Investment Performance
March 31, 2010

Despite a sharp decline in January and early February, markets ended the quarter up strongly as investor fears dissipated and data showed continued economic recovery.  Equity markets in the U.S. rose strongly, with riskier stocks leading performance.  Small cap stocks rose 8.9% outpacing large cap stocks which also performed well, with the S&P 500 Index rising 5.4%.  International markets underperformed U.S. markets in the first quarter because of the Greek debt crisis in Europe, efforts to rein in growth in emerging markets, especially China, and the strengthening of the U.S. dollar, which rose in the first quarter.  Returns in fixed income were also positive.  Relatively low quality high-yield bonds posted solid returns while safer investments, such as U.S. treasuries and municipal bonds, were positive but underperformed relative to other market returns as investors appeared to grow more concerned about rising government deficits. 

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 May 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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