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					1818 Society Annual Meeting


   Pension Plan Performance

        October 24, 2007
Road Map

•   Highlights 2006

•   Funded status

•   Plan performance

•   Real Estate update

•   Hedge Fund update

•   July/August 07 market stress

•   Concluding Remarks
    Highlights 2006
•   Staff Retirement Plan (SRP)
       Assets increased by $1.6 billion to $14.0 billion
       Closed Group Liabilities increased by $0.8 billion to $14.3 billion
       Return of 14.3% outperforming benchmark by 3.1%
       Funded ratio improved from 92% to 97%
       Bank contribution rate of 12.23% for FY08 (18.35% in FY07)
•   Retiree Staff Benefits Plan (RSBP)
       Assets increased by $0.24 billion to $1.45 billion
       Closed Group Liabilities increased by $0.11 billion to $1.85 billion
       Return of 15.2% outperforming benchmark by 3.6%
       Funded ratio improved from 69% to 78%
       Bank contribution rate of 6.54% for FY08 (7.82% in FY07)
  SRP - Funded Status

   1.80

   1.60

   1.40
                                                                                             124%
   1.20
                                                                                             102%
   1.00

   0.80

   0.60
                                                                                             97%
   0.40

   0.20

   0.00
           1997     1998     1999     2000     2001     2002      2003     2004      2005   2006
                                         Year ending December 31

          Closed Group Funded Ratio      Closed Group incl PV of participant conts      PBO Funded Ratio



Funded ratio is (MV of Assets)/(Liabilities)
Total Bank Contribution Rates for FY03 - FY08

40%

35%

30%

25%

20%

15%

10%

5%

0%
      2003        2004               2005             2006            2007         2008

                                Financial Year ending June 30

             Staff Retirement Plan      Retiree Medical Plan    Other Bank Plans
SRP - Asset Allocation as of
December 31, 2006
                                             US Equities
                                                19%



      Non-US Equities                                      Private Equity
           16%                                                  9%

                                                              Real Estate
                                                                 5%

                                                            Hedge Funds
                                                               11%




                           Global Fixed Income
                                   40%

Strategic Asset Allocation is currently under review
    Plan Performance (2006)


                             Plan Return        Policy Return   Excess Return

           TOTAL PLAN            14.3                 11.2          3.1

           U.S. Equity           15.1                 15.7         (0.6)
           Non-U.S. Equity       27.8                 26.6          1.2
           Fixed Income           4.1                  3.6          0.5
           Hedge Funds           11.0                  7.9          3.1
           Private Equity        31.6                 13.0         18.6
           Real Estate           38.5                 19.1         19.4
           Active Currency       (0.9)                 0.0         (0.9)



 Second largest excess return on record for the plan
   Alternative investments played a key role
*Plan Performance (Jan ‘07 – Sept ‘07)

                             Plan Return   Policy Return   Excess Return

     TOTAL PLAN                   7.3             6.3           1.0

     U.S. Equity                  9.3             8.8           0.5
     Non-U.S. Equity             17.6            16.7           0.9
     Fixed Income                 3.0             3.1          (0.1)
     Hedge Funds                  8.3             3.2           5.1
     Private Equity               9.1             5.3           4.1
     Real Estate                  3.1             3.9          (0.8)
     * Numbers are preliminary




      Continued strong performance during 2007
        Alternatives contribution likely to be revised upward at year-end

        Plan weathered well the July/August market turmoil
              Real Estate Portfolio

 Plan does not invest in residential homes/mortgages
 Commercial RE has much better fundamentals than
  residential and is a great long-term diversifier
 The industry is cyclical but subspaces/geographies
  follow different cycles
 Strategy has a 33 year track record and takes advantage
  of differences in cycles across subspaces
 RE portfolio is well diversified by geography, property
  type and investment strategy.
Commercial RE Vacancy Rates by Sector

                                               Vacancy by Property Sector
                  20
                                                                        Office                   Retail
                  18
                                                                        Apartment                Industrial
                  16

                  14
 Vacancy Rate %




                  12

                  10

                   8

                   6

                   4

                   2

                   0
                   1983   1985   1987   1989    1991   1993   1995   1997   1999   2001   2003    2005    2007
                                 Global Cycle Chart, mid 2007




                           I              II                          III                   IV                         V          VI
                   Bottoming       Recovery                   Expansion                   Balanced                  Slowing   Correction

                     U.S.
                                   •   Office – CBD           • Hotels                • Retail – Malls           • Midwest
                                   •   Industrial             • Office – Midtown      • Retail – Strip Ctrs
                                   •   Northeast                Manhattan & So.       • Self Storage
                                   •   Pacific (ex So. Cal)     Cal
                                   •   Office – Suburban      • Apartments
                                   •   Sunbelt                • Pacific – So. Cal
                    Europe
               •   Germany         •   Austria                • London City &         • UK Retail
               •   Netherlands     •   Sweden                   West End Office       • Continental
               •   Italy           •   Finland                • France Office           European Retail
               •   Belgium         •   Norway                 • Spain Office          • Switzerland
                                   •   Denmark
                    Asia
               • East/Central      • Australia Office         •   Japan Office        •   China Residential
                 Australia         • Indonesia                •   Tokyo Residential   •   Australia Retail
                 Residential       • Thailand                 •   Hong Kong           •   Australia Industrial
                                                              •   China Office        •   West Australia
                                                              •   Singapore               Residential
                                                              •   Malaysia
Source: Morgan Stanley
                     Real Estate Portfolio by Property Type

                                        SRP Portfolio By Property Type




                         100%                                                     Hotels, 2%
                                                Other, 9%
                         90%                    Hotels, 4%                        Retail, 22%
                         80%                    Retail, 15%

                         70%
                                                Apartments, 17%                   Apartments, 21%
                         60%
                         50%
                                                                                  Industrial, 18%
                         40%                    Industrial, 33%

                         30%
                         20%                                                      Office, 37%
                                                Office, 22%
                         10%
                          0%
                                SRP Portfolio                            NCREIF




Source: Morgan Stanley
             Hedge Funds Portfolio

 There are many different types of HF portfolios with
  dramatically different risk/return profiles
 WB’s HF portfolio is constructed to have low volatility
  and to seek positive returns across market environments
  by limiting downside risk
 Portfolio rebuilt during 2000-2003--is now very diversified
  across strategies, geographies and number of managers
 Equipped to deal with high profile losses but has avoided
  them so far
 Hedge funds techniques permeate all asset classes
  nowadays--useful source of intelligence
                                              Hedge Fund Diversification
        Very diversified portfolio: more than 40 managers across all
       strategies and geographies

                                       SRP (% of Portfolio)                                                    SRP (% of Portfolio)

                              Fixed Income - Carry
                                Strategies, 3.3%

                      Fixed Income - Credit                                                          Global, 15.6%
                           Arb, 9.3%
                                                         Equities - Event Driven,    Emerging Markets (Latin
                  Fixed Income -                                  21.5%                 America), 1.4%
              Structured Credit, 1.7%
                                                                                          Emerging Markets
           Fixed Income - G7-G10,                                                          (Europe), 1.6%
                    8.5%
                                                                                    Emeging Markets (Asia
             Multi-Strat - Convert &                                                  ex-Japan), 9.1%                                 US & Canada, 48.1%
                                                                Equities - Market
              Long/Short, 4.3%
                                                                 Neutral, 9.6%
            Macro Relative Value /
            Systematic CTA, 9.0%                                                                 Japan, 9.7%

                Portfolio Hedge / Long                                                    Developed Asia ex-
                    Gamma, 2.0%                                                         Japan (Australia & New
                                                      Equities - Long/Short,
                                                              23.5%                         Zealand), 0.2%
                           Others, 1.2%
                                                                                                       Europe, 14.3%
                             Equities -
                       Activist/Turnaround,
                               6.1%




Source: Morgan Stanley
        Hedge Fund Risk Adjusted Returns

 HF provide substantially higher risk-adjusted returns compared
with other public asset classes.


                 Performance and Risk of HF Portfolio
                                  Jan 2003-2007 (Sept*)

                                           Returns   Std. Dev Return/Risk
     SRP HF                                 10.44%      3.04%        3.43
     HF Policy Benchmark                     5.42%      2.76%        1.96
     Excess Return in HF Portfolio           5.02%
     S&P 500                                14.36%        8.45%      1.70
     Lehman Bond Aggregate                   4.01%        3.61%      1.11
      * Numbers are preliminary
                   Hedge Fund Performance: Consistency

                                  Returns of SRP HF Portfolio, 2000-2007 (Sept *)
                                                                    HF
                                                                 Portfolio    US Equity    Non-US
                                      SRP HF          SRP HF      Excess        SRP       Equity SRP
                                      Portfolio      Benchmark    Return     Benchmark    Benchmark
                             2000        6.65          -7.95      14.60         -7.46       -15.35
                             2001        2.18          -9.64      11.82        -11.46       -19.61
                             2002        2.89           3.31      -0.42        -21.54       -14.89
                             2003       13.41           8.23       5.18         31.06        41.25
                             2004        8.87           3.98       4.89         11.95        21.14
                             2005        8.44           2.09       6.36          6.12        16.90
                             2006       11.01           7.91       3.10         15.72        26.57
                           Sep-07        8.23           3.65       4.58          8.77        16.74
                         * Numbers are preliminary


  HF portfolio produced consistent and positive absolute returns
     Staff choices of managers added significant value

     Return stream is excellent diversifier for plan


Source: Morgan Stanley
    Stress Test: The July/August 07 Episode

 Market turmoil was triggered by failure of two funds that invested
in CDOs
   It resulted in a repricing of risk across markets
   The HF portfolio showed great resilience

                              Performance of WB Portfolio
                                July / August 07 (Sept *)
                                           YTD                        YTD
                                                   Jul-07   Aug-07
                                         June 30                     Sept. 30
            SRP Hedge Fund Portfolio     8.74%     0.48%    -2.01%    8.23%
            Portable Alpha               8.13%     1.50%    -2.21%    8.47%
            Policy Benchmark             4.67%     -0.38%   -2.25%    3.65%
            S&P 500                      6.96%     -3.10%   1.50%     9.13%
            Lehman Bond Aggregate        0.98%     0.83%    1.23%     3.85%
             * Numbers are preliminary
             Concluding Remarks

 Funded status of the plan continued to improve during
  2006 and is currently well funded
 In 2006: Large value added component from pension
  team
 Real Estate and Hedge Funds: high risk-adjusted
  returns; great diversifiers
 Plan weathered the July/August market stress well
 Implications for Plan:
       diversify
       take advantage of changes in asset management
       focus on long term trends