- Report Published -
|Market Review & Fund Performance Analysis Virginia Birth-Related Neurological Injury Compensation Fund for Period Ending December 31, 2009 and Comprehensive Annual Financial Report for Years Ended December 31, 2008 and 2007|
|Board of the Virginia Birth-Related Neurological Injury Compensation Fund|
|♦ The VBIF portfolio gained 3.3% for the 4th quarter as every major stock market around the world continued to advance.|
♦ The Fund recorded a gain of 20.9% for the full year of 2009, outperforming both of the Target Benchmarks.
♦ The Fund’s conservative policy that provided significant downside protection during the financial crisis still allowed the portfolio to participate in the subsequent market recovery that began in the 1st quarter of 2009.
♦ All of the Fund’s managers recorded gains, led by the U.S. large cap growth and international emerging markets funds.
♦ The market’s dominant theme of “low quality/high risk wins” continued to be reflected in the manager results as high quality stocks and bonds lagged, particularly for small cap and value equity managers and bond funds in the 4th quarter.
♦ In the equity segment of the portfolio, both small cap managers, Rainier large cap growth and Boston Partners underperformed their peer groups as their focus on higher quality stocks caused a lag.
♦ Bond manager results varied depending on their allocations to U.S. treasury and other high grade securities which lagged other sectors in the quarter. Western Asset had another remarkable quarter, gaining 3.6% for the quarter and 25.9% for the year to rank in the top 5% and top 23% of the peer group, respectively.
♦ The VBIF Fund remains in compliance with all guidelines and policies.