Florida Workers’ Compensation Joint Underwriting Association Investment Committee Approves Meeting Dates, Investment Activities
Nov 9, 2012
At its meeting yesterday, November 8, 2012, the Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Investment Committee (“Committee”) rescheduled two 2013 meeting dates, and agreed that recent investment activities by the FWCJUA’s financial advisor remain compliant with the FWCJUA’s Investment Policy Statement and Guidelines.
During a brief teleconference, Committee members agreed to reschedule two future meetings to ensure they have the latest month-end investment reports to review. The new meetings dates are as follows:
- 10:00 a.m. on February 14, 2013 (rescheduled from February 7)
- 10:00 a.m. on May 15, 2013 (rescheduled from May 9)
In other business, the Committee reviewed the FWCJUA’s current investment portfolio with FWCJUA investment manager Prime Advisors Inc., agreeing that investment activities undertaken since the Committee’s August 9, 2012 meeting are in compliance with FWCJUA requirements.
A quarter-end report offered details on portfolio changes, watch-listed holdings, investment guideline compliance, bond purchases, bond sales, calls and maturities, portfolio holdings, and unrealized gain/loss fluctuation.
The Committee also learned that on November 29, 2012, the FWCJUA Operations Committee will be considering various sweep options available at JP Morgan Chase to mitigate the risk of maintaining balances above FDIC limits at the bank beginning in 2013.
It was noted that under the direction of Prime Advisors, $20 million has been systematically moved from JP Morgan Chase into investments since June 2012.
Strategies to be considered on November 29, 2012 will include:
- Establishing a maximum cash balance retention of $4 million, which is 25 percent above minimum retention, and recognizing that Committee or Board action may temporarily authorize a higher maximum to facilitate payment of a return of premium policyholder dividend.
- Defining the maximum commercial bank credit exposure to be the total amount of the FDIC insured balances plus 2 percent of the overall investable assets consistent with the Investment Policy.
- Ensuring that any cash balances in excess of the maximum commercial bank credit exposure are swept daily into secure money market accounts with daily liquidity; invested in fully FDIC insured Certificates of Deposit; or transferred to the Investment Custodian to be invested by the Investment Manager.
Committee members agreed the above suggested proposed strategies are fiscally prudent. With no further business, the meeting was adjourned.
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