| March 1, 2004 |
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I am pleased to report that 2003 was a great year for your Pension Fund.Not only did the Fund generate a 16% investment return, but, as of this letter, the Fund has recouped all of its losses from the down market and has surpassed its all time high market value.Although significant improvements in the financial markets have aided the Fund’s performance, our annualized return of 6.7% over the past five years still falls short of the actuarial assumed rate of return of 8.0%.Thus, in spite of these recent advances, the Fund is still in need of continued improvement in the markets to insure returns exceeding 8.0%. |
This past year was also a year of important changes and innovations.The equity portion of the Fund was increased with the addition of several new managers, adding more diversification to investments.A new actuary, The Segal Group, was hired to monitor benefits costs.Finally, two new employees were added to the Pension staff:Christina Cannella is the new Investment Analyst and Cinzia Davenport, formerly a temporary employee, is now the full-time receptionist.
More exciting changes are ahead for fiscal year 2003-04 as the Board refines its asset allocation strategy even further to increase international equity positions and add global fixed income to the portfolio.In addition, the Board of Trustees has adopted a proactive corporate governance initiative involving securities class action lawsuits.This initiative, in addition to creating larger recoveries for the Fund, will also assist in restoring confidence in the capital markets and help to deter wrongdoing by corporate officers.
As always, our first priority is to give you the best possible return on your investment.We appreciate your continued support of our efforts and look forward to continuing to serve you in the years ahead.
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Sincerely,
WARREN J. SCHOTT, CFA |
