LAWRENCE, Kan. (AP) - Officials with the largest state pension
fund say that investments remain sound despite recent turmoil in
the stock market.

A spokeswoman for the Kansas Public Employee Retirement system
tells the Lawrence Journal-World that the system had relatively
limited exposure to some of the big-name financial stocks that
suffered huge losses.

Kristen Basso said KPERS invested more than $3.6 million in the
now-defunct investment house Lehman Brothers, but "the amounts are
very, very small compared to our portfolios."

Another $9 million invested with the troubled American
Investment Group and $5 million at Merrill Lynch total less than 1
percent of KPERS $12 billion portfolio.