FWCJUA Investment Committee January 29 Meeting Report

Feb 4, 2010

The Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Investment Committee (“Committee”) held a teleconference meeting on January 29, 2010 to evaluate the FWCJUA investment portfolio’s performance and compliance with FWCJUA policies.

Committee members reviewed the status of the six authorized investment policy exceptions.  On the recommendations of FWCJUA Executive Director Laura Torrence and an outside investment advisor, they voted to reconfirm the continued holding of the exceptions, which include bonds issued by Lehman Brothers, Anheuser Busch, SunTrust, Citigroup and Vulcan Materials.

Ms. Torrence updated the Committee on the status of the Lehman Brothers bankruptcy process.  She said it is likely to take another year to conclude and the FWCJUA probably will receive a better return by waiting until the conclusion than by selling its investment now.

She also reported that currently, the FWCJUA is investing mainly in six-month bank certificates of deposit, since these are secured by the Federal Deposit Insurance Corporation (“FDIC”) and paying as well, or better returns than U.S. Treasury notes and private bond issues. Ms. Torrence said the FWCJUA purchases FDIC-insured certificates that are covered within the $250,000 limit.

The Committee agreed that this was a good course on which to continue until the financial markets improve and other investments become more profitable.

The Committee members also reviewed the FWCJUA’s other investments; however, since no action was taken, no vote was necessary.

The Committee also decided to cancel its next meeting scheduled for Friday, February 26, 2010.  The next meeting is Friday, March 26, 2010.


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