A Message from the Chairman
Dear Investor,
I would like to thank you for your continued support of PSDS and its work helping to grow our churches, particularly with the current uncertainties in the financial markets.
As the Society is not a finance company, it operates in a slightly different way from them. The main purpose of the Society is to make loan funds available to parishes and related organisations at reasonable interest rates. There are presently about 55 such loans, which account for about 25% of your funds. These loans are secured by first mortgages, generally with maximum loan to valuation ratios of 50%.
The Society acts more like a fund manager with the balance of the funds, with 25% currently held on short term bank deposits providing a good level of liquidity, and 30% invested in a spread of corporate bonds, with limits on the amount invested in any one organisation. The Directors of PSDS obtain independent expert advice on the composition of our investment portfolio.
The Society also has a small portfolio of commercial mortgages, all of which are secured at first mortgage at conservative lending ratios and a small portfolio of commercial property investments with no borrowing against those properties.
The Directors also regularly monitor the maturity profile of investors' funds, and the flow of funds into and out of the Society. There are less than 5% of depositors funds that are on call. It is also pleasing to note that reinvestment rates have been maintained, and new funds continue to be received.
The Society has just completed another very successful year with a record surplus of $1,112,812. Net equity has now increased to over $4.75 m, representing 12.6% of investors funds. The Directors consider that the Society is in a sound financial position.
Your support of the Society is very much appreciated. If you would like more information please don't hesitate to contact the Manager, Paul Walker.