Cornerstone reports $10 billion AUM; Council Rock SD sees stronger short‑term investment earnings

Kevin Karpik of Cornerstone delivered a quarterly investment update to the Council Rock School District finance committee on Dec. 4, reporting stronger near‑term earnings and describing the district’s portfolio mix and liquidity strategy.

Karpik said Cornerstone “just recently crested $10,000,000,000 in assets under management,” and that the district’s fiscal‑year‑to‑date investment earnings for the July–September quarter were about $1,100,000. He told the committee the firm is “expecting just for the quarter to make about 2 to 2 and a half million” in the coming quarter and said the district is targeting roughly $6.5 million to $7 million in investment income for the full fiscal year, though that projection depends on the pace of Federal Reserve rate cuts.

Karpik reviewed the interest‑rate backdrop, saying market pricing implies a December 25‑basis‑point cut and additional modest cuts across 2026. He emphasized that cuts are likely to be incremental and reminded members that the recent multi‑year low‑rate environment is unlikely to return soon.

On composition and risk management, Karpik said the district’s starting market value in cash and short‑term instruments is about $105 million and that $180 million of deposits flowed over the quarter. He described uses of bond‑proceeds and operating funds across custodians—including holdings at Wilmington Trust and bank accounts at TD that are supported by Federal Home Loan Bank arrangements—and said roughly $20 million of the portfolio was locked into one‑year securities at around 4% while the remainder is largely invested in overnight vehicles to preserve liquidity. "We're gonna own Treasury," he said, describing a preference for government‑backed instruments; he added that the district’s investment policy permits commercial paper with superintendent approval but that Cornerstone generally avoids it because the small additional yield does not justify the added risk. He also said the district is not investing in stocks.

Committee members asked clarifying questions. Chair Linda Stone confirmed the $1.1 million quarterly figure and the $2–$2.5 million short‑term expectation; Karpik reiterated the full‑year target and noted the estimate assumes modest rate cuts. Andy Sanko asked about permitted instruments and composition; Karpik reiterated the emphasis on government‑backed securities and diversification across depositories.

The presentation closed with committee thanks and no formal action recorded. Karpik and district staff will continue to monitor rates and liquidity needs as the district proceeds into the next quarter and into the 2026 fiscal year.