Wednesday, February 28, 2007

South Carolina Retirement System looks to invest more aggressively under direction of former LASERS Executive Director Bob Borden

This article from the Charlotte News Observer highlights changes in South Carolina’s once ultra conservative pension investment policies.

Under a law passed in 2005, the Palmetto State created the S.C. Retirement System Investment Commission, which is composed of financial experts, the state treasurer and a nonvoting retired member. The commission also hired a chief investment officer.

The $26 billion pension fund was previously run by the state budget and control board, which was composed of elected officials. An advisory panel reported to the board.

"It became fairly apparent that it was not the most efficient decision-making process," said Bob Borden, who was hired as chief investment officer in the spring of 2006.

Borden called the new setup "leading edge" in corporate governance. The investment experts need 10 years of experience in the industry and their firms' cannot have business dealings with the state, he said.