The balance of unrestricted funds as of April 30, 2014 was $12,063,678 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of April 30, 2014, PIF had a balance of $12,050,986 plus $750,010 collected in April that was transferred into the PIF account the first part of May 2014. The Capital Reserve Fund had a balance of $1,500,044 as of March month end.
The corporation has operated within its budget for the 2014 fiscal year.
Investment Report 1st Quarter 2014:
You will note in the April financials that the reinvested dividends, capital gains and change in account value have all been recorded for RCSC’s investments to show the current account values at the end of March 31, 2014 as per our Auditor’s direction.
RCSC’s Investment Policy (Board Policy 33) is stringent in its requirements with the priority of investment objectives to be placed in this order: 1) safety, 2) liquidity, and 3) yield.
On February 21, 2014, the Investment Commission sold 50% of the shares held in Franklin U.S. Government Securities Fund for both restricted and unrestricted funds and reinvested in the other three funds: Franklin Adjustable U.S. Government Securities Fund Class A, Franklin Limited Maturity U.S. Government Securities Fund Class A, and Franklin Low Duration Total Return Fund Class A. The Investment Commission made this decision, despite the fact that the sale was at a loss, because the Franklin U.S. Government Securities Fund has proven to be the most volatile of all the funds invested and with the potential for interest rate fluctuation, the fund could become more volatile.
At the end of the first quarter, the Franklin Templeton unrestricted money market fund had an ending balance of $5,013,843.98 and the restricted Franklin Templeton money market fund had an ending balance of $8,451,752.72.
As of March 31, 2014, RCSC had invested in four fixed income funds: Franklin Adjustable U.S. Government Securities Fund Class A, Franklin Limited Maturity U.S. Government Securities Fund Class A, Franklin Low Duration Total Return Fund Class A, and Franklin U.S. Government Securities Series Class A.
At the end of the first quarter in unrestricted funds, RCSC had invested $2,500,000 into the aforementioned four fixed income funds with an ending value of $2,504,026.01 as of March 31, 2014, showing a .16% increase in value of $4,026.01.
At the end of the first quarter in restricted funds, RCSC had invested $5,000,000 into the aforementioned four fixed income funds with an ending value of $5,003,771.64 as of March 31, 2014, showing a .08% increase in value of $3,771.64.