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, 2000.

Your plan is in a very healthy condition. As of July 1, 2000 members are receiving 4.00% interest semiannually compounded (8.16% annually). This fiscal year plan assets grew from $901,273,449 to $939,335,834 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, 2000.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 2000 included a graduated Association payment of a retiree=s health insurance premium of $16.50 per year of service up to a maximum of $330 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	$178,153,324
Corporate Bonds	150,520,633
Other Bonds-Foreign	4,029,760
TOTAL BONDS	$332,703,717
STOCKS Technology	$77,048,367
Capital Goods & Services	40,025,806
Energy	49,966,313
Materials & Services	91,068,800
Consumer	94,871,971
Financial	67,763,921
Transportation	17,399,000
Utilities Total Domestic Stocks International (Putnam) TOTAL STOCKS	21,367,003    459,511,181      114,860,646    $574,371,827

		FAIR VALUE
ASSETS	DEFINED BENEFIT PENSION PLAN	POST EMPLOYMENT HEALTH Benefit	TOTAL
Cash and Cash Equivalents	$  21,468,923	$  2,943,632	$  24,412,555
RECEIVABLES:Bond Interest	4,180,121	573,142	4,753,263
Stock Dividends Securities Transactions	945,234 1,215,096	129,602 166,603	1,074,836 1,381,699
Contributions	561,015	76,922	637,937
TOTAL RECEIVABLES	6,901,466	946,269	7,847,735
INVESTMENTS (At Fair Value):
Bonds Government	156,671,845	21,481,479	178,153,324
Bonds Corporate	132,371,065	18,149,568	150,520,633
Bonds Other	3,543,857	485,903	4,029,760
TOTAL BONDS	292,586,767	40,116,950	332,703,717
Stocks-Domestic Stocks-International Total Stocks TOTAL INVESTMENTS TOTAL ASSETS	404,103,965 101,010,910 505,114,875 797,701,642 $826,072,031	55,407,216  13,849,736     69,256,952 109,373,902 $113,263,803	459,511,181 114,860,646 574,371,827 907,075,544 $939,335,834

LIABILITIES

PAYABLES:

Accrued Expenses. Accounts Payable TOTAL PAYABLES	$             ---       2,042,551       2,042,551	$              ---                 --                 --	$             ---     2,042,551      2,042,551
NET ASSETS HELD IN TRUST FOR PENSION AND POST-EMPLOYMENT HEALTH BENEFITS.	$824,029,480	$113,263,803.	$937,293,283

 

STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2000

		Fair Value
	DEFINED BENEFIT PENSION        PLAN	POST EMPLOYMENT HEALTH    BENEFITS	TOTAL
Additions:
Contributions: Employer	$5,899,393	$     ---	$ 5,899,393
Plan members.	10,139,886	_______---	10,139,886
Total contributions	16,039,279	______ ---	16,039,279
Net appreciation (depreciation)in fair value of assets	(69,346,056)	---	69,346,056)
Interest.	25,732,110	---	25,732,110
Dividends.	9,350,351	---	9,350,351
Gain (Loss) on sale of bonds/stocks.	92,743,621		92,743,621
Other Revenue     Net investment income.	50,915     58,530,941	_ ---                ---	50,915    58,530,941
Total Additions	74,570,220	---	74,570,220
Deductions: Benefits	26,983,836	5,145,956	32,129,792
Refunds of contributions.	1,728,978	-	1,728,978
Administrative expenses Investment expenses	789,133      2,511,009	80,000                -	869,133     2,511,009
Total deductions.	32,012,956	5,225,956	37,238,912
Net increase (decrease).	42,557,264	(5,225,956)	37,331,308
Transfer of assets	(9,162,894)	9,162,894	---
Net assets held in trust for pension and health benefits:(at market value)Beginning of year,End of year - market value.	790,635,111 $824,029,481	109,326,864 $ 113,263,802	899,961,975 $937,293,283