The American Club 2020/2021 Annual Report

65 PAGE

NOTES TO FINANCIAL STATEMENTS 30 June 2021

15. CLUB FUNDS

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 2016. From June 2021, the Club placed $10.0 million as investment securities and financial derivatives with Bank of Singapore, with the remaining funds placed as short- term deposits and for working capital. 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 2019.

THE AMERICAN CLUB SINGAPORE