870173 TMRS CAFR new8 fix 049-081.qxd - Texas Municipal ...

More documents

Recommendations

Info

OUTLINE OF INVESTMENT POLICIES Because the plan design depends on a relatively consistent level of credited interest across all plan years, and because compound interest credited annually at the highest feasible rate best assures the highest amount of accumulated deposits of the member at retirement, TMRS’ goals are best achieved by an income-producing portfolio management strategy, rather than a total return strategy that may result in credits below the 5% statutory minimum target level. As such, neither market value declines nor rises of its fixed-income portfolio is of material significance to the System’s investment objectives. Periods of rising interest rates, which, by definition, will result in erosion of bond market values, should be regarded as opportunities to increase the yield on the total portfolio, and fixed income market volatility should be regarded as an opportunity to realize gains. INVESTMENT OBJECTIVES The basic objectives of investment and reinvestment of system assets are: 1. To assure preservation of (and return of) principal. 2. To earn income sufficient to: a) Allow annual interest credit on the reserve funds at the minimum statutory rate; b) Pay annual administrative costs of the System; and c) Allow annual interest credit on the member and municipality accumulation accounts at the minimum statutory rate. 3. To consistently earn additional income, if feasible, for the following purposes: a) Maintain and continue an “interest reserve” to better ensure continued credits at the statutory minimum target rate during low yielding market periods; b) Pay a distributive benefit to annuitants on December 31st of each year; and c) Credit additional annual interest to the individual accounts of members and to the accumulation accounts of municipalities. GENERAL INVESTMENT POLICIES 1. Funds of the System shall be invested, without distinction as to source, only in securities as that term is defined in the TMRS Act and as authorized by the TMRS Board of Trustees’ investment policies. Board policy limits on amounts of any security or class of securities shall be observed. 2. Investments shall be made with the degree of judgment and care, under the circumstances prevailing at the time of the investment, that persons of ordinary prudence, discretion and intelligence exercise in the management of their own affairs, not in speculation but when making a permanent disposition of their funds, considering the probable income from the disposition and probable safety of their capital. 86 T M R S COMPREHENSIVE ANNUAL FINANCIAL REPORT 2004
SUMMARY OF INVESTMENTS AS OF DECEMBER 31, 2004 FAIR VALUE PERCENT OF TOTAL FAIR VALUE YIELD TO MATURITY Short-term investments $ 782,541,537 6.6% *1.37% Investments: U.S. Treasury securities 4,101,185,258 34.5 5.02 U.S. government agency securities 3,678,232,636 30.9 5.42 State/local government bonds 618,096,198 5.2 5.37 Corporate bonds 2,718,887,371 22.8 5.70 Total investments 11,116,401,463 93.4 5.34 TOTAL $11,898,943,000 100.0% 5.08% * Average income yield for the year. Note: The summary above includes assets of both the Fiduciary and Proprietary Funds. ASSET ALLOCATION Corporate bonds 23% Short-term investments 7% State/local government bonds 5% U.S. government agency securities 31% U.S. Treasury securities 34% T M R S COMPREHENSIVE ANNUAL FINANCIAL REPORT 2004 87
Page 1 and 2:
★ Texas Municipal Retirement Syst
Page 3 and 4:
TMRS® TEXAS MUNICIPAL RETIREMENT S
Page 5 and 6:
TABLE OF CONTENTS ACTUARIAL SECTION
Page 7 and 8:
DENISON Population: 22,773 INTRODUC
Page 9 and 10:
LETTER OF TRANSMITTAL T M R S COMPR
Page 11 and 12:
LETTER OF TRANSMITTAL CONTINUED T M
Page 13 and 14:
LETTER OF TRANSMITTAL CONTINUED T M
Page 15 and 16:
TMRS HIGHLIGHTS 2001 2002 2003 2004
Page 17 and 18:
TMRS PROFESSIONAL ADVISORS LEGAL CO
Page 19 and 20:
TMRS STAFF CONTINUED MEMBER SERVICE
Page 21 and 22:
TMRS ADMINISTRATIVE ORGANIZATION T
Page 23 and 24:
SUMMARY OF PLAN PROVISIONS CONTINUE
Page 25 and 26:
SUMMARY OF PLAN PROVISIONS CONTINUE
Page 27 and 28:
GREENVILLE FINANCIAL SECTION Popula
Page 29 and 30:
INDEPENDENT AUDITORS’ REPORT CONT
Page 31 and 32:
MANAGEMENT'S DISCUSSION AND ANALYSI
Page 33 and 34:
STATEMENTS OF PLAN NET ASSETS FIDUC
Page 35 and 36:
STATEMENTS OF NET ASSETS PROPRIETAR
Page 37 and 38: STATEMENTS OF CASH FLOWS PROPRIETAR
Page 39 and 40: NOTES TO FINANCIAL STATEMENTS CONTI
Page 47 and 48: SUPPLEMENTAL SCHEDULES SCHEDULE OF
Page 49 and 50: SUPPLEMENTAL SCHEDULES CONTINUED SC
Page 51 and 52: Additions Deductions Transfers to W
Page 67 and 68: Additions Deductions Transfers to S
Page 85 and 86: A small city 18 miles east of Waco
Page 87: REPORT ON INVESTMENT ACTIVITY CONTI
Page 91 and 92: 2004 INVESTMENT RESULTS CONTINUED T
Page 93 and 94: LARGEST HOLDINGS (BY FAIR VALUE) AS
Page 95 and 96: TEXARKANA Population: 34,782 A Pine
Page 97 and 98: SUMMARY OF ACTUARIAL ASSUMPTIONS I.
Page 99 and 100: SUMMARY OF ACTUARIAL ASSUMPTIONS CO
Page 101 and 102: SUMMARY OF ACTUARIAL LIABILITIES AN
Page 103 and 104: CONTRIBUTION RATE INFORMATION CONTI
Page 105 and 106: ACTUARIAL VALUATION OF PARTICIPATIN
Page 139 and 140:
ACTUARIAL VALUATION OF PARTICIPATIN
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
WEIMAR Population: 1,981 STATISTICA
Page 157 and 158:
SCHEDULE OF BENEFIT EXPENSES BY TYP
Page 159 and 160:
SCHEDULE OF RETIRED MEMBERS BY TYPE
Page 161 and 162:
PLAN PROVISIONS FOR PARTICIPATING M
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191:
Vesting Requirement PLAN PROVISIONS
show all

870173 TMRS CAFR new8 fix 049-081.qxd - Texas Municipal ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?