Why does STRS Ohio compensate its investment staff differently than most public employees are compensated?
In managing its billions of dollars in investments, STRS Ohio has three basic choices. The system can hire outside investment managers, do much of the investing “in-house” or purchase only passive investments. Though STRS Ohio uses all three methods for portions of our investments, associates in the Investment Department handle about 80% of STRS Ohio’s investments in-house. There is a significant cost savings from the lower cost of internal management by STRS Ohio associates compared to paying fees to external money managers. STRS Ohio saves approximately $90 to $100 million per year.
