South Carolina voters overwhelmingly overturned an 1895 constitutional amendment that had barred state pension funds from investing in equities. Still needed is a state law, expected to be introduced in the Assembly in January, implementing a new investment strategy that includes stocks, said South Carolina Treasurer Richard Eckstrom.
Under the amendment passed yesterday, equity exposure amounting to 10% of assets will be allowed each year, to a maximum of 40%. It also created a panel to oversee the prudence of the equity investments.
The state has $14 billion in pension assets.