Investment Plan 2011 - OPERS

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Ohio Public Employees Retirement System 2011 Annual Investment Plan Total Costs The total costs of the investment program in 2011 are projected to increase by approximately $96 million to $313.58 million, or 43.0 basis points of assets under management. This compares to 31.2 basis points as shown in the 2010 Annual Investment Plan. The increase reflects the growing allocations to externally managed areas such as private equity, real estate, U.S. equity mid-cap and 130/30 strategies, hedge funds, and non-U.S. equity active managers. Total Internal External Invest. % of Mgmt. Mgmt. Division Total Total Compensation 8.11 3.21 11.32 3.6% Operating Budget less Compensation 4.54 2.82 7.36 2.3% Manager Fees 291.58 291.58 92.7% Custody and Overhead 4.34 1.4% Total Costs 12.65 297.61 314.60 100.0% Percent of Total 4.0% 94.6% Average 2011 Asset Size ($ billions) 35.31 37.66 72.96 Costs in Basis Points 3.6 79.0 NA Costs in Basis Points to Total Fund 1.7 40.8 43.1 Page 11 Estimated 2011 Total Costs ($ millions) In 2009 (the latest year for which figures are available), OPERS actual cost of 30.4 basis points was below the CEM benchmark cost of 35.1 basis points. CEM Benchmarking, Inc. is an independent benchmarking firm for pension plans and provides an assessment of OPERS investment operations relative to a global set of peers.
Ohio Public Employees Retirement System 2011 Annual Investment Plan Peer Group Comparison The following chart compares the OPERS asset base and staffing to its peer group as of June 30, 2010. The chart above suggests that the Investment Division staffing level is relatively low compared to its asset base, particularly given the extent of internal management of assets. The focus of the management team continues to be on effectively increasing productivity and improving results without significantly increasing staff size, except when new responsibilities, investment strategies or sub-asset classes are added. The following table lists the public pension peer group referenced in the chart. Peers Public Plan Peer Group (as of 6/30/2010) Assets ($ millions) California Public Employees' Retirement System $199,966 272 California State Teachers' Retirement System $129,773 106 State Board of Administration of Florida $109,344 82 New York State Teachers' Retirement System $76,542 65 State of Wisconsin Investment Board $74,444 124 Washington State Investment Board $71,878 80 New Jersey Division of Investment $66,851 67 Ohio Public Employees Retirement System $65,937 50 North Carolina Retirement System $65,253 24 Ohio State Teachers Retirement System $56,891 109 Oregon Public Employees' Retirement Fund $50,863 20 Employees Retirement System of Georgia $13,604 46 Page 12 Investment Staff
Page 1 and 2: Defined Benefit Fund Ohio PERS Inve
Page 4 and 5: Ohio Public Employees Retirement Sy
Page 34 and 35: 2011 Appendix A
Page 42 and 43: 2011 Appendix B
Page 52: 277 East Town Street Columbus, Ohio

Investment Plan 2011 - OPERS

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