Columbus, Georgia

MINUTES OF THE

BOARD OF TRUSTEES MEETING OF THE

COLUMBUS GEORGIA EMPLOYEES' PENSION PLAN



April 13, 2005



A meeting of the Board of Trustees for the Columbus Georgia Employees? Pension

Plan was held April 13, 2005 at 2:00 P.M. in the Mayor?s Conference Room.





PRESIDING: Mayor Robert Poydasheff, Chairman



PRESENT: Angela Cole, Morton Harris, Franklyn Lambert, Mary

Strozier-Weaver, Dan Gray, Alan Rothschild, Jr., Capt. John Starkey and Joe

Smith



ABSENT: Isaiah Hugley, City Manager and Harvey Milner



GUESTS: Henry Swift, Vice President (Salomon Smith Barney), Richard

Swift, (Salomon Smith Barney), Denise Baxter, (Revenue) and Pam Hodge,

Assistant Finance Director







Mayor Bob Poydasheff, called the meeting to order. Julia Rasch, Recording

Secretary, gave the attendance.





MINUTES OF THE PREVIOUS MEETING:



The motion to accept the minutes from the February 2, 2005 meeting and from the

Special Called Meeting of March 2, 2005 was made by Mayor Poydasheff. The

motion was seconded. The vote to accept the minutes as submitted was

unanimous.





INVESTMENT UPDATE:



The report presented today is the interim report; the formal evaluation for the

quarter ending in March will be presented at the May meeting. The S&P 500

graph explained what has happened in the stock market as measured by the S&P

from the end of December through the end of March. The stock market declined

slightly over that period of time and most of that decline came in the month of

March. But, since the end of March that stock market has done somewhat better.

At the time of the meeting in February the stock market was at 1189 and as of

close of business, April 12, 2005, it closed at 1187, therefore, no change in

the overall level of the S&P Index during that time.





The next chart, the 10-year Treasury bond, indicated that from the end of

December to the end of March (first quarter) there was a pick up in interest

rates, which means a decrease in prices of bonds. And the same thing has

happened from February 1, 2005 to April 12, 2005, a pick up in interest rates

with a commensurate decline in bond prices.

All the bond managers are down just a little bit. For quite some time the

short end of the bond market has been going up and the long end, until the last

45 days has actually been trimming down in yield. Now, what has happened is

the long end of the bond market has started to catch up with the short end of

the market which has created an increase in the yields on the long end, in the

10-year market, and that?s been a commensurate decrease in prices. From

February to today has been a very unusual time in the market. Thus the

situation with the managers, and the stock market, if they were under-weighted

in energy and over-weighted in technology, they really missed the boat, because

technology for this period of time has done very poorly and energy has

continued from a year and a half ago to today to do extraordinarily well. The

other thing Mr. Swift said he wanted to make the board aware of was that the

Consumer Price Index, a year ago, was less than 2%, today it?s at 3%.



Next was the report on the managers for the last six weeks. The fixed income

managers were all down a little bit which is explained in the previous

paragraph. The combined fixed account went from 72.6 million to 72.2 million

or a big increase of 55 basis points.



The growth managers had the most difficult period of all. Because both of them

are exposed to technology just by virtue of being growth managers, and with the

NASDAQ falling 7% in March, that has definitely hurt them. The growth managers

are down -2.39% and the Russell Growth Index was down about -0.94%.



The value managers, Deutsche Asset Management was down slightly, -0.79%.

Victory was up slightly 1.06%, therefore, the combined value was down slightly

-0.10% for the period and the Russell Value was up slightly for the period

1.12%.



Virtually, the same thing is going on with the Core managers. Trusco who will

be coming in to make a presentation was down -1.49% over this six week period.

National Asset, the other Core manager, was down about ?1.10%. So the combined

Core managers were down ?1.30%. This, once again, has something to do with the

exposure to technology.



Lazard combined went from 11.4 million to 11.4 million so they were virtually

unchanged, up about a half of one percent. The EAFA Index was up about 2%.



The combined equity account, over this period of time was down about -0.93%

which all came in the month of March.



The City account went from 173.9 million to 172.5 million, down about 77 basis

points over this same period of time.



A copy of the evaluation reports and the other information presented to the

board is retained by the Board Secretary in the Finance Director=s Office and

is available for review upon request.



PRESENTATION:



Mr. Swift brought in the representative from Trusco and stated that Trusco has

been managing monies for the pension fund since 1987. Jim Dillon was the

representative for many years; now Chrisman Boggan has taken over for him upon

his retirement in February.



The report agenda was as followed:



Market Snapshot/Economic Overview



Performance & Portfolio Composition



Portfolio Characteristics & Holdings



Mr. Boggan was thanked for his presentation and with no further questions, was

dismissed from the meeting.





OLD BUSINESS:



Mr. Joe Smith was asked to present the report on the manager search. After

several meetings of the sub-committee, the recommendation is as follows: Eagle

Asset Management, one of the growth managers, is replaced with a firm, Santa

Barbara Asset Management. Victory Asset Management, one of the value managers,

is replaced with a firm, Spears, Grisanti, & Brown.



Mr. Swift thanked all the committee members for a job well done. He stated

that the one thing that was a common thread when looking for both a new growth

manager and value manager was that the actual person who is managing the money

would also be presenting their report to the board each year rather than a

marketing representative.



Each of these firms manages about the same amount of money, 2.5 billion dollars

each. The track record for both firms is very, very good and the returns have

been excellent over the last five years.



Mayor Poydasheff made the motion that the recommendation of the committee to

accept the Santa Barbara Asset Management and Spears, Grisanti & Brown to

replace Eagle Asset Management and Victory Asset Management, respectfully be

accepted by the board. Mr. Gray seconded the motion and the board ratified the

motion.





NEW BUSINESS:



None





With no further business for discussion, the motion was tendered for

adjournment.



The next meeting is scheduled for May 4, 2004 at 2:00 p.m. in the Mayor=s

Conference Room. Lazard International will be here to make their annual

presentation.







_____________________________

Julia A. Rasch

Recording Secretary