CASH MANAGEMENT POLICY BOARD MINUTES
The Cash Management Policy Board held a meeting on June11, 2007 at 10:00AM in the Buena VistaConferenceCenter, New Castle, Delaware.
In Attendance:
Board Members:John Flynn- Chairman
David Marvin
Margaret Iorii
Honorable Jack Markell, State Treasurer
Honorable Russ Larson, Controller General
Honorable Richard Cordrey, Secretary of Finance
Deputy Attorney General:Elio Battista
Others:Tom Cook, Deputy Secretary of Finance
Rick Geisenberger, Assistant Secretary of State
Brian Maxwell, State Treasurer’s Office
Kirill Babak, State Treasurer’s Office
CALL TO ORDER:
Mr. Flynncalled the meeting to order at 10:05AM.
APPROVAL OF THE NOVEMBER 21, 2006 MEETING MINUTES:
Mr. Larson made the motion to accept the minutes. Mr. Cordrey seconded the motion. The motion was carried with no objections.
UPDATE ON BANKING SERVICES CONTRACTS:
Mr. Maxwell provided the Board with a handout that displayed the timeline for the Collections RFP that was released. The State Treasurer’s Office will be hosting a pre-bidders conference on June 19th. Mr. Maxwell will be working with Mr. Flynn to identify a new chair for the banking services subcommittee. The banking services subcommittee will participate in the evaluation of the collections bids. Also, Mr. Maxwell informed the Board that the State Treasurer’s Office will be issuing an RFP for its investment services contract in the next couple of months. The bidding process for the investment services contract is required by Delawarecode to be conducted on an open and competitive basis. The State Treasurer’s Office will collaborate with the investment subcommittee regarding the investment services RFP. Mr. Flynn inquired about the disbursements contract. Mr. Maxwell reminded the Board that the disbursements contract with PNC had been formally extended until December 2008.
INVESTMENT MANAGERS PERFORMANCE REVIEW:
Each of the five investment managers presented a report on their performance and their outlook on the economy. Each manager described the current market conditions as volatile. However, the managers expect the yield curve to steepen and normalize over the next six months. When asked to estimate a rate of return on the portfolio for fiscal year 2008 DEFAC forecasting, the managers suggested using a rate of return between 5.25% and 5.50%. Mr. Marvin agreed with the managers’ rate of return estimates and expressed his satisfaction with all the investment manager relationships.
OTHER BUSINESS:
No other business was discussed. Mr. Marvin made a motion to adjourn. Mr. Larson seconded the motion and it carried with no objections. The meeting was adjourned at 11:35 AM.
Respectfully submitted,
Jack Markell