PIERRE, SD (KELO.com) — South Dakota Legislative leaders are concerned about low returns in the state Investment portfolio. Representative Scott Odenbach says he wants to have answers when retirees counting on the investment fund start asking questions. “I understand the need to be conservative when you’re talking about pensions and things like that. We’ve all heard the horror stories of other states, but when you say, ‘Hey, if we put a billion dollars in the S&P and let it ride we’d have made 17.3%, and now we’re making 6%.’ ”
Chief Investment Officer Matt Clark says the state has taken an intentionally conservative investment posture. He says the strategy is the same as in the past when the Investment Council avoided a lot of pain in a market bubble, “We were glad that we did what we did by missing out a lot of the upside, but missing the downside too, compared to just riding it up and down.” Clark says the Investment office believes U-S Stocks are overpriced. Legislators will review the performance later this year.
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