Ocean Pines Treasurer Larry Perrone this week said the Association’s investments are safe, despite the recent stock market downtown because of COVID-19 (Coronavirus) fears.
“With the downturn in the stock market, as the CFO I wanted to ensure the Ocean Pines membership that our reserves and operating cash is not being affected,” Perrone said. “As has been reported at each Board meeting, our cash reserves and operating accounts are conservatively invested.”
Perrone said Ocean Pines has approximately $5 million invested in money market accounts and $4.8 million in CDARs, both of which are insured. The operating account has an additional $1 million.
“Ocean Pines has no money invested in the stock or bond markets,” Perrone said. “While our average rate of return has been about 2.5%, I fully expect with the Federal Reserve’s lowering of the prime interest rate, it will be difficult for us to maintain that interest income.
“However, in times like this with the volatility of the stock market, the Association’s philosophy of extreme conservatism with regard to our cash investments has proven to be a wise policy,” Perrone added.
For further questions on Ocean Pines investments and reserves, contact Perrone at email@example.com.