Portfolio value as of September 30, 2026
The board moved reserve funds into a managed bond portfolio, and it has done exactly what it was meant to do. The yield has climbed from 4.2% in June to around 5% today. A first $700,000 was moved across on September 29. The association is asking the membership to approve moving the remaining reserve cash into the same portfolio, so money held for future repairs earns while it waits.
Reserves total $4,421,862. Of that, $3,967,418 is now invested and $454,344 remains in a bank money market at 2.55%. The portfolio has produced $103,563 of interest this fiscal year against a $90,000 full-year budget, and the bonds now yield 4.98%. Moving the remaining $454,344 would earn roughly $22,600 a year instead of about $11,600 where it sits. Reserve money is collected years before it is spent. While it waits, it should be earning.
Redrawn from the custodian's six-month chart. The opening and closing values are exact; the path between them is as displayed by the custodian. Past performance does not predict future results. On September 29 a further $700,000 was transferred in from the bank, taking the portfolio to $3,967,418. That step is a deposit, not investment growth, so it is deliberately not drawn on the line above.
From about $3.19M on 30 March to $3,268,672.54 on 23 September. The line rose in nearly every week of the period, with one shallow dip in July. This is a bond portfolio, not equities: the aim is steady income, not growth.
Of the $3,967,418 total, $3,042,488 sits in 30 corporate bonds and $924,930 is in the cash sweep, earning 3.63% and available immediately. Reserve money remains reachable for scheduled work. Investing reserves does not mean locking them away.
| Where the money could sit | Rate | Annual on $454,344 |
|---|---|---|
| Standard business savingsThe national average for business savings and commercial bank accounts. | 0.38% |
$1,727 |
| Top-tier digital and high-yield commercialThe best generally available commercial deposit accounts, September 2026. | 3.00%
3.70% |
$13,630 to $16,811 |
| TAO reserve portfolioWhat the 30 corporate bonds yield today, up from 4.30% in May after the advisor moved idle cash into higher-yielding notes. | 4.98% |
$22,626 |
| We are ahead of the best commercial rate available | — | Not by luck, by mandate |
| Line | Actual | Budget | Result |
|---|---|---|---|
| Reserve interest, 10 monthsEarned through September 30, 2026 against a budget written for the entire twelve months. | $103,563 | $90,000 | 115% of the year, in 10 months |
| Estimated annual income nowThe custodian's estimate of what the portfolio earns at its present holdings, up from about $136,500 in May. | ~$185,200 | $90,000 | More than double the budget |
| Reserve balance growthDecember 1, 2025 to September 30, 2026, contributions and interest combined. | +$750,931 | — | $3.67M to $4.42M |
| Every dollar of this interest stays in reserves | — | — | It does not fund operations |
| Amount moved into the portfolio | Illustrative annual interest | Over five years |
|---|---|---|
| $150,000 | $7,470 | $37,350 |
| $300,000 | $14,940 | $74,700 |
| $454,344All of the reserve cash still sitting outside the portfolio. There is no more than this to move. | $22,626 | $113,132 |
| At the bonds' current 4.98% yield | Simple interest, not compounded | Not a guarantee |
Approval to transfer the remaining reserve cash into the same managed portfolio that already holds $3,967,418 of association reserves, on the same conservative, income-first mandate. A first $700,000 moved across on September 29; $454,344 is what is left outside it.
What it looks like afterwards. Essentially all reserve money would sit in one managed portfolio, with $924,930 of it already in the cash sweep and reachable immediately. The Board would keep whatever working balance it judges necessary for scheduled work outside that total.
Why it matters. Reserve money is collected years before it is spent. A roof, an elevator modernization or a concrete restoration is funded a little each month, long in advance. Cash sitting idle for those years loses purchasing power to inflation. The same money invested conservatively earns, and every dollar earned is a dollar the membership does not have to contribute through assessments or a special assessment later.
What does not change. The money stays association reserve money, restricted to its reserve purpose. SIRS funds remain restricted to SIRS components. A working cash balance stays liquid for scheduled work, and the portfolio itself already holds $924,930 in the cash sweep.