City’s trust fund continues to grow amid economic turmoil
Published 9:26 pm Tuesday, February 1, 2022
The City of Oxford Reserve and Trust Fund Committee reported continued growth for the fourth quarter of 2021, despite disruptions to supply chains and rising inflation rates due to the Covid-19 pandemic.
The fund grew 3.3% in the fourth quarter, just under the blended benchmark of 3.6%. Equities returned 8.1%, while the value of fixed income investments fell 0.4%.
The fund’s market value was reported at $41,464,840 in December 2021, a net gain of $19.4 million since its inception in April 2012.
Glenmede Investment Management, which handles the allocation of assets for the fund, reported that 46% of allocations are currently in equities, with 54% of funds in fixed income and cash.
The committee discussed several possible changes to the portfolio, including increasing the allocation to equities and moving funds from large cap stocks to smaller caps or international stocks. None of the options were up for formal consideration however.
The fund was established in 2012 when Baptist Memorial Hospital-North Mississippi sold its old campus to the city and Lafayette County in order to build a new one. It gave the city and county $30 million each, which the city used to establish the Oxford Municipal Reserve and Trust Fund. It pays for city projects not covered by the official budget.