Three months ago, Lowndes County supervisors withdrew $922,000 from the gain on the $30 million hospital trust fund.
The principal has been split evenly between and managed by two financial firms for almost a year now. Taking in consideration that about $460,000 was withdrawn from each firm, the county’s gains are still significant overall.
After the withdraws, the $15 million received by Stephens Capital Management of Arkansas last October is up to $15,797,607 as of Aug. 19. For the year to date, that is a 5.04 percent return.
Local firm Renasant Wealth Management received the same amount and was able to turn it into $15,405,218 by June 30, including the $460,000 withdrawn.
Both Stephens and Renasant are investing what they received in an estimated 56 percent in fixed income bonds and 41 percent in equities, plus another 1 percent in cash equivalents.
Stephens Capital Management lead portfolio manager Alan Tedford told supervisors last week that the firm had the trust fund money “widely invested” in both stocks and bonds.
“We have your bond portfolio positioned conservatively in that we are fearful that in the future is not likely to be as kind for bonds as it has been in recent years,” Tedford said. “If interest rates rise, that would cause a decrease in the price of your bonds. The shorter the maturity of your bonds, the less volatile they are and the less loss you would incur.”
Once the supervisors removed the $922,000, they discussed using it to begin upgrading the county’s E-911 facility. Future withdraws may be used to pay for that upgrade as well as bond indebtedness for a new workforce training facility for East Mississippi Community College.
State legislation passed last year granted supervisors the authority to invest the hospital sale funds in mechanisms other than certificates of deposit, which had only accrued about $60,000 annually in interest on the $30 million principal in recent years.
The county sold the hospital in 2006.
Nathan Gregory covers city and county government for The Dispatch.
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