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					                                                                         City of Sacramento
                                                                    Office of the City Treasurer




                      George H. Clark Memorial Scholarship Fund
                                                 Quarterly Investment Report
                                                    September 30, 2009




          Russell Fehr, City Treasurer
   Thomas S. Berke, Chief Investment Officer
Lydia Abreu, Investment and Operations Manager                        915 I Street, HCH 3rd Floor #0900, Sacramento, CA 95814-2604
   John P. Colville, Senior Investment Officer                                  Phone: 916-808-5168 Fax: 916-808-5171
  Robert Tokunaga, Senior Investment Officer                                        www .cityofsacramento.org/treasurer/
                                                          INTRODUCTION


In 1951 the George H. Clark Memorial Scholarship was established. In accordance with a will established in 1921, the trustees are to
consist of the City Manager, City of Sacramento, and the Superintendent of Sacramento City Unified School District with the highest
student populous. On February 2, 2001, the City Treasurer received a contribution of $627,618 in Memorial Cash Account portfolio.

The City of Sacramento George H. Clark Memorial Scholarship Fund will help deserving senior high school students in their pursuit
of a college education that will make them valuable members of the community. Four (4) scholarships per year ($5,000) each or
$20,000 will be awarded to senior high school students to help provide for a college education. The committee selects the annual
recipients from a group of eligible students submitted by SCUSD based on pre-determined achievement criteria.

To honor Mr. Clark, the committee recommends that the awards be presented by the Mayor at a City Council meeting.


                                                             STRATEGY

•      Adhere to prudent investment practices to provide for the preservation and growth of principal.

•      The City maintains two cash accounts. One cash account (Operating Cash Account) receives interest and dividend income to
       accrue for scholarship payments. Mutual fund and equity capital gains are placed in the second cash account (Memorial
       Investment Cash Account) to accumulate until scholarship funds are being paid from the Operating Cash Account. If a
       shortfall of cash exists in the Operating Cash Account, funds from the Memorial Investment Cash Account will be used to
       secure the payments. Excess cash in the Memorial Investment Cash Account will be re-allocated as per investment strategy.
       The City Treasurer will determine the asset allocation deemed prudent to achieve the funds objective.



                                                            OBJECTIVES

•      The objective of this fund is income. The committee directed the Treasurer's office to invest funds for moderate growth of
       principal and adequate cash flow to pay for scholarships.

•      Goal is to earn a cash return per year of $20,000 thousand dollars to pay for four (4) scholarships per year.




                                                                Page 2 of 9
                                                                                           City of Sacramento
                                                                               George H. Clark Memorial Scholarship Fund
                                                                                            September 30, 2009


                 Performance                                                                                                         18.24
                                                                                                               20                               14.98
                                                                    Quarter Inception                                        13.13
                                                                    To Date To Date                            15
                                Account                               13.13      3.55
                                DJ Select Dividend                    18.24         ?*                         10
                                S&P 500                               14.98     -2.92                                                                                     3.55




                                                                                                         TWR
                                                                                                                5                                                                  0.00

                               * Index commencement date was 11/30/03                                           0
                                                                                                                                                                                           -2.92
                                                                                                                -5


                                                                                                               -10
                                                                                                                             Quarter T o Date                           Inception T o Date
                                                                                                                                                        Date s


                                                                                                                                     Account      DJ Select Dividend         S&P 500


U.S. Treasury Yield Curve                                    Fiscal Year 09 - 10                        Capital Market Returns - Quarter Ending September 30, 2009
                 4.50                                                                                     25

                 4.00                   June 30, 2009

                                                                                                                                       19.77
                 3.50                   September 30, 2009                                                20
                                                                                                                                                                                                   Russell 3000

                 3.00                                                                                                16.31
Interest Rates




                                                                                                          15                                                                                       ACWI Ex U.S.
                 2.50

                 2.00
                                                                                                                                                                                                   Fixed Income
                                                                                                          10
                 1.50

                 1.00                                                                                                                                                                              Cash
                                                                                                           5
                 0.50                                                                                                                                            3.56

                 0.00                                                                                                                                                               0.03
                        3 Mo 6 Mo 1 Yr 2 Yr   3 Yr           5 Yr                  10 Yr     30 Yr         0
                                                             Maturities                                                                          1st Qtr

                                                                                                 Page 3 of 9
                                                                                  City of Sacramento
                                                               George H. Clark Memorial Scholarship Fund
                                                                                   September 30, 2009


 Activity
                                                                                                                        Actual Asset Allocation
                             From 06-30-09 to 09-30-09
               Portfolio Value on 06-30-09                          513,904 ***                                               Cash and
               Accrued Interest                                           7                                                  Equivalents
                   Contributions                                          0                                                                 Fixed Income
                                                                                                                               5.84%            0.24%
                   Withdrawals                                       -4,004
                   Realized Gains                                     5,037
                   Unrealized Gains                                  58,205
                   Interest                                             291
                   Dividends                                          3,808
                   Change in Accrued Interest                             0
               Portfolio Value on 09-30-09                          577,242
               Accrued Interest                                           7


                     Operating Cash Account Activity                                                                             Equities
                            From Inception to 09-30-09                                                                           93.92%

                                 Inception          FY10 QE            Inception
                                  to FY09           09-30-09           to FY10
                                                                                             Top 10 Holdings
Beginning Balance***                                      44,596
                                                                                                                Securities                       Market Value       Pct.
Initial Contribution                        83                                   83
Cash Transfers In *                    221,494              4,004           225,498          AIM Global Health Care Fund                                   45,288     7.85
Interest Income **                       5,976                                5,976          Pool A Cash                                                   35,511     6.15
Scholarship Payments                  -150,000            -20,000          -170,000          Philip Morris Intl Inc Com                                    31,681     5.49
Investment Fees                        -32,957                              -32,957          American Century Equity/Inc                                   31,012     5.37
                                                                                             Johnson & Johnson                                             30,445     5.27
Ending Balance                          44,596            28,600             28,600
                                                                                             Spdr Gold Trust Gold Shs                                      29,655     5.14
                                                                                             Scout FDS International Fd                                    28,120     4.87
* Cash Transfers In = monies transferred from Memorial Investment Cash
                                                                                             Kinder Morgan Energy Partners Ltd                             27,010     4.68
Account to Operating Cash Account to pay for scholarships and other expenses.
                                                                                             At&t Inc                                                      27,010     4.68
                                                                                             Pinnacle West Cap Corp                                        26,256     4.55
** Pool A earnings from July 2009 to September 2009 are yet to be apportioned.

*** Beginning balance was adjusted to include FY09 Pool A interest earnings
& securities lending realized loss and cash transferred from Memorial Investment
Cash Account to Operating Cash Account.

                                                                                       Page 4 of 9
                                                                                    City of Sacramento
                                                                           PORTFOLIO APPRAISAL
                                                                 George H. Clark Memorial Scholarship Fund
                                                                                   September 30, 2009
                 Security                                           Unit            Total                     Market        Accrued    Market Value      Pct.    Cur.
  Quantity       Symbol                   Security                  Cost            Cost             Price    Value         Interest   + Accrd. Int.    Assets   Yield   S & P Moody

CASH AND EQUIVALENTS
            divacc          Dividend Accrual                                             1,033                      1,033                       1,033     0.18    4.00
            miscintrec      Misc Interest Receivable                                        32                         32                          32     0.01    4.00
            PoolA           Pool A Cash                                                 35,511                     35,511                      35,511     6.15    2.70
            intreceiv       Pool A Interest Receivable                                     159                        159                         159     0.03    2.00
            slliab          Securities Lending Liability                                -3,000                     -3,000                      -3,000    -0.52    0.00
                                                                                        33,735                     33,735                      33,735     5.84    2.98

COMMON STOCK
 MATERIALS
       300 mon              Monsanto C0 New Com                            62.70        18,811        77.40        23,220                      23,220     4.02    1.37   B+

 INDUSTRIALS
        400 de              Deere & Co Com                                 59.47        23,789        42.92        17,168                      17,168     2.97    2.61   A-
        500 dow             Dow Chem Co Com                                44.74        22,370        26.07        13,035                      13,035     2.26    2.30   B
      1,250 ge              General Electric Co                            38.93        48,661        16.42        20,525                      20,525     3.56    2.44   A
        500 moo             Market Vectors Etf Tr Agribus Etf              57.43        28,716        38.64        19,320                      19,320     3.35    0.73
        200 utx             United Technologies                            79.92        15,984        60.93        12,186                      12,186     2.11    2.53   A+
                                                                                       139,520                     82,234                      82,234    14.25    2.06

 TELECOMMUNICATION SERVICES
      1,000 t         At&t Inc                                             39.82        39,819        27.01        27,010                      27,010     4.68    6.07   B+
        700 vz        Verizon Communications Inc                           37.30        26,113        30.27        21,189                      21,189     3.67    6.28   B
                                                                                        65,932                     48,199                      48,199     8.35    6.16

 CONSUMER DISCRETIONARY
       200 mcd         Mcdonald's Corp                                     52.55        10,510        57.07        11,414                      11,414     1.98    3.85   A-

 CONSUMER STAPLES
       650 mo               Altria Group Inc                               22.81        14,828        17.81        11,576                      11,576     2.01    7.64   A
       300 ko               Coca Cola Co Com                               64.61        19,383        53.70        16,110                      16,110     2.79    3.05   A
       650 pm               Philip Morris Intl Inc Com                     52.41        34,066        48.74        31,681                      31,681     5.49    4.76
       275 pg               Procter & Gamble Co                            72.41        19,913        57.92        15,928                      15,928     2.76    3.04   A+
                                                                                        88,190                     75,295                      75,295    13.04    4.47

 ENERGY
       300 bp               Bp Amoco Plc - Spons Adr                       72.53        21,759        53.23        15,969                      15,969     2.77    6.31
       500 kmp              Kinder Morgan Energy Partners Ltd              48.23        24,114        54.02        27,010                      27,010     4.68    7.77
                                                                                        45,873                     42,979                      42,979     7.45    7.23

 FINANCIAL
      1,000 xlf             Select Sector Spdr Tr Sbi Int-Finl             10.81        10,810        14.94        14,940                      14,940     2.59    1.26
        600 wfc             Wells Fargo & Company                          32.13        19,278        28.18        16,908                      16,908     2.93    0.71   A-
                                                                                        30,088                     31,848                      31,848     5.52    0.97

 HEALTHCARE
       500 jnj              Johnson & Johnson                              61.71        30,855        60.89        30,445                      30,445     5.27    3.22   A+


                                                                                       Page 5 of 9
                                                                               City of Sacramento
                                                                      PORTFOLIO APPRAISAL
                                                            George H. Clark Memorial Scholarship Fund
                                                                              September 30, 2009
                 Security                                      Unit            Total                      Market           Accrued        Market Value      Pct.    Cur.
  Quantity       Symbol                  Security              Cost            Cost             Price     Value            Interest       + Accrd. Int.    Assets   Yield   S & P Moody

 INFORMATION TECHNOLOGY
       300 iyw        Ishares Tr Dj Us Tech Sec                       40.00        12,000        51.95         15,585                             15,585     2.70    0.54

 UTILITIES
         800   pnw          Pinnacle West Cap Corp                    45.32        36,259        32.82         26,256                             26,256     4.55    6.40   B

 COMMODITIES
      300 gld               Spdr Gold Trust Gold Shs                  88.95        26,685        98.85         29,655                             29,655     5.14    0.00
                                                                                  504,723                     417,130                            417,130    72.26    3.58

MORTGAGE BACKED SECURITIES
 Not Classified
    1,294.545 36202dbx8 GNMA2 POOL #2754                          100.02               1,295    108.08             1,399              7            1,406     0.24    6.01
                        6.500% Due 05-20-29
                                                                                       1,295                       1,399              7            1,406     0.24    6.01

MUTUAL FUNDS, EQUITY
 MF-GROWTH
   1,888.586 gthix          AIM Global Health Care Fund               28.13        53,124        23.98         45,288                             45,288     7.85    0.00

 MF-GLOBAL EQUITY
   1,000.000 umbwx          Scout FDS International Fd                29.54        29,540        28.12         28,120                             28,120     4.87    0.82

 MF-VALUE
   4,946.123 tweix          American Century Equity/Inc                7.30        36,101          6.27        31,012                             31,012     5.37    2.99
   2,157.030 twiex          American Century Int'l Growth              9.11        19,655          9.53        20,556                             20,556     3.56    1.59
                                                                                   55,755                      51,569                             51,569     8.93    2.43
                                                                                  138,419                     124,977                            124,977    21.65    1.19

TOTAL PORTFOLIO                                                                   678,172                     577,242                 7          577,249   100.00    3.04




                                                                                  Page 6 of 9
                                           City of Sacramento
                            PURCHASE/SALE AND GAIN/LOSS
                           George H. Clark Memorial Scholarship Fund
                                        From 07-01-09 To 09-30-09

 Trade       Settle                                             Unit                 09-30-09
 Date        Date     Quantity              Security            Price    Amount       Price     Difference

                                                  Purchases
COMMON STOCK
09-04-09 09-10-09            220 Deere & Co Com                  41.78       9,192      42.92                1
                                                                             9,192

Total Purchases                                                              9,192




                                                  Page 7 of 9
                                              City of Sacramento
                             PURCHASE/SALE AND GAIN/LOSS
                            George H. Clark Memorial Scholarship Fund
                                          From 07-01-09 To 09-30-09

 Trade        Settle                                               Unit                 Original
 Date         Date     Quantity               Security             Price    Amount       Price     Gain/Loss

                                                         Sales
COMMON STOCK
07-31-09 08-05-09             300 Freeport-McMoran Cop & G Cl B     60.00      18,000     100.16      -12,048
09-04-09 09-10-09             175 Mosaic Co Com                     51.32       8,982     154.20      -18,003
09-04-09 09-10-09             350 Patriot Coal Corp Com              8.80       3,080      77.03      -23,881
                                                                               30,061                 -53,932

Total Sales                                                                    30,061                 -53,932




                                                   Page 8 of 9
                                        City of Sacramento
                           PURCHASE/SALE AND GAIN/LOSS
                          George H. Clark Memorial Scholarship Fund
                                     From 07-01-09 To 09-30-09

 Trade      Settle                                           Unit                   Original
 Date       Date     Quantity           Security             Price    Amount         Price     Gain/Loss

                                             Paydowns
MORTGAGE BACKED SECURITIES
07-20-09 07-20-09   24.900 GNMA2 POOL #2754                  100.02            25     108.08               8
                           6.500% Due 05-20-29
08-20-09 08-20-09   25.090 GNMA2 POOL #2754                  100.02            25     108.08               8
                           6.500% Due 05-20-29
09-20-09 09-20-09   18.660 GNMA2 POOL #2754                  100.02            19     108.08               8
                           6.500% Due 05-20-29
                                                                               69                          0

Total Paydowns                                                                 69                          0




                                             Page 9 of 9

				
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