MINUTES OF THE
BOARD OF TRUSTEES MEETING OF THE
COLUMBUS GEORGIA EMPLOYEES' PENSION PLAN
October 3, 2007
A meeting of the Board of Trustees for the Columbus Georgia Employees? Pension
Plan was held October 3, 2007 at 2:00 P.M. in the Mayor?s Conference Room.
PRESIDING: Mr. Joe Smith, Co-Chairman
PRESENT: Omagene Holland, Trustee; Col. R. George Plummer, Trustee;
Alan Rothschild, Trustee; Maj. Lemuel Miller, Trustee; and Ms. Reather
Hollowell, Trustee
ABSENT: Mayor Jim Wetherington, Isaiah Hugley, City Manager; Pamela
Hodge, Finance Director and Secretary/Treasurer; Morton Harris, Trustee; and
Mary Strozier-Weaver, Trustee
GUESTS: Tom Barron, Human Resources Director; Richard Swift and Henry
Swift (Smith Barney) and Mr. John McClure (Madison Fixed Income)
Mr. Joe Smith, Co-Chairman called the meeting to order. Ms. Julia Rasch,
Recording Secretary, recorded the attendance.
MINUTES OF THE PREVIOUS MEETING:
The minutes from the September 12, 2007 meeting were presented for approval. A
motion was made by Mr. Alan Rothschild and seconded by Col. Plummer to accept
the minutes as submitted. The vote was unanimous.
INVESTMENT UPDATE: Interim Report (Mr. Richard Swift)
This is the interim rolling three-month report from 06/30/07 to 09/30/07, the
first quarter in the new fiscal year 2008. The first chart referenced is the
for S&P 500 which started the period at 1503.35 and ended the period at 1526.75
which indicates a sell-off in the beginning of the quarter and then a rally
back at the end of the quarter finishing up slightly for the period.
Next is the chart for the Ten Year Treasuries, the yield has gone from 5.03% to
4.57% indicating a better bond market for this period of time.
Last is the performance of the money managers for this three-month period. The
fixed managers went from $83,337 million to $85,018 million, up 2.02% vs. the
LB Gov. Credit (GVI) at 1.71%.
The growth managers started the period at $31,338 million and ended at $32,706
million, up 4.20% vs. the Russell Growth being up 2.82%, a nice out-performance
by the growth managers. Trusco had a very nice performance being up 7.99%.
The value manager?s performance is not so good for this period. TCW, Cambiar
and Spears all had a tough period. The combined value went from $31,881
million to $30,535 million, down -4.22% vs. the Russell Value being down
-2.18%, a strong under performance by the value managers.
Knott and Madison, the core managers, went from $28,589 million to $29,527
million. Knott is finally doing well, up 6% and Madison up 0.62% and the
combined core up 3.28% vs. the S&P 500 up 1.56%, a good performance, all driven
by Knott which is good to see that they are performing much better.
Lazard, the combined went from $17,044 million to $17,654, up 3.58% vs. the
EAFE up at 2.25%.
The total city account is up 1.61% vs. 60% SP / 40% LB Gov/Cr Index which is up
1.62%
Last is the new accounts summary, at $16,034 million. This represents the
money that was pulled from all the managers to put into the new portfolios,
which is the Russell Growth, Russell Value, the S&P 500, the EAFE and the four
funds that represent mid-cap and small-cap. The numbers have been changed to
reflect the fact that those funds have been backed out and they are included in
the total city value at $211,474 million for the end of the quarter.
Next month the figures that will be presented will be the AIMR compliant
numbers. This report is simply a value as of the 06/30/07 meeting, and a value
as of the 09/30/07 date and how the market has done, how the managers have
done, it is not AIMR compliant, it?s just a snapshot or generalization.
Joe Smith explained that AIMR stands for Association For Investment Management
and Research and they publish a standard set of calculations with which to
calculate performance and is used by everyone in the industry. All managers
have to be compliant and present their performance numbers according to this
standard. It?s not necessarily independently verified it?s just done in a
standard methodology that is accepted by the industry as the standard.
A copy of the evaluation reports and the other information presented to the
board is retained in the Finance Director?s Office by the Board Secretary and
is available for review upon request.
PRESENTATION: Madison Fixed Income (John McClure)
Mr. John McClure of Madison (Fixed Income) was introduced at this time and
presented his report along the following outline:
Performance Review
? Market value and the performance summary
? Portfolio Characteristics
? Historical Returns & Asset Growth
Investment Strategy
? Bond Market Balance Sheet
? Yields Break Out
? Inflation
? Valuation
? U.S. Dollar
? World Interest Rate
Portfolio Appraisal
? Listing of Holdings by Madison
Mr. McClure was thanked for his presentation and was dismissed from the meeting.
New Business: The two new board members, Maj. Lemuel Miller and Ms. Reather
Hollowell were officially welcomed to the pension board
Old Business: Due scheduling conflicts TCW was unable to attend today but will
be rescheduled at a later date.
The investment of funds into the new asset classes is about 25%
complete.
With no further business for discussion, the meeting was adjourned.
The next regular meeting is scheduled for November 7, 2007 at 2:00 p.m. in the
Mayor?s Conference Room. The guest speaker(s) will be from Madison Fixed
Income and TCW.
______Julia A. Rasch ____
Julia A. Rasch
Recording Secretary
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