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PNC advisers report Q1 dip but project long-term growth for Butler City Legacy Trust
Summary
PNC investment advisers told the Butler City Council the $50 million Legacy Trust fell 2.24% in Q1 but median projections show roughly 5.9% annualized returns over 10–20 years and support a 5% annual distribution.
PNC Institutional Asset Management advisers presented a quarterly review of the Butler City Legacy Trust at a special Butler City Council meeting on April 16, telling council members the portfolio declined 2.24% in the first quarter but that long‑term simulations show continued growth.
"Uncertainty was the name of the game at the start of the year," David Harvey, senior investment adviser, said as he explained that first‑quarter volatility—driven in part by geopolitical disruptions affecting shipping through the Strait of Hormuz—pressed returns in early 2026. Harvey said volatility eased in April and the fund was beginning to recover.
Jacob Passalinqua, an investment adviser with PNC, presented multi‑year simulations showing median annualized returns of about 5.91% at 10 years and 5.89% at 20 years. "Over the next 10 and 20 years, the portfolio is projected (at) 5.91% and then 5.89%. So, it'll be able to support that 5% distribution and still have some left over," he said.
Passalinqua described percentile scenarios to show potential variability: in a strong 95th‑percentile outcome the fund could exceed $160 million by year 20, while a poor 5th‑percentile outcome could shrink it to about $25 million. He said the managers focus on the median outcome as the most likely path. The advisers estimated a 68.2% probability the portfolio would maintain at least its initial $50 million through 2044.
According to materials presented at the meeting, the Legacy Trust represents a portion of proceeds from the sale of the Butler Area Sewer Authority. The packet states the $90 million sale proceeds were split with $50 million placed in the Legacy Trust, $15 million set aside for a five‑year long‑range city projects fund, and $25 million placed at NexTier Bank.
Mayor Dandoy called the meeting to order at 7:03 p.m.; council members Quebedeaux, Painter and Herr were listed as present. The presentation concluded and Mayor Dandoy adjourned the meeting at 7:37 p.m.
No motions, votes or formal council actions were recorded in the meeting minutes related to the trust during the session.
