Finance staff, Rockland Trust propose 'prudent investor' warrant to broaden trust‑fund options

Finance Director John Steinberg introduced Barbara Walls, Treasurer/Collector, and Dave Schiller from Rockland Trust to explain a warrant article that would allow the town’s trust funds to be invested under the 'prudent investor' rule. Schiller said the Massachusetts 'legal list' currently limits trust investments—on the equity side—to roughly 22 names and constrains diversification. Adopting a prudent investor standard would permit a broader investable universe, allow a range of equities and funds consistent with a moderate investment objective, and could improve long‑term growth for non‑taxpayer trust funds such as scholarship, cemetery and library trusts.

Schiller noted existing accounts (trust fund and OPEB) are long‑term in nature and that the prudent investor approach would be applied selectively; funds that require conservatism (affordable housing trust or short‑horizon accounts) would remain on the legal list. He described reporting and governance steps: the treasurer/collector is the custodian of trust funds, an amended investment policy statement would be required, and the investment advisor would continue periodic reporting to the town and trustees. Board members expressed support and asked about reporting cadence (monthly reporting was described) and the mechanics of implementing the change; staff said any policy amendment would return to the board for approval and Town Meeting would be asked to adopt the warrant article before any transfers of holdings.