By Alyssa Schnugg
Staff writer
alyssa.schnugg@hottytoddy.com
Oxford’s $30 million investment from the sale of Baptist Memorial Hospital-North Mississippi in 2012 is now worth $34,861,445.
On Thursday, Edward Maxwell with accounting firm Watkins, Ward & Stafford, presented the Oxford Reserve and Trust Fund Committee with the year-end report.
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. That averages about $875,000 per 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, including city vehicles.
This year’s payout is $1,045,843; however, about $160,000 comes out of that amount to pay for the fund’s management, accounting and legal fees.
“That would make the payout this year to be about $885,000,” Maxwell said.
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 5.65 percent over the last year, down slightly from the fiscal year 2016-2017 that saw a 6.04 return.
From April 1, 2017, to March 31, the fund earned $1,310,215.
As of March 31, 39 percent of the assets are allocated to equities, 61 percent is allocated to fixed income.
Investment firm Glenmede, that manages the fund, 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.
