Page 51 - 2022 July Report

Resilience
Investment Committee minutes (draft) (6)
Private Capital weighting has increased to 27.6% currently. Prime will prepare the recommendation with respect to new allowable ranges for these two asset classes, which has to be approved by the Board.
7. New Private Capital Commitments
a. Kimmerridge Fund VI – $2.5 mill – low cost unconventional upstream energy investments in the
continental United States
b. TrueBridge Global Premier Fund I - $1.35 mill – a vehicle to invest in underlying Sequoia Capital funds (which are hard to access directly)
8. Investment Activity – January 1, 2022 to May 31, 2022 – Schedules summarizing investment
activity over the first five months of 2022 were circulated. In total there were 104 transactions. Investing activity outside the Private Capital space was as expected with the $10 million investment in Baxter proceeding funded by partial redemptions of Silchester and Vanguard Developed Non-US Equity Index Fund. The Mangrove redemption (at $2.1 mill) was completed with the exception of a side pocket. Within the Private Capital space (where Prime has full discretion) net cash flow has now turned negative with new capital calls (outflows) exceeding distributions (inflows) by $773,000 during the first five months of 2022 for a monthly average net outflow of $155,000. Given the recent increase in new Private Capital commitments ($12.8 mill in 2021 and $7.4 mill in 2022) plus the downturn in equity markets making it more difficult for managers to exit investments the Committee expects the net outflow in the Private Capital space to increase.
9. Cash Flow Forecast – As at May 31, 2022 JSF’s cash balance at US Bank was $3.2 mill. Anticipated cash outflows over the next five months total $5.7 mill including grants ($4.4 mill), operating expenses ($0.8 mill) and net Private Capital calls ($0.5 mill). Anticipated investment redemptions total $4.0
mill including Mangrove ($1.0 mill), Vanguard US Stock Index Fund ($1,750 thous) and Vanguard Development Market Fund ($1,250 thous) leaving the cash balance on October 31, 2022 at $1.5 mill.
10. Yield on First American Treasury Obligations Fund at US Bank – The recent increase in US short term interest rates has increased the yield on this fund from close to zero to 1.2% recently. This yield should continue to rise assuming continuing increases in short term interest rates.
11. Cryptocurrencies – Prime is not a fan of cryptocurrencies. Recent events suggest they do not offer protection against higher inflation, are not a store of value, and are illiquid. Security is also an issue with recent hacking events. So why bother. JSF has minimal exposure to cryptocurrencies.
12. Next Meeting Dates
August 18, 2022 – 8am EDT – by ZOOM November 17, 2022 – 8am EST – by ZOOM
13. Adjournment – There being no more business the meeting adjourned at 2:35PM EDT. Respectfully submitted,
Hugh Brown June 24, 2022
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