FWCJUA Investment Committee Meeting: June 27

The Florida Workers Compensation Joint Underwriting Association (“FWCJUA”) held its June Investment Committee (“Committee”) meeting on Friday, June 27, 2008.  To view the complete agenda, click here.

The meeting was called to order with a quorum of members in attendance.

The Committee reviewed its current FWCJUA investment portfolio that includes bonds from Countrywide, Home Depot, and Washington Mutual.  After discussing the U.S. economy’s effect on the current FWCJUA portfolio, specifically the Committee’s conviction that the bonds have long-term fiscal viability, a continuation of the current portfolio was approved.

Consideration was given to the FWCJUA Investment Policy as a whole, and the Committee established that it would follow a fiscally conservative approach by using short-term bonds with guaranteed returns.  The Committee emphasized the need to incorporate short-term maturities so that once the economy recovers, it would be prepared to re-invest for higher yields.  Parameters regarding maturity length and minimum return on investment were approved by the Committee, thus establishing that current investments in bonds with a maturity greater than two years would need at least a guaranteed four percent return.  The Committee also decided that those bonds with a maturity greater than five years would require at least four and a half percent.

The Committee Meeting was then adjourned.

The July 25, 2008 Committee meeting was cancelled due to members’ travel plans.

 

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.