MISSION:
To professionally manage the South Dakota Retirement System and South Dakota Cement Plant Retirement Fund portfolios in order to obtain long-term maximum total returns consistent with prudent risk; to professionally manage the state's cash flow fund in order to obtain long-term maximum total returns consistent with the liquidity needs of the fund, the legal list and prudent risk; to professionally manage the investment portfolio of the School and Public Lands Fund to obtain the highest risk adjusted return over the long term to offset inflation and provide income on a yearly basis to South Dakota's school districts; to professionally manage the Dakota Cement Trust in a balanced manner, with emphasis on providing the minimum $12 million per year distribution to the general fund, while attempting to build the principal of the fund and, therefore, potential additional distributions from the fund over the long term; to professionally manage the Health Care Trust Fund and the Education Enhancement Trust Fund to obtain a satisfactory rate of return within a quite constrained risk framework. Over the long term the goal is to provide a 4% annual distribution to the general fund and to attempt to grow the funds over time so that the 4% distribution can represent a larger payout in the future; to oversee the Higher Education Savings Plan per SDCL 13-63-1 to 13-63-31 by establishing the program and monitoring the selected program manager, PIMCO; and, to comply with the requirements of SDCL 4-5-12 to 4-5-39, "Investment of State Funds Law".

	ACTUAL FY 2002	ACTUAL FY 2003	BUDGETED FY 2004	REQUESTED FY 2005	GOVERNOR'S RECOMMENDED FY 2005	RECOMMENDED INC/(DEC) FY 2005
FUNDING SOURCE:
General Funds	$0	$0	$0	$0	$0	$0
Federal Funds	0	0	0	0	0	0
Other Funds	3,116,231	3,598,959	5,391,124	5,630,689	5,619,478	228,354
Total	$3,116,231	$3,598,959	$5,391,124	$5,630,689	$5,619,478	$228,354
EXPENDITURE DETAIL:
Personal Services	$2,214,823	$2,665,940	$4,122,019	$4,247,587	$4,236,376	$114,357
Operating Expenses	901,408	933,018	1,269,105	1,383,102	1,383,102	113,997
Total	$3,116,231	$3,598,959	$5,391,124	$5,630,689	$5,619,478	$228,354
Staffing Level FTE:	20.0	19.2	26.0	26.0	26.0	0.0

	ACTUAL FY 2002	ACTUAL FY 2003	ESTIMATED FY 2004	ESTIMATED FY 2005
REVENUES:
Investment Management Fees:	$0	$0	$0	$0
Retirement System (SDRS)	3,336,117	2,652,447	3,303,537	4,251,734
Cement Plant	24,374	18,193	22,036	28,153
Cash Flow Fund (CFF)	526,592	432,154	504,868	649,781
School and Public Lands (S&PL)	93,748	79,346	103,140	132,884
Dakota Cement Trust (DCT)	31,660	131,275	174,912	225,228
Education Enhancement Trust (EET)	0	0	208,503	268,584
Health Care Trust (HCT)	0	0	57,619	74,325
Total	$4,012,491	$3,313,415	$4,374,615	$5,630,689
PERFORMANCE INDICATORS:
SDRS Year-End Assets (Millions)	$4,605	$4,767
SDRS Investment Income (Millions)	($238)	$222
SDRS Total Fund Return	(4.88%)	4.95%
SDRS Capital Market Benchmark	(5.83%)	5.39%
SDRS Russell/Mellon Corp Universe	(5.99%)	3.05%
CFF Average Amount Invested (Millions)	$773.4	$665.2
CFF Investment Income (Millions)	$42.0	$29.9
CFF Average Yield/Benchmark Yield	5.16%/2.40%	4.22%/1.38%
S&PL Yr-End Assets/Invest Income (Millions)	$136.8/$5.0	$140.2/$10.6
S&PL Total Fund Return/Benchmark Return	3.6%/1.8%	8.1%/9.6%
DCT Yr-End Assets/Invest Income (Millions)	$229.9/$14.7	$234.3/$16.5
DCT Total Fund Return/Benchmark Return	6.5%/3.0%	7.2%/8.6%
EET Yr-End Assets/Invest Income (Millions)		$353.4/$28.0
EET Total Fund Return/Benchmark Return		6.7%/9.4%
HCT Yr End Assets/Invest Income (Millions)		$85.7/$6.5
HCT Total Fund Return/Benchmark Return		8.1%/9.9%

generated 12/01/03 10:47:42 AM