(AP) -- South Carolina Treasurer Curtis Loftis says the state pension system is underperforming and paying too much in fees.
Loftis told a Senate Finance subcommittee Tuesday that South Carolina may need to reduce its alternative investments.
He says nearly half of the state's portfolio consists of arrangements outside of cash, stocks and bonds, compared to a national average of less than 15 percent.
The state's investment portfolio earned an 18 percent rate of return last fiscal year, after fees. That compares with a 22 percent median return last year for 91 public pension systems with more than $1 billion in assets.
Investment commission vice chairman Reynolds Williams says the 15-year return on alternative investments is double the stock market, and high fees are due to contracts that give bonuses for success.
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