Page 46 - 2022 July Report

July Report 2022
Investment Committee minutes (draft)
June 20, 2022
Attendees:
Committee Members: Dick Krause, Hugh Brown (via Zoom), 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 March 8, 2022 meeting were approved. The Committee acknowledged Prime did follow up on a number of outstanding items at the meeting including:
a. Peer group relative performance data dating back to inception in 1996 – JSF ranks #1 b. Baxter Street background information
c. Coronation update
d. MAP transaction review with response to questions posed by Hugh Brown
e. Sector Exposure – historical sector exposure for the Russell 3000 Index
f. Updated analysis of JSF fund manager fees including the estimated impact of Private Capital carried interest fees during the 2017 to 2021 period. As indicated, carried interest fees varied materially during this period and were very material in 2021 when Private Capital returns were very high.
2017 9.6% 0.3%
2018 7.6% 0.0%
2019 10.8% 0.6%
2020 24.9% 3.4%
2021 54.0% 9.2%
*The Carried Interest Fee assumes an 8% hurdle rate and is in addition to the 1.32% management fee
g. One item not followed up upon was JSF foreign currency exposure. The Committee questioned the Prime statement in the JSF 2020 financial statement footnote that said 48% of JSF total assets are subject to foreign currency risk. Prime provided a worksheet for this calculation but the Committee would like to discuss the matter at our next meeting.
JSF Private Capital Returns (net of all fees)
20% Carried Interest Fee
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