Columbus, Georgia

MINUTES OF THE

BOARD OF TRUSTEES MEETING OF THE

COLUMBUS GEORGIA EMPLOYEES' PENSION PLAN



July 14, 2004





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

Plan was held July 14, 2004 at 2:00 P.M. in the Mayor?s Conference Room.





PRESIDING: Mayor Robert Poydasheff, Chairman



PRESENT: Angela Cole, Morton Harris, Jack Nowell, Mary Strozier-Weaver, Dan

Gray, and Joe Smith



ABSENT: Carmen Cavezza, Alan Rothschild, Jr., Harvey Milner, and Capt John

Starkey



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

(Salomon Smith Barney), Gwen Marsh (Columbus Water Works), Denise Baxter

(Revenue Division), April Harris (Financial Planning Division)









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

Secretary, gave the attendance.





MINUTES OF THE PREVIOUS MEETING:



A motion to accept the minutes from the May 5, 2004 meeting and the June 2,

2004 conference call meeting was made and the vote to accept was unanimous.





INVESTMENT UPDATE:



Mr. Swift addressed the board with a recap of what has happened in the market

for the period from 5/31/2004 through close of business on 7/13/04. In the

last 30 days, rates have come down as bond prices have gone up at about the

same rate.



The three fixed income managers had a positive 30-day period; they were up

about ? of 1% over this past six weeks. Synovus who will be presenting today

was up 43 basis points.



The growth managers were down collectively about -1.74% during this period of

time. Eagle Asset, who the committee just had a meeting with for two hours,

was down almost -4%.

The value managers, Deutsche Asset and Victory both were up a little, 0.38%.



The core managers were down with Trusco being down -2.25%.



The international manager, Lazard was up 1.50%, which was good over this short

period of time. The international portfolio is up to 10 million dollars. A

meeting with Lazard needs to be set at some point to discuss with them the

issue of moving the large cap portion from a mutual fund status to a managed

fund status. The Mayor suggested that it be discussed at the August meeting.



The combined equities were up .61%. The total city account went from 166

million dollars to 165.9 million dollars, so for all practical purposes during

this six-week period the portfolio did absolutely nothing. The portfolio did

not make any progress but at the same time did not lose anything.



Mr. Swift informed the board that Fred Gaskin with Deutsche Asset has accepted

a position with another firm. Mr. Tom Sassi, the senior portfolio manager,

will continue to make the investment decisions and be responsible for our

portfolio. He thinks the board should consider asking Mr. Sassi to come down

to meet with the board regarding the investment process.



Mr. Swift will try to bring Mr. Sassi in for the August meeting, but if he is

not available he will try to set a meeting in September. He assured the board

that he did not feel there was anything to be concerned about because Mr. Sassi

has been overseeing the portfolio for a long time and that he is the one that

hired Mr. Gaskin.



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 introduced Mr. Len Sexton and Mr. Jeffrey Smith of Synovus to present

their annual report at today?s meeting.



The report followed the Agenda listed below:



Current Economic Conditions/Market Summary



Selected Economic Indicators



ISM Manufacturing Index

Nonfarm Employment



Portfolio Analysis & Performance Summary



Principal Volatility as it Relat4es to Portfolio Duration

Rising Bond Rates

Interest Rate Forecast

Portfolio Performance Review

Distribution Of Assets



June 30, 2002 ? June 30, 2004

Composition

Maturity Schedule



Synovus Securities Overview & Advisory Team



Mr. Sexton and Mr. Smith both were thanked for their presentation and with no

further questions, were dismissed from the meeting.





OLD BUSINESS:



Mr. Swift reported that the committee had met on two issues. The first issue

was to study the request from Lazard Asset to convert large cap stocks from a

Mutual Fund status to a Managed Fund status. The committee should be ready to

come back to the board in August with their recommendation. The second issue

was to meet with Eagle Asset Management on their performance, which has been

well behind the index. He asked that the three of them report on that meeting

to the rest of the board.



Mr. Smith, Mr. Harris and Mr. Gray were all in agreement that their methodology

and style of picking stocks was in question. They are also concerned about the

consistency of their performance which has been far below the index and that

the volatility of the returns compared to the index seems to be more extreme

than other managers.



Mr. Harris made a motion that the board place them on a continuous watch and

that they be evaluated again in not more than a year.



The vote was unanimous.



NEW BUSINESS:



None





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

adjournment.



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

Conference Room. Eagle Asset and National Asset will be here for their annual

report.







_____________________________

Julia A. Rasch

Recording Secretary