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Collins Educational Fund reports $21.5M portfolio, CDs maturing and $200K–$250K annual oil‑and‑gas income
Summary
Advisors for the Collins Educational Fund told the Corsicana ISD board the fund’s market value rose to about $21.5 million with one‑year returns near 8.3 percent, noted $1.2 million of five‑year oil and gas income, and asked the board whether income CDs maturing in July should be reinvested or earmarked for scholarships.
Representatives for the Collins Educational Fund briefed the Corsicana ISD Board of Trustees on June 16 about portfolio performance, scholarship distributions and the fund’s oil‑and‑gas income.
Fund advisors reported a market value of about $21.5 million as of May 31 and said the one‑year return was roughly 8.34 percent with a five‑year annualized return near 8.31 percent. Advisors said capital appreciation in large‑cap equities and strong fixed‑income performance contributed to the gains. The portfolio allocation was described as a balanced growth‑and‑income mix with equities and fixed income each comprising roughly 43% of assets.
Advisors told the board the fund’s oil‑and‑gas mineral interest income has averaged roughly $200,000–$250,000 in most years outside a five‑year spike tied to Eagle Ford production. The fund’s advisors said the account uses a portion of mineral income to reinvest in the endowment (the transcript refers to transferring about 28% to investments) and to pay scholarships; they reported about $2.7 million to $2.9 million paid out in scholarships over the last five years.
Advisors said five certificates of deposit (CDs) purchased last year are maturing in July and that the maturing CDs produced an additional $32,000 in income compared with money market instruments over the prior year. One advisor said CDs maturing this month include roughly $606,100 in income cash that the board may want to designate for scholarships rather than automatically reinvest. The advisors recommended staying short‑term (around 12 months) on any reinvestment to preserve liquidity for scholarships, and noted current one‑year CD rates near 4.2–4.3 percent compared with prior higher rates.
No formal board action on CD reinvestment or scholarship spending was taken at the June 16 meeting; advisors asked the board to advise whether to reinvest income cash or allocate it for scholarship use.
