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PNC reviews Lake Norman Charter investment performance and asks board to reaffirm investment policy
Summary
PNC representatives reviewed the school’s portfolio performance for 2024, discussed asset allocation and market outlook for 2025, and asked the board to affirm the Investment Policy Statement; the board agreed to discuss any material changes in a future committee meeting.
PNC representatives reviewed Lake Norman Charter’s investment portfolio performance for 2024 and asked the board to reaffirm the Investment Policy Statement (IPS).
Frank Pack, an advisor with PNC, and Jake Smith, an analyst with PNC, presented quarterly and trailing returns and described the portfolio’s asset allocation. Pack said the portfolio was “pretty well diversified,” and that the IPS target provided to PNC calls for 30% equities, 68% fixed income and 2% cash, with a 10% variance either way.
Pack and Smith noted fourth-quarter volatility in equity and bond indices and said PNC’s 2025 outlook includes possible rate cuts and tariff-related risks that could increase market volatility. Smith described the value of diversification across U.S. and international markets and credit sectors and recommended considering active managers in smaller asset classes.
Board members discussed remaining conservative in allocation and possible portfolio adjustments. One board member asked whether the board should request a formal proposal; the board agreed a more comprehensive discussion with the investment committee is appropriate before making material changes.
Pack also noted about $40,000 of accrued income in the portfolio that typically would be reinvested under the IPS and asked the board to flag any near-term cash needs; the board said staff would check with the school’s finance director about cash needs related to elementary school financing before PNC reinvests that amount.
The PNC team declined to recommend an allocation to Bitcoin ETFs for a conservative portfolio, describing regulatory and structural uncertainties. The PNC representatives closed by offering to provide further detail to the board or committee on request.
