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Annual Report 2001

TO RETIREMENT ASSOCIATION MEMBERS

Your Retirement Association has been in existence since July 1, 1948. The enclosed figures will show you the progress we have made during the year ending June 30, 2001.

Your plan is in a very healthy condition. As of July 1, 2001 members are receiving 4.00% interest semiannually compounded (8.16% annually). This fiscal year plan assets grew from $937,293,283 to $984,546,448 at market value. The Retirement Board continued to diversify the investment management and has developed a new asset allocation.Dodge and Cox will manage 38% of the portfolio in fixed income securities as well as 27% of the portfolio in large cap value equities.Putnam Institutional Management will invest 10% of the portfolio in international equities.Small cap growth equities are managed by Trust Company of the West (TCW) and are targeted for a 10% allocation.The remaining 15% allocation has been awarded to MFS Institutional Investors and was initially funded in July, 2000.

There were no excess earnings for the year ended June 30, 2001. Part of the contingency reserve for market value fluctuations was utilized to be able to continue to grow reserves by the assumed rate of 4.00% semiannually.Prior year excess earnings, however, have been set aside to help reduce employer contributions and fund ad hoc, non-vested benefits to retirees.These additional benefits for 2001 included a graduated Association payment of a retiree=s health insurance premium of $17.00 per year of service up to a maximum of $340 per month; the death benefit of $5,000; and a special cost of living increase for those who retired before April 1, 1981 and experienced unusually high inflation in the late 1970's and early 1980's.

The accompanying financial statement is from audited records in accordance with Governmental Accounting Standards Board Statement Number 25.Any member desiringto see the full audited financial report may visit the Retirement staff on the 5th Floor (Suite 5800) of Tenth Street Place.

Tom Watson, Retirement Administrator

Stanislaus County Employees? Retirement Association

INVESTMENTS
BONDS
MARKET VALUE
U.S. Government
$188,756,707
Corporate Bonds
$141,966,579
Other Bonds-Foreign
$6,502,990
TOTAL BONDS
$337,226,276
 STOCKS  
Technology
$70,392,772
Capital Goods & Services
$38,973,406
Energy
$45,619,183
Materials & Services
$117,379,517
Consumer
$128,917,418
Financial
$90,317,442
Transportation
$18,040,230
Utilities
$33,148,071
Miscellaneous Common Stock
$417,630
   
Total Domestic Stocks
International (Putnam)
TOTAL STOCKS
$543,205,668
$70,530,933
$613,736,601


STATEMENT OF PLAN NET ASSETS JUNE 30, 2001


   
FAIR VALUE
 
 ASSETS
DEFINED BENEFIT PENSION PLAN
POST EMPLOYMENT HEALTH Benefit
    TOTAL      
Cash and Cash Equivalents
$  24,133,355
$  3,243,889
$  27,377,244
RECEIVABLES:Bond Interest
   4,113,282
   552,887
   4,666,169
Stock Dividends Securities Transactions
  665,983
3,703,008
  89,515
497,741
  755,478
4,200,749
Contributions
726,510
97,854
824,164
TOTAL RECEIVABLES
9,208,763
1,237,797
10,446,560
INVESTMENTS (At Fair Value):      
Bonds Government
166,091,204
22,365,503
188,756,707
Bonds Corporate
125,145,169
16,821,410
141,966,579
Bonds Other
5,732,460
770,530
6,502,990
TOTAL BONDS
297,268,833
39,957,443
337,226,276
Stocks-Domestic
Stocks-International
Total Stocks TOTAL INVESTMENTS
TOTAL ASSETS
478,842,033
62,173,827 541,015,860
838,284,693 $871,626,811
64,363,635
8,357,106 72,720,741
112,678,184 $117,159,870
543,205,668
70,530,933 613,736,601
950,962,877 $988,786,681

LIABILITIES

PAYABLES:

Accrued Expenses.

Accounts Payable
TOTAL PAYABLES

$             ---
      4,240,233
      4,240,233

$              ---

                --                 --
$             ---
   4,240,233
     4,240,233
NET ASSETS HELD IN TRUST FOR PENSION AND POST-EMPLOYMENT HEALTH BENEFITS.
$867,386,578
$117,159,870
$984,546,448

 

STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2001


   
Fair Value
 
 
DEFINED
BENEFIT
PENSION
       PLAN      
POST
EMPLOYMENT
HEALTH
   BENEFITS  
      TOTAL     
Additions:
Contributions:
     
Employer
$7,509,294
$     ---
$ 7,509,294
Plan members.
11,227,370
    _______---
11,227,370
Total contributions
18,736,664
     ______ ---
18,736,664
       
Net appreciation (depreciation)in fair value of assets

11,028,755

 ---

11,028,755
Interest.
24,666,039
---
24,666,039
Dividends.
9,202,665
               ---
9,202,665
Gain (Loss) on sale of bonds/stocks.

23,215,656

 


23,215,656
    Other Revenue 
    Net investment income.
310,109
    68,423,224
    _ ---                ---
310,109 
  68,426,224
   Total Additions
87,159,888

 

       ---
87,159,888
Deductions:      
Benefits
29,619,447

5,346,259

34,965,706
Refunds of contributions.
1,163,380
       -
1,163,380
Administrative expenses Investment expenses
875,041
 
     2,821,312
      81,284
              -
956,325
    2,821,312
Total deductions.
34,479,180
5,427,543
39,906,732
 
      
      
      
Net increase (decrease)
52,680,708
(5,427,543)
47,253,165
Transfer of assets
(9,323,611)
9,323,611
       ---
       
Net assets held in trust for pension and health benefits:(at market value)Beginning of year,End of year - market value.
824,029,481
$867,386,578
   113,263,802
$117,159,870
937,293,283
$984,546,448

 

STATISTICS

Number of Active Members.
  4,235
Number of Retired-for-Service Members
1,524
Number of Disability Retirements
307
Number of Survivors Death Benefits
30
Members Retired During the Year Ending June 30, 2001
101
Retired Members Deceased During the Year Ending June 30, 2001
56  
Retiree Death Benefits Paid During hte Year Ending June 30,2001

46  

Deferred Retirements
767