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Treasurer, investment consultant brief Select Board on ‘Prudent Investor’ ATM article to broaden town trust investments
Summary
Treasurer Christine Wedge and consultant Brian Jamros told the Select Board a Prudent Investor ATM article would broaden permitted trust-fund investments beyond the state’s legal list to allow diversified instruments; presenters said the change is intended to reduce concentration risk and that the treasurer would work with advisors to set policy.
Christine Wedge, the Town’s Treasurer/Collector, and Brian Jamros of Bartholomew & Company presented an Annual Town Meeting (ATM) warrant article proposing that Bedford accept the Prudent Investor Rule, which would expand the types of investments allowed for municipal trust funds, including cemetery perpetual care funds.
Wedge and Jamros said the change would permit broader diversification — for example, commingled funds, ETFs or other instruments — in place of the narrow statutory “legal list” currently limiting municipal trustees. Jamros told the board that the article itself “does not increase risk,” adding that increased equity exposure does raise risk but that diversification is intended to reduce concentration risk across a portfolio. He said the Treasurer and his team would update an investment policy statement tailored to expendable versus nonexpendable funds and meet with the treasurer at least twice a year to review investments.
Board members asked about oversight and the mechanics of adoption; Wedge said her office, together with Jamros’ team, would set the investment policy and targets for each fund type. The article appears on the draft ATM warrant as an article to accept M.G.L. c.44, §54(b) (the Prudent Investor Rule). The board thanked the presenters and did not take further action at this meeting; placement on the warrant will proceed according to the Select Board’s ATM process.
