Steve Mitchell: some corrections

From Steve Mitchell, October 5, 2006

Subject: RE: Fw: Heresay or a good idea for STRS?

Molly: I would like to correct two items I saw in a recent e-mail from Bob Jones.

First, The Ohio Highway Patrol Retirement System essentially has no investment associates. The Executive Director oversees the investment program which is strictly externally managed (except for cash) by "more expensive" external managers. They have approximately 17 external managers (not 3) managing approximate $750 million. The Executive Director has no idea where the annual firing one out of three associates came from.

Second, inflation in the United States since 1969 has been approximately 4.7% per year. The return on STRS investment assets over that same period has been approximately 9.2% per year. Thus, one can see that the return on STRS assets has clearly beaten inflation over the period.

Steve