From the Resident Director’s Desk – August 2017

This month’s guest writer is Willow Pasley, Chair of the NSC Treasury and Investment Committee.—Pat Davis

Established in 2011 by National Senior Campuses (NSC), the NSC Investment & Treasury Committee assists the Community Boards in matters of treasury and investment management. Working closely with Erickson Living’s Treasury Department, the committee establishes policies that govern the investment of operating cash, cash reserves, and restricted funds, such as Resident Care Funds. The policies address asset allocation, permissible investments, and targeted returns for acceptable risk.

In 2015, the committee engaged Vanguard Investments as our new investment advisor and investment manager.

Long-term cash reserves of the communities are invested in the National CCRC Business Trust.  The strategic objective of the trust is to centralize the management of long-term investments under professional managers to take advantage of scale, achieve efficiencies, diversify using a broad spectrum of investment categories, and to enhance returns. At the present time, seven NSC-affiliated communities, including Riderwood, invest in the trust.  Trust assets totaled $422.4 million at the end of 2016 with an asset allocation of 60% equities and 40% fixed income.  The annual return was 6.85% net of fees.

The Resident Care Fund pool had assets of $23.7 million at the end of 2016 with an asset allocation of 60% fixed income and 40% equities.  The annual return was 5.69% net of fees.

The committee, which meets quarterly, is chaired by Willow Pasley, NSC and Northeast Regional Board member. There are five additional members who represent different geographic regions across the enterprise.

 

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