2002 07 July

In April 2002, IFS held its first Client Conference at the Westin Diplomat Resort and Spa in Hollywood, Florida. The Conference offered trustees of IFS clients the opportunity to (a) strengthen their understanding of investment fundamentals; (b) discuss new ideas about asset classes and investment strategies for Taft-Hartley funds and (c) gain a broader perspective on recent events that have redrawn the investment landscape. For additional information, please refer to the Resources section.

Melanie G. Brophy joined the DC office as a junior analyst. Ms. Brophy is a recent graduate of George Mason University.

Kayla Gillan - formerly General Counsel of the $150 billion California Public Employees Retirement System ("CalPERS") - has joined IFS, and will begin with our firm in September 2002. At CalPERS, she was responsible for managing and advising the Board on fiduciary aspects of the System's enormous and far-reaching investment program, including corporate governance, alternative investing, economically targeted investing, ethical policies, trustee training and education, internal audit and more.

IBEW Local 369 Joint Apprenticeship & Training Fund (Louisville) hired IFS as an Independent Fiduciary to assist the Fund in obtaining an individual prohibited transaction exemption from the U.S. Department of Labor regarding the purchase from IBEW Local 369 of a condominiumized unit to be constructed and used as a training facility. The Department granted an exemption in the spring, 2002.

IFS completed a project for the Dollar General 401K Plan. On behalf of the Plan's participants and beneficiaries, we decided whether the Plan should participate in or opt out of a proposed $162 million securities class action settlement with Dollar General.

The Alaska Pension Investment Board also selected IFS to perform a fiduciary audit of its $11 billion investment program.

The Major League Baseball Players Pension, Investment and Welfare Funds hired IFS, effective January 1, 2002, as their regular investment consultant.

IFS was recently hired by the New Hampshire Retirement System to perform an Operational Review, evaluating the following aspects of the System's investment practices: the efficiency and effectiveness of NHRS' investment oversight, organizational and management structure and resources, performance review, policies and guidelines, asset allocation, consultant responsibilities, due diligence procedures, internal controls, risk management, and disaster preparedness; and to further review the ability of the NHRS Board to attract, retain and support qualified personnel to enable it to perform its fi