I do believe sir, that you have that exactly accurate, as reflected in the minutes. The minutes do indeed state he said that we shareholders do ourselves a dis-service when we buy low and sell high. You wouldn't know it, but Mr. Sanchez is a professional banker by trade.
And I will also note the interest rate the G fund is paying-
Several years ago, the present board discussed at a meeting, the fact that most of the G fund balance was in long term treasury notes- 30 year bonds, and earning much higher rates back then. The discussion at the time was - why is it in 30 year notes, when much of the G fund will be paid out to the current holders before 30 years is up. Ms. Ray's recommendation, as I recall, is to change to short term notes of 3-5 years. She also worried that if all the G fund holder switched OUT of the G fund, they would have to sell a lot of 30 year notes and lower rates. So she recommended shorting the term on all the G fund notes.Ms. Ray reported that the G Fund rate remains at 2.88 percent.
The 30-year T-bond is yielding 4.51 percent and the 10-year note is yielding 3.40 percent
So they did.
And as a result, instead of getting 4+ percent interest in the G fund, now G funders are only getting 2.88 percent return.
That folks, is a crime.
My two cents.
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