COLUMBUS — Two financial firms have been selected to manage Lowndes County’s $30-million hospital trust fund.
The Lowndes County Reserve and Trust Fund board of trustees voted unanimously Tuesday to select Stephens Capital Management and Renasant Wealth Management to manage and invest the money from the county’s hospital sale.
Twelve firms had initially offered proposals. The board selected three to make presentations. The other firm interviewed was Wells Fargo Advisors.
The Commercial Dispatch reports details of the contracts with the two firms have not been finalized. Based on the fee schedule each firm provided in a scenario of managing $15 million, however, Stephens would charge $87,000 and Renasant would charge $86,625.
“I think that’s a trade-off we have to do to have some diversity and to have some competition,” said county Supervisor Harry Sanders, president of the trust fund board. “They’re not going to want to let the other one beat the other one. They’re not going to overly gamble or take shortcuts, but they’re going to pay better attention.”
The Legislature created the Lowndes County Reserve and Trust Fund this year and authorized the county to place funds in interest-bearing accounts including state, federal, government and corporate AAA bonds, as well as common stocks.
The reserve fund trustees are all five Lowndes County supervisors.
According to the law, trustees can choose to transfer up to 85 percent of the interest made yearly into the county’s general fund. The remainder would roll back into the $30 million principal and stay there. None of the principal can be spent unless supervisors declare an emergency, in which case up to 5 percent could be withdrawn on the condition it is paid back.
Baptist Memorial Health Care bought the previously county-owned hospital in 2001.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info