FWCJUA Investment Committee Meeting Report: December 1
Dec 3, 2008
On Monday, December 1, 2008, the Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) held an Investment Committee (“Committee”) meeting to review the current FWCJUA investment portfolio for compliance. To view the complete meeting agenda, click here.
Among those in attendance were Committee Chairman Fred Bennett, Committee member Claude Revels, FWCJUA Executive Director Laura Torrence, and FWCJUA Staff member Laura Lopez.
Ms. Lopez gave an update on the currently authorized FWCJUA investment policy exceptions. During its October 31 meeting, the Committee approved holding five bonds downgraded below an “A” rating in the FWCJUA investment portfolio. The approved bonds include: Home Depot, Anheuser Busch, First Tennessee Bank, and Vulcan Materials.
Since the October 31 meeting, the bond issued by Vulcan Materials has been further downgraded due to the company’s weaker than expected operating performance and the ailing construction industry. During discussion, Committee members requested a full company profile of Vulcan Materials to be reviewed at its next meeting.
The Committee authorized an investment policy exception to continue holding the further-downgraded Vulcan Materials bond, and re-confirmed the other bonds currently held as exceptions.
To view a summary report of the October 31 meeting, click here.
Ms. Torrence gave an update on the Certificate of Deposit Account Registry Service (“CDARS”) program, which allows the FWCJUA to spread its deposits among multiple banks in order to ensure FDIC insurance coverage.
The FWCJUA has received a proposal from a small community bank regarding CDARS program options, and will present the proposal to the Board of Governors during its December 9 meeting.
FWCJUA Staff is researching whether state-specific banks may be chosen for investments.
The meeting was then adjourned.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
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