March 1, 2004

The Board of Trustees of the San Antonio Fire & Police Pension Fund is pleased to present our Annual Report for the fiscal year ending September 30, 2003 .

Contained within the report, you will find pertinent financial, investment, and actuarial reports on the Fund.I am pleased to report that fiscal year 2002-03 ended with the Fund up 16%.The prudent decision of the Board to increase diversification of assets to mitigate possible losses has paid off.The addition of several new equity managers allowed us to participate more fully in the recent upswing of the market, while avoiding some of the recent pitfalls in the fixed income arena.

† In addition, the Fundís auditor, Carneiro, Chumney & Co., gave an unqualified report indicating that all operations have been carried out in conformity with generally accepted accounting principles.

† As we look to the future, we will continue to strengthen the Fund by focusing on the following objectives:

  • † Utilizing the highest quality investment managers for continued above benchmark performance
  • † Refinement of overall strategy for optimum diversification and stability
  • † Continuing to search for ways to reduce overhead and increase efficiency
  • † Listening to your concerns and incorporating them into our policies whenever possible

† Many thanks to the Board of Trustees and Fund staff for their hard work and commitment to this Fund and its beneficiaries.I look forward to working with you to face the challenges ahead as the Fund continues to grow and diversify.



Mayor and Chairman
Of the Board of Trustees