"I have no regret. I hope that the Governor and his family have found a home they can raise their family and he can continue to work hard serving our state. His family deserves some expectation of privacy.



I would like to add the following with regards to serving on the KRS board. I am really proud of the work we are doing. I believe in the need to serve the people of Kentucky to have built their lives on KRS. It is certainly a difficult, time-consuming task with a long way to go to ensure it is viable and meets the needs of those who depend on it. But, we have already gotten a lot done.



1. We've brought in new board members with real investment expertise, which I'm told has not been a focus before.

2. We've addressed our actuarial assumptions in a much more realistic way so that the legislator and the governor can make more informed decisions as to how to solve our pension problem.

3. We've reoriented the way we categorize risk considering the return and liquidity needs of each of the programs.

4. We've cut the hedge fund portfolio by 60% because a large portion of the allocations were adding no value and were very high cost.

5. We've redefined how diversifying strategies can add value to our portfolio and the guidelines for inclusion.

6. We've implemented a differential asset allocation program based on the liquidity needs of each individual retirement plan.

7. We've reduced consultant costs.

8. We've restructured the way we consider new investments in less liquid strategies to greatly lower our costs and improve our investment returns.

And there is still a lot to do.



As far as any personal conflicts I may have serving as a Board member of KRS, I have already proven that I have chosen the interests of KRS over my personal interests by serving on the board and putting in a lot of hard work. I guess there are two schools of thought on how to deal with this.



1. Avoid all appearances of conflict by appointing people who have no experience and little competence. Or

2. Get the most experienced and competent people you can find and make sure they have integrity.



I think this Governor and the other KRS board members from both sides of the political aisle have chosen number 2. I hope my performance for the people of Kentucky will validate their choice."