Florida Workers’ Compensation Joint Underwriting Association Investment Committee Meeting Report–October

Nov 3, 2009

The Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Investment Committee (“Committee”) met via teleconference on Friday, October 30, 2009 to decide whether to continue to hold bonds that have been authorized as exceptions to the FWCJUA Investment Policy.  The meeting materials and agenda are attached.

The FWCJUA staff informed the Committee that SunTrust bonds in the FWCJUA portfolio had matured on October 15 at par value and interest was paid in full without incident.

It was also reported that Anheuser Busch, Citigroup and Vulcan Materials bonds are still considered to be sound investments because the companies are performing well. 

Most of the discussion centered on the FWCJUA’s investments in Lehman Brothers, which is in bankruptcy. It was reported that, although Lehman bonds currently are trading at about 14 to 17 cents on the dollar, they are expected to be worth about 30 cents on the dollar when the bankruptcy is completed in about two years.

The Committee voted to reaffirm the aforementioned bonds as authorized exceptions to the FWCJUA’s Investment Policy.

 

Should you have any questions or comments, please contact Colodny Fass.

 

To unsubscribe from this newsletter, please send an e-mail to ccochran@cftlaw.com.