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PRESS
RELEASE
Contact: H.
Craig Slaughter
January 25, 2001
Executive Director For Immediate Release
(304) 345-2672, ext. 102
WEST VIRGINIA INVESTMENT MANAGEMENT BOARD
PERFORMS WELL IN A DOWN MARKET
At its quarterly meeting today, January 25, 2001, the
Investment Management Board heard good news on its investment performance
for the calendar year 2000. While the median return for pension
funds nationwide was -.3 percent, according to Callan Associates,
Inc., in San Francisco, the Investment Management Board posted a
positive return of 4.1 percent. Meanwhile, the NASDAQ was
down 39 percent and the S&P 500 was down over 9 percent.
"Although there was a little bit of luck involved," said Craig Slaughter,
Executive Director of the Investment Management Board, "the primary
reason for the out-performance was structural. We purposely
created an investment plan in 1998 that can only be characterized
as stable and slightly conservative. We had a more broadly
diversified portfolio than most funds and we have, what is termed
in investment lingo, a value bias. In layman's terms that
means we were not overexposed to the technology stocks that have
borne the brunt of the carnage in the market last year." Mr. Slaughter
emphasized that the Board maintains a long-term perspective and
is wary of short-term trends in the securities markets.
The Investment Management Board is the state organization
responsible for investing the state defined benefit pension plans,
Workers' Compensation plans and general revenue assets. These
include the Public Employees' Retirement System, the Public Safety
Retirement System, the Judges' Retirement System, the Deputy Sheriffs'
Retirement System, the State Police Retirement System, and the Teachers
Retirement System. Total assets under management were $6.87
billion as of December 31, 2000.
PRESS
RELEASE
Contact: H. Craig
Slaughter, Executive Director
(304) 345-2672, ext. 102
May 15, 2000 - For Immediate Release
STOCKS HAVE ADDED OVER $502 MILLION TO
PENSION AND EMPLOYMENT SECURITY PROGRAMS
Stocks
have added over $502 million in value to the pension and employment
security program of the State of West Virginia. Stocks, as
an investment opportunity, were only made available to the State
with the passage of the constitutional referendum in September of
1997. The entity charged with investing the assets,
the West Virginia Investment Management Board, was created in the
spring of 1997 in anticipation and in support of a successful referendum.
"The perceived risk in stocks among the general public necessitated
additional changes to modernize the State's investment management
structure to ensure the public that any stock investments would
be handled by a competent, professional organization bound by the
highest standards of fiduciary conduct," said Craig Slaughter, Executive
Director of the Board. "The value of what we have versus what
we would have had if we had remained 100 percent in bonds, represents
an almost 14 percent increase in our rate of return on an annualized
basis. Although the difference could have been much greater
if we had moved more quickly into stocks, we felt that a gradual
transition was the prudent course of action. We have, what
I like to call, a healthy skepticism with regard to the stock markets
and the markets in general. We try to maintain a balanced
approach with an emphasis on risk control." As of March 31,
2000, the Board's stock exposure stood at 47 percent. The
remainder is in investment grade bonds and cash equivalent securities.
By December of 2000, the Board will have reached its target stock
exposure of 60 percent.
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