The $102.5B State Teachers Retirement System (STRS) of Ohio saw a preliminary net total fund return of 1.8% at the end of August 2025, buoyed by equities returns.
International equities led the charge posting a 2.8% return as of Aug. 31, said Aaron DiCenzo, the pension fund’s interim chief investment officer, during a recent meeting. Domestic equities wasn’t far behind, generating a 2.3% return, he added, noting all fixed income portfolios posted positive returns as well.
Given the strong returns, Ohio STRS rebalanced its equities portfolio, removing $500M from domestic equities and $200M from international equities and reallocating $322M into fixed income. Year-to-date through August, the fund was up 2.7%, increasing its net assets by $1.9B.
Additionally, the investment team presented an annual review of Ohio STRS’ securities lending program.
Steve Mays, a portfolio manager on the fund’s fixed income team, explained that the pension fund follows an “intrinsic value” approach, targeting high-demand securities known as “specials,” which earn higher lending fees than general collateral.
The fund’s collateral requirements are strict, he said, noting it requires 102% of the loan value for domestic securities and 105% for international securities, which it accepts only in the form of cash, U.S. treasuries, or U.S. agency securities. Cash collateral, if received, is reinvested in preapproved instruments, he added.
Since inception in 1992, the program has earned $353M without a single fiscal year loss, said Mays. In FY 2025, average loans outstanding totaled $1.8B, mostly in fixed income, particularly treasuries, given their liquidity. The program also averaged $77M in domestic equity loans and $156M in international equity loans.
During the meeting, Ohio STRS also reported several new private equity commitments in August.
According to the transaction summary presented to the investment committee, the system committed $25M to Green Oaks VI, a commingled venture capital fund, and $50M to Longfield Investments, a dedicated co-investment vehicle. Both are managed by San Francisco–based Green Oaks Capital Partners, a multi-stage venture capital firm with approximately $14B in assets under management. Green Oaks specializes in high-growth technology and consumer companies. This would be a new manager relationship for the firm.
Ohio STRS also approved up to $25M for Shore Capital Healthcare Partners Fund VI, which is managed by Chicago-based Shore Capital. The fund focuses exclusively on lower-middle-market healthcare investments.
Through these allocations, Ohio STRS is continuing to expand its private equity exposure across both technology and healthcare sectors.
