State Employees’ Retirement Fund Market Value Altimeter
January 2007
| Valuation Date |
Market Value (in billions) |
| 11/30/06 | $11.194 |
| 10/31/06 | $11.026 |
| 9/30/06 | $10.836 |
| 6/30/06 | $10.494 |
| 3/31/06 | $10.590 |
| 12/31/05 | $10.273 |
| 12/31/04 | $9.785 |
| 12/31/03 | $9.369 |
| 12/31/02 | $8.573 |
| 12/31/01 | $9.914 |
| 12/31/00 | $10.890 |
| 12/31/99 | $11.055 |
| 12/31/98 | $10.020 |
| 12/31/97 | $8.922 |
| 12/31/96 | $7.654 |
| 12/31/94 | $5.385 |
| 12/31/90 | 3.9935 |
The market value of the State Employees Retirement Fund increased to 11.194 billion as at November 30, 2006 from the 11.026 billion shown on October 31, 2006. This is a positive differential of 168 million for the period. Under Alternative Investments Venture Capital Funds was down 1.3% at the time. However, Fund of funds, Liquidation portfolio and Hedge funds combined to increase the portfolio to a net 343 million for the period. Alternative investments in the main consists of a “cat and dog” operation investing in a variety of asset classes.
Observations, Facts and Assumptions
We are about to enter the third year of the presidential cycle. At this time the economy is growing at a below normal rate. Historical the third year of the presidential cycle has been a double-digit grower for the market. There are present circumstances however, that could intervene in keeping for a hoped economic stimulus. President Bush is the first president during war time has has petitioned to eliminate various taxes. Fortune magazine stated there are mixed economic signals developing. On one hand it states that reported profits “are probably exaggerated;” on the other, that real profits “aren’t insanely high.” Concerns also include the “twin deficits,” the large government budget shortfall and the ever large trade gaps.
It has been a pretty exciting year for stock market investors. Through all kinds of political and economic worries, from the war in Iraq, another kind of war under the capitol dome (bipartisan) to the housing bust the Dow never the less closed about 12,000 for the year 2006.
The 38th President of the United States, Gerald R. Ford’s body, after proper pomp and circumstance, was laid to rest in Grand Rapids, Michigan on January 3, 2007. A part of the eulogy given was that he came from a generation who “didn’t whimper and matured beyond their years.” They witnessed the aftermath of World War I, the tragedies of the great depression and contributed to the necessities in winning World War II. Those people, known as the “greatest generation,” were measured by their honesty and courage of character. This writer is a apart of that generation.
Over thirty years ago a representative group of state retirees establish the State Employee Retirees Association eventually numbering 21 chapters. Older SERA members are part of the “greatest generation” pool. We remember during our working days there were some tough times. Pay less paydays — hot offices in the summer — limited use of air conditioning — and cold offices in the winter — thermostats set at 66 degrees. The change of governors didn’t always help either because of a switch in operational philosophies.
In the early 1980’s many of my generation of SERA retirees received so called “thirteen checks” during an approximate four-year period. These checks, many larger than the retiree’s total year’s pay, helped to purchase newer used cars, new windows in their homes, new washing machines, etc. It appears such checks are in the past, however, we hear little whimpering. (the 13th checks came from a surplus of funds and allocated under a complicated formula). Our members have shown resiliency in whatever happens. For some of us even walking is a treat. We thank the Lord and respect the health benefits given us (its not in the constitution to do so). We do believe the so-called COLA could be enhanced by at least one percentage point — from 3% to 4% — but we are not whining. Finally, we acknowledge the good job that the State of Michigan Bureau of Investments is doing on our behalf in keeping our funds bottom line positive. Because of their remarkable operation it is much easier for those in charge to pay the existing health benefits that we receive. We certainly should not be found whining in this regard.
This writer was intrigued by the avalanche of superlatives rightfully conveyed on President Gerald R. Ford on his burial day. It fostered the making of the above paragraphs regarding the “greatest generation.”
Did You Know
- Congress has lifted 1.8 trillion (IOU) from the Social Security Trust fund. No wonder a problem exists!
- Astronaut John Glenn returned to space at age 77.
- Frank Lloyd Wright was still working at age 91.
- The pouch of a pelican has the capacity to carry 12 quarts.
Ponder This
- Our country is in mourning: A soldier died today.
- “If you don’t know where you are going any road will get you there.” — Mark Twain
- “If you never strive for perfection you will never make it.” — President Gerald R. Ford
- ”There should be no increase in the cost of a stamp in the foreseeable future.” — Anonymous
- The amount of money that nation’s Christmas tree farmers receive from tree sales in 2005 — $485 million. The value of U.S. imports of Christmas tree ornaments from China between January and August of 2006 — $605 million.
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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