By Alyssa Schnugg
The investment from the sale of the old Baptist Memorial Hospital-North Mississippi in 2021 is now worth more than $39M.
That’s after the city has received almost $8M in annual payouts each year and the fees paid to the investment firm, Glenmede, that manages the count.
Since its inception, the fund has earned about $18M.
The fiscal year for the fund runs from April 1 through March 31. During this fiscal year, the fund earned $647,090.
The annual 3% payout goes into the city’s general fund to help fund a variety of projects.
This year, the city could receive a payout of around $1,176,000.
The fund’s long-term goals, set up by the committee, are capital preservation and real growth after inflation and the annual 3% payoff.
In 2012, Baptist paid the city and Lafayette County $60 million to buy the hospital so it could get out of its lease and build the new Baptist hospital that opened in November 2017. Baptist eventually sold the old facility to the University of Mississippi for $22 million. The city and county split the funds and received $30 million each.
As of March 31, 46% of the assets are allocated to equities, 48% is allocated to fixed income and 6% is allocated in cash. Fixed income investments are in high-quality U.S. bonds rated A or better with a tilt toward corporate bonds.