News & Notes
SBA Interim Executive Director Gives Update on Local Government Investment Pool
The State Board of Administration (SBA) met this week and received a status report on the Local Government Investment Pool (LGIP) from SBA Interim Executive Director Bob Milligan. General Milligan gave a brief update on a number of topics including the following:
Executive Director Search: The SBA is interviewing executive search firms to assist in identifying appropriate candidates from a national pool to serve as its next Executive Director. The job description is being redrafted to place more emphasis on investment management and the revised description will more closely resemble a Chief Investment Officer.
Pool Rating: Standard and Poor's (S&P) has been hired to rate Pool A. As a result of their preliminary analysis, S&P has recommended that two investments in Pool A be transferred to Pool B and one transferred from B to A. The investment amounts are roughly the same so there will be no material change in the assets of either pool.
Pool A Activity: December 17, 2007 was the first day that Pool A experienced more subscriptions (deposits) than redemptions (withdrawals), for a net in-flow of $34 million.
Permanent Fund Manager: The SBA is soliciting proposals for a successor to BlackRock (hired on an interim basis). The SBA expects to have a recommendation to the SBA Trustees by the end of January.
Audit Committee: The SBA Audit Committee has begun a review of the investment decisions and other events that lead to the withdrawals from LGIP over the last six weeks. The audit committee is comprised of three appointees; one made by each of the Florida Cabinet members who sit as an SBA Trustee.
Future Meetings: The LGIP Advisory Committee is scheduled to meet on January 3, 2008 at 1:30 p.m. in Tallahassee. The next SBA Trustees meeting is set for January 18, 2008 at 9:00 a.m. in Tallahassee.