Page 32 - January 2023 Report

January Report 2023
Investment Committee meeting minutes (draft) (4)
on buyout/growth equity funds as it attempts to build up the JSF weighting in this Private Capital space from the current 24.3% to 30% to 60% and reduce the weighting in venture funds, which Prime regards as riskier and more volatile, from the current 49.5% to 20% to 40%.
5. Investment Activity – Dick circulated two schedules showing investment activity over the 4-month period July 1 to October 31, 2022. In total there were 67 transactions. Noteworthy recent transactions include the October redemption of Semper Vic ($6.5 million) and reinvestment in Vanguard Emerging Markets ($5.0 million) and Vanguard Non-US Developed Markets ($1.0 million) all of which were agreed to at the Committee’s August 18, 2022 meeting. Also noteworthy is the surge in capital distributions (inflows) in October highlighted by $839,473 received from ARCM IV and $302,201 from MAP Heritage.
6. Cash Flow Forecast – The cash position of JSF as of October 31, 2022 was $3.4 million. Over the following 5 months to March 31, 2023 cash outflows are estimated to total $7.7 million including: grants $4.9 million; operating expenses $0.8 million; net Private Capital calls of $0.5 million; and the additional Farallon investment of $1.5 million. In order to cover this cash outflow and leave an adequate balance the following asset sales totaling $5.5 million are scheduled – Vanguard US Equity Index Fund $2.8 million; Vanguard Emerging Market Fund $1.7 million; and Fidelity Intermediate Treasury Bond Fund $1.0 million.
7. Portfolio Investment Return Calculation – The annual portfolio investment return data calculated by Prime (see Table 2) recognizes the timing of cash flows received during the year. In a technical sense this calculation is more accurate and comparable to data presented by other foundations. In addition, this investment return data is used to calculate Malcolm’s deferred income. The Committee also likes the simpler calculation which divides net investment revenue for the year into the portfolio value at the beginning of the year. The Prime calculation generally results in a slightly higher annual return (or loss). In the future Dick intends to present both annual return figures.
8. Next Meeting Dates
February 16, 2023 – 8am EST – by ZOOM
June 5, 2023 – 8am EDT – at Prime Boston office – Adage meeting planned August 17, 2023 – 8am EDT – by ZOOM
November 16, 2023– 8am EST – by ZOOM
9. Adjournment – There being no more business the meeting adjourned at 9:40am. Respectfully submitted,
Hugh Brown November 22, 2022
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