For Immediate Release
Wednesday, 16 June 1999
A HISTORIC DAY FOR S.C. INVESTMENTS
SC Puts Money into Stocks for the First Time
Columbia, SC – State Treasurer Grady L. Patterson, Jr., announced that today will be the first day in which South Carolina retirement funds are invested in Stock Market Index Funds. By the end of the fiscal year, June 30th, South Carolina will invest $916,900,000 in the S & P 500 index.
Treasurer Patterson said: "We have jumped through a lot of hoops to make investing in the stock market a reality. This is an exciting day for me, and for the people of South Carolina."
South Carolina’s Constitution prohibited placing funds in the stock market for almost a century. In 1996, South Carolinians voted to change the state constitution allowing a portion of state retirement funds to be invested in equities. The enabling legislation was passed by the Legislature in 1998, and placed the responsibility for retirement systems equity investments with the Budget and Control Board.
"This is the first step in a long-term relationship," Mr. Patterson stated. "The stock market is not a cure-all for our financial planning. We cannot expect overnight miracles. We will have to look beyond the horizon, and view the success of equity investing over the long-term.
"But, South Carolinian’s should be proud of their leaders today," Treasurer Patterson continued. "With much consideration and deliberation, we have come up with a fiscally conservative investment policy that will benefit all South Carolinians."
Mr. Patterson concluded: "We must always exercise caution when dealing with stocks. However, we have taken a huge step today that should diversify and reinforce our already strong retirement fund."
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For more information contact:
David A. Adams, 803/734-0380