For state investments, volatility is new norm

Talk about it

PIERRE — The market value of the South Dakota Retirement System’s investments stood 5 to 6 percent lower this week than just two months ago when the 2012 fiscal year began, state investment officer Matt Clark told the SDRS board of trustees Wednesday.

His comments came right after Tammy Otten, an assistant investment officer, had explained how the portfolio’s value grew by 25.8 percent for the 2011 fiscal year that ended June 30.

She presented a 13-year look at the performance of the system’s investments. The average annual gain was 7.06 percent, which was below the 7.75 percent rate of return that the trustees assume will be earned in order to keep SDRS in financial balance.

In four of the 13 years the system lost value. In eight of the years the system achieved double-digit gains.

“You can see the volatility over time,” Otten said. “That’s what the markets give, and that’s what you need to be prepared for.”

SDRS is the retirement system for state, municipal, county, school district and other local government employees.

Otten said a broadly diversified portfolio has become increasingly important as the markets have become more unpredictable. “The economy is constantly changing,” she said.

STABLE AT TOP: Re-elected by unanimous ballot as chairman for the retirement system’s board Wednesday was Elmer Brinkman of Watertown.

State Supreme Court Justice Steve Zinter was likewise re-elected without opposition as vice chairman.

RETURN TO NORMAL: The state office of vital records in Pierre is South Dakota’s nerve center for birth certificates, death certificates and marriage documents.

The office was in the Waterfront Center until the high waters of the Missouri River this summer forced a temporary location.

Now the office is headed back home, scheduled to reopen at the Waterfront Center on Tuesday, Sept. 13. The return to 207 E. Missouri Ave. will mark the first time in several months that walk-in customers will be allowed.

The office has been closed to walk-in traffic while at the Capitol Lake Visitors Center. The office will be closed altogether on Friday and Monday during the move.

Records can still be obtained at county register of deeds offices or ordered over the Internet through state government’s website at www.sd.gov.

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