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J J J J J J J J OKLAHOMA SCHOOL LAND TRUST CONSUL TANT'S REPORT AUGUST 25, 1996 Prepared by HOLBEIN ASSOCIATES, INC. 15301 DALLAS PARKWAY SUITE 810 DALLAS, TEXAS 75248 (214) 458-3206 Holbein Associates, Inc. August 13, 1996 Oklahoma Commissioners of the Land Office 5801 N. Broadway Oklahoma City, OK Ladies and Gentlemen: I have calculated and analyzed the investment return realized by the State of Oklahoma Commissioners of the Land Office ("CLO") for the five years ending June 30, 1996. The evaluation and continued monitoring of investment results is important to the prudent investor since the analysis of the results achieved should provide the insights necessary to take future actions that will e~ce the probabilities of achieving the investment objectives of the CLO. The analysis provides a look at history in order to better de~rmine the direction in which the fund in moving. The study was performed utilizing time weighted rate of return calculations in order to provide a basis for comparing the results achieved by the CLO to market indices and the investment management of other pension funds. The performance of theTotal Fund contained in the Investment Performance Summary Report for June 30, 1996, reveals that the annualized rates of return for the past three and five years were 6.7% and 10.6%, respectively. The internal fixed income assets of the CLO achieved an annualized rate of return for the past five years of 10.1%. The internal fixed income fund has attained the following over the last 5 years: , . • ranked in the 14th percentile among 1,259 fixed income managers" • ranked in the 6th percentile among core fixed income managers, • was 1.9% above the Lehman Brothers Govt Bond Index return of 8.2%, • exceeded the Consumer Price Index by 7.3 %. The investment performance for the Total Fund and the internal fixed income fund over the past five years was excellent on both an absolute and risk adjusted basis. Over the past five years, the investment performance compared to other bond portfolios ranked very high. The Total Fund achieved a 0.9% for the second quarter of 1996. lespectfully submitted, =: UC£;cr1 cI Richard Holbein 15301 Dallas Parkway Suite 810 Dallas, Texas 75248 (214)458-3206 zoI - oW (/) OKLAHOMA SCHOOL LAND TRUST INVESTMENT PERFORMANCE SUMMARY JUNE 30, 1996 Prepared by HOLBEIN ASSOCIATES, INC. 15301 DALLAS PARKWAY SUITE 810 DALLAS, TEXAS 75248 (214) 458-3206 OESCR IPTION OF INDICES The Dow Jones Industrial Average is based on the average market price of 30 of the largest, most widely held stocks traded on the New York Stock Exchange. The average is calculated by dividing the sum of the per share prices of the 30 stocks in the Index by an adjusted divisor to accommodate splits and changes in the stock c.omposition. The Standard & Poor's 500 Stock Composite Index is a capital-weighted index representing the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange. The 500 stocks are composed of 400 industrial, 40 utility, 40 financial, and 20 transportation companies. The weight of each stock in the index is proportional to its price times the number of shares outstanding. The Wilshire 5000 Equity Index is a capital-weighted index of all actively traded common stocks in the United States. The index is calculated daily in a manner similar to the S&P 500. The capital value of the index is composed of approximately 86% New York Stock Exchange issues, 3% American Stock Exchange issues, and 11% Over the Counter issues. The Salomon Brothers High-Grade, Long-Term Corporate Bond Index is a market value-weighted index composed of approximately 775 utility and industrial debt issues with a quality rating of AAA and AA. Each issue has a minimum maturity of 12 years with an outstanding par amount of at least $25 million. The Lehman Brothers Government Corporate Bond Index is a market value-weighted price index composed of approximately 5000 publicly issued corporate and U. S. Government-debt issues rated investment grade or higher. Each issue has at least one year to maturity and at least $50 million par amount outstanding. The Lehman Brothers Aggregate Bond Index measures the total return of all major sectors of the domestic, taxable bond markets and is composed of the Lehman Brothers Government Corporate Index, the Mortgage Backed Securities Index, and the Asset-Backed Securities Index. The 91-0ay Treasury Bill Index is based on the average yield for 91 Day Treasury Bills at weekly auctions. The Consumer Price Index used in this report is a measure of the inflation of the prices of goods and services for the urban consumer. The Bureau of Labor Statistics calculates the average price Changes for several thousand items in approximately 85 urban areas. The index value for the most recent month is not usually available when this report is issued, so for the most recent quarter the mid-month value is used as an estimate of the final month's value. 1 Capital Market Review Economic Review Second uarter 1996 Market Index Returns Qtr J Yr 3 Yrs 5 Yrs IOYr:\' Standard & Poors' 500 4.5 26.0 17.2 15.7 13.8 Wilshire 5000 Equity 4.4 26.3 16.8 16.1 13.1 Dow Jones Industrial Average 1.8 27.1 20.3 17.5 15.2 EAFE (after taxes) 1.6 13.3 10.5 10.0 10.3 EAFE Ex-Japan 2.2 15.0 17.0 14.5 N/A IFC Investable 4.2 10.8 12.3 14.9 N/A Lehman Aggregate 0.6 5.0 5.3 8.3 8.6 Lehman Mortgage Backed 0.8 5.9 5.5 7.8 9.1 Lehman Govt/Cor 0.5 4.7 5.2 8.5 8.4 Lehman GovtlCorp Long 0.1 3.8 5.8 10.5 9.4 Lehman GovtlCor Intermediate 0.6 5.0 5.0 7.7 8.0 SB World Govt. Bond Index 0.4 0.4 7.8 10.9 9.7 SB Non-US Govt. Bond Index 1.0 (1.1) 9.9 13.2 11.2 SB Non-US Govt Bond Idx. Hedge 2.6 11.5 8.2 8.9 N/A JPM Global Govt. X US Unhedged 0.7 0.5 10.0 12.6 10.8 JPM Global Govt. X US Hedged 2.7 12.1 7.9 N/A N/A JPM Emerging Mkt. Bond Index 9.3 32.3 13.0 14.9 N/A NCREIF Property Index 2.6 8.8 7.0 1.9 3.3 Sal. Bros. New Large Pension Fund 0.1 4.5 5.6 9.5 9.3 90 Day Treasury Bill 1.3 5.5 4.8 4.4 5.7 Consumer Price Index Adiusted 0.7 2.7 2.7 2.8 3.4 During the second quarter, the markets were characterized by continued economic expansion, benign inflation reports, and additional gains in profitability for U.S. corporations. Strong employment reports occurred back to back during the quarter which caused long rates to surge to 7.2%. As a result, investors will continue to worry about the Fed's reaction to job growth and wage increases as we move into the second half of the year. However, hints that the Federal Reserve would not raise rates at its July session led to a late June rebound in bond prices. The latest economic data suggested that the U.S. economy was growing rapidly in .the second quarter, with GDP likely to approximate a 4.0% rate. Starting in the spring, the consumer has been on a shopping spree for autos, appliances, housing, personal computers, and other big ticket items. Personal consumption is now growing at a 3% rate, a level supported by moderate employment and wage gains, solid confidence levels, and a substantial rise in installment debt. The housing market stayed robust despite a big jump in mortgage rates. However, long-term interest rates over the past 6 months, could act as a brake to the important housing category. E ui - Short-term For the sixth straight quarter, equity prices moved sharply higher in the second quarter as the S&P 500 Stock Index produced a total return of 4.5%. The stock market moved higher as the indices flirted with all-time highs until a June collapse resulted in a correction for stock prices. The second quarter provided a more hospitable environment for growth investors than it did for value investors. Among cap-weighted indices, large cap stocks performed better with the Russell 1000 Growth Index posting a 6.4% gain on the quarter. Most issues remotely connected to the technology surrounding the Internet rode the speculative wave to outstanding returns. Some of the best year-to-date returns have accrued to the small stocks. Consumer Non-Durables were the strongest sector in the second quarter, rebounding from a lackluster relative performance in the first quarter. The Energy sector enjoyed a moderately strong quarter aided by the runup in gasoline prices earlier this year. The weakest performing group in the second quarter were the Basic Industries stocks. This marked a sharp reversal from last quarter when they were the best performing stocks in the market. International markets provided positive returns during the second quarter, yet still lag domestic indices over the last year. Russell Style Indices Qtr 1 YI' 3 Yrs 5 YI'S JOYrs Russell 1000 Value 1.7 24.6 15.1 16.6 13.4 Russell Mid Cap Value 1.9 21.4 13.9 17.9 13.1 Russell 2000 Value 4.1 21.1 14.3 18.7 11.5 Russell 1000 (Large cap) 4.1 26.3 16.8 16.1 13.5 Russell Mid Cap 2.8 22.5 15.3 17.4 N/A Russell 2000 (Small ca ) 5.0 23.9 15.8 17.5 10.4 Russell 1000 Growth 6.4 27.8 18.5 15.6 13.4 Russell Mid Cap Growth 3.7 23.6 16.8 16.3 13.1 Russell 2000 Growth 5.8 26.5 17.1 16.0 9.1 2 Capital Market Review Equity - Long-term The three and five year returns are indicative of a remarkable period for the U.S. equity market. Over the three year period, Large cap stocks performed better than both mid and small cap stocks. The Dow, the best known gauge of large cap market performance, has returned 20% per year, or cumulatively over 70% over the past three years. Foreign stocks have performed worse relative to U.S. stocks in this three to five year period as low interest rates and a weak dollar have helped U.S. industry compete in the global marketplace. Although the stock market enters the second half of 1996 near record high levels, there are unmistakable signs that the extended bull market is showing its age. The number of U.S. securities selling at new highs has been declining while the list of stocks reaching new 52 week low prices has begun to climb. Fixed Income - Short-term Despite total returns on the plus-side for the quarter, most broad bond indices suffered price depreciation with only coupon income providing the boost for positive returns. Interest rates climbed higher during the quarter as strong economic data continued to work its way into investor expectations for increased inflationary pressure. With the Fed deciding not to increase interest rates at the May and early July meetings of the FOMC, 90-day rates remained largely unchanged. On both an absolute and relative basis the mortgage sector provided superior performance for the quarter. Mortgages have a shorter effective duration and significant yield advantage providing protection from rising rates. Corporate bonds continued to benefit from an expanding economy, strong corporate cash flows, and reduced supply. Corporate bond spreads continued to remain very tight because of a healthy economy. Fixed Income - Long-term Inflationary fears over the past three years has caused the bond market to experience rapid price depreciation, particularly in 1994 and in the first quarter of 1996. The major indices have responded with mediocre three year rates of return in the 5% to 6% range. In contrast to the below average returns of most indices, high yield returns have outperformed due to their higher correlation with the equity market of which three to five year returns have been outstanding. Global bond markets made little head-way during the second quarter as modest bond returns were offset by an appreciating dollar. In contrast to the developed markets, emerging bond markets moved up sharply during the quarter. Growth of a Dollar 2.2 ,-,-------=-------------, 2.1 2.0 1.8 , :Ie -I 1.9 1.6 1.6 1.4 1.21~-- -------------- 1.2 1.0 - - - - - - - - - - - - - - - - - - - - - - - - 0.8 -+ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0.6 I I I I 06/91 06/92 06/93 06/94 06/95 06/96 Return/Risk Matrix for 5 Yrs. 20.0% T'---~--~---~--~---~--__, 15.0% E.:.:.! 10.0% I:~c: 5.0% - - - -,- - - - -, - - - -,- - •. -,- - - - 1 - - -- • - - - -,- - - - -, -.-,- - - -, - - - •.- - - - .-- -,- - - - -, - -- - - -, - - - - -, - - - - 0.0% I I I I I I 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 3 • Equity Index Returns - Short Term The stock market maintained its upward surge as the indexes flirted continuously with all-time highs until a June swoon resulted in some downward pricing pressure. Among the cap-weighted indexes, large cap stocks performed best with the Russell 1000 Growth Index posting a 6.4% gain on the quarter. However, an examination of some of the equal weighted indexes indicates that outstanding returns were earned among securities in the microcap arena. The Vestek All Shares Equal-Weighted Index returned 11.1% on the quarter, with securities capitalized at less than $100 million averaging nearly 16%. Year-to-date, the Vestek All Shares Equal-Weighted Index has returned 25% while the under-$100 million issues have returned in excess of 36%. The dramatic outperformance of the U.S. Dollar-based EAFE by the Local Currency EAFE over the past 12 months has been supported by the greenback's advance against the yen (22%) and the deutschemark (9%). EQUITY INDEX RETURNS - For The Period Ended June 30,1996 1Rot. DJIA 11 R°l-. .............................................................................................................................................................................................................................................................................................................................................................................................27.1% A "0/. 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RUSSELL 1000 VALUE ·.·.·.·.·.·.·.w.·.· ..•..·.·.·.·.·.•.•.·.•.•.·.•.•.·.·..•..•·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.w.·.·.w.·.·.·.·.·.·.·.·.·.·7.·.·.<·.;·0.·1.-·..·.·.·.·.·.·.·.·.............................................................................................................................................................................................................................................................................................................. 24.6% WILSHIRE 5000 •i..i....i....i....i...i....i....i....i....i....i...i....i....i....!....A....I...A....S....'....o....t.........h...1....I....1.i.n..I.~..I.1-.....I...1....I....1....I....1....I...1....I....1....~....~....f...u....m....~....~....~....m...m....m....m....m....m....~...~....~....~....~....m....m...m....m....~....=....=....=...=....~.2..6.~...3..~%....~....~...~....~....~..................................................................................................29% S&P MIDCAP .............................................................................................0...?..O.....................................................................................................................2..1....6..%...........................................................................................................................RUSSELL 2000 GROWTH _iiiiiiiiiiiiiiiiiiii"~:Ri'ot.l!11l0°I1-.lIlIlIlIlI!lId~~==~~~~mm~~~~~~~~~~~====~~~ ..•.•.....•.•.•.•...•.•.•.•.•.•.•...........•.......•.......•.•.•.•.•.•.....•.•.•...•.•.•••••.•.•.•.•...•.•.•.•.....•.•••...•.••...•.................•.•.•.•.•.•....•..•...•.•••.•.....•.•••...•........••...............................................•.•..............•...•. ·.·.·.·.·.w.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.· ...........••..............••..........•..•••..•••...•. ·.•.•.•.•.••.•..w.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.· ...·.•.•...•.•...•.••..•.•.•.•..••.•...•.•..••.•.............•...•.•..•....• 26.5% RUSSELL 2000 VALUE <11% R ~0l-. :.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.".:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:".:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.2:.1:..:1.:%.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.'.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.1~ot. EAFE- $ ...............................................A..<..;.%.................................................................................1..3...3..%...................................................................................................................... + "110/. EAFE-LOCALCURRENCY RAot. ......••••.•••..••••..•.•.....•••.•.•.•••.....•....:•.••:.••••..•..•.•..•.••.•••.•..•.:••.••.:•.•••••••••.•.••..•.••••..•...•.•���...••..•.•....••..:•.•••.•.•....•.•....•.••..•••.••.•••••..:•...••:.••:•c•,•:.••••••••••••••••••••.•.•.•.•...•••.••••.••.•••.•.•••.•y••••.••••••••.••..•••.•••.•••..•.•••••••••.•.•••.•••••..•.••...••••••••...••.•••••••••••.•..••••..••••.••••••••..•••.••:••••••.•:••..••••••••.••.•••..••..•••••:••.••:••.•.•••.•••••.••••:•.••.•••••••..•••...•.••.•••••.•••.•.•••.:•..•.•.•.••.••.•••••••••• 5.0% 10.0% 15.0% Ie LAST 12 MONTHS. YEAR-TO-DATE [] LAST QUARTER I 0.0% 20.0% 25.0% 28.3% 30.0% 4 Equity Index Returns - Long Term The three- and five-year returns are indicative of a rernarkable period for the U.S. equity rnarket. Over the three-year period, only the S&P Midcap and Russell 2000 Indexes have annual returns falling short of 15%. The Dow, the best known gauge of market performance has returned 20% per year, or cumulatively over 70% over the three years. The five-year returns are just as lofty, paced by the Russell 2000 Value Index annual return of 18.7% With the lowest five-year return posted by the Russell 1000 Growth Index at 15.6%, each of the domestic indexes below has at least doubled in the past five years. Considering the low levels of experienced inflation over that time frame, the real rates of return to domestic stocks are unprecedented for such a sustained period. Foreign stocks have suffered relative to U.S. stocks in this three- to five-year perspective as low interest rates and a weak dollar have helped U.S. industry get well to compete in the global marketplace. ,_ FIVE YEARS DTHREE YEARS' EQUITY INDEX RETURNS - For The Period Ended June 30, 1996 DJIA 20.3% 17.5% 17.2% 15.7Y. 18.5% 15.6% 15.1% 16.6% L 16.8% 16.1% 14.10/0 16.7% 15.8% 17.5% 17.1% 16.0% 14.3% 18.7% 10.5% 10.0% 9.4% 7.2% S&P 500 RUSSELL 1000 GROWTH RUSSELL 1000 VALUE WILSHIRE 5000 S&P MIDCAP RUSSELL 2000 RUSSELL 2000 GROWTH RUSSELL 2000 VALUE EAFE-$ EAFE· LOCAL CURRENCY 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 5 Equity Sector Returns Until June, most issues remotely connected to the technology surrounding the Internet rode the speculative tsunami to outstanding returns. Some of the best year-to-date returns have accrued to non-S&P 500 issues such as microcomputer assemblers Dell (47%) and Gateway (39%) as they have capitalized on consumer appetites for the WorldWideWeb. CompUSA, the discount computer retailer, has fared even better, and has returned 119%. The long-lagging Energy sector enjoyed a moderately strong quarter aided by the runup in gasoline prices earlier this year, and a correspondent increase in refinery margins. Over the past 12 months, Health Care issues have soared as managed care providers have consolidated and begun to develop scale economies for profitable service delivery. S&P 500 ECONOMIC SECTOR RETURNS - For The Period Ended June 30,1996 CONSUMER DURABLES 7R% CONSUMER NONDURABLES 13.9% 111.8% FINANCE & BUILDING HEALTH CARE CAPITAL GOODS 4.5% ENERGY RELATED 9.6% r-11B% TRANSPORTATION 8.4% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% CLAST 12 MONTHS .YEAR-TO-DATE o LAST QUARTER 45.0% 6 Fixed Income Yield Curve Interest rates edged higher during the quarter as robust economic data continued to work its way into investor expectations for increased inflationary pressure. With the Fed abstaining from any interest rate action at the May and early July meetings of the FOMe, gO-day rates remained largely unchanged. However, rates on one-year bills were up 30 basis points over March 31 levels. In the two-to ten-year maturity range, interest rate increases were on the order of 40 basis points, while beyond ten years to maturity, interest rates displayed a near parallel shift upward of approximately 30 basis points. 7.00% 6.00% 5.00% 2.00% 1.00% INTEREST RATE TERM STRUCTURE Government Issues - °to 30 Year Maturity --June 30,1996 ---·March31,1996 •.. - _. June 30, 1995 O.OO%+-------~--------~------~--------~--------~------_r--------~------~--------~--------r_------~-~ o 5 10 Yea~lo_Malurily 20 25 30 7 Fixed Income Index Returns - Short Term Despite total returns on the plus-side for the quarter, most broad bond indexes suffered price depreciation with only coupon income providing the boost for positive returns. Short-term bonds experienced the best relative performance as those issues face the least pricing pressure in rising interest rate environments. Spreads widened somewhat as corporate bonds which, while performing comparably on an absolute basis, underperformed on a risk-adjusted basis. Year-to-date, only very short-term proxies have positive returns. At the other end of the maturity spectrum, long-term government bonds are off nearly 7% for the year, recalling 1994's first half plunge of nearly 9%. Notwithstanding investor fear of inflation and its adverse impact on bond prices, the CPI, after a 1.5% runup in the first quarter, settled down to a modest 2.5% annual rate in the second quarter. LEHMAN BROS. AGGREGATE LEHMAN BROS. GOV'T.·CORP. LEHMAN BROS. GOV'T.·CORP. LT LEHMAN BROS. GOVERNMENT LEHMAN BROS. CORPORATE SALOMON BROS. HIGH YIELD LEHMAN BROS. MORTGAGE· BACKED MERRILLL YNCH 1·3 YEAR TREAS. 90·DAY us T·BILLS U.S.CPI SALOMON BROS. WORLD GOV'T.BOND (US$) FIXED INCOME INDEX RETURNS - For The Period Ended June 30,1996 ---, 0.6% ·1.2% .---1iE]!i~;EZEZEZ:::;;:::;;EZEZ"'·"E'·"'·"'·"'·E"'·"'·"'·"E'·.···.···.···E.···.···.···E.···.···.···.·E··.··:::;:::::::::::::::::::.::;::::::;::::::~::::::::~::::::::::::~~ •. ·.··.··.E5·.·0·°··'0·/1······3·········· --, 0.5% ·1.9% .-----t:i~;~EZEZE2:::;; ::::::::::::;:::::::::;:::::::::::~:::::::::::::~;:~:;~:;::::~: .·.·.·.·E.·..·.E:.·..·.··E.···.·····E.·2EE··2.·E··ll.1···.·E··.··4·..·7·.°·'·0I·eE.···.··. 1 ~o ? 0° ::;::;;::;;1,. 0.8% ----, (\R% ? % ·7.5% -5.0% ·2.5% 0.0% 2.5% 5.0% 7.5% ICLAST 12 MONTHS .YEAR-TO·DATE oLAST QUARTER I 10.0% 8 Fixed Income Index Returns - Long Term With the bond environment scarred over the past three years, particularly in 1994 and in the first quarter of 1996, with the frenzy of inflationary fears, the major indexes have responded with unremarkable three-year rates of return in the 5% to 6% range. A closer look, however, indicates that inflation-adjusted returns in the 3% to 4% range are not inconsistent with historical norms. In contrast to the placid returns of most indexes, high yield returns have enjoyed relative outperformance due to their higher correlation with the equity market of which three- to five- year returns have been outstanding. Despite the price stability indicated by a sub-3% inflation rate for five years, a generally weakening dollar against major currencies has the U.S.-Dollar return of global indexes outperforming comparable maturity domestic indexes. FIXED INCOME INDEX RETURNS - For The Period Ended June 30,1996 LEHMAN BROS. AGGREGATE 5,3% 8.3% 5.2% 8.5% 5.8% 10.5% 4.9% 8.2% 5.9% 9.3% 8.9% 13.5' 5.5% 7.8% 4.9% 6.3% 4.8% 4.4% 2.8% 2.9% 7.8% 10.9% LEHMAN BROS. GOV'T.-CORP. LEHMAN BROS. GOV'T.-CORP. LT. LEHMAN BROS. GOVERNMENT LEHMAN BROS. CORPORATE SALOMON BROS. HIGH YIELD LEHMAN BROS. MORTGAGE-BACKED MERRILL LYNCH 1-3 YEAR TREAS. 90-DAY US T-BILLS U.S.CPI SALOMON BROS. WORLD GOV'T.BOND (US$) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% I_ FIVE YEARS DTHREE YEARS 1 14.0% 9 / o zoI -oW en OKLAHOMA SCHOOL LAND TRUST TOTAL FUNDS - TOTAL FUND INCOME RATES OF RETURN FOR PERIOD ENDING 6/96 8%~---------------------------------------------------------------------------------------------------------------------------------------------------------------~ * ---------- ---------- ---------- 2% - * i- 2% ---------- ----*----- ---------- ----~---- ---------- ---------- ---------- ---------- 0% 0% THIS LAST 2 QTRS 3 QTRS LAST LAST LAST QUARTER QUARTER AGO AGO YEAR 2 YEARS 3 YEARS * TOTAL 1.9 2 1.0 24 2. 5 1 0.9 42 6.4 5 6.7 4 6.7 4 MEDIAN 0.8 0.7 0.9 0.8 3. 6 3.7 3. 5 6% - * 4% - HOLBEIN * 8% - 6% - 4% 11 OKLAHOMA SCHOOL LAND TRUST BOND FUNDS - TOTAL RETURN VS RISK 3 YEARS ENDING 6/96 8 z4: ~ B (f) w cc :; ..- ::R 0...••... za:: => 7 t- LU a:: u, 0 LU t<-t: 6 - -D a:: : 0 .:-, - . LU .' MEDIAN N ..' :J 'I' RETURN -c : => 5 - : 'f' Z z . -. <t: 4 I I I I 12 I I I I I I 1 2 3 4 5 6 7 8 9 10 HISTORICAL STANDARD DEVIATION OF RETURN (RISK) I I 11 STANDARD DEVIATION VALUE RANK ANNUALIZED RETURN VALUE RANK o OK LAND TRUST J LEHMAN GOVT BD fJ\ LB AGGREGA TE MEDIAN 1 8 69 52 8,5 5,6 5.3 6.0 4,' 9 5.3 5.3 5.3 HOLBEIN 8 41 53 12 HOLBEIN OKLAHOMA SCHOOL LAND TRUST BOND FUNDS - TOTAL RETURN VS RISK 5 YEARS ENDING 6/96 ,. ... , . . . ~---'-----------~--:-.'0~~.~·~ .~~;-·-·---------------M-EO-IA-N-I RETURN .. R ~ J -:..' : 12 - -::R -0- 11 - Z0: ::> t- 10 UJ 0: u, 0 9 - UJ t- <t: 0: 8 - 0 UJ N:<Jt: 7 - ::> zz <t: 6 - 5 - I I 2 3 '.. °0 •• 0° ."; . .", o OK LAND TRUST f LEHMAN GOVT BD ~ LB AGGREGATE MEDIAN "0' "0 •• °0 •• , 0° I I I I I I I 456 7 8 9 HISTORICAL STANDARD DEVIATION OF RETURN (RISK) 10 ANNUALIZED RETURN VALUE RANK STANDARD DEVIATION VALUE RANK 10. 1 8.2 8.3 1 4 63 61 8.6 8. 1 5.7 5.3 5.6 9 46 62 I 11 13 OKLAHOMA SCHOOL LAND TRUST BOND FUNDS - TOTAL RATES OF RETURN PERIODS ENDING 6/96 12%,------------Q-U-AR-T~ER~S~~~------~----------~~==~YE-A-RS~~~--------------------_. LJ o LJ 8% - J c=J ~ 4% - - -ofP:."- -- 0% - ~Q!:J ----f--~-- o -4% - 12% - 4% f- 0% f- -4% -8% -8% LAST LAST 2 LAST 3 LAST LAST 2 LAST 3 LAST 4 LAST 5 QTR QTRS QTRS YEAR YEARS YEARS YEARS YEARS o OK LAND TRUST 0.0 87 - 2. 4 86 2.9 65 4. 4 80 11. 4 6 6.0 18 9. 2 9 1O. 1 14 J LEHMAN GOVT BD O. 5 63 -1.8 74 2. 7 73 4. 5 76 8. 2 54 4.9 69 6.9 60 8. 2 63 fi6. LB AGGREGA TE 0.6 55 - 1. 2 57 3.0 60 5. 0 60 8. 7 39 5.3 52 6. 9 61 8.3 61 MEDIAN 0.6 - O. 9 3.3 5.3 8.4 5.3 7. 1 8. 6 HOLBEIN 14 OKLAHOMA SCHOOL LAND TRUST BOND FUNDS - TOTAL RATES OF RETURN YEARS ENDING 24% ~--------------------------------------------------------------------------------~ 18% 12% LI 24% o [J 18% 12% 6% 0% -6% -6% 6 I 96 6 I 95 6/94 6/93 6/92 o OK LAND TRUST 4.4 80 18. 9 2 - 4. 2 95 19. 6 4 14. 0 57 f LEHMAN GOVT BD 4.5 76 1 2. 1 39 -1.3 73 12. 9 38 13. 8 60 P>.. LB AGGREGA TE 5. 0 60 12. 5 28 - 1. 3 72 11. 8 54 14. 0 56 MEDIAN s. 3 11. 5 - O. 5 1 2. 1 14. 3 HOLBEIN U J V\ -------r~----- f 6% ----o-jY51----- 0% - -- - ---f ~- ---- 15 OKLAHOMA SCHOOL LAND TRUST EQUITY FUNDS - TOTAL RATES OF RETURN PERIODS ENDING 6/96 48% ~---------------Q-U~A~R~TE~R~S---------r--------------------YE~A-RWS~~-----------------------'- 40% - 32% - 24% - 16% - 8% - 0% - o --b-O---le tiD-~----8 L -----0--- ~~l!- __~ ~ o ---------~ ---------~ --------- J --------- 'P rt===rl~ 48% - 40% - 32% - 24% 16% - 8% § - 0% -8% ~----------------------------------~--------------------------------------------------~ § SMALL CAP DBOSTON PARTNERS b BJURMAN J-l HOTCHKIS (> MACKAY o OAK 6. BERNSTEIN ~ S&P 500 MEDIAN HOLBEIN LAST aTR 1. 4 91 2. 1 84 6. 4 22 O. 6 95 5. 0 33 8. 4 11 2. 8 73 4. 5 41 4.2 LAST 2 aTRS -3.1 99 9. 6 61 10.4 49 8. 8 71 12.3 29 6. 8 86 9. 8 58 10.2 52 10. 4 LAST 3 aTRS 16.8 31 15. 0 LAST LAST 2 YEAR YEARS 26.03726.126 24.7 23.7 LAST 3 YEARS 17.2 40 16. 6 LAST 4 YEARS 16.3 57 16. 7 LAST 5 YEARS 15.7 64 16. 3 -8% 16 OKLAHOMA SCHOOL LAND TRUST EQUITY FUNDS - TOTAL RATES OF RETURN PERIODS ENDING 6/96 QUARTERS YEARS 48% 48% 40% - 32% - 24% - 16% - o~ 8% - 0% - -----~--- -----~--- _____ '11' _ r==l_ t=!j f- 40% - 32% - 24% 16% o • - 8% f- 0% -8% -8% LAST LAST 2 LAST 3 LAST LAST 2 LAST 3 LAST 4 LAST 5 aTR aTRS aTRS YEAR YEARS YEARS YEARS YEARS D WOOD STRUTHERS 3.7 58 9.4 64 ti TOTAL EQUITY 3.9 55 8.5 74 ~ S&P 500 4.5 41 10. 2 52 16. 8 31 26. 0 37 26. 1 26 17.2 40 16. 3 57 15. 7 64 MEDIAN 4.2 10. 4 15. 0 24. 7 23.7 16. 6 16. 7 16. 3 HOLBEIN 17 OKLAHOMA SCHOOL LAND TRUST FIXED INCOME MANAGER STYLE DEFINITIONS SHORT Short Term Fixed Income managers are generally retained as "cash" managers. They provide an alternalive to SHORT TERM INVESTMENT VEHICLES and attempt to add value through superior management of high quality short term instruments. In order to be classified as Short Term, a managers portfolio duration should be 0-40% of the Lehman Brothers Aggregate's. In addition, the porlfolio's quality should exceed 8. Contractual restrictions Iimiling a short term fund's duration generally preclude the Lise of one of the major bond indices as a relevant benchmark. Instead, 90 day T-Bills are generally used as the portlolio's standard. INTERMEDIATE An Intermediate manager invests in high quality issues with a duration that is 40-80% of the Lehman Brothers Aggregate and a quality rating greater than 8. Although many Intermediate manaqers are contractually prevented from extending a portfolio's maturity, other Intermediate managers assert that intermediate duration securities provide the best risk/reward trade-off relative to short and long duration instruments. LONG To be classified as a Long manager, an investment manager's portfolio must have a duration that is greater than 120% of the Lehman Brothers Aggregate's. Long managers believe that the increased return provided by the long end of the maturity spectrum compensates for the higher volatility of longer duration issues. CORE A Core manager differs from the above three styles in that he does not. concentrate on achieving a superior return within a certain duration range. Instead, he prefers to emphasize sector or individual bond selection to create a portfolio whose duration is similar to the index's, but produces a superior return. A Core manager's defining criteria include a duration ranging from 80-120% of the Lehman Brothers Aggregate and a quality rating above 8. INTEREST RATE ANTICIPATOR In contrast to the first four categories, all of which emphasize security selection as the primary means of adding value, the Interest Rate Anticipator attempts to add value primarily through interest rate forecasting. By extending maturities when he believes interest rates will fall and shortening them when he believes rates will rise, an Interest Rate Anticipator may display the qualities of any of the above styles. To be classified as an Interest Rate Anticipator, a manager's portrolio must show at least a 30% change in duration relative to the benchmark over the prior two years. HIGH YIELD A High Yield Manager invests in lower quality, higher yielding issues; generally companies in financial difficulty or with limited financing means. The debt issued by these types of companies carry higher rates to compensate for the increased credit risk. A High Yield manager emphasizes security selection to take advantage of the superior return produced by the debt of less credit-worthy companies. A High Yield manager's portfolio must have a current yield to maturity that is greater than 120% of the Lehman Brothers Aggregate's. 18 HOLBEIN OKLAHOMA SCHOOL LAND TRUST FIXED INCOME MANAGER STYLE ANALYSIS - TOTAL RETURNS QUARTER ENDING 6/96 4%~----------------------------------------------------------------------------~ 3% 4% 3% 2% o 2% 1% 0% o 1% 0% -1% -1% -2% -2% INTER- INT RATE HIGH BOND SHORT MEDIATE CORE LONG ANTIC YIELD UNIV o OK LAND TRUST O. 0 87 0.0 87 MEDIAN 1.2 0.7 O. 5 0.6 O. 6 O. 6 HOLBEIN 19 OKLAHOMA SCHOOL LAND TRUST FIXED INCOME MANAGER STYLE ANALYSIS - TOTAL RETURNS YEAR ENDING 6/96 12%~---------------------------------------------------------------------------------'- 10% ----0---- 12% 2% 8% 10% 8% 6% 4% 0% 0% INTER- INT RATE HIGH BOND SHORT MEDIATE CORE LONG ANTIC YIELD UNIV o OK LAND TRUST 4.4 74 4.4 80 MEDIAN 5.6 5.3 4.9 5. 5 5. 1 5. 3 HOLBEIN 6% 4% 2% ----EJ---- 20 OKLAHOMA SCHOOL LAND TRUST FIXED INCOME MANAGER STYLE ANALYSIS - TOTAL RETURNS TWO YEARS ENDING 6/96 14%--------------------------------------------------------------------------------~ 12% 10% 8% o LJ 14% 6% 6% 12% 10% 8% 4% 4% INTER- INT RATE HIGH BOND SHORT MEDIATE CORE LONG ANTIC YIELD UNIV o OK LAND TRUST 11. 4 3 11. 4 6 MEDIAN 6.2 7.3 8. 5 1 O. 1 8.8 8.4 HOLBEIN 21 OKLAHOMA SCHOOL LAND TRUST :~fiXE[)INCOME MANAGER STYLE ANAL YSIS - TOTAL RETURNS THREE YEARS ENDING 6/96 10%~------------------------------------------------------------------------------~ 8% o 10% 4% 6% 4% 8% 6% 2% 2% LNTER- INT RATE HIGH BOND SHORT ",w)ED IATE CORE LONG ANTIC YIELD UNIV o OK LAND TRUST 6.0 1 4 6.0 18 MEDIAN 4.9 5,. 1 5.3 5. 6 5.6 5.3 HOLBEIN o 22 OKLAHOMA SCHOOL LAND TRUST FIXED INCOME MANAGER STYLE ANALYSIS - TOTAL RETURNS FIVE YEARS ENDING 6/96 12%~------------------------------------------------------------------------------~ 10% 8% 12% 6% 4% [] 10% 8% 6% 4% 2% 2% INTER- INT RATE HIGIi BOND SHORT MEDIATE CORE LONG ANTIC YIELD UNIV o OK LAND TRUST 1 O. 1 6 1 O. 1 1 4 MEDIAN 5. 8 7.6 8.6 1 O. 1 8.6 HOLBEIN o 23 OKLAHOMA SCHOOL LAND TRUST EQUITY STYLE SPECTRUM METHODOLOGY· Background: Equity Style Spectrum analysis is intended to quantify the investment approach of each managed portfolio in the universe, and to group porlfolios with similar styles of investing. While no methodology can claim to capture all of the decisions an investment manager makes, the two most important factors of style that explain performance results are the size of companies in which a manager invests and their relative valuation, or whether they exhibit growth or value characteristics. Exhibits: Style Spectrum provides a map based on Size (y-axis) and Value vs. Growth (x-axis). This map is then further divided into nine distinct styles, three based on the size of companies in which a manager invests and three based on the manager's proclivity toward value, core or growth styles of investing. The goal of this exhibit is to identify gaps and overlap in the allocation among styles, while depicting the magnitude of each manager's style basis. In addition, Style Spectrum measures an investment manager's style bias over time, in an effort to capture "style drift". Finally, while style calculations are based on a weighted average of the characteristics of a portfolio's holdings, it is also interesting to look at percentage distribution of the portfolio's holdings. For instance, Midcap can be a concentration in mid-cap stocks or the result of holding large stocks and small stocks. Similarly, a Core classification can result in a market like strategy or from holding both growth and value stocks in equal proportion. Methodology: Size is the BARRA Size factor. In addition to market capitalization, this factor takes into consideration the number of years that a company has been operating and the total value of the firm's assets. Value/Growth is a weighted average of several BARRA factors: Book/Price (40%), Growth (25%), Earnings/Price (25%) and Yield (10%k This weighted average approach takes into consideration the various investment opinions regarding the definition of value and growth characteristics. The break points for the three Size quadrants are: Small Size exposure less than -1.90 Mid Size exposure -1.90 to -1.10 Large Size exposure greater than -1.10 The break points for the three Value/Growth quadrants are: Value Core Growth Value/Growth exposure less than -0.10 Value/Growth exposure -0.10 to +0.10 Value/Growth exposure greater than +0.10 HOLBEIN 24 OKLAHOMA SCHOOL LAND TRUST EQUITY MANAGER SPECTRUM STYLE ANALYSIS - TOTAL RETURNS· QUARTER ENDING 6/96 24% ~-----------------------------------------------------------------------------------------, 18% 12% 6% 0% -------- J [).------ b -6% SMALL SMALL SMALL MEDIUM MEDIUM MEDIUM LARGE LARGE LARGE VALUE CORE GROWTH VALUE CORE GROWTH VALUE CORE GROWTH § SMALL CAP 1.4 94 DBOSTONPARTNERS 2. 1 68 b BJURMAN 6.4 59 't HOTCHKIS o. 6 94 o MACKAY 5. 0 47 o OAK 8.4 6 6. BERNSTEIN 2. 8 52 nWOOD STRUTHERS 3.7 80 MEDIAN 5. 2 4.5 8. 9 3.3 3. 4 6. 8 2. 8 3. 6 5. 0 HOLBEIN :25 EJ ~ v OKLAHOMA SCHOOL LAND TRUST EQUITY STYLE SPECTRUM ANALYSIS AS OF 6/96 (MOVEMENT OVER PAST TWO YEARS) 1.0~--------------------------------~1----------------~--------------------------------~ III I1 I1 I1 II I1I1I1 I ------------------------------~---------------------------------------------- I I 1 1 I I I 1 I I 1 1 I I -------------------------------,---------------r------------------------------ ~~ I I 1 1 I I I I I I I I I I I I I Neulrol I -0.5 UJ !e::n::! -1.0 -1.5 0.5 Value -~- Growth -3.0+-------~-------T------~~------+-------~------~--------r-------~------~------~ -1.5 HOLBEIN 0.0 Large Mid Small -2.5 -1.0 -0.5 -0.3 -0.1 0.0 VALUE/GROWTH 0.1 0.3 0.5 1.0 1.5 Q. BOSTONPARTNERS o OAK ~ S&P500 b BJURMAN 6. BERNSTEIN * TOTAL o MACKAY * TOTALEQUITY It HOTCHKIS n WOODSTRUTHERS 27 OKLAHOMA SCHOOL LAND TRUST PERFORMANCE HISTORY OKLAHOMA SCHOOL LAND TRUST QUARTER TOTAL ALLOC EQUITY S&P 500 BOND LEHMN CASH 91-DAY ENDING FUND INDEX SEGMENT INDEX SEGMENT AGG INDX SEGMENT T-SILL 09/ 91 6.7 5. 7 6.7 5. 7 121 91 6. 0 5. 1 6. 0 5. 1 031 92 - 3. 1 - 1. 3 - 3. 1 - 1. 3 061 92 4. 0 4. 0 4.0 4. 0 ANNUAL 14. 0 14. 0 14. 0 14. 0 09/ 92 6. 4 6.4 4.3 1 21 92 O. 6 O. 6 O. 3 031 93 6.4 6. 4 4. 1 06/ 93 5.0 5. 1 2.6 ANNUAL 19. 6 19. 8 11. 8 091 93 5.4 5.4 2. 6 1 2/ 93 -1.4 - 1. 4 O. 1 03/ 94 - 5. 3 - 5. 3 - 2. 9 061 94 - 2. 6 - 2. 6 - 1. 0 ANNUAL - 4. 2 - 4. 2 - 1. 3 091 94 O. 1 O. 6 O. 1 O. 6 12/ 94 1 . 7 O. 4 1.7 0.4 031 95 6. 5 5. 0 6.6 5. 0 061 95 9. 7 6. 1 9.7 6. 1 ANNUAL 18. 9 12. 5 19. 0 12. 5 09/ 95 1.5 2.0 1.5 2.0 1 2/ 95 5. 1 4. 1 5.8 4. 3 1.3 1.5 03/ 96 - O. 9 - O. 1 5. 0 5.4 - 3. 4 - 1. 8 1 . 3 1. 2 061 96 o. 9 1.5 4.3 4. 5 O. 0 O. 6 1.4 1.3 ANNUAL 6. 7 7.6 3. 8 5. 0 HISTORICAL 83. 5 21. 1 9. 5 10. 2 79. 0 64. 6 4. 1 4. 1 CUMULATIVE ANNUAL 10. 6 10. 0 9. 5 10. 2 10. 2 8. 7 4. 1 4. 1 EQUIVALENT HOLBEIN BANKERS TRUST IICC UNIVERSE STATISTICS NUMBER OF FUNDS AVERAGE FUND SIZE ($ millions) 905 610 NUMBER OF PORTFOLIOS 7,830 BALANCED PORTFOLIOS 790 EQUITY PORTFOLIOS EQUITY ONLY SEGMENTS 2,659 3,449 FIXED INCOME PORTFOLIOS FIXED INCOME ONLY SEGMENTS 1,259 2,049 INTERNATIONAL EQUITY PORTFOLIOS 630 GLOBAL FIXED INCOME PORTFOLIOS 114 REAL ESTATE PORTFOLIOS 259 29 State of Oklahoma Commissioners of the Land Office State of Oklahoma Commissioners of the Land Offi Total Fund Review & Analysis Index: Time Frame: LB Govt LB Government 5 Years ending 6/30/96 Year Total Fund LB Govt YfD'96 0.0% -1.8% 1995 6.7% 4.5% 1994 -6.1% -3.4% 1993 16.1% 10.7% 1992 7.9% 7.2% 1991 16.3% 15.3% Total Fund Track Record Ql Q2 Q3 Q4 Year Annualized 1996 -0.9% 0.9% -0.9% YfD '96 1995 6.5% 9.7% 1.5% 5.1% 24.7% 6.7% 1 Year 1994 -5.3% -2.6% 0.1% 1.7% -6.1% 12.6% 2 Years 1993 6.4% 5.0% 5.4% -1.4% 16.1% 6.7% 3 Years 1992 -3.1% 4.0% 6.4% 0.6% 7.9% 9.8% 4 Years 1991 2.0% 0.8% 6.7% 6.0% 16.3% 10.6% 5 Years 1990 7.2% Income Yield % Performance 10.0% I I 8.0% 6.7% 6.7% 16% 14% 12% 10% 8% 6% 4% 2% 0% IIITotal Fund Em LB Govt I 12.6% 6.4% 1 Year 5 Years 6.0% 2 Years 3 Years 4 Years 4.0% 2.0% 0.0% 1 Year 2 Years 3 Years Current Allocation 3/31/96 Target Allocation 12/31/96 Domestic Stocks 30% Cash 2% Domestic Bonds 52.3% Domestic Bonds 68% Domestic Stocks 23.8% Holbein Associates, Inc. Target Allocation 12/31/98 Statistics Fund Return llisk Sharpe Cash 1 Year 6.7% 2% 2 Years 12.6% 3 Years 6.7% 8.2% 0.30 Domesti~ 4 Years 9.8% 7.9% 0.70 Stocks / 40% '.. '. omestic 5 Years 10.6% 7.9% 0.80 Bonds Index Return llisk Sharpe 58% 1 Year 4.5% 2 Years 8.2% 3 Years 4.9% 5.6% 0.11 4 Years 6.9% 5.4% 0.47 5 Years 8.2% 5.7% 0.69 30 OKLAHOMA SCHOOL LAND TRUST MANAGER ALLOCATION ANALYSIS As of June 30, 1996 OKLAHOMA SCHOOL LAND TRUST OK LAND TRUST 59.8% CURRENT ALLOCATION BY MANAGER WOOD STRUTHERS 2.5% BERNSTEIN 4.7% \ WOOD I 2.2% BOSTON BJURMAN 2.2% 2.5% / HOTCHKIS 4.6% LOOMIS 12.7% MACKAY 4.2% OAK 4.5% HOLBEIN CURRENT CURRENT MANAGER DOLLARS % BERNSTEIN 36,865,126 4.7 BJURMAN 20,187,424 2.5 BOSTON PATRNERS 20,366,611 2.6 HOTCHKIS 36,432,675 4.6 LOOMIS 100,477,138 12.7 MACKAY 33,448,038 4.2 OAK 35,681,996 4.5 OK LAND TRUST 473,645,886 59.8 SMALL CAP 15,344,776 1.9 WOOD STRUTHERS 19,964,217 2.5 TOTAL 792,413,887 100.0 31
Object Description
Description
Title | School Land Trust 1996 pt1 |
OkDocs Class# | L700.3 C758r 1996 |
Digital Format | PDF, Adobe Reader required |
ODL electronic copy | Deposited by agency in print; scanned by Oklahoma Department of Libraries 8/2011 |
Rights and Permissions | This Oklahoma state government publication is provided for educational purposes under U.S. copyright law. Other usage requires permission of copyright holders. |
Language | English |
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OKLAHOMA SCHOOL LAND TRUST
CONSUL TANT'S REPORT
AUGUST 25, 1996
Prepared by
HOLBEIN ASSOCIATES, INC.
15301 DALLAS PARKWAY
SUITE 810
DALLAS, TEXAS 75248
(214) 458-3206
Holbein Associates, Inc.
August 13, 1996
Oklahoma Commissioners of the Land Office
5801 N. Broadway
Oklahoma City, OK
Ladies and Gentlemen:
I have calculated and analyzed the investment return realized by the State of Oklahoma Commissioners of the Land Office ("CLO") for the five years
ending June 30, 1996. The evaluation and continued monitoring of investment results is important to the prudent investor since the analysis of the
results achieved should provide the insights necessary to take future actions that will e~ce the probabilities of achieving the investment objectives
of the CLO. The analysis provides a look at history in order to better de~rmine the direction in which the fund in moving.
The study was performed utilizing time weighted rate of return calculations in order to provide a basis for comparing the results achieved by the CLO
to market indices and the investment management of other pension funds.
The performance of theTotal Fund contained in the Investment Performance Summary Report for June 30, 1996, reveals that the annualized rates of
return for the past three and five years were 6.7% and 10.6%, respectively. The internal fixed income assets of the CLO achieved an annualized rate
of return for the past five years of 10.1%. The internal fixed income fund has attained the following over the last 5 years:
,
. • ranked in the 14th percentile among 1,259 fixed income managers"
• ranked in the 6th percentile among core fixed income managers,
• was 1.9% above the Lehman Brothers Govt Bond Index return of 8.2%,
• exceeded the Consumer Price Index by 7.3 %.
The investment performance for the Total Fund and the internal fixed income fund over the past five years was excellent on both an absolute and risk
adjusted basis. Over the past five years, the investment performance compared to other bond portfolios ranked very high. The Total Fund achieved
a 0.9% for the second quarter of 1996.
lespectfully submitted, =: UC£;cr1 cI
Richard Holbein
15301 Dallas Parkway Suite 810 Dallas, Texas 75248 (214)458-3206
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OKLAHOMA SCHOOL LAND TRUST
INVESTMENT PERFORMANCE SUMMARY
JUNE 30, 1996
Prepared by
HOLBEIN ASSOCIATES, INC.
15301 DALLAS PARKWAY
SUITE 810
DALLAS, TEXAS 75248
(214) 458-3206
OESCR IPTION OF INDICES
The Dow Jones Industrial Average is based on the average market price of 30 of the largest, most widely held stocks traded
on the New York Stock Exchange. The average is calculated by dividing the sum of the per share prices of the 30 stocks in
the Index by an adjusted divisor to accommodate splits and changes in the stock c.omposition.
The Standard & Poor's 500 Stock Composite Index is a capital-weighted index representing the aggregate market value of
the common equity of 500 stocks primarily traded on the New York Stock Exchange. The 500 stocks are composed of 400
industrial, 40 utility, 40 financial, and 20 transportation companies. The weight of each stock in the index is proportional to
its price times the number of shares outstanding.
The Wilshire 5000 Equity Index is a capital-weighted index of all actively traded common stocks in the United States. The
index is calculated daily in a manner similar to the S&P 500. The capital value of the index is composed of approximately 86%
New York Stock Exchange issues, 3% American Stock Exchange issues, and 11% Over the Counter issues.
The Salomon Brothers High-Grade, Long-Term Corporate Bond Index is a market value-weighted index composed of
approximately 775 utility and industrial debt issues with a quality rating of AAA and AA. Each issue has a minimum maturity
of 12 years with an outstanding par amount of at least $25 million.
The Lehman Brothers Government Corporate Bond Index is a market value-weighted price index composed of
approximately 5000 publicly issued corporate and U. S. Government-debt issues rated investment grade or higher. Each issue
has at least one year to maturity and at least $50 million par amount outstanding.
The Lehman Brothers Aggregate Bond Index measures the total return of all major sectors of the domestic, taxable bond
markets and is composed of the Lehman Brothers Government Corporate Index, the Mortgage Backed Securities Index, and
the Asset-Backed Securities Index.
The 91-0ay Treasury Bill Index is based on the average yield for 91 Day Treasury Bills at weekly auctions.
The Consumer Price Index used in this report is a measure of the inflation of the prices of goods and services for the urban
consumer. The Bureau of Labor Statistics calculates the average price Changes for several thousand items in approximately
85 urban areas. The index value for the most recent month is not usually available when this report is issued, so for the most
recent quarter the mid-month value is used as an estimate of the final month's value.
1
Capital Market Review
Economic Review Second uarter 1996 Market Index Returns Qtr J Yr 3 Yrs 5 Yrs IOYr:\'
Standard & Poors' 500 4.5 26.0 17.2 15.7 13.8
Wilshire 5000 Equity 4.4 26.3 16.8 16.1 13.1
Dow Jones Industrial Average 1.8 27.1 20.3 17.5 15.2
EAFE (after taxes) 1.6 13.3 10.5 10.0 10.3
EAFE Ex-Japan 2.2 15.0 17.0 14.5 N/A
IFC Investable 4.2 10.8 12.3 14.9 N/A
Lehman Aggregate 0.6 5.0 5.3 8.3 8.6
Lehman Mortgage Backed 0.8 5.9 5.5 7.8 9.1
Lehman Govt/Cor 0.5 4.7 5.2 8.5 8.4
Lehman GovtlCorp Long 0.1 3.8 5.8 10.5 9.4
Lehman GovtlCor Intermediate 0.6 5.0 5.0 7.7 8.0
SB World Govt. Bond Index 0.4 0.4 7.8 10.9 9.7
SB Non-US Govt. Bond Index 1.0 (1.1) 9.9 13.2 11.2
SB Non-US Govt Bond Idx. Hedge 2.6 11.5 8.2 8.9 N/A
JPM Global Govt. X US Unhedged 0.7 0.5 10.0 12.6 10.8
JPM Global Govt. X US Hedged 2.7 12.1 7.9 N/A N/A
JPM Emerging Mkt. Bond Index 9.3 32.3 13.0 14.9 N/A
NCREIF Property Index 2.6 8.8 7.0 1.9 3.3
Sal. Bros. New Large Pension Fund 0.1 4.5 5.6 9.5 9.3
90 Day Treasury Bill 1.3 5.5 4.8 4.4 5.7
Consumer Price Index Adiusted 0.7 2.7 2.7 2.8 3.4
During the second quarter, the markets were characterized by continued economic
expansion, benign inflation reports, and additional gains in profitability for U.S.
corporations. Strong employment reports occurred back to back during the quarter
which caused long rates to surge to 7.2%. As a result, investors will continue to
worry about the Fed's reaction to job growth and wage increases as we move into the
second half of the year. However, hints that the Federal Reserve would not raise
rates at its July session led to a late June rebound in bond prices. The latest
economic data suggested that the U.S. economy was growing rapidly in .the second
quarter, with GDP likely to approximate a 4.0% rate. Starting in the spring, the
consumer has been on a shopping spree for autos, appliances, housing, personal
computers, and other big ticket items. Personal consumption is now growing at a 3%
rate, a level supported by moderate employment and wage gains, solid confidence
levels, and a substantial rise in installment debt. The housing market stayed robust
despite a big jump in mortgage rates. However, long-term interest rates over the past
6 months, could act as a brake to the important housing category.
E ui - Short-term
For the sixth straight quarter, equity prices moved sharply higher in the second
quarter as the S&P 500 Stock Index produced a total return of 4.5%. The stock
market moved higher as the indices flirted with all-time highs until a June collapse
resulted in a correction for stock prices. The second quarter provided a more
hospitable environment for growth investors than it did for value investors. Among
cap-weighted indices, large cap stocks performed better with the Russell 1000
Growth Index posting a 6.4% gain on the quarter. Most issues remotely connected to
the technology surrounding the Internet rode the speculative wave to outstanding
returns. Some of the best year-to-date returns have accrued to the small stocks.
Consumer Non-Durables were the strongest sector in the second quarter, rebounding
from a lackluster relative performance in the first quarter. The Energy sector
enjoyed a moderately strong quarter aided by the runup in gasoline prices earlier this
year. The weakest performing group in the second quarter were the Basic Industries
stocks. This marked a sharp reversal from last quarter when they were the best
performing stocks in the market. International markets provided positive returns
during the second quarter, yet still lag domestic indices over the last year.
Russell Style Indices Qtr 1 YI' 3 Yrs 5 YI'S JOYrs
Russell 1000 Value 1.7 24.6 15.1 16.6 13.4
Russell Mid Cap Value 1.9 21.4 13.9 17.9 13.1
Russell 2000 Value 4.1 21.1 14.3 18.7 11.5
Russell 1000 (Large cap) 4.1 26.3 16.8 16.1 13.5
Russell Mid Cap 2.8 22.5 15.3 17.4 N/A
Russell 2000 (Small ca ) 5.0 23.9 15.8 17.5 10.4
Russell 1000 Growth 6.4 27.8 18.5 15.6 13.4
Russell Mid Cap Growth 3.7 23.6 16.8 16.3 13.1
Russell 2000 Growth 5.8 26.5 17.1 16.0 9.1
2
Capital Market Review
Equity - Long-term
The three and five year returns are indicative of a remarkable period for the U.S.
equity market. Over the three year period, Large cap stocks performed better than
both mid and small cap stocks. The Dow, the best known gauge of large cap market
performance, has returned 20% per year, or cumulatively over 70% over the past
three years. Foreign stocks have performed worse relative to U.S. stocks in this three
to five year period as low interest rates and a weak dollar have helped U.S. industry
compete in the global marketplace. Although the stock market enters the second half
of 1996 near record high levels, there are unmistakable signs that the extended bull
market is showing its age. The number of U.S. securities selling at new highs has
been declining while the list of stocks reaching new 52 week low prices has begun to
climb.
Fixed Income - Short-term
Despite total returns on the plus-side for the quarter, most broad bond indices
suffered price depreciation with only coupon income providing the boost for positive
returns. Interest rates climbed higher during the quarter as strong economic data
continued to work its way into investor expectations for increased inflationary
pressure. With the Fed deciding not to increase interest rates at the May and early
July meetings of the FOMC, 90-day rates remained largely unchanged. On both an
absolute and relative basis the mortgage sector provided superior performance for the
quarter. Mortgages have a shorter effective duration and significant yield advantage
providing protection from rising rates. Corporate bonds continued to benefit from an
expanding economy, strong corporate cash flows, and reduced supply. Corporate
bond spreads continued to remain very tight because of a healthy economy.
Fixed Income - Long-term
Inflationary fears over the past three years has caused the bond market to experience
rapid price depreciation, particularly in 1994 and in the first quarter of 1996. The
major indices have responded with mediocre three year rates of return in the 5% to
6% range. In contrast to the below average returns of most indices, high yield
returns have outperformed due to their higher correlation with the equity market of
which three to five year returns have been outstanding. Global bond markets made
little head-way during the second quarter as modest bond returns were offset by an
appreciating dollar. In contrast to the developed markets, emerging bond markets
moved up sharply during the quarter.
Growth of a Dollar
2.2 ,-,-------=-------------,
2.1
2.0
1.8
, :Ie -I 1.9
1.6 1.6
1.4
1.21~-- -------------- 1.2
1.0 - - - - - - - - - - - - - - - - - - - - - - - -
0.8 -+ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
0.6 I I I I
06/91 06/92 06/93 06/94 06/95 06/96
Return/Risk Matrix for 5 Yrs.
20.0% T'---~--~---~--~---~--__,
15.0%
E.:.:.! 10.0% I:~c:
5.0%
- - - -,- - - - -, - - - -,- - •. -,- - - - 1 - - -- • - - - -,- - - - -, -.-,- - - -, - - - •.- - - - .-- -,- - - - -, - -- - - -, - - - - -, - - - -
0.0% I I I I I I
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
3
•
Equity Index Returns - Short Term
The stock market maintained its upward surge as the indexes flirted continuously with all-time highs until a June swoon resulted in some downward pricing
pressure. Among the cap-weighted indexes, large cap stocks performed best with the Russell 1000 Growth Index posting a 6.4% gain on the quarter. However,
an examination of some of the equal weighted indexes indicates that outstanding returns were earned among securities in the microcap arena. The Vestek All
Shares Equal-Weighted Index returned 11.1% on the quarter, with securities capitalized at less than $100 million averaging nearly 16%. Year-to-date, the Vestek
All Shares Equal-Weighted Index has returned 25% while the under-$100 million issues have returned in excess of 36%. The dramatic outperformance of the
U.S. Dollar-based EAFE by the Local Currency EAFE over the past 12 months has been supported by the greenback's advance against the yen (22%) and the
deutschemark (9%).
EQUITY INDEX RETURNS - For The Period Ended June 30,1996
1Rot. DJIA 11 R°l-. .............................................................................................................................................................................................................................................................................................................................................................................................27.1% A "0/.
S&P 500 .......................................................................................................1.n...?..0..l.-...................................................................................................................................................2..6....0..%...........................................................................................................................RUSSELL 1000GROWTH i•.•.•.•.•.i••••..i•.•.•.•i••••••i••••..•i.•.•..i.....•.•i••••••i••.•••i•.•...•i���••.•.•i.•••••i••...•.i••••••i·••••.·•.i.·•...•·...·..·i•.•·.·.·.i·.·.·.·i.·.·.·.i·.·.·.·i.·.·.w!.·.·.·i.·.·.·.~·.·.·..·.i.·.·.·.A·.·.·.·'.·.·.·.o·.·.·.·t.·.·.w..·.·.·i.w.·.·l.1·.·:.·>.l·.·1.·.%·l.·.·.·.l·.·.·.·l.·.·.·.l·.·.·.·l.·.·.·.l·.·.·.·l.·.·.·.l·.·.·.·l.·.·.·.l·.·.·.·l.·.w.·l.·.·.wl.·.·.wb.·.·.·H.·.w.·~.·.·.w~.·.·.·m.·.·.·.mw.w.·m.·.·.·.m·.·.·.·m..m.••••••~.•.•.•~••••••~••••••m••••••m••••...m.•••••m•.•••·•..·m•..·•..·..·•m..·.·.·.m·.·.·.wm.·.·.·m.·.·.·.m·.·.·.·m.·.·.·.m·.·.'.'~2~7.8~%~~~~~~mm~
17ot. RUSSELL 1000 VALUE ·.·.·.·.·.·.·.w.·.· ..•..·.·.·.·.·.•.•.·.•.•.·.•.•.·.·..•..•·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.w.·.·.w.·.·.·.·.·.·.·.·.·.·7.·.·.<·.;·0.·1.-·..·.·.·.·.·.·.·.·.............................................................................................................................................................................................................................................................................................................. 24.6%
WILSHIRE 5000 •i..i....i....i....i...i....i....i....i....i....i...i....i....i....!....A....I...A....S....'....o....t.........h...1....I....1.i.n..I.~..I.1-.....I...1....I....1....I....1....I...1....I....1....~....~....f...u....m....~....~....~....m...m....m....m....m....m....~...~....~....~....~....m....m...m....m....~....=....=....=...=....~.2..6.~...3..~%....~....~...~....~....~..................................................................................................29%
S&P MIDCAP .............................................................................................0...?..O.....................................................................................................................2..1....6..%...........................................................................................................................RUSSELL 2000 GROWTH _iiiiiiiiiiiiiiiiiiii"~:Ri'ot.l!11l0°I1-.lIlIlIlIlI!lId~~==~~~~mm~~~~~~~~~~~====~~~ ..•.•.....•.•.•.•...•.•.•.•.•.•.•...........•.......•.......•.•.•.•.•.•.....•.•.•...•.•.•••••.•.•.•.•...•.•.•.•.....•.•••...•.••...•.................•.•.•.•.•.•....•..•...•.•••.•.....•.•••...•........••...............................................•.•..............•...•. ·.·.·.·.·.w.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.· ...........••..............••..........•..•••..•••...•. ·.•.•.•.•.••.•..w.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.· ...·.•.•...•.•...•.••..•.•.•.•..••.•...•.•..••.•.............•...•.•..•....• 26.5%
RUSSELL 2000 VALUE <11% R ~0l-. :.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.".:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:".:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.2:.1:..:1.:%.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.'.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.1~ot. EAFE- $ ...............................................A..<..;.%.................................................................................1..3...3..%......................................................................................................................
+ "110/.
EAFE-LOCALCURRENCY RAot. ......••••.•••..••••..•.•.....•••.•.•.•••.....•....:•.••:.••••..•..•.•..•.••.•••.•..•.:••.••.:•.•••••••••.•.••..•.••••..•...•.•���...••..•.•....••..:•.•••.•.•....•.•....•.••..•••.••.•••••..:•...••:.••:•c•,•:.••••••••••••••••••••.•.•.•.•...•••.••••.••.•••.•.•••.•y••••.••••••••.••..•••.•••.•••..•.•••••••••.•.•••.•••••..•.••...••••••••...••.•••••••••••.•..••••..••••.••••••••..•••.••:••••••.•:••..••••••••.••.•••..••..•••••:••.••:••.•.•••.•••••.••••:•.••.•••••••..•••...•.••.•••••.•••.•.•••.:•..•.•.•.••.••.••••••••••
5.0% 10.0% 15.0% Ie LAST 12 MONTHS. YEAR-TO-DATE [] LAST QUARTER I 0.0% 20.0% 25.0%
28.3%
30.0%
4
Equity Index Returns - Long Term
The three- and five-year returns are indicative of a rernarkable period for the U.S. equity rnarket. Over the three-year period, only the S&P Midcap and Russell 2000 Indexes
have annual returns falling short of 15%. The Dow, the best known gauge of market performance has returned 20% per year, or cumulatively over 70% over the three years. The
five-year returns are just as lofty, paced by the Russell 2000 Value Index annual return of 18.7% With the lowest five-year return posted by the Russell 1000 Growth Index at
15.6%, each of the domestic indexes below has at least doubled in the past five years. Considering the low levels of experienced inflation over that time frame, the real rates of
return to domestic stocks are unprecedented for such a sustained period. Foreign stocks have suffered relative to U.S. stocks in this three- to five-year perspective as low interest
rates and a weak dollar have helped U.S. industry get well to compete in the global marketplace.
,_ FIVE YEARS DTHREE YEARS'
EQUITY INDEX RETURNS - For The Period Ended June 30, 1996
DJIA 20.3%
17.5%
17.2%
15.7Y.
18.5%
15.6%
15.1%
16.6%
L
16.8%
16.1%
14.10/0
16.7%
15.8%
17.5%
17.1%
16.0%
14.3%
18.7%
10.5%
10.0%
9.4%
7.2%
S&P 500
RUSSELL 1000 GROWTH
RUSSELL 1000 VALUE
WILSHIRE 5000
S&P MIDCAP
RUSSELL 2000
RUSSELL 2000 GROWTH
RUSSELL 2000 VALUE
EAFE-$
EAFE· LOCAL CURRENCY
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
5
Equity Sector Returns
Until June, most issues remotely connected to the technology surrounding the Internet rode the speculative tsunami to outstanding returns. Some of the best year-to-date
returns have accrued to non-S&P 500 issues such as microcomputer assemblers Dell (47%) and Gateway (39%) as they have capitalized on consumer appetites for
the WorldWideWeb. CompUSA, the discount computer retailer, has fared even better, and has returned 119%. The long-lagging Energy sector enjoyed a moderately
strong quarter aided by the runup in gasoline prices earlier this year, and a correspondent increase in refinery margins. Over the past 12 months, Health Care issues have
soared as managed care providers have consolidated and begun to develop scale economies for profitable service delivery.
S&P 500 ECONOMIC SECTOR RETURNS - For The Period Ended June 30,1996
CONSUMER DURABLES
7R%
CONSUMER NONDURABLES 13.9%
111.8%
FINANCE & BUILDING
HEALTH CARE
CAPITAL GOODS
4.5%
ENERGY RELATED 9.6%
r-11B%
TRANSPORTATION 8.4%
-5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
CLAST 12 MONTHS .YEAR-TO-DATE o LAST QUARTER
45.0%
6
Fixed Income Yield Curve
Interest rates edged higher during the quarter as robust economic data continued to work its way into investor expectations for increased inflationary pressure. With the
Fed abstaining from any interest rate action at the May and early July meetings of the FOMe, gO-day rates remained largely unchanged. However, rates on one-year bills
were up 30 basis points over March 31 levels. In the two-to ten-year maturity range, interest rate increases were on the order of 40 basis points, while beyond ten years to
maturity, interest rates displayed a near parallel shift upward of approximately 30 basis points.
7.00%
6.00%
5.00%
2.00%
1.00%
INTEREST RATE TERM STRUCTURE
Government Issues - °to 30 Year Maturity
--June 30,1996
---·March31,1996
•.. - _. June 30, 1995
O.OO%+-------~--------~------~--------~--------~------_r--------~------~--------~--------r_------~-~
o 5 10 Yea~lo_Malurily 20 25 30
7
Fixed Income Index Returns - Short Term
Despite total returns on the plus-side for the quarter, most broad bond indexes suffered price depreciation with only coupon income providing the boost for positive
returns. Short-term bonds experienced the best relative performance as those issues face the least pricing pressure in rising interest rate environments. Spreads widened
somewhat as corporate bonds which, while performing comparably on an absolute basis, underperformed on a risk-adjusted basis. Year-to-date, only very short-term
proxies have positive returns. At the other end of the maturity spectrum, long-term government bonds are off nearly 7% for the year, recalling 1994's first half plunge of
nearly 9%. Notwithstanding investor fear of inflation and its adverse impact on bond prices, the CPI, after a 1.5% runup in the first quarter, settled down to a modest 2.5%
annual rate in the second quarter.
LEHMAN BROS. AGGREGATE
LEHMAN BROS. GOV'T.·CORP.
LEHMAN BROS. GOV'T.·CORP. LT
LEHMAN BROS. GOVERNMENT
LEHMAN BROS. CORPORATE
SALOMON BROS. HIGH YIELD
LEHMAN BROS. MORTGAGE· BACKED
MERRILLL YNCH 1·3 YEAR TREAS.
90·DAY us T·BILLS
U.S.CPI
SALOMON BROS. WORLD GOV'T.BOND (US$)
FIXED INCOME INDEX RETURNS - For The Period Ended June 30,1996
---, 0.6%
·1.2% .---1iE]!i~;EZEZEZ:::;;:::;;EZEZ"'·"E'·"'·"'·"'·E"'·"'·"'·"E'·.···.···.···E.···.···.···E.···.···.···.·E··.··:::;:::::::::::::::::::.::;::::::;::::::~::::::::~::::::::::::~~ •. ·.··.··.E5·.·0·°··'0·/1······3··········
--, 0.5%
·1.9% .-----t:i~;~EZEZE2:::;; ::::::::::::;:::::::::;:::::::::::~:::::::::::::~;:~:;~:;::::~: .·.·.·.·E.·..·.E:.·..·.··E.···.·····E.·2EE··2.·E··ll.1···.·E··.··4·..·7·.°·'·0I·eE.···.··.
1 ~o
? 0°
::;::;;::;;1,. 0.8%
----, (\R%
? %
·7.5% -5.0% ·2.5% 0.0% 2.5% 5.0% 7.5%
ICLAST 12 MONTHS .YEAR-TO·DATE oLAST QUARTER I
10.0%
8
Fixed Income Index Returns - Long Term
With the bond environment scarred over the past three years, particularly in 1994 and in the first quarter of 1996, with the frenzy of inflationary fears, the major indexes
have responded with unremarkable three-year rates of return in the 5% to 6% range. A closer look, however, indicates that inflation-adjusted returns in the 3% to 4% range
are not inconsistent with historical norms. In contrast to the placid returns of most indexes, high yield returns have enjoyed relative outperformance due to their higher
correlation with the equity market of which three- to five- year returns have been outstanding.
Despite the price stability indicated by a sub-3% inflation rate for five years, a generally weakening dollar against major currencies has the U.S.-Dollar return of global
indexes outperforming comparable maturity domestic indexes.
FIXED INCOME INDEX RETURNS - For The Period Ended June 30,1996
LEHMAN BROS. AGGREGATE 5,3%
8.3%
5.2%
8.5%
5.8%
10.5%
4.9%
8.2%
5.9%
9.3%
8.9%
13.5'
5.5%
7.8%
4.9%
6.3%
4.8%
4.4%
2.8%
2.9%
7.8%
10.9%
LEHMAN BROS. GOV'T.-CORP.
LEHMAN BROS. GOV'T.-CORP. LT.
LEHMAN BROS. GOVERNMENT
LEHMAN BROS. CORPORATE
SALOMON BROS. HIGH YIELD
LEHMAN BROS. MORTGAGE-BACKED
MERRILL LYNCH 1-3 YEAR TREAS.
90-DAY US T-BILLS
U.S.CPI
SALOMON BROS. WORLD GOV'T.BOND (US$)
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
I_ FIVE YEARS DTHREE YEARS 1
14.0%
9
/
o
zoI
-oW
en
OKLAHOMA SCHOOL LAND TRUST
TOTAL FUNDS - TOTAL FUND INCOME RATES OF RETURN
FOR PERIOD ENDING 6/96
8%~---------------------------------------------------------------------------------------------------------------------------------------------------------------~
* ---------- ---------- ----------
2% - * i- 2%
---------- ----*----- ---------- ----~----
---------- ---------- ---------- ----------
0% 0%
THIS LAST 2 QTRS 3 QTRS LAST LAST LAST
QUARTER QUARTER AGO AGO YEAR 2 YEARS 3 YEARS * TOTAL 1.9 2 1.0 24 2. 5 1 0.9 42 6.4 5 6.7 4 6.7 4
MEDIAN 0.8 0.7 0.9 0.8 3. 6 3.7 3. 5
6% - *
4% -
HOLBEIN
*
8%
- 6%
- 4%
11
OKLAHOMA SCHOOL LAND TRUST
BOND FUNDS - TOTAL RETURN VS RISK
3 YEARS ENDING 6/96
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Date created | 2011-08-10 |
Date modified | 2011-08-10 |