SHEET METAL WORKERS' NATIONAL PENSION FUND AND ITS' SUBSIDIARIES

Transcription

1 SHEET METAL WORKERS' NATIONAL PENSION FUND AND ITS' SUBSIDIARIES INDEX OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FOUR MONTHS ENDED APRIL 30, 2012 and 2011 PAGE Consolidated Statement of Net Assets Available for Pension Benefits 1 Consolidated Statement of Changes in Net Assets Available for Pension Benefits 2 Schedule of Corporate Stocks 3 Schedule of Corporate Bonds 4 Schedule of Government and Israel Bonds 5 Schedule of Insurance Contract Investments 6 Schedule of Limited Partnerships 7 Schedule of Real Estate Investments 8 Schedule of REITS and REOCS 9 Schedule of Contributions 10 Schedule of Investment Expenses 11 Schedule of Manager and Custodian Fees 11a Schedule of Administrative Expenses 12 Administrative Expense Variance Analysis 13

2 SHEET METAL WORKERS' NATIONAL PENSION FUND AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF NET ASSETS AVAILABLE FOR PENSION BENEFITS For the Four Months Ending April 30, 2012 Year to Date Year to Date ASSETS: Investments - at fair value Corporate stocks * $1,534,453,932 $2,125,572,297 Corporate obligations * 309,509, ,308,915 United States Government and Government Agency Obligations * 297,759, ,226,829 Loans 2,645 Insurance company contracts * 17,470,339 20,360,388 Common collective trusts 379,569,396 40,551,218 Limited Partnerships * 314,613, ,093,134 Mutual funds 46,500,619 43,406,644 Real Estate * 19,813,856 41,859,892 REITS and REOCS * 51,979,403 81,268,608 Short-term investments 177,372, ,127,625 Foreign obligations * 588, ,972 Total Investments 3,149,630,540 3,321,297,166 Receivables Contributions * 42,314,475 38,247,151 Employer withdrawal liability - net 39,621,015 26,485,847 Accrued interest and dividends 7,130,090 8,977,620 Receivable for investment securities sold 84,280,314 22,861,642 Due from affiliated organizations 241, ,705 Real Estate A/R 413, ,673 Total Receivables 174,001,174 97,574,638 PREPAID EXPENSES, DEPOSITS AND OTHER ASSETS 3,546,720 4,193,326 CASH NBF Escrow Accounts 1,864, ,471 Real Estate Cash Account 1,502,504 3,476,683 Operating NPF Cash Accounts 58,847,094 51,460,601 Total cash 62,213,643 55,824,755 Total Assets 3,389,392,077 3,478,889,884 LIABILITIES AND NET ASSETS: Accounts Payable and Withholdings 1,745,664 (592,140) Unprocessed/Undistributed Contributions 361,487 (2,206,084) Settlement of Securities Purchased 165,380, ,601,782 Real Estate Liabilities & Notes Payable * 8,068,457 15,971,517 Assets Restricted for 401(H) Medical Benefit 4,516 Total Liabilities 175,556, ,779,590 Net Assets Available for Pension Benefits 3,213,835,753 3,323,110,294 * See accompanying schedules. Notes: Included within the reported assets are the following Securities on Loan: Corporate Stocks $322,734,637, Corporate Bonds $16,061,574, and Government Bonds $77,523,139. These are Internal financial statements and therefore, are subject to change. Page 1

3 ADDITIONS SHEET METAL WORKERS' NATIONAL PENSION FUND AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PENSION BENEFITS For the Four Months Ending April 30, 2012 Year to Date Year to Date Investment Income Net appreciation in fair value of investments $228,934,406 $211,101,374 Interest and dividend income 20,057,127 21,172,482 Rental Income 420, , ,411, ,971,275 Less investment expense * 3,340,352 3,672,331 Total investment income (loss) -net 246,071, ,298,944 Contributions Employer contributions * 115,333, ,897,376 Liquidated damages 295, ,894 Withdrawal liability 5,050,633 4,028,721 Total Contributions 120,679, ,088,991 Other additions Settlement income 127,153 64,378 Other Income 5,186 1, ,339 65,878 Total Additions 366,883, ,453,812 DEDUCTIONS Benefits Pension Benefits 137,602, ,203,683 COLA Benefits 21,402 17,607 Death Benefits 102,718 47,782 Total Benefits 137,726, ,269,072 Administrative expenses - net * 4,314,182 3,746,364 Total Deductions 142,040, ,015,436 Net increase/decrease 224,843, ,438,376 Net assets available for pension benefits Beginning of year 2,988,992,564 3,127,671,918 End of period 3,213,835,753 3,323,110,294 * See accompanying schedules. Note: These are unaudited internal financials and therefore subject to change. Page 2

4 Schedule of Corporate Stocks at 4/30/ ,026,318 Investment Investment Allowance Allowance Unrealized Gain/Loss Start at Cost at Market Value Chg in Mkt Value Chg in Mkt Value for Month Ended Date 4/30/2012 4/30/2012 4/30/2012 3/31/2012 4/30/2012 Bony Custodian Accounts Wells Capital Mid Cap Jul-03 72,761,432 89,787,751 17,026,318 17,143,898 (117,580) Cambiar Feb ,348, ,390,035 12,041,217 14,497,383 (2,456,167) Cramer, Rosenthal, McGlynn Oct-06 73,781,414 82,296,523 8,515,109 10,003,698 (1,488,589) Vanguard Emerging Markets Sep-09 16,716,655 20,788,118 4,071,462 4,518,440 (446,978) Janus Large Cap May-07 65,720,453 91,591,189 25,870,736 27,273,212 (1,402,476) Philadelphia International Jan-05 59,169,803 61,066,637 1,896,834 3,705,103 (1,808,268) NFJ Large Cap Mar ,808, ,111,196 3,302,922 6,120,468 (2,817,547) Delaware Mar-05 49,105,469 61,678,511 12,573,042 13,512,593 (939,551) Harding Loevner * Sep-11 59,220,563 65,619,008 6,398,445 7,813,853 (1,415,408) Westfield Large Cap Growth Oct ,476, ,707,242 24,230,794 27,226,755 (2,995,960) Thornburg Sep-09 57,602,040 66,670,094 9,068,054 10,135,473 (1,067,419) Penn Capital * Jan , , , ,919 2,724 NFJ Mar-03 40,805,507 53,560,630 12,755,123 12,981,097 (225,974) Columbia LC Growth Mar ,435, ,502,904 (933,018) 47,543 (980,561) Wall Street Mar-03 43,911,483 55,701,323 11,789,840 13,828,274 (2,038,434) Westfield Small Cap Mar-03 55,833,269 64,575,559 8,742,290 10,334,050 (1,591,760) Mid Cap Index Mar-03 99,701, ,864,135 20,162,724 21,263,529 (1,100,805) Small Cap Index Mar-03 96,742, ,878,545 13,136,421 15,002,103 (1,865,682) HGK Feb-08 88,008,962 95,079,915 7,070,952 8,583,115 (1,512,162) PIMCO * Jul-08 1,443,707 2,585,154 1,141,447 1,124,703 16,744 General Fund Cash Account Jan (2)??? Securities Lent out to Third Parties Mar Total of Bank of New York Accounts 1,333,388,152 1,532,389, ,001, ,253,240 (26,251,853) Direct Investments Union Bank & Trust 296, , , ,574 (31,853) Union Financial Corp. 446,797 1,222, , , ,803 Total for Direct Investments 743,572 2,064,393 1,320,821 1,243,871 76,950 Total Corporate Stocks at 4/30/12 1,334,131,724 1,534,453, ,322, ,497,111 (26,174,903) * Includes Preferred Stock, permissible in the Advisors Investment Guidelines. Page 3

5 Schedule of Corporate Bonds at 4/30/2012 Investment Investment Allowance Allowance Unrealized Gain/Loss Start at Cost at Market Value Chg in Mkt Value Chg in Mkt Value for Month Ended Date 4/30/2012 4/30/2012 4/30/2012 3/31/2012 4/30/2012 Bony Custodian Accounts Seix Investment Advisors Apr-02 67,549,594 70,478,762 2,929,168 2,745, ,469 Met West Core Fixed Sep-09 62,168,110 65,957,100 3,788,990 3,684, ,235 Blackrock Feb-08 61,158,219 60,921,772 (236,447) 833,176 (1,069,623) Penn Capital Jan-06 44,895,936 47,748,484 2,852,548 2,893,140 (40,592) PIMCO Jul-08 56,989,100 64,403,197 7,414,097 6,617, ,495???? Securities Lent out to Third Parties Mar Total Corporate Obligations at 4/30/12 292,760, ,509,315 16,748,357 16,774,372 (26,015) Page 4

6 Schedule of U.S. Government and Foreign Government Obligations at 4/30/2012 Investment Investment Allowance Allowance Unrealized Gain/Loss Start at Cost at Market Value Chg in Mkt Value Chg in Mkt Value for Month Ended Date 4/30/2012 4/30/2012 4/30/2012 3/31/2012 4/30/2012 Bony Custodian Accounts Met West Core Fixed Sep-09 51,359,374 53,878,793 2,519,420 1,831, ,718 Blackrock Feb ,255, ,243, ,086 23, ,860 PIMCO Jul ,355, ,065,068 4,709,442 2,856,139 1,853,303 Seix Investment Advisors Apr , ,519 45,747 71,150 (25,403)????? Securities Lent out to Third Parties Mar Total Government Bonds at 4/30/12 289,496, ,759,218 8,262,694 4,782,216 3,480,478 Bony Custodian Accounts Blackrock Feb , , , ,624 15,917 Total Foreign Government Notes at 4/30/12 438, , , ,624 15,917 Page 5

7 Schedule of Insurance Company Contracts at 4/30/2012 John Hancock John Hancock AETNA AETNA ULLICO Total GAC 1022 (IPG) Separate Account 14 GAC 1433 GAC /30/12 Balance at 12/31/11 7,646,315 9,845, , , ,373 18,488,727 Investment Income 182,339 6, ,757 Void Issues - Pension Benefits Paid (1,244,299) (16,061) (11,605) (3,846) (1,275,810) Death Benefits Paid (39,713) (39,713) Transfer to/from Separate Acct 507, ,297 Transfer to/from General Acct (507,297) (507,297) Realized Gain/Loss - Unrealized Gain/Loss 186, ,347 Investment Mgt Fee (31,941) (31,941) Transfer from Wachovia Acct # Transfer to Wachovia Acct # Transfer from Wachovia Acct # Transfer to BONY STIF Account. - Administrative Charge (46,027) (46,027) Total Insurance Company Contracts at 4/30/12 7,005,912 9,492, , , ,946 17,470,339 Page 6

8 National Pension Fund NPF Limited Partnerships For the Four Months Ending April 30, 2012 Total Beginning 2012 Investment 2012 Ending Cost Balance Additions/ Cost Balance Unrealized Realized Market Balance 12/31/11 Disbursements 04/30/12 Gain/(Loss) Gain/(Loss) 4/2012 Hedge Funds Austin Capital All Seasons Offshore Fund Ltd $4,461,782 $365,300 $4,827,082 ($3,018,316) $1,808,767 Mesirow Institutional Multi LTD 65,000,000 65,000,000 24,465,958 89,465,958 Berens Capital Fund 33,000,000 33,000,000 4,657,720 37,657,720 Private Advisors Hedged Equity Fund 67,750,000 67,750,000 13,089,138 80,839,138 Abbey Capital Fund 35,000,000 35,000,000 (1,077,529) 33,922,471 Vontobel Global Emerging Markets 10,000,000 25,000,000 35,000,000 (57,779) 34,942,221 Subtotal for Hedge Funds 215,211,782 25,365, ,577,082 38,059, ,636,275 Invesco US Buy Out 1,692,511 1,692,511 Invesco Non US 484, ,536 Invesco Venture 2,871,117 (146,280) 2,724,837 (212,275) 2,512,562 Subtotal for Invesco 2,871,117 (146,280) 2,724,837 1,964,772 4,689,609 Cramer, Rosenthal & McGlynn Cerberus Institutional Partners 158, ,269 DCM III, LP 539,039 42, ,039 (53,175) 527,864 Freemont Partners III, L.P. 943,757 8, ,712 (156,809) 795,903 Prism Venture Partners IV LP 776, ,855 (392,372) 384,483 Quadrangle (Access) Capital Partners 65,670 65, ,257 Quadrangle (Offshore) Capital Partners 75,648 75,648 (27,387) 48,261 Quadrangle Capital Partners 159, ,669 TCW/Crescent Mezzanine Partners 148, ,674 TL Ventures V. LP 566,090 (27,396) 538,695 (365,987) 172,708 Willis Stein & Partners III, LP 572,365 (53,239) 519,126 22, ,786 Ripplewood Partners II, LP 565,871 1, , , ,372 MHR Institutional Advisors II 424,131 (37,576) 386, ,756 1,106,311 Subtotal for Cramer 4,529,426 (66,239) 4,463, ,368 4,845,556 Other Limited Partnerships WPGVA Venture-Limited Partnership 2,151,775 2,151, ,567 2,477,341 Goldman Sachs Private Equity Partners X Off 11,184,685 1,087,239 12,271,925 (398,097) 11,873,827 AEW Partnership 11,434, ,623 11,560, ,808 12,090,714 Subtotal for Other Limited Partner 24,770,743 1,213,862 25,984, ,277 26,441,883 Total Limited Partnerships 247,383,068 26,366, ,749,712 40,863, ,613,322 NPF Ltd Part A Page 7

9 National Pension Fund Schedule of Real Estate Investments For the Four Months Ending April 30, 2012 Mortgage & Liabilities & Name and Location Acquisition Date Assets Liabilities Interest Payable Mortgage Payable Grant Street (Formerly FHLB) Grant Street Office Corp December-91 $12,383,032 ($100,496) ($7,657,762) ($7,758,258) Pittsburgh, PA Mercy Medical LLC Mercy Medical Office LLC April-93 7,430,823 (310,199) (310,199) Coon Rapids, MN Total 19,813,855 (410,695) (7,657,762) (8,068,457) Page 8

10 Schedule of REITS and REOCS at 4/30/2012 Bony Accounts Investment Investment Allowance Allowance Unrealized Gain/Loss at Cost at Market Value Chg in Mkt Value Chg in Mkt Value for Month Ended 4/30/2012 4/30/2012 4/30/2012 3/31/2012 4/30/2012 Clarion REIT 37,685,933 51,979,403 14,293,470 12,869,975 1,423,495 Total REITS at 4/30/ ,685,933 51,979,403 14,293,470 12,869,975 1,423,495 Page 9

11 Contribution Income For Period Ended 4/30/2012 Per Accounting Department Records Regular Contributions Adjustments for 401H Total deposits per bank (Cash basis) Deposited Legal & other Fees Contributions January 28,963,569 (120,250) 575,000 February 28,631,812 (100,115) 575,000 March 29,869,771 (89,458) 575,000 April 28,757,135 (70,127) 575,000 May June July August September October November December Delinquent Contributions at 4/30/12 8,238,949 Allowance for Delinquent Contributions at 4/30/12 (3,295,579) Interest Income Received with Contributions Contributions Receivable at 4/30/12 36,796, ,000 Prior Year Contributions Receivable (37,394,332) (575,000) Prior Year Delinquent Contributions Receivable (4,951,241) 115,616,190 (379,951) 2,300,000 Adjustments for Legal (379,951) Adjustment for California Collection Fees 22, ,258,613 Total Contributions Receivable at 4/30/12 42,314,475 Contributions (Excluding 401H) 115,258, (H) Contributions 2,300, ,558,613 Less: 401(H) Benefits (2,224,838) Contributions per P&L 115,333,775 Page 10

12 Schedule of Investment Expenses at 4/30/2012 Balance Expenses 3/31/2012 During 4/30/2012 Investment Manager Expenses * 1,992, ,502 2,699,924 Custodian Expenses * 38,080 18,167 56,247 Graystone 353, , ,671 Independent Fiduciary Services Zeno Consulting Group Bank of New York Mellon 12,500 4,167 16,667 Abel/Noser Corp Commissions and Foreign Expense Fees 10,794 10,581 21,375 Total Investment Expenses at 4/30/2012 2,407, ,002 3,275,884 * See accompanying Schedule detailing Manager Fees by investment and Custodian Fees Page 11

13 Schedule of Manager and Custodian Fees at 4/30/2012 Manager Fees 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Philadelphia 57,671 21,357 79,028 Blackrock 78,565 26, ,076 Cambiar 93,958 34, ,477 Clarion REIT 57,232 21,210 78,442 Cramer, Rosenthal, McGlynn 125,745 47, ,393 Columbia LC Growth 0 36,075 36,075 Delaware 71,995 26,792 98,787 Harding Loevner 82,218 29, ,039 HGK 78,527 29, ,016 Janus 82,833 32, ,787 MET West - Fixed 53,089 18,106 71,195 NFJ 78,312 28, ,524 NFJ Large Cap 101,748 37, ,027 Penn Capital 67,661 21,534 89,195 PIMCO 146,383 48, ,735 Seix 75,911 25, ,180 Thornburg 67,594 24,050 91,644 Wells Capital Mid Cap 125,185 48, ,654 Wells Capital Large Cap 97, ,132 Wall Street 76,277 29, ,752 Westfield Small Cap 89,397 33, ,739 Westfield Large Cap Growth 144,473 55, ,626 Mellon Capital Mgmt Index Funds S&P 500 Large Cap 28, ,099 Mellon Capital Mgmt Index Funds Mid Cap 11,392 3,500 14,892 Mellon Capital Mgmt Index Funds Small Cap 10,632 3,500 14,132 Cramer, Rosenthal, McGlynn 19,721 6,000 25,721 Invesco Fund of Funds 17,143 5,714 22,857 Hancock Separate Account 14 24,162 7,779 31,941 Graystone Consulting Grant Street Office Corporation 9,000 3,000 12,000 Mercy Health Care Center 20,367 2,390 22,757 Balance as of 4/30/2012 1,992, , ,699,924 Custodian Fees 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Bony - Custodian (Flat Fee) 32,500 10,833 43,333 Bony - Global Custodian 5,580 7,333 12,913 Balance as of 4/30/ ,080 18, ,247 Page 11a

14 National Pension Fund SCHEDULE OF ADMINISTRATIVE EXPENSES For the Four Months Ending April 30, 2012 April April NPF Budget Year to Date Year to Date Year to Date YTD Curr Year Last Year Variance Actuarial 21,250 51,881 87, , ,083 10,710 Admin Services - Hancock/Ullico 6,575 12,904 47,400 46,027 52,603 6,576 Admin Services - Other 10,733 9,750 9,750 Audit/Accounting Fees Bank Charges 4,276 7,328 26,833 26,801 28,025 1,224 Business/Travel 2,210 6,364 14,667 6,479 12,701 6,221 Computer Processing 57,908 51, , , ,429 (37,730) Computer Software/Hardware/Supplies 1,336 3,800 2,624 2,486 (138) Consultant Fees 15,243 27, , , ,732 33,226 Dues ,023 1,264 (5,759) Employee Benefits 154, , , , ,632 (15,946) Equipment/Equip Maint ,212 9,849 8,630 (1,219) Fiduciary Insurance 43,582 46, , , ,823 10,495 Insurance 5,739 3,524 17,550 18,705 7,267 (11,438) Legal - Outside Delinq Counsel 87,449 96, , , ,589 (21,184) Legal Fees 32,446 38, , , ,954 (24,294) Legal Fees reimbursed (3,260) (5,252) (37,527) (74,156) (23,321) 50,835 Local Union collection services 9,681 27,503 46,163 56,259 50,489 (5,771) Miscellaneous 1,324 5,926 1,355 6,363 5,008 Office Space Lease 148, , ,609 (316,609) Office Supplies 2,847 1,644 32,000 8,862 9, Payroll Audits 72,443 51, , ,930 97,415 (67,515) PBGC 100, , , , ,294 5,004 Postage/Delivery/Shipping 126,725 97, , , ,818 24,374 Printing 51,780 41,424 67,117 79,159 74,223 (4,936) Records Retention 9, ,567 16,747 2,634 (14,113) Renovations (8403 Arlington Blvd) 169, , ,443 (318,443) Seminars/Training 52 11,500 1,757 5,994 4,237 Soc Sec employment verification 1,550 4,875 1,215 6,198 4,983 Subscriptions/Publications 995 8, , Taxes 20,625 21, ,891 95, ,780 23,904 Trustee Expense 89 21,839 15,914 15,359 (555) Voice and Data Lines 5,561 30,631 30,096 30,223 48,577 18,353 Wages 271, ,424 1,210,000 1,092,645 1,164,106 71,461 Sub - Total 1,418,197 1,161,891 4,734,227 4,552,248 3,984,657 (567,591) Less: Admin Reimb from other SMW Org (59,517) (59,223) (257,296) (238,067) (238,293) (227) Less: Furniture, Fixtures & Equip Reimb (280,668) TOTAL 1,358,680 1,102,667 4,196,263 4,314,182 3,746,364 (567,818) Page 21

15 SHEET METAL WORKERS NATIONAL PENSION FUND ADMINISTRATIVE EXPENSE VARIANCE REPORT April 2012 Admin Services Hancock/Ullico Decrease due to prior year adjustment for Hancock recorded in April Business/Travel Decrease due to expenses for Building Trades Conference in Computer Processing Increase due to programming costs associated with replacement database by DRG. Consultant Fees Decrease due to renegotiated costs for network support. Dues Increase due to renewal of Council of Institutional Investors publication. Insurance Increase due to new comprehensive cyber liability policy. Legal Fees Increase due to services rendered in connection with withdrawal liability cases. Miscellaneous Decrease due to FAR study conducted by The M Group in Office Space Lease Rent no longer paid to subsidiary recorded under rental income, rent currently recorded as an administrative expense. Payroll Audits Increase due to a higher number of audits completed year to date versus year to date Postage/Delivery/Shipping Decrease due to change of amortization period notice mailed in January Records Retention Increase due to microfilm conversion project to convert last remaining film. Seminar Decrease due to employees attending On Base conference and SkillPath seminar in Renovations (8403 Arlington Blvd) Expenses related to new office space. Taxes Decrease due to payroll service withholding incorrect rate for 2009 & Voice and Data Lines Decrease due to Star2Star equipment deposit in April Page 24