Volume 96 Number 41
ˇ ´ VESTNIK S P J S T Benevolence
H E R A L D
Humanity
ISSN —07458800
Brotherhood
October 15, 2008
SPJST weathering volatile market Much
has been said of the volatility and nervousness that has gripped the United States and world money markets in recent weeks and months. As of this writing, the Dow Jones Industrial index is experiencing a 35 percent decline from its 2007 high. The S&P 500 is down 37 percent from its 2007 high. The key factor behind these declines has been the subprime crisis in the USA, which has dominated sentiment on the international equity markets since mid-2007. Or, to put it in other words, the world’s money markets are reeling from the excesses of easy money and sloppy lending practices. As the U.S. slips into recession, it makes people wonder — and worry — about their money and their prospects for holding on to it. For that reason, we want to share with you some timely information relating to SPJST’s Third Quarter Report released on October 6. To date, SPJST’s investment portfolio continues to weather these increasingly volatile market times. While some of the bonds and stocks in the SPJST portfolio were adversely affected by their exposure to specific financial companies, the impact of recent developments has generally been limited to a small percentage of the Society’s overall holdings. Through September 30, losses or impairments as a result of such holdings have remained limited, reflecting the depth of the fundamental credit analysis that SPJST applies in the
selection of investment purchases. None of this is to suggest that the market can’t decline further still or that SPJST has been unaffected by the recent and steep market fluctuations. During the current year, lower investment income and a decline in the market value of the SPJST’s stock portfolio contributed to a $2.7 million dollar decline in SPJST’s cash surplus, from $24.26 million on December 31, 2007, to $21.51 million as of September 30, 2008. Over the same period, SPJST’s net admitted assets increased slightly, from $192.06 million on December 31, 2007, to $192.36 million on September 30, 2008. Proof of the solid financial status of SPJST is our balance sheet. Undoubtedly, the stock markets will continue to move through a corrective and volatile phase. As this relates to our investments area, sound strategies for managing risk have been and will continue to be important for the stable growth and development of the SPJST. Risk monitoring is supported by close consultations between the SecretaryTreasurer, Investment Committee and financial risk management consultants. For the near-term, as our bonds continue to mature, we anticipate retaining a strong cash position, picking and choosing carefully from options that present themselves. Financial aspects aside, our corporate strategy and business growth are
Celebrate ’08 September Honor Roll State Top Associate Agents Applications Written Baltazar Nunez, FIC Lodge 219, El Paso District Four
Insurance Written Carrie Staton Lodge 171, Lockhart District One
State Top Career Agents Applications Written Joe Lewis Lodge 240, Bay City District Six
Insurance Written Gloria Guzman Lodge 219, El Paso District Four
State Recruiters of the Month
Adult: 5 Recruits
Adult: Carmen Kocurek Lodge 40, El Campo-Hillje District Six
Youth: 3 Recruits Each
Youth: Mikhaila Nelson Lodge 18, Elgin • District Two Colton Regan Lodge 47, Seaton • District Two
State Youth Club of the Month 5 Applications Issued
Lodge 30, Taiton District Six Youth Leader Lisa Bubela
Continued on Page 3.
State Lodge of the Month Lodge 219, El Paso District Four
October is Czech Heritage Month in Texas.
29 Applications Issued
Inside This Week’ s Vestnik
Interest Rates ......................................3 Family Fun Dates ................................3 District Activities .................................9 Lodge Section ...................................10 Reunions ............................................15 In Memoriam ......................................15
Youth...................................................21 Merit Points Report ...........................25 Czech Culture ....................................27 Czech Calendar .................................28 Advertisements .................................29 Activities Calendar............................30
Page 18
Lodge 29 Taylor hosts annual barbecue cook-off
Page 22
Lodge 17 New Tabor youth participate in national tournament
Page 24
Lodge 84 Dallas youth enjoys Heritage Day