Treasurer and consultant brief Select Board on 'Prudent Investor' ATM article to broaden trust-fund investments

Town Treasurer Christine Wedge and Brian Jamros of Bartholomew & Company presented a proposed Annual Town Meeting article on Jan. 26 that would allow the town to invest municipal trust funds under the Prudent Investor Rule rather than the more restrictive Massachusetts Legal List.

According to Wedge and Jamros, adopting the Prudent Investor standard would permit a wider set of investment vehicles — including diversified mutual funds, exchange-traded funds, individual securities and other instruments — for funds such as cemetery perpetual care accounts, unless a donor specifically directs otherwise. Jamros said broadening allowable investments can reduce concentration risk and provide more balanced portfolio allocation and that, with an appropriate investment policy statement (IPS) and oversight, "the article does not increase risk"; he added that the treasurer’s office and his team would collaborate on investment decisions and provide recommendations based on the goals of expendable versus non-expendable accounts.

Board members asked about risk and governance. Wedge said the treasurer (with Jamros’ team) would receive and act on recommendations and would draft an IPS tailored to account objectives; Jamros said his team would meet with the treasurer at least twice a year and was available for more frequent consultations. The board thanked the presenters; no vote on the warrant language was recorded at the meeting, which is a preliminary presentation to inform the board’s decision whether to place the article on the ATM warrant.

What’s next: The Select Board will decide whether to include the Prudent Investor article on the Annual Town Meeting warrant; if adopted by voters at ATM, the town would adopt a broader investment standard and should establish a written investment policy and oversight procedures before implementation.