Chess Foundation Update

[Paul Leblanc]

I thought I'd take this opportunity to give you an end of 2009 update on the Chess Foundation of Canada. The fiscal year will end on 30 April 2010 at which point I will submit a more detailed report for the AGM.

I will provide a financial summary at the end of this but I am happy to report that our investments are doing well and I expect in 2010 to increase the amount of income we will submit to the CFC compared to last year. Although interest rates have continued to decline, we still hold some GICs yielding over 4% that have a year or more to run and our diversification into preferred shares with higher yields have mitigated the impact of lower rates on the fixed income part of the holdings.

We currently hold about 60% of the portfolio in GICs and Canada Bonds, 20% in bank preferred shares, 15% in TSX 60 ishares and 5% in cash. The cash holding is reserved at the request of the CFC Executive for expenses expected to be incurred in updating the CFC Website.

In September we received a cheque from Les Bunning's legal office for $65,809.48. This represented excess funds from the sale of the CFC building in Ottawa. We were asked to be prepared to return some of the funds once the anticipated work on the CFC website is completed.

During the summer, we distributed Foundation flyers at all the major Canadian chess tournaments asking chess players to consider the Foundation in their estate planning. It is difficult to say how effective the advertising blitz was but hopefully we raised awareness. If any of you see an opportunity to put in a good word for the Foundation in your chess dealings, that would be great. Remember to mention that donations are tax deductible.


Account Holdings (8 month period ending 31 Dec 09)

GICs $95,000 (maturities ranging from December 2010 to June 2013, interest rates ranging from 3.20% to 4.22%)
Government of Canada Real Return Bonds $47,000 (interest rate 1.75% plus CPI)
Preferred Shares $51,000 (Royal Bank, TD Bank, Scotiabank) (current yield averaging 5.6%)
TSX 60 ishares $35,000 (current yield 2.5%)
Cash $12,000
Total $240,000

In addition to the funds forwarded from the sale of the building, we have experienced a capital gain of $12,000 and received $5,000 in interest and dividends as of 31 Dec. The capital gain was due to fortuitous timing of our diversification into a small percentage of blue chip equities back in February and future gains are expected to be more modest. The interest and dividend income will be handed over to the CFC at the end of the fiscal year (30 April 2010).

Hope this is useful to you

sincerely,
Paul Leblanc
Treasurer

[Egidijus Zeromskis]

During the summer, we distributed Foundation flyers at all the major Canadian chess tournaments asking chess players to consider the Foundation in their estate planning. It is difficult to say how effective the advertising blitz was but hopefully we raised awareness. If any of you see an opportunity to put in a good word for the Foundation in your chess dealings, that would be great. Remember to mention that donations are tax deductible

I remember those flyers. Good work.

There should be the same thing for the CFC and other provincial associations. Smth like a framing poster with possibility to fill the central part. (see the attached picture)
That is one of the best possibilities to inform members about organizations (their waiting time for the next round would be not completely wasted