FWCJUA Investment Committee September Meeting Report
Oct 2, 2008
The Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Investment Committee (“Committee”) recently held a meeting,the purpose of which was to discuss authorization of an investment policy exception to continue to hold further downgraded bonds within the FWCJUA’s investment portfolio.
The parties present for the teleconference included Fred Bennett, Terry Butler, Claude Revels, Austin Neal and Laura Torrence.
It was acknowledged that part of the investment portfolio’s goal is to provide sufficient liquidity to meet FWCJUA routine and projected cash requirements.
Some of the downgraded bonds being considered included those issued by Washington Mutual, Lehman Brothers, American General, and McCormick.
The Committee agreed that it is authorized to either make an exception to the FWCJUA’s investment policy and continue holding each individual downgraded commercial paper or bond, or that it may authorize the individual bond to be sold (in this case, most likely for a loss).
The conclusion reached by the Committee was to not make any decisions about the bonds during the meeting. Authority was delegated to Fred Bennett and Laura Torrence to continue monitoring the performance of the investments and decide whether to sell or hold the bonds.
The next Committee meeting is scheduled for October 31, 2008.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
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