Investment Performance
June 30, 2010

Click here to download a presentation of investment performance through June 30, 2010

Performance Summary

The first month of the second quarter saw relatively strong performance, but then investors grew concerned about economic growth. Riskier assets in general declined in the second quarter as investor confidence was shaken by the debt crisis in Europe and evidence that the global economic recovery was slowing.  The equity losses in the second quarter wiped out gains that most sectors recorded in the first three months of the year.  Large cap stocks underperformed small cap stocks in the quarter, though this mostly reflects the greater rise in small cap stocks when investors were confident in the economic recovery.  With investors seeking security, treasuries outpaced corporate bonds.  In international equities, European stocks suffered the worst losses.  The U.S. dollar strengthened against most currencies, especially the euro, as investors sought a safe haven.  As economic growth has slowed, some investors believe that a "double dip" recession may be imminent.  Going forward, investors will be watching for indicators that the economic recovery is in fact durable. 

Historical Annualized Returns

Asset allocations to fixed income and alternative investments reflect a decision by the Finance/Investment committee to invest $500,000 in a portfolio of real assets. The Committee is concerned about future inflation and this new investment class will provide some protection in that event.  The real asset investment is allowed by policy as part of alternative investments.  This investment was funded with assets from the fixed income portion of the pool.   

Revised August 2010

Investment Managers:

Franklin Management
Symphony Asset Management
MFS Investment Management
Tradewinds NWQ Investment Management
Wedge Capital Management
Aletheia Research & Management
Janus Capital Management
Neuberger Berman

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