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Treasurer presents 'Prudent Investor' warrant article to broaden investment options for town trust funds
Summary
Treasurer Christine Wedge and advisor Brian Jamros told the Select Board that adopting the Prudent Investor rule would allow diversification beyond the state 'Legal List'—they said diversification can lower concentration risk and outlined proposed investment-policy safeguards.
Treasurer/Collector Christine Wedge and Brian Jamros, an investment representative from Bartholomew & Company, presented an Annual Town Meeting warrant article (Article 18) to allow the Town of Bedford to invest municipal trust funds, including cemetery perpetual-care funds, under the Prudent Investment Rule.
Wedge said the change would expand the town’s permissible investments beyond the narrow Massachusetts Legal List, allowing investment managers to use diversified mutual funds, ETFs, individual securities and other instruments where appropriate. Jamros told the board that, while expanded options can increase potential equity exposure, the article itself does not inherently increase portfolio risk; diversification and an updated investment policy are intended to reduce concentration risk.
Board members pressed for detail on governance and oversight. Jamros explained that investment decisions would be guided by an investment policy statement (IPS) tailored to asset composition and fund objectives; he said his team would provide recommendations and meet with the treasurer at least twice a year, with additional meetings available as needed. Wedge said the treasurer and Jamros’ team would draft an IPS distinguishing non‑expendable and expendable funds and setting minimum and maximum targets by asset class.
The board thanked Wedge and Jamros for the presentation. No motion or vote on the warrant article occurred at this meeting; the article remains slated for placement on the Annual Town Meeting warrant for further consideration.
