2006 4th Quarter

Jeanna Cullins, SVP and Managing Director spoke on a panel entitled "Navigating the Current Regulatory Environment." This concentrated on key challenges facing investment fiduciaries of public pension funds.

Steve Harding, SVP, spoke at the November professional development conference of APPFA, the Association of Public Pension Fund Auditors, to mark APPFA's 15th anniversary. Steve spoke on his observations on internal auditing in public funds, based on the past 15 years with NYSLERS from 1990-1999 and IFS from 1999 to present. Steve was APPFA's founding President from 1991 to 1994.

Frank Lilly, CEO, spoke at the November meeting of the National Coordinating Committee for Multiemployer Plans regarding the impact of the Pension Protection Act on the investment programs of multiemployer plans, specifically, their asset allocation and particular investment strategies.

The editorial in the November 27, edition of Pensions & Investments quoted our firm's President, Skip Halpern, regarding in-state investing by public pension funds.

In its Sept/October edition, the Journal of Benefits and Compensation published an article entitled "The Role of the Independent Fiduciary," authored by Skip Halpern, President of IFS.

IFS was retained to perform an independent operational review of the Central Pennsylvania Teamsters Pension Fund and delivered its final First Report in December 2006.

The Ohio Retirement Study Council (ORSC) retained IFS in 2005 to conduct fiduciary performance audits of STRS and OP&F (collectively, the Systems), two of the five statewide public pension funds in the state of Ohio, with assets of nearly $60 billion as of June 30, 2005 and $13 billion as of December 31, 2005, respectively. STRS manages approximately 77% of its assets internally while OP&F uses virtually 100% external investment management.

Acting as independent fiduciary on behalf of defined benefit and defined contribution plans sponsored by Fortunoff, IFS has completed the sale of a 4-acre property in Long Island, New York to a national insurance company. The plans had acquired the property in 1993 from one of the Fortunoff companies sponsoring the plans, and leased the property, with its warehouse, back to the plans pursuant to a prohibited transaction exemption granted by the Department of Labor.

The Krispy Kreme Corporation Retirement Savings Plan and the Krispy Kreme Profit-Sharing Stock Ownership Plan retained IFS to determine whether to approve the settlement of an ERISA class action lawsuit brought against Krispy Kreme and various alleged plan fiduciaries, asserting breaches of fiduciary duty in the management of the Plans' investment in Krispy Kreme stock. The suit alleged that the fiduciary breaches caused damage to the plans' participants as a result of dramatic declines in value of the Krispy Kreme stock.

The Fluor Corporation Master Retirement Trust includes defined benefit plans as well as defined contribution plans that Fluor sponsors and maintains. The Investment Committee of the Master Trust, on behalf of those defined benefit plans, retained IFS as an independent fiduciary and investment manager to determine whether and on what terms the DB Plans should acquire from the DC Plans their interest in a pool of private equity limited partnerships held within the Master Trust.