain investment risks. STRS Ohio also states that active and passive investing are both appropriate and that internal asset management is a strategic advantage. The portfolio is diversified across multiple asset classes, which the system says provides better risk-adjusted performance and a less volatile return experience, and reduces the impact of losses from any single asset class or security.
On implementation, STRS Ohio says it manages two-thirds of its assets internally, saving more than $130 million in fees that would otherwise go to external investment managers. Incentives are paid to a small number of eligible investment associates as a portion of total compensation. Over the 10-year period ending Dec. 31, 2025, the system's net total fund investment return exceeded that of 91% of the plan sponsor peer group compiled by Meketa, its investment consultant. The page's historical return and asset growth charts (1996–2025) are not reproduced in text, so specific annual return figures are not reported here.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.