Co-op places Cash Reserves in Stocks?

I smell kickbacks.

While you should obviously check yourself on exactly what is being held, marketable securities include things such as treasury bills and bonds.

inonda.. good point..

Footnotes state "Mutual funds".. though they can be tied to bonds, munis, etc.. they fall in line with Dow.. Loss in '08, Recovery in '09..

Sunday, yep, thought same.. but that's with any co-op.. (ie kickback from choosing this union elevator guy/landscaper/etc, etc)

Also do co-ops generally spread their cash to different banks to take advantage of $250k FDIC limit?
Figure it shouldn't be that hard.. everyone has more than one bank/credit account nowadays.

There are high risk bonds funds and there are very low risk bond funds. Big difference. Quality and maturity.

I doubt they are doing wild and crazy things. But yes, it's worth finding out what they hold.

"Marketable Securities" of 2,587,262.00 is broken down to...

$1,659,822.00 in Equity Securities
$927,442.00 in Mutual Funds

These are at FMV which is lower than cost.

Isn't that a large portion to be carrying in equities?

I'll also assume portion of 'Mutual Funds' is also in equities due to similar loss ratio from 08 to 09 vs Equities portion...

Wow, I am speechless. While I am all for putting money in stocks, this seems like a poor choice for a coop reserve fund.

It's probably bad, but the equities COULD be ETFs tied to munis or USTs or something less risky. Could be.

absurd risk for a coop.

maybe theyre going with the notion that stocks outperform bonds in the long run??

then id understand if securities were in, say VTI or some market index fund with low fees..

if i see some BRIC funds and industry specific play that'd be a WTF..

how realistic do you think mgmt will be in answering what exact funds/etfs/stocks (tickers preferred) securities are tied to?

..FS and footnotes only show realized losses, not actual fund types or fund names.

Stocks could mean preferred shares....
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Every now and then some guy on a Coop board convinces people who know less about finance than him that returns on cash can be enhanced by investing in bank preferred shares or similar. I'm apt to believe arrogant stupidity on the part of a Treasurer who wanted to look like a hero for making an extra 1-2% return on reserves.

maybe theyre going with the notion that stocks outperform real estate in the long run??

its only a reserve fund, roll the dice, baby

i was a building that took at a hit of 2/3 of their reserve on "investments" as it was stated in their financials. someone convinced the board, smell kick back, that investing in a construction of a mall somewhere was a great idea. lost every penny.