The American Club 2021/2022 Annual Report

PAGE 86 THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2021 / 2022

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2022

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 appropriately hedged with Bank of Singapore. The investment securities were increased to $15.0 million in February 2022, with the remaining funds placed as short-term deposit 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.