March 1, 2005

The Board of Trustees of the Fire and Police Pension Fund, San Antonio is pleased to present our Annual Report for the fiscal year ending September 30, 2004 .

As I Write this leter , I realize this will be the last time I will be reporting to you. It has been an enjoyable and educational four years.,filled with excitement as major projects such as Toyota and PGA prepare to open their doors.Likewise, ,it has been a good year for your Fund, with a positive 12.1 percent return on assets.

  Contained in this year's report you will find important financial and acturial reports on the Fund. As mentioned above, fiscal year 2003-2004 was a remarkable year for imvestement returns. The market value of assets increased over $ 168 million during the year, from $ 1,327 billion to $ 1,495 billion.

  In addition, the Fund's auditor again gave the Fund an unqualified opinion stating the financial statements presented fairly the net assets of the Fund and were in conformity with generally accepted accounting principals. No exceptions were noted.

  I would like to end this final report by thanking the Board of the Fund for its effor and diligence in fulfilling its fiduciary duty to the Fund, Especially the members of the City Council who have been very active on the Board. The Board's hard work and cooperative effort over the last several years with the city of San Antonio will assure the ongoing,Prudent management of the Fund in the years to come.



Mayor and Chairman
Of the Board of Trustees