News Releases

Investment Commission Refuses To Provide Documents To State Treasurer

(Columbia, SC) – Today, the South Carolina Investment Commission refused to provide State Treasurer Curtis Loftis with a document that would provide safety for the retirement fund’s $26.5 billion. The Treasurer asked for a simple legal document, signed by the Commission’s chief legal counsel, that would certify that the terms…

(Columbia, SC) – Today, the South Carolina Investment Commission refused to provide State Treasurer Curtis Loftis with a document that would provide safety for the retirement fund’s $26.5 billion. The Treasurer asked for a simple legal document, signed by the Commission’s chief legal counsel, that would certify that the terms and fees in the investment documents were the same as those accepted by the Commission in its vote.

Treasurer Loftis says the Investment Commission pays too much in fees in part because it votes on one fee structure but in the end, pays another. In one contract alone the contracted fee is approximately 25% higher, and that amount to millions of dollars in overpaid fees.

“I will not allow the funds of South Carolina’s working people to be squandered,” Treasurer Loftis said. “As the Commission’s lone elected official I have the duty to speak loudly and clearly on this issue. The Commission has accepted ‘business as usual’ but I will not. I will continue my efforts to bring transparency and accountability to the Investment Commission and I intend for the taxpayers and government employees to understand the risks of the system.”

South Carolina routinely finishes in the bottom 30% of its peer group while paying in the top 5% in fees. In fiscal year 2012, the Commission paid $296 million in fees while earning only $125 million in return. This does not include the approximately $106 million in hidden “hedge fund of fund” fees for the same year.

Treasurer Loftis is the custodian of the state’s funds including those of the Retirement System.

“The Commission has failed to adequately provide documentation showing that the custody arrangements of our investments are safe,” Treasurer Loftis said. “This is not Monopoly money, it is your money, and I will treat it like it is my own and I will not allow it to be sent off to investment managers without full assurance that safeguards are in place.”

Below is a video clip of Treasurer Loftis discussing the legal issue in the meeting.

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26 comments

? March 28, 2013 at 5:24 pm

I like Loftis…the reality is though that the good ole boys are going to tamp him down. There’s too much money and too many power players involved.

Reply
DHEC retired March 28, 2013 at 5:36 pm

You are probably correct about that. But you have to admire someone that keeps fighting and fighting and fighting. I think he is the best vote I ever cast and as a state retiree I sleep better knowing he is on the job.

Reply
? March 28, 2013 at 5:24 pm

I like Loftis…the reality is though that the good ole boys are going to tamp him down. There’s too much money and too many power players involved.

Reply
DHEC retired March 28, 2013 at 5:36 pm

You are probably correct about that. But you have to admire someone that keeps fighting and fighting and fighting. I think he is the best vote I ever cast and as a state retiree I sleep better knowing he is on the job.

Reply
SAA March 28, 2013 at 5:34 pm

This is just basic business. You strike a bargin and they you stick to it. You don’t pay less or more. Who the hell would want to do it any other way?

Reply
SAA March 28, 2013 at 5:34 pm

This is just basic business. You strike a bargin and they you stick to it. You don’t pay less or more. Who the hell would want to do it any other way?

Reply
Martian March 28, 2013 at 5:56 pm

The ‘good ole boys’ want to tamp him down, but the ‘good tole girl’ has the final nail and hammer.

Reply
Martian March 28, 2013 at 5:56 pm

The ‘good ole boys’ want to tamp him down, but the ‘good tole girl’ has the final nail and hammer.

Reply
Delores March 28, 2013 at 7:49 pm

I work in state government and state retirement is all I will have when I retire. As a CPA I follow the Investment Commission closely and I believe Treasurer Loftis is doing a wonderful job of protecting my pension.

Reply
Delores March 28, 2013 at 7:49 pm

I work in state government and state retirement is all I will have when I retire. As a CPA I follow the Investment Commission closely and I believe Treasurer Loftis is doing a wonderful job of protecting my pension.

Reply
Loftis Lies March 28, 2013 at 9:21 pm

It’s interesting that they chose not to share the part of the meeting where the Investment Commission’s COO walked through several pages worth of communications between the Investment Commission and the Treasurer. Every document the Treasurer asked for was given to him, every concern he expressed was addressed until the Treasurer communicated that he was satisfied. However, in the end the Treasurer falls back to yelling and claiming that everyone is hiding something in order to make the uninformed voter believe he is on their side. Almost everyone who has to work with the Treasurer will tell you that he is crazy (seriously). Do yourself a favor, attend a Commission meeting, and see for yourself who is actually trying to solve problems and who is trying to create more. This is pure politics, nothing more, and unfortunately the retirees are the ones who suffer.

Reply
FedUp March 29, 2013 at 1:33 am

I trust the Treasurer. He has proven time and time again he supports basic and sound business practices. The Commission has shown time and time again it knows how to pay outrageous fees and make make low returns.

As a retiree I pay lots of attention to this fund and I tell you the ones that benefit are its overpaid employees and wall street zillionaires.

Reply
Frank March 29, 2013 at 7:14 am

I hope the treasurer is “crazy” cause the “sane” ones are going to bankrupt us! We need leaders not followers.

In SC we elect people that say the right things but do otherwise in reality.

Reply
curmudgeon March 31, 2013 at 7:19 pm

It was the only 40 seconds of the meeting where Loftis almost appeared lucid. Every time they give him one more thing that he wants he thinks up something else and moves the goal post. Loftis is out to destroy the trust fund and South Carolina’s reputation as a reliable investment partner to further his political ambitions. Any public employee or retiree who thinks Loftis is protecting their interests is delusional.
If Loftis were to somehow prevail and convince the Commission to pursue lower fee but higher risk investments, taxpayer and active public employees would have to contribute more to the fund in order to keep the amortization of the unfunded liability from increasing. That’s right public employees, your take home will get even smaller or retiree benefits will have to be reduced.
As a retiree, I am very comfortable with the strategy of pursuing moderate returns while keeping risks at an acceptable level. I am not comfortable with Loftis’ grandstanding.

Reply
Delores March 31, 2013 at 9:58 pm

Mr. Crum,
Either you are not listening carefully, are intentionally distorting the Treasurers position or you are stupid.

You should call the Treasurer and speak to him. I do it once a month or so.it is an enlightening, intellectually fulfilling exercise that settles my mind and illuminates the “big picture.”

It is clear by the level of personal attacks that the insiders are threatened. In my book that is good. I have spent 28 years in state government and I know that the crooks get nervous only when there is a good reason. Loftis is that reason and more power to him.

Reply
curmudgeon April 1, 2013 at 9:43 am

I have spoken to the Treasurer on more than one occasion but because I do not always share his opinion the last time we did attempt a conversation it ended with him personally attacking me, questioning my intelligence, and generally acting like the overgrown bully that he is. If you agree with him it is a wonderful world, if you disagree you are morally corrupt and trying to hide something. It is the Treasurer who resorts to personal attacks and it is the Treasurer who mistakes unfounded opinion for facts . I suggest that you are doing the same.

Reply
Loftis Lies March 28, 2013 at 9:21 pm

It’s interesting that they chose not to share the part of the meeting where the Investment Commission’s COO walked through several pages worth of communications between the Investment Commission and the Treasurer. Every document the Treasurer asked for was given to him, every concern he expressed was addressed until the Treasurer communicated that he was satisfied. However, in the end the Treasurer falls back to yelling and claiming that everyone is hiding something in order to make the uninformed voter believe he is on their side. Almost everyone who has to work with the Treasurer will tell you that he is crazy (seriously). Do yourself a favor, attend a Commission meeting, and see for yourself who is actually trying to solve problems and who is trying to create more. This is pure politics, nothing more, and unfortunately the retirees are the ones who suffer.

Reply
FedUp March 29, 2013 at 1:33 am

I trust the Treasurer. He has proven time and time again he supports basic and sound business practices. The Commission has shown time and time again it knows how to pay outrageous fees and make make low returns.

As a retiree I pay lots of attention to this fund and I tell you the ones that benefit are its overpaid employees and wall street zillionaires.

Reply
Frank March 29, 2013 at 7:14 am

I hope the treasurer is “crazy” cause the “sane” ones are going to bankrupt us! We need leaders not followers.

In SC we elect people that say the right things but do otherwise in reality.

Reply
curmudgeon March 31, 2013 at 7:19 pm

It was the only 40 seconds of the meeting where Loftis almost appeared lucid. Every time they give him one more thing that he wants he thinks up something else and moves the goal post. Loftis is out to destroy the trust fund and South Carolina’s reputation as a reliable investment partner to further his political ambitions. Any public employee or retiree who thinks Loftis is protecting their interests is delusional.
If Loftis were to somehow prevail and convince the Commission to pursue lower fee but higher risk investments, taxpayer and active public employees would have to contribute more to the fund in order to keep the amortization of the unfunded liability from increasing. That’s right public employees, your take home will get even smaller or retiree benefits will have to be reduced.
As a retiree, I am very comfortable with the strategy of pursuing moderate returns while keeping risks at an acceptable level. I am not comfortable with Loftis’ grandstanding.

Reply
Delores March 31, 2013 at 9:58 pm

Mr. Crum,
Either you are not listening carefully, are intentionally distorting the Treasurers position or you are stupid.

You should call the Treasurer and speak to him. I do it once a month or so.it is an enlightening, intellectually fulfilling exercise that settles my mind and illuminates the “big picture.”

It is clear by the level of personal attacks that the insiders are threatened. In my book that is good. I have spent 28 years in state government and I know that the crooks get nervous only when there is a good reason. Loftis is that reason and more power to him.

Reply
curmudgeon April 1, 2013 at 9:43 am

I have spoken to the Treasurer on more than one occasion but because I do not always share his opinion the last time we did attempt a conversation it ended with him personally attacking me, questioning my intelligence, and generally acting like the overgrown bully that he is. If you agree with him it is a wonderful world, if you disagree you are morally corrupt and trying to hide something. It is the Treasurer who resorts to personal attacks and it is the Treasurer who mistakes unfounded opinion for facts . I suggest that you are doing the same.

Reply
Almost retired March 29, 2013 at 8:02 am

I called the treasurer last night and he took my call and we talked for 20 minutes and it was very interesting. He has this stuff nailed and it is very clear to me that he is in this for the right reasons. I never thought he was political, or spinning, or anything but perfectly in-tune with people that elected him, like me.

Reply
Almost retired March 29, 2013 at 8:02 am

I called the treasurer last night and he took my call and we talked for 20 minutes and it was very interesting. He has this stuff nailed and it is very clear to me that he is in this for the right reasons. I never thought he was political, or spinning, or anything but perfectly in-tune with people that elected him, like me.

Reply
John March 29, 2013 at 10:49 am

I never spend large sums of ones without everything being in writing and clear. If they are making investments without doing that they are very foolish .

They should give the Treasurer the document or put in writing why they would not. Simple solution.

Reply
John March 29, 2013 at 10:49 am

I never spend large sums of ones without everything being in writing and clear. If they are making investments without doing that they are very foolish .

They should give the Treasurer the document or put in writing why they would not. Simple solution.

Reply

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