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Disbursement
The cash distribution was disbursed by HEI into accounts
maintained by Investment Divisions I and II and the Trident
Service Division as follows: $9,803,000 to the Trident Service
Division and $32 million into each of Investment Division I and
II (together, the Investment Divisions).
Investments
Other than investment returns, the cash distribution was the
only significant source of funds for the Investment Divisions.
In January and February 1988, the Investment Divisions entered
into investment management agreements with certain investment
advisers and, by February 1988, began acquiring investments,
including tax-exempt obligations and shares of stock in domestic
corporations (domestic shares). Within approximately 3 months of
receipt of their respective portions of the cash distribution,
the Investment Divisions had 22.7 percent of their funds invested
in tax-exempt obligations and 10.8 percent of their funds
invested in domestic shares. For the years in issue, the
Investment Divisions held an average of 35.3 percent of their
funds in tax-exempt obligations and 23.2 percent of their funds
in domestic shares. From December 1987 through the years in
issue, the value of assets in Investment Divisions I and II was
not less than $32 million and $31 million, respectively.
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Last modified: May 25, 2011