STRS—VALUE ADDED ---215 Million; STRS---VALUE REMOVED --- Billions

From Mario Iacone, June 8, 2009

Consider this quote from an STRS Staff member to Representative Bacon.

“Furthermore, the added value by STRS Ohio internal staff this past year alone was $215 million (FY 2008) compared to the $6 million paid in incentives - the
total paid for FY 2008 pbi's.”

Another interpretation,

STRS members saved 215 Million in Expenses while LOSING BILLIONS!

Another quote,

“generally only 1 out of 5 years are returns negative,”

Small consolation to STRS members whose fund was reduced from 80 Billion to 46 Billion.

Final quote,

“and investment management by STRS Ohio internal staff saves Ohio taxpayers more than $100 million a year compared to investment management by Wall Street firms.

Only if a different firm would have also LOST BILLIONS!

IMPORTANT CONSIDERATION

If a substantial percentage of STRS assets would be invested in safe Treasury Bonds, TENS OF MILLIONS in FEES would not be incurred.

STRS is NOT a WALL STREET INVESTMENT FIRM! STRS members are not stock investors knowingly taking risk to accumulate wealth.

STRS IS a TEACHER PENSION FUND! STRS members make mandatory contributions saving money for their pensions believing that they are not taking risks and will receive guaranteed benefits.