The American Club 2018/2019 Annual Report

NOTES TO FINANCIAL STATEMENTS 30 June 2019

13. CLUB FUNDS (cont’d)

From 1 July 2018

Operating Fund

Operating Fund comprises other income and expenses.

Capital Fund

Following Members’ approval on 3 June 2015 for the Club to undertake the Redevelopment Project, the instructions for the fund redemption of the GAP portfolio were issued on 10 June 2015 and placed as short-term deposits to protect the Club from market risk and volatility but with significantly reduced investment earnings. The Club liquidated its investment portfolio in August 2015 and recognised a net realised gain in investment securities and financial derivatives of $17.9 million in FY2016. The funds are currently placed as short-term deposits to meet redevelopment progress payments. As a result of the redemption of majority of the investment portfolio in August 2015, the intention of the sub-funds is no longer aligned as there are insufficient investment returns from the remaining Capital Funds for the annual distribution to these sub-funds. The General Committee therefore has approved to present the sub-funds as a consolidated Capital Fund from FY2019.

The Statement of Changes in Club Funds for the year ended 30 June 2019 is re-presented below for comparative purpose:

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The American Club 2018/19 ANNUAL REPORT