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The Ohio State University
Senate Fiscal Committee
Office of Investments Update
November 3, 2009
Jonathan D. Hook
Vice President & Chief Investment Officer
1
Executive Summary

Fiscal 2010 has started out quite well. Returns were strong
through the first quarter as the S&P 500 rebounded well and
the credit markets continued to recover.

LTIP totals back across $1.8 Billion

Concerns about liquidity continue across the University
Endowment space with differing levels of pain being felt
around the country. OSU liquidity is in excellent shape and we
are trying to manage that process very carefully.
2
Q1 FY2010 Performance (July – September 2009)
 All three months were strong with performance ranging
between 2.6% to 4.4%. For the quarter, our compound return
totaled 10.2%.
 Equities, Fixed Income, and Hedge Funds have performed well,
while Private Equity, Energy and Real Estate have trailed.
 The manager portfolio continues to be improved with more
focused managers being added and lesser quality managers
dropped from service.
3
Long Term Investment Pool Totals – Sept. 30, 2009
Asset Class
Endowment
Long Term Operating Fund
Maintenance & Renewal Funds
Totals
Totals
%
$1,187.6 MM
65.9%
604.0 MM
33.5%
10.3 MM
0.6%
$1,801.9 MM
100.0%
5
Portfolio Returns
Fiscal 2009:
Portfolio Return
Accounting Change*
Reported Inv. Returns
Q1 FY 2010:
July 2009
August 2009
September 2009
Totals
(22.6%)
( 0.7%)
(23.3%)
4.4%
2.9%
2.6%
10.2%
* Decision was made to lag the hedge fund returns by thirty days to eliminate estimations. This
action mandated that we move June’s hedge fund returns to July – FY 2010.
6
Asset Allocation - As of September 30, 2009
Policy Range %
Feb. 28th %
Sept.30th %
Amount
Market Exposure
10-50%
31.7%
45.5%
$ 818.8 MM
Risk Reducers
25-50%
43.3%
31.0%
$ 559.4 MM
Return Enhancers
10-25%
15.6%
15.6%
$ 281.1 MM
Inflation Hedges
10-25%
9.4%
7.9%
$ 142.6 MM
100.0%
1,801.9 MM
Asset Class
Totals
100.0%
8
Portfolio Liquidity Monitor (Sept. 30 Est.)
Time to Convert to Cash
Dollar Amount
Portfolio Percentage
Less than 7 Days
$ 547.7 MM
30.4%
> 7 Days but < 90 Days
$ 113.5 MM
6.3%
> 90 Days but < 1 Year
$ 412.5 MM
22.9%
> 1 Year
$ 652.2 MM
36.2%
In Liquidation
$ 76.0 MM
4.2%
$ 1,801.9 MM
100.0%
TOTALS
10
Where we see the portfolio going:
 Replace passive exposure with active management
- Possible additional Opportunistic Situations
- Add exposure to more Concentrated Active Managers
 Maintain equity exposure; Rebalance if/as Market Rises
- Upgrade/Consolidate Current Equity Managers
 Gradual growth in Energy, Commodities, Timber, Infrastructure
& Agriculture to Increase Diversification/Protect against
Inflation
 Look for Distressed Real Estate Opportunities (12-24 Month
Outlook)
13
Asset Allocation Shift (Dec. 2007 – Sept. 2009)
12/31/07
6/30/08
9/30/09
Amount
Domestic Equities
32.5%
26.3%
14.5%
$ 259.8 MM
International Equities
30.2%
29.9%
21.5%
$ 387.6 MM
Fixed Income
12.5%
10.0%
14.1%
$ 254.7 MM
Hedge Funds
14.5%
22.8%
26.4%
$ 476.1 MM
Private Equities
2.9%
5.3%
15.6%
$ 281.1 MM
Real Assets
7.4%
5.7%
7.9%
$ 142.6 MM
100.0%
100.0%
100.0%
$ 1,801.9 MM
TOTALS
14
The Ohio State University Office of Investments
Vice President &
Chief Investment Officer
Jonathan Hook
Office Manager
Tricia Hohl
Student Workers
Greg Brancazio
Matt Walkuski
Liquid Strategies
David Gilmore – Director of Investments
Scott Adams – Investment Officer
Director of
Investment Operations
Tim Michel
Illiquid Strategies
Jerry Polk – Director Of Investments
Bernie Gehlmann – Investment Officer