Endowment Report 3-9-2006

Quarterly report from the endowment committee
THIS IS AN AMENDED REPORT. THE AMOUNT TO ALLOCATE WAS LOST IN
A FOG OF NUMBERS AND MARTHA QUESTIONED THE GIVEN FINAL
AMOUNTS. LINE TEN HAS THE CORRECT NUMBERS FOR THIS SNAPSHOT
OF FEB. 26, 06. ITS HARD WORKING WITH MORE THAN THREE NUMBERS
LEFT OF THE DECIMAL POINT.
BRUCE
Feb. 27, 2006
Members: Bruce Tedtsen, Richard Sirstad, Hayden Kaden
Attendance: Bruce Tedtsen and Richard Stirstad (quorum)
1. Discussed the fund return as of the later part of Feb. This reflects a 14.85 % return since the inception of April 1, 05. This return is above the guidelines given to the financial manager of 11%. The city will have no problem drawing 5% of the total as soon as it pleases. We talked about addressing the allocation of the assets when we pull the funds out. We would need the councils approval to re-allocate if necessary.
2. International stocks have been big winners this last year and do you want to look at allowing more than a token to be part of the allocation.
3. Since inception of Mar. 31. 05 the fund has improved by $131000.00.
4. Since the initial investment of $968000 the fund has earned $151000.00.
5. The ordinance calls for the net income to be established on the last day of the fiscal year.(investment year or city year) This does make a difference and is not spelled out by date in the ordinance. The fund year would allow the income to be pegged on April 1st of this year and the city year would by July 1st of this year.
6. The management charge is %1.3 (about $13000)
7. Inflation according to the Anchorage Consumer Price Index was 106% as of Dec. 31,05
8. Adjustments to the total income are 4.5%. A 5% withdraw plus the 4.5% administration costs leave the fund with a 4% surplus in earnings that will remain in the fund to help balance years where the returns are less. We are working on a five year average.
9. We need two weeks to pull money out of the fund.
10. Drawing 5% of $1119000.00 $55950.00 for allocation. The new base for the fund is $1063050.00 an increase of $75000.00.