Strategic diversification is the key to West Virginia's
state pension programme if the scheme is to meet its future
By Susan Barreto
The tiny $8 billion state pension programme of West Virginia
is positive proof that size does not matter when it comes to
hedge fund sophistication, as trustees take the direct approach
when it comes to a number of potential strategies.
A little over four years ago, two of the eight pension plans
served by the West Virginia Investment Management Board -
Teachers' Retirement System and the Public Safety Retirement
Fund - reported funding levels of 22% and 26% respectively.
Those same pension portfolios, which had some of the worst
funding ratios in the US, were transformed to 90% and 100%
funding levels in just three years.
The latest impressive move for trustees was taken last July
to put more than $1 billion to work with 19...