Page 28 - Dec 2021 Report

December Report
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Investment/Finance Committee meeting minutes (draft)
November 18, 2021 at 8:00 a.m.
Attendees:
Committee Members: Dick Krause, Hugh Brown, Bobby Krause, Mike Miller, Malcolm Macleod
Prime Buchholz (Prime) Consultants: Rick Morrison, Ian MacPherson, Steven Roche
Dick chaired the meeting.
1. Approval of Investment Committee Meeting Minutes – Minutes from the Sept 13, 2021 meeting were approved.
2. Investment Performance as of September 30, 2021 – Absolute investment performance by JSF in the 2021 third quarter was much less robust than the unusually strong returns experienced in the previous four quarters. As illustrated in Tables 1 and 2 JSF recorded a negative total return of 0.8% in the third quarter with total assets as at September 30, 2021 standing at $278.9 mill. Year to date JSF recorded a total rate of return of 13.7% and despite a much higher rate of inflation is exceeding its primary investment objective of 5% plus the inflation rate by 4.5%.
Noteworthy developments during the quarter included: rising inflationary pressures, higher interest rates, very strong corporate earnings, higher commodity prices, and weakness in third world stock markets especially in China (i.e. Evergrande, etc.). Growth outperformed value reversing the trend exhibited in the 2021 first half.
JSF’s relative performance remained strong with first quartile performance now exhibited over the last 5 years. Very strong performance in the Private Capital space where JSF is double weighted (at 22.1%) is the primary reason.
Table 1
Quarterly Annual Rate of Return
2020
2021
3rd
4th
1st
2nd
3rd
Total JSF Fund
6.2%
12.6%
6.7%
7.5%
-0.8%
Private Capital*
6.4%
17.5%
18.3%
13.5%
0.4%
Fixed Income/Cash
-0.2%
- 1.1%
-5.7%
2.4%
0.1%
*one quarter lag in reporting asset values – 3rd Q 2021 Private Capital return likely to be adjusted higher when numbers are reported – 2nd Q 2021 Private Capital return adjusted up to 13.5% versus the preliminary return est. of 4.0%.