FWCJUA Investment Committee Meeting Report: February 27
Feb 27, 2009
On Friday, February 27, 2009, the Florida Workers’ Compensation Joint Underwriters Association (“FWCJUA”) Investment Committee (“Committee”) met to review the FWCJUA’s current investment portfolio and consider whether an exception to its Investment Policy was warranted, given the state of the investment marketplace and performance of the FWCJUA’s portfolio.
The FWCJUA’s Executive Director, Laura Torrence, advised there were no new investments that had become non-compliant since January 30, when the Committee approved the continued holding of downgraded Home Depot, Anheuser Busch, Lehman Brothers and Vulcan Materials bonds. Ms. Torrence reported that these investments remain stable with no new changes in outlook or ratings and recommended continuing to hold all of the current bonds. The Committee approved Ms. Torrence’s recommendation.
Ms. Torrence said that $8,170,000 of U.S. bonds earning 3.25 percent, as well as $97,000 in bank CDs earning 2.90 percent, had been called in February, leaving the FWCJUA with a large amount of cash in February.
Discussion moved on to upcoming investment opportunities. Committee members decided to limit investment outlook to two years in light of market uncertainty, despite the additional effort required in maintaining short-term investments. Members agreed to re-evaluate the strategy when there was a sense of global economic reaction to the infusion of cash from the U.S. Stimulus Plan.
Inside the two-year parameter, the Committee agreed to focus investments on U.S. Treasury bonds and CDs, because the return of between 3.21 percent and 3.75 percent is better at present.
The next Committee meeting is scheduled to be held at 10:00 a.m. on March 26. The meeting was then adjourned.
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