That news came during a BDA board meeting last week from Jim Eller, senior vice president for Wachovia.
“It has been quite interesting lately,” Eller said as he began his report on the investments.
He reminded board members that Wachovia will become Wells Fargo after the first of the year.
Eller said the purchase of Wachovia actually is good news because Wells Fargo is the only bank in the country to earn the coveted AAA rating, the highest possible.
He said it was Wachovia Bank that had gotten into trouble recently with some of its investments. But Wells Fargo agreed to purchase the entire company and not just the bank.
Fortunately, Wells Fargo was not in the securities business and bank officials had told Wachovia Securities management personnel that they would remain in their jobs because they were performing them well.
“We’ve always been profitable,” Eller said of the company’s securities division. “Really, nothing is going to change.”
“So it’s good news in that accord,” Eller said. “We’re going to a triple A-rated company.”
Eller then explained that one of the BDA’s funds had experienced a negative rate of return, dipping by 1.5 percent. However, because the BDA holds mostly bonds to maturity, “all bonds should mature at 100 cents on the dollar.”
Overall, even with the economy seeing losses in many areas, the BDA’s investments showed “a 1.43 percent positive change in value.”
He expects interest rates to remain lower, in spite of how the presidential election turns out in November.
Eller assured the board that the stock market would rebound within months. He mentioned several major downturns in market activity over the years and said that the market always had recovered within 12-18 months.
Board members voted unanimously to accept the report.