Fund Summary
The Pooled Fund was set up to enable units to recognize a greater return on their collective or "pooled" investment than they could on their individual investments. This is accomplished by investing larger sums of funds which enables us to achieve better rates of return. The funds are invested with Merrill Lynch. Statements are sent out to each unit quarterly.
The fund is invested only in money market funds and CD's to ensure the safety and preservation of the principal invested by the units. Currently, the fund does not invest in stocks or bonds due to the lack of security in these type investments.
The funds income is distributed as it is payed out from the various investment vehicles. This may result in large fluctuations of income on the quarterly statements. For example:
Assume that the fund had only $100,000 to invest and that it invested this sum entirely in one CD that paid out its earnings semiannually in June and December. Further assume that the CD's rate of return is 6%. This would result in Quarterly Statements that would appear as follows:
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | |
| Earnings | $0.00 | $3,000.00 | $0.00 | $3,000.00 |
| Rate of | ||||
| Return | 6% | 6% | 6% | 6% |
You will note that while the fund is earning a 6% return annually, if you attempted to calculate the return (earnings divided by principal) from any one of your quarterly statements, you would not come up with anything higher than a 3% return.
The rate of return is always listed on the quarterly statements and is calculated by taking the average current yield of investment vehicles currently held by the fund.
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