State Employees’ Retirement Fund Market Value Altimeter
July 2004
| Valuation Date |
Market Value (in billions) |
| 5/31/2004 | 9.373 |
| 4/30/2004 | 9.371 |
| 3/21/2004 | 9.496 |
| 2/29/2004 | 9.520 |
| 1/31/2004 | 9.420 |
| 12/31/2003 | 9.369 |
| 11/30/2003 | 9.107 |
| 10/31/2003 | 9.073 |
| 9/30/2003 | 8.857 |
| 6/30/2003 | 8.707 |
| 12/31/2002 | 8.537 |
| 12/31/2000 | 10.890 |
| 12/31/1995 | 6.595 |
| 12/31/1990 | 3.935 |
The market value of the State Employees Retirement Fund increased approximately 2 million dollars between April 30th and May 31st, 2004 reflecting a balance of 9.373 billion. Since year end 1997 the investment staff has significantly increased the fund results. Their efforts have given a continued stimulus to succeed resulting in a fund that “remains well-diversified both across and within asset classes.”
Observations, Facts and Assumptions
Mr. Greenspan on May 18, 2004 was sworn in for his fifth term as Chairman of the Federal Reserve. He was first nominated as Chair by President Reagan, nominated by President Clinton and again by the first President Bush and now voted in again by the present President Bush. The Federal Reserve on June 9th raised interest rates for the first time in four years. The rate was raised one quarter of a percent to 1.25%. This is the interest the banks charge one another on overnight loans. There is a trickle down effect, however, as borrowing rates for consumers and business loans rose from 4% the lowest since 1959 to 4.25%. This is the banks prime lending rate. Such a maneuver is to slow the economy that has shown some effects of escalating periodically. Consumer prices are up 3.1 % over the past year and in the past three months the consumer price index rose 5.5% annual rate. In May prices soared an 8% annual clip. The Fed is concerned whether prices will continue to rise rapidly. Many analysts believe that probably the Fed will continue small increases the rest of the year, not stopping until it has raised the final rate to around 4%.
Did You Know
- The collecting of social security starts at age 62. A person can earn up to $11,680 annually without being penalized.
- The Korean War ended July 19, 1953.
- The first atomic bomb was dropped on Hiroshima, August 6, 1945, the second dropped on Nagasaki, August 9, 1945. On September 2, 1945 Japan signed a formal surrender.
Ponder This
- Is there a day when mattresses are not on sale?
- How do those dead bugs get into closed light fixtures?
- Shotgun wedding. A Case of wife or death!
- When a clock is hungry it goes back for seconds!
Commentary
Primary elections are August 3...General elections November 2, 2004. Remember, if you don’t vote — don’t complain. (I complain a lot — I voted twice — only kidding.)
Editor’s note: Al Trierweiter is a former President of the Lansing SERA Chapter, former Chairman of the Michigan SERA Coordinating Council, former Legislative Representative for both the Lansing Chapter and the SERA Council. AI may be reached at 6440 Old River Trail, Lansing 48917; phone 321-0041.
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