Oxford’s $30M investment now worth $35M
Published 9:00 am Thursday, April 19, 2018
At the end of the fiscal year, Oxford’s $30 million fund from the sale of Baptist Memorial Hospital-North Mississippi was worth $35,003,018.
On Tuesday, representatives from Glenmede, the investment firm handling the fund, presented the year-end report to the Oxford Municipal Reserve and Trust Fund Committee. The fiscal year for the fund runs from April 1 to March 31.
Since its inception in 2012, the fund has had a net investment return of $9.2 million, which includes the 3 percent pay off the city has received each year, which has averaged about $875,000 a year with a total amount of $4,156,216. Those funds go into the city’s general fund that has helped pay for a variety of city projects and large pieces of equipment and vehicles.
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The payoff for the 2017-2018 fiscal year will be $897,611, the highest since inception.
The fund’s long-term goals, set up by the committee, are capital preservation and real growth after inflation, about 2.5 percent, and the annual 3 percent payoff.
The fund has returned 5.9 percent over the last year and 5.2 percent annually since 2012.
From April 1, 2017, to March 31, the fund earned $2,014.990.
As of March 31, 37 percent of the assets are allocated to equities, 60 percent is allocated to fixed income, and 4 percent is allocated to cash. In equities, 24 percent is allocated to large-cap, 4 percent to small cap and 9 percent to international.
Glenmede is instructed to try to grow the fund enough to allow for annual payouts but to do so in a conservative fashion as to not risk losing the initial $30 million investment. The fund is a moderately low-risk investment, according to Glenmede.
The top 10 holdings in the equity portfolio include Intel Corp., Pfizer Inc., Ameriprise Financial Inc., Valero Energy Corp., Anthem, AT&T Inc., Cisco Systems, Tyson Foods Inc., Unumprovident and Eaton Corp.