--- 
GA 
E~l)D .~.1. 
t.L5~ 
\q19 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
". 
STATUS OF INVESTMENTS 
Fiscal Year 1979 
CONTENTS 1. Investment Comments 2. Distribution of Investments 3. Purchases of Long-Term Fixed-Income Investments 4. Purchases of Common Stock 5. Return on Investments 6. Statement of Assets 
RECEIVED 
DEC 1 4 2004 
DOCUMENTS UGA LIBRARIES 
 
 - 
EMPLOYEES RETIREMENT SYSTEM OF GEORGIA FISCAL YEAR 1979 INVESTMENT COMMENTS 
On behalf of the Trustees of the Employees Retirement System of Georgia and its Investment Committee, I am pleased to present. this Investment Report for fiscal Year 1979. During this period. all investment operations showed excellent progress. Investment assets increased by 14% to $615,393,513; and investment income rose more than 22% to $41,780,735, resulting in a return on the average investments for the period of 7.26% 
It is interesting to note that this increase in investment income was accomplished without any deterioration whatsoever in quality. As in the past, "Conservation of Capital II and IIConservatismll were the principal guides in all investment decisions. Money must be available when benefits are paid. There is no excuse for taking unnecessary risks with somebody else's money. The Trustees strongly adhere to this policy. In the long run the best interests of the beneficiaries of the Retirement Fund canonly be served by maintaining quality, even if it may from time to time result in a slightly lower return on investments. 
Conservatism in investments is also dictated by current developments in our economic and financial environment. For instance, there have been few periods in the past when there has been so much confusion about the future. The only thing that seems clear today js that some sort of a slow down is in 
I. 
the cards. Just how severe this down-swing will be is yet to be. seen. The odds of a severe decline, however, appear to be greater today than has been the case for many, many years. Accordingly, a conservative investment. policy seems the only path prudently available to the Employees' Retirement System today. 
 
 Page 2 
In accordance with this policy of conservatism, every effort has been made in recent years to upgrade overall investment quality to the highest degree possible consistent with the actuaries' investment income assumption. Since 1973, approximately 85% of all new investments have been channeled into highgrade fixed-income investments rather than common stock or real estate securities. In fact, in Fiscal 1979 64% of all funds available for long-term investments went into high-grade bonds having a quality rating of "Aa" or better. Of such investments, 40% or approximately $24,000,000 went into long-term United States Government bonds or obligations guaranteed by the United States Government. The remaining $37 million of fixed-income investments went into corporate bonds of the highest quality. 
While most investments have been clearly aimed at the high-grade bond market, some effort has been made to add to the present holdings of common stock. Prices for high-grade common shares have declined significantly in recent years, compared to other investment media available to the System. Investment ~alues for such securities now equal levels not seen since the 1950s. Accordingly, it was deemed advisable to add to present common stock holdings. Upon advice of our Investment Advisor, the Fund in Fiscal '79 increased investments in common stock by $33,500,780. It should be noted, however, that only 36% of new purchases went into Such securities and it should be noted as well that only stock of wellknown institutional quality, having excellent marketability and having an above average current return to the Fund were purchased. Also, when expected dividend 
I 
growth is added to this above average current yield, the final return to the System should exceed substantially that received from a similar investment in fixedincome investments. 
 
 Page 3 
As for the future, there will be a time when investments in common stocks should be increased even further. That time might be near at hand. It is anticipated that when such a decision is made, holdings of common shares will be increased from the current level of 30% to the present policy limit of 35%. 
Also, during 1979 every effort was made to improve the quality of real estate and mortgage investments held by the Fund. During Fiscal 1979 two properties were sold. The Bent Creek Apartments in Atlanta were sold at a slight profit to the System and the Roadrunner Restaurant in Valdosta was disposed of at a slight loss to the Fund. 
The only other major real estate holding held by. Employees' is a 25% interest in the Stadium Hotel in Atlanta. This facility is now operating at a profit to the System and has become a major lodging and meeting center for persons now having business with the nearby State and local government complex. 
In summary, the current investment status of the Employees' Retirement System is excellent. Quality of investments continues to improve along with return on investments, which currently is well in excess of actuarial requirements. While a few real estate problems still remain to be dealt with by the Retirement System they are, in fact, very small when compared to the totaJ assets of the System, and in all cases do actually produce a positive cash flow to the System. 
 
 ,,~:MPLOYEE RETIREMENT SYSTEM OF GEORGIA -STRUCTURAL ANALYSIS OF INVESTMENTS (SIX YEAR TREND OF INVESTMENTS) 
 
Type of Investment 
Fixed Income Investments Short Term Investments Corporate Bonds U. S. Government Obligations and Obligations Gtd. by the U.S. Government -Real Estate Mortgages 
Real Estate 
Common Stock 
 
Percent of Invested Assets (1) 
 
AS of 
 
As of 
 
As of 
 
'6/3Q179 
 
6/30L78 
 
6/3J)J73 
 
-71% 
39c-' 53 11 
 
' 73% 6%- 
53 8 
 
62% 5%- 
41 6 
 
4 ' , '1% ' -28% 
 
6 1% 
26% 
 
10 0% 38% 
 
DISTRIBUTION OF INVESTMENTS 
FISCAL YEAR 1979 &1978 
 
'1979 
 
Increase in Short Term Investments 
 
($12~703,428) 
 
Increase in U.S. Govt. and U.S. Govt. Guaranteed Securities 
 
24,425,690 
 
Increase in Corporate and Canadian 'Government Bonds 
 
36,895,700 
 
Change in Real Estate Mortgages 
Total Long-Term Fixed Income Investments 
 
(4.,]63,544 ) "$ 43,854,418 
 
Increase in Common Stock Investments 33,500,780 
 
Changes in Real Estate Jnvestments Total Change in Long-Term Investments 
 
198,536 $ 78,653,734 
 
1978 $17,903,438 10,778,296 
35,858,314 
509,449) 63,630,599 
9,161,212 , 429..2..302 . :$73,221, 113 
 
 PURCHASES OF LONG-TERM FIXED-INCOME INVESTMENTS July 1, 1978 to June 30, 1979 
EMPLOYEES RETIREMENT SYSTEM OF GEORGIA 
 
Face Amount 
 
Issuer 
 
Type of Security 
 
Coli pan Rate % 
 
Year of Maturity 
 
PURCHASES OF NEW ISSUE CORPORATE BONDS 
 
$ 3,000,000 972,163 
2,000,000 4,000,000 2,500,000 5,000,000 $17,472,163 
 
Trust Company of Georgia Shell OiljUST Atlantic 
Province of . ntario Commonwealth Edison Southern California Edison Arkansas Louisiana 
 
Deb. Bonds 
Deb. Deb. Deb. 
Bonds 
 
9.25% 1998 
 
9.30 
 
2002 
 
9.375 2008 
 
10.00 1999 
 
9.95 
 
2004 
 
9.75 
 
1999 
 
BOND PURCHASES IN SECONDARY MARKET 
 
$ 2,000,000 16,450,000 7,000,000 
2,500,000 
2,500,000 
1,000,000 
3,000,000 1,000,000 
1,785,000 
703,000 907,000 372,000 
550,000 
500,000 
1,641,000 1,380,000 1,150,000 
1,165,000 490,000 
100,000 125,000 700,000 
400,000 4,321,000 
4,000,000 100,000 
$55,839,000 
 
U. S. Treasury 
U.S. Treasury U.S. Treasury Bank of America Corp. Bank of America Corp. 
Sears Roebuck &Co. 
Exxon Pipeline Shell Oil Company 
Standard Oil Indiana 
American Can General Electric Borden Company 
Humble Pipeline 
Firestone Tire 
Kraft Corporation Union Carbide Caterpillar Tractor 
Pittsburg Plate Glass 
Deere &Company 
Gulf Oil Corp. General Amer. Transp. BUl~roughs Corp. 
Continental Oil Patriot Shipping Title 11 
Arthur Levy Title 11 Na tiona 1 Da i ry 
 
Bonds 
 
9.125% 2009 
 
Bonds 
 
8.75 
 
2008 
 
Bonds 
 
7.875 2000 
 
Bonds 
 
8.75 
 
2001 
 
Bonds 
 
. 8. 3~ 
 
2007 
 
Deb. 
 
8.00 
 
2006 
 
Deb. 
 
8.25 
 
2001 
 
Deb. 
 
8.00 
 
2007 
 
SjF Deb. 6.00 
 
1991 
 
SjF Deb. 6.00 
 
1997 
 
SjF Deb. 5.30 
 
1992 
 
SjF Deb. 5.75 
 
1997 
 
SjF Deb. 6.625 1998 
 
SjF Deb. 4.25 
 
1988 
 
SjF Deb. 6.875 1996 
 
SjF Deb. 5.30 
 
1997 
 
SjF Deb. 5.30 
 
1992 
 
SjF Deb. 5.625 1991 
 
SjF Deb. 4.50 
 
1989 
 
SjF Deb. 6.625 1993 
 
SjF Deb. 6.95 
 
1989 
 
SjF.Deb. 4.5"0 
 
1988 
 
SjF Deb. 4.50 
 
1991 
 
Bonds 
 
8.90 
 
2003 
 
Bonds 
 
9.20 
 
2002 
 
SjF Deb. 4.375 1992 
 
Average Yield % 
9.25% 9.30 9.478 10.00 9.95 9.75 
9.27% 9.02 8.35 8.83 8.84 8.76 8.77 8.78 8.41 8.33 7.47 7.66 7.90 7.15 8.29 7.91 7.87 7.99 7.20 8.85 8.75 7.19 7.60 9.30 8.77 6.40 
 
Moody's Bond Rating 
Aaa Aaa 
Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa A Aaa Aa Aa A Aaa Aa Aa Aa Aa Aaa A Aa Aa 
Aaa 
 
 PURCHASES OF COMMON STOCK July 1, 1978 to June 30, 1979 EMPLOYEES RETIREMENT SYSTEM OF GEORGIA 
 
Company 
Delta Airlines Philip Morris 
Central &Southwest Corp. 
International Paper Texas Instruments Travelers Corp. Pfizer Labs Bristol Myers 
Minnesota Mining &Mfg. 
Weyerhaeuser Houston Industries Phillips Petroleum Square D. Corp. Ingersoll Rand Caterpillar Tractor Dupont de Neumours 
American Tel. &Tel. 
Continental Group Ins. International Flavors Chase Manhattan Gul f Oil Company General Mills Exxon Corp. International Business Mach. General Electric Coca Cola Company Raytheon Corp. Sears Roebuck Deere and Company CPC International 
 
Number of Sha res 
13,000 10,000 55,500 57,000 19,000 65,000 70,000 35,000 19,000 49,500 70,500 35,000 56,000 23,000 10,.500 17,000 9,000 52,000 10,000 60,000 27,000 15,000 25,000 
5'00 17,000 8,000 5,000 10,000 8,000 10,000 
 
Average Cost per Share 
$ 45.07 73.19 16.06 43.06 86.00 37.66 33.77 35.61 62.86 30.44 31.05 33.33 23.86 59.47 59.71 131. 92' 62.80 29.61 25.13 33.68 26.39 28.79 51.06 306.53 48.35 41. 75 47.49 20.76 35.80 49.15 
 
Cost 
$ 585,857 731, 985 891,486 
2,454,542 1,633,925 2,447,719 2,364,087 1, 246,377 1,194,350 1,506,696 2,188,997 1,166,699 1,336,282 1,367,742 
627,022 2,242,610 
565,280 1,539,510 
251,350 2,020,688 
712,560 431, 987 1,276,550 153,262 830,672 333,965 237,450 207,613 286,435 491,500 $33,325,198 
 
 RETURN ON INVESTMENTS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA FISCAL YEAR 1979 TO JULY 1. 1979 
 
Fiscal Year 
 
1977 
 
1978 
 
1979 
 
July 
 
Aug. 
 
. Sept. 
 
Oct. 
 
Nov. 
 
Dec. 
 
.. 
 
)1') 
 
Jan. 
 
4: II 
 
Feb. 
 
Mar. 
 
Apr. 
 
May JuneI.,. 
t 
 
Investment 
 
Average 
 
Income 
 
Total Assets 
 
(In millions of dollars) 
 
$28.3 
 
$434 
 
34.2 
 
500 
 
34.9* 
 
515 
 
35.4* 
 
517 
 
35.9* 
 
521 
 
36.4* 
 
527 
 
37.3* 
 
530 
 
38.0* 
 
536 
 
38.7* 
 
"544 
 
38.6* 
 
550 
 
39.4* 
 
555 
 
39.5* 
 
559 
 
40.3* 
 
567 
 
41.8* 
 
576 
 
* Represents trailing twelve months average. 
 
Return on Investments 
6.51% 6.85 
6.77 6.85 6.89 6.91 7.03 7.08 7.11 7.02 7.09 7.07 
7.11 
7.26 
 
 EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
STATEMENT OF INVESTMENTS Fiscal Year 1979 
 
 $14,000,000 
2,503,000 
134,000 425,000 252,000 134,000 
$i7,448,000 
 
EMPLOYEES RETIREMENT SYSTEM OF GEORGIA CONSOLIDATED INVESTMENT ACCOUNT 
TEMPORARY .INVESTMENTS 
 
Issuer 
 
'Interest Rate% 
 
United States Treasury (Subject to Repurchase on 
7/2/79) United States Treasury (Subject to Repurchase on 
7/2/79) C.LT. Financial 
 
9 3/8% 
Disc. Billing 9.42 % 
 
Montgomery Ward Credit Corp. 
 
9.48 % 
 
NLT Corp. 
 
9.42 % 
 
Southern Bell 
 
9.42 % 
 
TOTAL 
 
Year of Book Maturi!.l Value 
 
1980 
 
$14,000,000 
 
1979 
 
2,503,000 
 
Master Note Master 
Note Master 
Note Master Note 
 
134,000 425,000 252,000 134,000 
$17,448,000 
 
I' 
 
 u.s. GOVERNMENT, CORPORATE AND 
CANADIAN GOVERNMENT BONDS 
 
$ 9,000,000 2,000,000 10,000,000 2,000,000 14,500,000 16,450,000 2,000,000 617,356 2,384,000 
3,000,000 
4,297,000 
200,000 467,595 2,100,000 2,900,000 1,000,000 750,000 1,000,000 1,000,000 1,150,000 2,520,000 6,180,000 200,000 200,000 575,000 200,000 6,825,000 1,660,000 450,000 2,458,000 1,800,000 _ 900,000 250,000 500,000 
2,700,000 4,925,000 
800,000 1,760,000 12,200,000 7,226,000 6,165,000 4,600,000 3,700,000 3,350,000 
1~600,000 
6,050,000 11,865,000 1,710,000 
 
Issuer 
 
Interest Year of 
 
-Rate 
 
Maturi ty 
 
United States Treasury 
 
7 7/8% 
 
United States Treasury 
 
8 3/8% 
 
United States Treasury 
 
8.0 % 
 
United States Treasury 
 
8 1/4% 
 
United States Treasury 
 
7 5/8% 
 
United States Treasury 
 
8 3/4% 
 
United States Treasury 
 
9 1/8% 
 
Farmers Home Administration 
 
8.0 % 
 
U.S. Govt. Guaranteed Ship 
 
8.10 % 
 
Fi nanci ng 
 
U.S. Govt. Guaranteed Ship 
 
8.95% 
 
Financing 
 
U.S. Govt. Guaranteed Ship 
 
8.90 % 
 
Financing 
 
Consolidated Edison Co. N.Y. 
 
3 3/8% 
 
Clinchfield Railroad Co. 
 
.1 1/4% 
 
American Telephone and Telegraph 3 1/4% 
 
American Telephone and Tel~graph 4 3/8% 
 
National Biscuit Co. 
 
4 3/4% 
 
Louisville &Nashville Railroad 4 7/'0% 
 
General Motors Acceptance Corp. 4 7/8% 
 
Carolina Power and Light Co. 
 
4 1/8% 
 
Long Island Lighting Co. 
 
4 1/8% 
 
Burro ughs Corp. 
 
4 1/2% 
 
Firestone Tire and Rubber 
 
4 1/4% 
 
Pacific Telephone and Telegraph 4 3/8% 
 
Indiana &Michigan Electric Co. 4 3/4% 
 
General American Trans. Equip. 6.95 % 
 
Gu If Power Co. 
 
4 3/4% 
 
trocker-Citizens National Bank 4.60 % 
 
Union Tank Car Equipment 
 
7 5/8% 
 
Alabama Power Co. 
 
4 7/8% 
 
Deere and Co. 
 
4 1/2% 
 
Wells Fargo Bank 
 
4 1/2% 
 
New York Telephon~ Co. 
 
3.0 % 
 
Gulf States Utilities Co. 
 
5 1/4% 
 
International Bank of Recon. and 4 1/2% 
 
Development 
 
Pacific Gas and Electric 
 
4 1/2% 
 
American Telephone and Telegraph 3 7/8% 
 
Consolidated Edison Co. N.Y. 
 
5.0 % 
 
Anchor Hocking Glass Corp. 
 
5 1/8% 
 
Continental Oil Co. 
 
4 1/2% 
 
Pittsburgh Plate Glass 
 
5 5/8% 
 
Standard-Oil Co. 
 
6.0 % 
 
Morgan Guaranty Trust Co. N.Y. 5.0 % 
 
National Dairy Products 
 
4 3/8% 
 
Caterpillar Tractor 
 
5.30 % 
 
Westinghouse Electric 
 
5 3/8% 
 
Sherwin Williams Co. 
 
5.45 % 
 
General Electric 
 
5.30 % 
 
Liggett Group Inc. 
 
6.0 % 
 
2000 2000 2001 2005 2007 2008 2009 1994 2002 
2003 
2003 
1984 1984 1984 1985 1987 1987 1987 1988 1988 1988 1988 1988 1988 
19S9 1989 1989 1989 1989 1989 1989 1989 
1989 1990 
1990 1990 1990 1991 1991 1991 1991 1992 1992 1992 1992 1992 1992 1992 
 
Book Value 
$ 8,738,509 1,983,594 10,388,850 1,995,219 14,186,251 16,103,429 1,972,107 617,356 2,384,000 
3,000,000 
4,132,548 
188,000 467,595 1,842,169 2,614,236 858,023 750,000 807,653 843,373 895,385 2,057,706 5,080,741 170,790 200,000 548,907 200,000 5,848,990 1,641,745 422,319 2,055,998 1,511,918 
. 700,697 
250,000 499,371 
2,027,169 3,582,598 
680,793 1,534,178 10,010,173 6,249,796 5,431,308 4,025,386 2,986,765 2,805,581 1,433,049 5,003,576 10.295?657 1,537,301 
 
- 1- 
 
 Face Amount 
$ L250,000 3,321,000 250,000 1,500,000 LOOO,OOO 200,000 200,000 200,000 2,500,000 6,521,000 2,500,000 275,000 1,200,000 9,030,000 1,000,000 1,000,000 4,622,000 1,600,000 100,000 6,628,000 300,000 1,150,000 2,413,681 
3,050,000 500,000 
3,000,000 500,000 
1,330,000 1,150,000 4,679,000 
4,000,000 550,000 
5,000,000 
3,000,000 500,000 
2,500,000 
1,000,000 7,500,000 
2,000,000 
4,650,000 2,500,000 2,500,000 7,100,000 2,500,000 
 
Issuer 
 
Interest Year of Rate. Maturity 
 
Charter New York Corp. 
Champion Spark Plug Co. VA Electric and Power Gulf Oil Corp. Philip Morris Gulf States Utilities Mississippi Power and Light Duquesne Light Co. Hydro-Quebec Kra ftco Corp. British Columbia Hydro and Power North Pacific Railroad American Telephone and Telegraph Union Carbide Corp. Peoples Gas Light and Coke Dayton Power and Light Borden Co. Texaco Inc. American Can Co. American Can Co. Georgia Power Co. Exxon Corp. Lyondell Properties Inc. 
(Gtd. by Atlantic Richfield Co.) Standard Oil Co. Indiana Southern Bell Tele. and Tele~ Government of Canada Commonwealth Edison Exxon Corp. Pacific Gas and Electric Co. Humble Oil Pipeline 
.(Gtd. by Humble Oil Co.) Commonwealth Edison Co. American Tele. and Tele. Co. Star Tankers Inc. (Gtd. by Texaco Oil Co.) British Columbia .Hydro and Power South Central Bell Tele. Co. Exxon Pipeline Co. (Gtd. by Exxon Corp.) Philadelphia Electric Exxon Pipeline Co. (Gtd. by Exxon Corp.) B T Alaska Ship Financing (Gtd. by Shell Oil Co.) American Tele. and Tele. Co. Bank of Ameri ca Continental Oil Co. Inter Bank for Recon. & Dev. Chevron Pipeline Co. 
(Gtd. by Standard Oil Co. of California) 
 
6 1/8% 5 7/8% 4 3/8% 6 5/8% 6 5/8% 5.0 % 5 1/8% 5 1/8% 10 1/4% 6 7/8% 9 5/8% 4.0 % 5 1/2% 5.30 % 7 5/8% 5 5/8% 5 3/4% 5 3/4% 6.0 % 6.0 % 6 1/2% 6.0 "% 9 1/2% 
6.0 % 4 3/8% 8 5/8% 6 3/4% 6 1/2% 5 3/4% 6 5/8% 
10.0 % 4 3/8% 9 1/4% 
10 1/4% 6 7/8% 8 7/8% 
7 3/4% 8 1/4% 
8.40 % 
5 1/8% 8 3/4% 8 7/8% 8.85 % 8 1/2% 
 
1992 1992 1993 1993 1993 1996 1996 1996 1996 1996 1996 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 
1998 1998 1998 1998 1998 199"8 1998 
1999 1999 1999 
1999 1999 2000 
2000 2001 
2001 
2001 2001 20012001 2001 
 
Book Value 
$ 1,202,571 2,873,9.62 178,242 1,465,652 988,917 201,675 202,600 201,546 2,500,000 5,881,009 2,500,000 201, 146 999,498 7,512,880 869,098 842,775 3,776,634 1,434,855 82,422 5,598,713 281,629 1,041,120 2,413,681 
2,842,431 500,000 
2,993,231 471,454 
1,267,182 . 1, 000,206 
4,193,744 
4,000,000 426,580 
5,000,000 
3,000,000 501,232 
2,494,750 
990,509 7,345,639 
2,000,000 
3,618,998 2,479,076 2,494,739 7,382,930 2,500,000 
 
- 2- 
 
 Face Amount 
$ 2,500,000 972,163 
3,800,000 3,500,000 
500,000 2,000,000 1,400,000 2,650,000 5,000,000 5,900,000 3,000,000 2,500,000 1,500,000 1,500,000 
800,000 2,000,000 2,500,000 4,000,000 3,500,000 2,000,000 2,500,000 
500,OqO 4,000,000 2,500,000 2,500,000 1,000,000 6,000,000 5,500,000 2,500,000 1,500,000 
500,000 2,500,000 2,500,000 3,000,000 
500,000 2,500,000 2,000,000 
100,000 600,000 100,000 $379,976,795 
 
Issuer 
 
Int. Year of Rate% Maturity 
 
Inter Bank for Recon. &" Dev. 
 
8 3/8% 2001 
 
Shell Oil Ship Financing 
 
9.-30 % 2002 
 
(Gtd. by Shell Oil Co.) 
 
Proctor and Gamble 
 
7.0 % 2002 
 
Fed. National Mtg. Assn. 
 
8.20 % 2002 
 
Pacific Te1e. and Te1e. 
 
6.0 % 2002 
 
Bank of America 
 
7 7/8% 2003 
 
American Te1e. and Te1e. 
 
7 1/8% 2003 
 
Atlantic Richfield Co. 
 
7 3/4% 2003 
 
Quebec Hydro Electric Com. 
 
8 1/4% 2004 
 
Province of Ontario 
 
8.60 % 2004 
 
Province of Quebec 
 
9.20 % 2004 
 
Southern California Edison Co. 9.95 % 2004 
 
Province of Ontario 
 
" 10 1/4% 2004 
 
South Central Bell Telephone Co. 8 1/4% 2004 
 
Michigan Bell Telephone Co. 
 
6 3/8% 2005 
 
Dow Chemical Co. 
 
8 1/2% 2005 
 
Shell Oil Co. 
 
8 3/4% 2005 
 
Standard Oil Co. Indiana 
 
8 3/8% 2005 
 
Standard Oil Co. California 
 
8 3/4% 2005 
 
Sears Roebuck and Co. 
 
8.0 % 2006 
 
Dupont E I De Nemours and Co. 8 1/2% 2006 
 
Kerr McGee Corp. 
 
8 1/2% 2006 
 
Weyerhaeuser Co. 
 
7.95 % 2006 
 
Hydro-Quebec 
 
8.60 % 2006 
 
British Columbia Hydro Electric 8 5/8% 2006 
 
Ohio Bell Telephone Co. 
 
5 3/8% 2007 
 
Shell Oi 1 Co. 
 
8.0 % 2007 
 
Bankamerica Corp. 
 
8.35 % 2007 
 
Standard Oil Co. Indiana 
 
7 7/8% 2007 
 
American Hospital Supply Corp. 7 7/8% 2007 
 
New York Telephone Ref & Mtg. 
 
6.0 % 2007 
 
Ontario Province Canada 
 
8 3/8% 2007 
 
Aetna Life and Casualty Co. 
 
8 1/8% 2007 
 
Ontario Province Canada 
 
9 3/8% 2008 
 
Southwestern Bell Telephone Co. 6 3/4% 2008 
 
Quebec Hydro Electric 
 
10.0 % 2008 
 
Ontario Province Canada 
 
9 3/8% 2008 
 
Rohr Corp. 
 
5 1/4% 1986 
 
Greyhound Corp. 
 
6 1/2% 1990 
 
Walter Jim Corp. 
 
5 3/4% 1991 
 
Book Value 
$ 2,489,726 972,163 
3,420,207 3,500,000 
451,498 1,952,302 1,334,855 2,609,612 4,980,000 5,915,000 3,000,000 2,500,000 1,500,000 1,539,921 
757,427 2,000,000 2,484,352 3,976,445 3,479,185 1,922,778 2,500,000 
498,257 4,016,002 2,500,000 2,500,000 
847,590 5,844,274 5,364,228 2,491,250 1,495,800 
445,138 2,500,000 2,488,333 3,000,000 
435,109 2,343,489 1,980,667 
100,000 539,692 100.. 000 $347,089,435 
 
I" 
 
- 3- 
 
 Face Amount 
$ 3,000,000 4,700,000 164,000 2,372,460 3,700,000 500,000 750,000 1,500,000 440,000 
1,146,138 2,314,815 1,800,000 2,500,000 
500,000 2,000,000 1,250,000 1,250,000 1,250,000 3,000', 000 1,000,000 5,000,000 
955,007 500,000 4,000,000 995,000 250,000 $ 46,837,420 
 
OTHER CORPORATE OBLIGATIONS (PRIVATE PLACEMENTS) 
 
issuer 
Decatur Federal Savings &Loan First Railroad &Banking Co. 
United Utilities Inc. Interfinancial Inc. Chemical Bank N.Y. Arizona Public Service Arizona Public Service The Calhoun First National Bank Flying Cloud Prop. Inc. (Gtd. by J.C. Penney) D P C Equipment Co. Marathon Pipe Line Co. Richs Inc. Fulton National Bank of Atlanta Arizona Public Service 
Georgia Bank &Trust Co. 
Trust Co. of Georgia Trust Co. of Georgia Trust Co. of Georgia Trust Co. of Georgia Plantation Pipeline TRW Inc. Synchro Realty Inc. Western Electric Co. CBT Bancshares Inc. Walker County Telephone Co. First National Bank of Atlanta 
 
Interest Year of Book . Rate Maturity Value 
 
7 5/8% 1986 
10 1/8% 1989 6.0 % 1991 8.0 % 1992 5 7/8% 1992 4.45 % 1992 
4.40 % 1992 8 1/2% 1993 7 3/4% 1994 
 
$ 3,000,000 4,700,000 164,001 2,372,460 3,239,360 500,000 750,000 1,500,000 440,007 
 
8 3/4% 1996 7 3/4% 1996 7.35 % 1997 
7 1/2% 1997 6 1/4% 1997 "7.90 % 1997 7 1/2% 1997 7 1/2% 1997 7 1/~% 1997 9 1/4% 1998 7.0 % 1999 8.0 % 1999 9 3/4% 2000 7 1/2% 2003 8 3/4% 2004 10.0 % 2004 
3 1/2% 1989 
 
1,146,138 2,314,815 1,754,169 
2,500,000 
500, 005 2,000,000 1, 250,000 1,250,000 1,250,000 3,000,000 1,000,000 5,000,000 
955,007 500,000 4,000,000 995,000 250,000 
$46,330-,-962 
 
 SHARES 
119,000 110,000 60,000 130,000 115,000 150,000 135,000 
47,000 115,000 62,000 80,000 73,000 105,000 77 ,000 128,000 108,000 112,000 51,000 59,000 60,800 52,000 67,000 94,000 83,000 123,000 97,000 10,000 70,000 60,000 98,000 140,000 160,000 157,000 110,000 96,000 50,000 135,000 95,000 57,000 38,000 60,000 199,000 125,000 45,000 73,000 37,000 70,000 75,000 37,000 91,000 45,000 50,400 90,000 120,000 
 
COMMON STOCK HOLDINGS 
COMPANY 
American Telephone and Telegraph Co. Gulf States Utilities Florida Power and Light Co. Utah Power and Light Co. General Mills, Inc. Genuine Parts Co. Bristol Myers Co. Burroughs Corp. Burlington Industries, Inc. Gulf Oi 1 Corp. Dow Chemical Co. Delta Airlines Inc. Beatrice Foods Co. The Travelers Corp. Coca Cola Co. Deere and Co. Emerson Electric Co. E.I. Dupont De Nemours and Co. Caterpillar Tractor Co. International Flavors and Fragrances Inc. Continental Group Inc. International Paper Co. Minnesota Mining and Manufacturing Co. Square D Co. General Electric Co. Weyerhaeuser Co. C P C International Inc. American Hospital Supply Co. Combustion Engineering IBM Corp. Continental Oil Co. Philip Morris Inc. Phillips Petroleum Co. Exxon Corp. Sears Roebuck and Co. Deka1b Agresearch Inc. Pillsbury Co. Pfizer Inc. Texas Instruments Inc. Eastman Kodak Co. Chase Manhattan Corp. Central and South West Corp. Raytheon Co. Johnson and Johnson Inc. Baxter Traveno1 Labs Inc. Ingersoll-Rand Co. AMP Inc. Western Bancorporation Hewlett Packard Co. May tag Co. Kerr McGee Corp. Carnation Co. Houston Ind. Inc. Northern States Power Co. 
 
BOOK VALUE 
5,795;650 2,237,215 1,825,158 2,316,587 2,853,000 3,322,567 4,413,225 4,127,950 2,909,093 1,561,000 3,509,975 4,044,938 2,450,300 2,875,725 5,441,151 2,347,525 4,001,038 2,236,575 3,141,975 2,271,475 1,533,450 2,849,025 5,240,586 2,032,563 5,723,375 3,195,592 
490,000 2,876,850 2,386,788 5,899,825 3,199,238 4,152,338 3,471,425 4,530,334 3,128,637 1,891,250 3,406,615 3,164,513 5,367,863 3,050,524 2,012,688 4,076,988 3,349,588 4,577,415 3,420,125 2,214,275 2,613,338 1,549,888 3,335,575 3,083,213 3,243,538 1,598,100 2,774,250 3,339,213 $172,461,098 
 
 MORTGAGES AND OTHER SECURED NOTES 
 
Borrower and Mortgaged Property 
 
Int. Rate%' 
 
Arrowhead Shopping Center 
 
8.00 
 
(Nursing Home, Clayton Cty.) 
 
Bray-Peeples Co. Inc. 
 
5.25 
 
(Lumber Yard, Lowndes Cty.) 
 
H. N. Jackson, J. H. Jackson 
 
8.50 
 
(Jackson Court Apts., Carroll 
 
County) 
 
Thomas T. Richards, et al (Homart Bldg., College Park) 
 
10.00 
 
Kenion E. Edwards, et al 
 
9.75 
 
(Apartments - DeKalb Cty.) 
 
First Methodist Church of 
 
6.00 
 
Marietta (Marietta, Ga.) 
 
FHA Mortgage Pool #760 
 
6.00 
 
. (Gtd. by FHA) 
 
,Georgi a Development Authority 
 
8.50 
 
Georgia Development Authority 
 
5.50 
 
Board of Trustees of Georgia 
 
9.75 
 
Hil itary College 
 
(College facilities, 
 
Milledgeville, Georgia) 
 
Justin Gasarch 
 
9.50 
 
(Bent Creek Apartments, Atlanta, Ga) 
 
James A. Shugart, Sr. &Jr. 
 
9.00 
 
(Mark Inn - Airport, Fulton 
 
County) 
 
James A. Shugart, Sr. &Jr. 
(Mark Inn - West, F~lton County) 
 
'8.00 
 
Philip M. Chandler (Apartments, Milledgeville, 
Georgia) 
 
. 9.25 
 
L &MHolding Co.' 
 
6.50 
 
(Mfg. Plant - Glynn County) 
 
Year Last Pymt Due 
1990 1985 1992 
1988 1995 1986 1995 1989 1989 1991 
2004 1996 
1997 
1991 
1979 
 
Bal. Outstanding on Loan 
$ 360,573 248,700 402,467 
389,438 423,435 57,286 234,006 20,069 13,660 290,382 
822,800 1,074,297 
892,885 
293,494 
9,497 
 
 MORTGAGES AND OTHER SECURED NOTES 
 
Borrower and Mortgaged Property 
J.W. Maynard, Jr. (Holly Hills Shopping Center Winder, Georgia( (1) 
Ft. Valley Medical Nursing Home (Peach County, Ga.) 
Richard A. Newton (Road Runner Rest., Valdosta, Ga.) 
Northeast Georgia Properties, Inc. (Sheraton Inn, Stephens County, Georgia) 
Northside Baptist Church (Warner Robins, Georgia) 
Pittman Park Methodist Church (Statesboro, Georgia) 
Calhoun Motel, Inc. - Ramada Inn (Gordon County, Georgia) 
Jack Adair (J. C. Penney Office Bldg., Atlanta) 
St. Joseph's Infirmary, Inc. (Gtd. by HEW) 
Wellington Puritan Mills, Inc. (Madison, Georgia) 
Buford W. Knight (Apartments - Statesboro, Ga.) 
James A. Shugart, Sr. &Jr. 
(Mark Inn - Stone Mountain, DeKalb County, Georgia) 
FHA Mortgage Pool #759 (Gtd. by FHA) 
FHA Mortgage Pool #758 (Gtd. by FHA) 
FHA Mortgage Pool #757 (~td. by FHA) 
FHA Mortgage Pool #756 (Gtd. by FHA) 
 
Int. Rate% 9.75 
10.00 8.50 8.00 
6.00 5.50 9.50 7.875 
8.875 7.00 9.75 9.50 
5.25 5.00 5.00 5.00 
 
Year Last Bal. Outstanding 
 
Pymt Due 
 
on Loan 
 
1994 
 
$1,302,655 
 
1986 
 
207,490 
 
2004 
 
44,956 
 
1990 
 
468,744 
 
1982 
 
20,351 
 
1986 
 
96,300 
 
1992 
 
627,018 
 
2001 
 
2,896,642 
 
2000 
 
-4,930,171 
 
1979 
 
1,623 
 
1992 
 
837,053 
 
1990 
 
351,380 
 
1994 
 
58,934 
 
1994 
 
101,839 
 
1994 
 
89,246 
 
1994 
 
217,565 
 
 MORTGAGES AND OTHER SECURED NOTES 
 
Borrower and Mortgaged Property 
 
Int. Rate% 
 
Year Last Pymt Due 
 
FHA Mortgage Pool #755 (Gtd. by FHA) 5.00 
 
1994 
 
Government National Mortgage Associates (Single Family Home) 
 
6.50 
 
2002 
 
Government National Mortgage Associates (Single Family Home) 
 
6.50 
 
2001 
 
Government National Mortgage Associates (Single Family Home) 
 
6.50 
 
2003 
 
Government National Mortgage Associates (Single Family Home) 
 
6.50 
 
2003 
 
Government National Mortgage Associates (Single Family Home) 
 
8.00 
 
2006 
 
Government National Mortgage "Associates (Single Family Home) 
 
6.50 
 
2001 
 
Government National Mortgage Associates (Single Family Home) 
 
6.50 
 
2002 
 
Bal. Outstanding on Loan 
$ 102,281 346,790 
1,276,769 
2,656,534 
2,215,524 
2,635,389 
402,217 
346,943 $27,767,403 
 
I" 
 
 REAL ESTATE INVESTMENTS 
 
Description of Property 
Beta Building, Northside/I-75 (Constitutes a one-half interest in property.) 
 
Book Value $1,845,243 
 
Bulk oil collection facility and 
other property formerly owned by H. M. Barfield (Hahira, Georgia) 
 
217,679 
 
The Stadium Hotel, Atlanta 
(Constitutes a 25% interest in the facility.) 
 
1,491,980 
 
Comments 
Presently houses the offices of the Employees and Teachers Retirement Systems. The Employees Retirement System on 7/1/76 acquired a 50% interest in the building. 
Property acquired by foreclosure of mortgage. The Retirement System has obtained a personal judgement of $236,279.54 against Mr. Barfield who has currently filed for bankruptcy. 
Property acquired by foreclosure of mortgages. The property is jointly owned with the Teachers Retirement System who has a 75% interest in the facility. The Retirement Systems currently operate the property at a positive cash flow to the Systems. 
 
TOTAL REAL ESTATE INVESTMENTS 
 
$3,554,902 
 
 ~II~I~l~~~II~rlm~i~~~~~ \~111~ 
3 2106 03665 3666