Dean Dennis to the members of the Ohio Retirement Study Council: Why STRS retirees are concerned about alternative investments

From: Dean Dennis

Date: Wed, Mar 10, 2021 at 12:02 PM

Subject: STRS Forensic Audit

Chair Carfagna,
Please carefully read and share these articles with other members of the ORSC. I hope this sheds some light on why STRS retirees are concerned.
http://www.orsc.org/Assets/Reports/816.pdf  (see page 29, $345,000,000 to Panda Power)

https://www.institutionalinvestor.com/article/b14zbb3wdl6z2k/yield-hungry-institutions-back-merchant-power-plant-revival (STRS Ohio is first pension system mentioned)

https://www.powermag.com/panda-power-funds-rolls-on-with-another-new-gas-plant/ (risky Investment) 

https://www.utilitydive.com/news/panda-temple-bankruptcy-could-chill-new-gas-plant-buildout-in-ercot-market/442582/ (Panda goes bankrupt)

https://www.dallasnews.com/business/2012/06/09/panda-energys-backing-pays-off-in-tna-wrestling-venture/ (on the way to bankruptcy Panda invests in wrestling/daughter)

https://www.strsoh.org/_pdfs/annual-reports/50-143-19.pdf  (see actual page 59. We still carry Panda as an alternative investment and have done so since we first got involved.)

What does all this mean? Anything here (see Panda articles) retirees should be concerned about? Do the outside auditors look at our alternative Investments such as the one above? I'm counting that we currently have 133 alternative investments.

I certainly hope the ORSC finds an auditor that is painfully meticulous. We need to make sure all expenses of every investment are accounted for.
Thank you,
Dean Dennis