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Collins scholarship fund reports $21.1 million year-end value; $1.1 million cash available for upcoming awards
Summary
The Collins scholarship fund manager told the board the fund ended the year at about $21.1 million, with roughly $509,000 in liquid cash after spring scholarship payments and about $650,000 maturing from one-year CDs later in the year, leaving roughly $1.1 million available to support upcoming scholarships.
A representative for the Collins scholarship fund gave trustees an update on Jan. 13 showing the fund ended the calendar year valued at about $21.1 million. The representative said money-market and cash equivalents totaled about $671,000 at year end, and after making spring scholarship payments those cash balances were about $509,000.
The fund manager told the board that one-year certificates of deposit purchased last year will mature in late April and June, totaling about $650,000. Combined with current cash, the manager said, that leaves the fund with a little more than $1.1 million in cash available before the heavy scholarship season in summer and fall.
The report broke down portfolio allocations: roughly $9.1 million in taxable bonds, about $10.7 million in U.S. equities and approximately $650,000 in international equities. The manager said dividend and interest income has increased in recent years: about $600,000 in dividend and interest income compared with roughly $150,000 in oil-and-gas royalty income last year.
Return figures presented to the board showed a calendar-year return of about 12.66 percent versus a benchmark of approximately 12.22 percent. On an annualized basis the manager reported three- and five-year returns versus benchmarks, and said the overall portfolio continues to outperform the stated benchmark.
Trustees and the manager discussed options for the cash maturing from CDs and the likelihood the income forecast (about $750,000) is a reasonable planning number for upcoming scholarships. The manager recommended reviewing market rates when the CDs mature and deciding whether to retain cash in money-market holdings or replace CDs.
The presentation did not include any requested vote; it was an informational report to assist trustees as they prepare scholarship awards and budget planning for the coming award cycle.
