When the Board turned over at Waterfall Estates, the newly elected members expressed interest in implementing a different investment strategy for the association. The manager enlisted the help of FirstService Financial and our team of subject matter experts.
Within their existing strategy, the association was earning just over $3,000 annually on nearly $800,000 of operating and reserve funds—a return barely over 0.4%. In addition, they had a significant amount of uninsured reserve funds not protected by the FDIC.
By diversifying the portfolio, reallocating reserve funds into a combination of CDs and money market accounts, and moving existing out-of-network funds to in-network financial institutions, FirstService Financial developed a plan for the Board as an alternative to their current strategy. With fully-insured funds that still provide the required liquidity, our recommendation would allow the association to increase its annual return by over 300% to $10,332.
The manager presented our proposal to the Board, and it was easily approved at their next meeting.
Curious to find out how FirstService Financial can help your association? Contact us today.