Columbus, Georgia

MINUTES

BOARD OF TRUSTEES

EMPLOYEES' PENSION PLAN





September 4, 2002



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

Plan was held September 4, 2002 at 2:00 P.M. in the Mayor=s Conference Room.



PRESIDING: Vice Chairman Dan Gray



PRESENT: Carmen Cavezza, Kay G. Love, Morton Harris, Jack Nowell, Mary

Strozier-Weaver, Alan Rothschild, and Michael Majure



ABSENT: Mayor Bobby Peters, Saundra Hunter and Capt. John Starkey



GUESTS: Henry Swift (Salomon smith Barney) and Denise Baxter (Investment

Officer (Revenue Division)







Mr. Dan Gray, Vice Chairperson called the meeting to order and Julia Rasch, the

recording secretary, took the attendance.





MINUTES OF THE PREVIOUS MEETING:



The motion was made and seconded that the minutes from the August 7, 2002

meeting be accepted as submitted. The vote was unanimous.





INVESTMENT UPDATE:



Mr. Swift, at this time, presented the Investment Update. Beginning with two

charts; the first being the S&P 500 Index that closed at 878 on September 3,

2002. The second chart was the NASDAQ showing a decline since June and is

currently at 1263 indicating a drop of a good 20% in the last two months.



The interim report, which covers August 6, 2002 through close of business on

September 3, 2002, represented the performance of the money managers during

this time period. The fixed income managers were up about 1.3% with First

Union having the best performance of the three managers. Both growth managers

were up almost 2%, both with positive returns. The value managers are up, not

quite as good as the growth managers, but up at 1.1%. Mr. Swift reminded the

board that Scudder has had almost 15-20% of their money in cash since January

1, 2002 and that this has been a tremendous help to the fund in this market

decline, but if they keep that cash, obviously that will Pension Board Meeting

September 4, 2002







penalize them when the market starts to go back up. The core managers who had

some of the best returns other than the International manager were up almost 2%

during this one-month period. Lazard, the international manager, had the best

performance of any of the equity managers and was

up over 2% for the 30-day period. The account for the city was up 1.5% with a

total of $146,352,415.



The rebalancing that was discussed at the last meeting was completed.

$1,400,000 was withdrawn and distributed accordingly. $1,000,000 went to the

city to pay benefits and $400,000 to Rittenhouse to improve the balance between

growth and value.



As a note of information, it was not necessary to withdraw as much as was

anticipated because from the day of the last meeting and for the next two to

three weeks the upswing of the market was caught and the asset allocation

didn?t look quite as bad as it did on August 6, 2002.



A copy of the evaluation report is maintained by the Board Secretary in the

Finance Director=s Office and is available for review upon request.







PRESENTATION:



Mr. Larry J. Walker, CFA and Mr. George W. Rue III, CFA from INVESCO-National

Asset Management presented their annual report.



After introducing Mr. Walker and Mr. Rue to the board members, Mr. Swift gave a

brief summary on how the board came about acquiring National Asset Management.



& INVESCO-National Asset Management



P Invesco National Asset Management is an investment management firm. A stable

organization with $16 billion dollars under management. The firm uses a total

team approach to investment management and to servicing the clients



& Multiple Attribute Core Equity Philosophy



P There are three aspects of their philosophy:



n all funds are kept fully invested in stocks as much as is practicable



Pension Board Meeting

September 4, 2002







n Value and Growth stocks are blended which is what makes a core manager



n Multiple attribute diversification is composed of three different

types of stocks; Low P/E stocks that have P/E 20% below the market; Yield

stocks that have a yield 20% above the market and Growth stocks that have a 5

year average annual EPS growth of 10% and no down earnings in five years



All their measurements are relative to the S&P 500 because that?s the benchmark

against which their performance is measured.





& Performance Review



P At the end of June the value of the portfolio was $9.1 million and

that has dropped down to about 8.4 million





& Asset Allocation



P The current position of the portfolio as of June 30, 2002 was just

over 9 million dollars.





& Equity Characteristics



Currently the portfolio has 38% in growth stocks, 40% in low P/E stocks and 23%

in yield stocks.





& Equity Market Overview



P A volatile stock market

P What?s next: Five year returns following Bear Markets (S&P 500)

P Finance Stocks have been stable this year





Following a few minutes of general discussion on the stock holdings in the

portfolio, the state of the market and the economy, the presentation was

concluded and Mr. Walker and Mr. Rue were thanked for their time and the very

informative report and subsequently dismissed.



Pension Board Meeting

September 4, 2002





OLD BUSINESS:



Ms. Rasch asked if there was a sub-committee report.



Mr. Swift stated that the sub-committee had identified three growth managers to

interview. At the conclusion of the interviews, the committee elected to

expand the search. There have been three more candidates identified. The RFP

was sent to those chosen and has now been returned to the sub-committee who are

in the midst of reviewing them. A decision will be made shortly on which of

three, if any, or all three who will be asked to come in for an interview.

Hopefully there will be more to report in November.





NEW BUSINESS:



Again, Mr. Swift said he had an issue to present to the board. He handed out a

schedule and asked the board to review it. He would like to invite the board

members to the pre-meeting lunch each month on a set schedule in order to give

the members more advanced notice and hopefully get a better response than has

been in the past. The lunches have proven to be beneficial in that it gives

the board members and the money managers a chance to get to know each other

better in a more relaxed atmosphere than just in and during the board

meetings. He said that if there is a conflict to please call his office and

reschedule.



With no further business for discussion, the meeting was adjourned. The next

meeting will be October 2, 2001 and will be held in the Mayor=s Conference

Room. Our guest speakers will be from Tattersal.







_______________________

Julia A. Rasch,

Recording Secretary