FWCJUA Investment Committee Meeting Report: October 31
Nov 3, 2008
On Friday, October 31, 2008, the Florida Workers’ Compensation Joint Underwriting Committee (“FWCJUA”) held an Investment Committee (“Committee”) meeting to review the investment portfolio for compliance.
At its September 26 meeting, the Committee authorized an investment policy exception to continue to hold a downgraded Washington Mutual bond until further information was available regarding the impact of the prior night’s seizure of the bank by federal regulators. To view a summary report of the September 26 Committee meeting, click here. Committee members voted to allow the FWCJUA Executive Director, Committee Chair, and Investment Manager to sell the bond as they deemed appropriate prior to the October 31 Committee meeting. The bond was sold on October 2, at a net cash loss of $21,658.
The Committee also had previously authorized exceptions to the investment policy to allow the FWCJUA to hold bonds issued by Home Depot, Anheuser Busch and Lehman Brothers; and commercial paper from American General and McCormick.
It was reported that the Anheuser Busch bond has been further downgraded, and the FWCJUA’s financial advisor also is watching bonds issued by First Tennessee and Vulcan Materials closely, as they are expected to be downgraded as well.
The Committee approved holding the further-downgraded Anheuser Busch bond in the investment portfolio as an exception, and reconfirmed the prior exceptions regarding Home Depot and Lehman Brothers bonds, as well as American General and McCormick commercial paper. The Committee also authorized exceptions for the First Tennessee and Vulcan Materials bonds, should they be downgraded.
The meeting was then adjourned.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
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