Page 33 - Dec 2021 Report

30 years - Our Journey Continues Investment/Finance Committee meeting minutes (draft) (6)
Prime and the Committee remain positive on Adage.
b. Silchester International Value Equity Trust is JSF’s second largest investment at $21.2 mill representing 7.6% of total JSF assets. JSF’s investment dates back to 1999. Silchester is 100% employee owned (past and present employees). There has been some turnover in senior management in recent years. AUM totals $43.5 billion and the firm has experienced modest net redemptions recently.
Silchester invests in non-US equities. Silchester is a bottom-up value investor favouring cheap stocks. It takes views on countries, currencies and sectors.
Silchester has an excellent long term track record. Over the last 22 years Silchester has generated a 9.4% annual return, which is double its EAFE benchmark. However, in recent years, with value investing generally out of favour, Silchester has lagged. Over the most recent 5 year period Silchester’s annual return has been 7.3% versus 8.8% for its benchmark although recent performance has improved.
Prime continues to recommend Silchester.
8. Stonecastle–USBancorpholdsmostofJSF’sexcesscash(around$1.6millcurrently),whichisinvestedin a pooled fund holding short term US treasuries earning close to zero. Prior to US Bancorp becoming the JSF custodian (in early 2020) JSF invested its excess cash in a Stonecastle fund that invested in short term deposits of community banks in amounts under the $250,000 FDIC insured limit. Two years ago the yield on this fund was close to 2% however currently the yield is close to zero. Prime sees no reason to invest in the Stonecastle fund and the Committee agreed.
9. Foreign Currency Risk – In the JSF 2020 audited financial statements Templeton indicated that 48% of JSF’s total assets are subject to foreign currency risk. Prime and the Committee felt this was on the high side and Prime indicated it would look into the matter. The Committee also noted some managers hedge foreign currency risk and this should be reflected in this calculation.
10. Next Meeting Dates
March 8, 2022 – 8am EST – by ZOOM
June 20, 2022 – in Boston at Prime offices. Prime hopes to arrange a meeting with Adage. August 18, 2022 – 8am EDT – by ZOOM
November 17, 2022 – 8am EST – by ZOOM
Adjournment – There being no more business the meeting adjourned at 10:00AM EST. Respectfully submitted,
Hugh Brown November 22, 2021
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