By Muskan Arora
Following
the completion of the asset-liability study, the $97.9bn Ohio State Teachers
Retirement System has increased its exposure to private credit, liquid
alternatives and fixed income, while decreasing allocations to public equities
and real estate.
This change has hiked the system’s exposure to private markets to 25.8% from 24.5%, as per the consultant Meketa Investment Group.
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Ohio STRS hiked its core-plus fixed income target allocations to 21.5% from 17%, private credit to 10% from 7% allocation, liquid alternatives are up to 7% from 3%, intermediate treasuries to 5.5% from 5%, as well as creating a new pocket for long treasury bonds with a target allocation of 3%.
However,
target to domestic equities were decreased from 26% to 19.3%, international
developed markets equities to 12.6% from 17.6%, real estate to 8% from 10%, and
emerging market equities to 3.2% from 4.4%.
Targets for private equity and cash equivalent remained unchanged at 9% and 1%.
For the
fiscal year ending June 30, the pension plan delivered a net return of 10.75%
and a gross return of 10.7%.
