GVR Investment Committee October Meeting
Explore the GVR Investment Committee's meeting in October 2020, covering a review of fund performance, cash status, asset alternatives, IPS benchmarks, and more. Get insights into the SBH Fund Performance Overview, John Roberts' perspective, and discussions on the JP Morgan Operating Cash Investment Account.
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Presentation Transcript
GVR Investment Committee October 2020 Meeting
Agenda Review of Sept 2020 SBH fund performance GVR Investment Committee review of statements Investment Advisor John Roberts review Review of Sept 2020 JP Morgan Operating Cash Investment Account performance Operating Cash Investment Account: Discussion Investment Committee vs GVR Finance definitions of cash GVR cash status Including operating days cash on hand JP Morgan Operating Cash Investment Account IPS Targets and Ranges Current status Fixed Asset fund alternatives GVR Finance direction to JP Morgan on October 2, 2020 Next Steps Consideration of revision of IPS Targets and Ranges Investment Committee guidance to GVR Finance on JP Morgan fund allocations
SBH Fund Performance Overview IPS Targes and Ranges: IRF above Range limit for Cash (12.7%); all other categories within limits for 3 funds Performance of assets currently in funds: IRF: +5.6% since acquisition MRF: +16.6% since acquisition ERF: +18.9% since acquisition Latest 12 months performance of assets to blended benchmark (3Q20 statement): IRF: Blended Benchmark at 6.62%; Portfolio at 6.24%; net of fees at 5.50% MRF: Blended Benchmark at 8.27%; Portfolio at 9.13%; net of fees at 8.46% ERF: Blended Benchmark at 12.09%; Portfolio at 11.52%; net of fees at 10.93% IPS Benchmarks:
SBH Fund Performance Overview (continued) Cash holdings within funds: IRF: cash at $198K, or 12.7%, above IPS 10% Range limit MRF: cash at $568K, or 7.2%, within IPS Range ERF: cash at $21K, or 2.4%, within IPS Range Total cash in SBH funds: $787K. Sale of assets during September, 2020: IRF: no sale of assets during the month MRF: Sold approximately $592K in assets during the month, at 3.8% profit ERF: Sold approximately $35K in assets during the month, at 15.6% profit SBH management fees: IRF: $ 2,517 MRF: $11,733 ERF: $ 1,073
JP Morgan Operating Cash Investment Account IPS Targes and Ranges: Does not fall within ranges set forth in the latest IPS Cash at 50%; Fixed Income at 50% Returns continued meager returns on funds Excess Cash and meager returns necessitate fund action
Operating Cash Investment Account: Discussion
Definitions of Cash Investment Committee cash includes investments in: Checking and savings accounts Sweep accounts Money Market funds GVR Finance cash includes investments in: Checking and savings accounts Sweep accounts All accounts/funds in JP Morgan Operating Cash Investment Account Money Market funds Fixed Asset funds Point: both definitions are fine, just need to remember the difference
GVR Cash Status (September 2020 Cash Requirements Report and August 2020 JPM statement) September 2020 Cash Requirements Report; End of August actuals: Chase checking accounts: $0.80M JP Morgan accounts/funds: $3.91M Total: $4.71M Per Investment Committee cash definition, cash should exclude funds in the JPM Manage Income Fund JP Morgan August 2020 statement: Deposit Sweep $0.17M Money Market $1.86M Subtotal $2.03M JPM Managed Income Fund $1.87M Total $3.91M Note: no significant change in Cash and Fixed Income balances at JPM in September 2020 vs August 2020
Operating Days Cash on Hand (September 2020 Cash Requirements Report and August 2020 JPM statement) GVR Operating Days Cash On Hand Per GVR Finance s cash definition 180 Per IC cash definition 150 120 Desired band 90 60 30 - Days Cash Adj Days Cash Max (Desired) Min (Desired) Per the IC s cash definition, Operating Days Cash on Hand is within desired band
Investment Policy Statement direction for Operating Cash Investment Account Goals: safety; liquidity; return on investment Targets and Ranges: Investment Type Cash Fixed Income Equities Target 25% 75% 0% Range 20% to 40% 60% to 80% Not Allowed Actuals from JPM August 2020 monthly statement: Cash: 52% Fixed Income: 48% Actuals from JPM September statement: Cash: 50% Fixed Income: 50% Action: reallocate funds to meet IPS target
JPM Fixed Asset Investment Offerings From JPM Oct 1, 2020 Current Fund Current fund (Managed Income Fund) achieving low returns All funds relatively low risk Risk Tolerance from IPS:
Additional JPM Fixed Asset Fund Information From JPM Oct 1, 2020 Slightly higher risk due to longer maturities / better returns Slightly higher risk / better returns Low risk / low returns Low risk / better returns
October 2, 2020 GVR Finance Action October 2, 2020 Action GVR Finance directed JPM to: a) Rebalance account funds to meet IPS target of 75% in Fixed Assets b) Invest these funds in Short Duration Bond Fund (HLLVX)
JPM Fixed Asset Investment Allocation Advice From JPM Account Manager Kevin Palevsky on October 12, 2020 Currently held Previously held * Oct 2 direction to acquire * * Up from Oct 1, 2020
Next Steps IC decision on: JPM Fixed Asset fund allocation Redefining Targets and Ranges for Operating Cash Investment Account
