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RBC representative briefs trustees: portfolios up year-to-date, international equities outperformed last year
Summary
An RBC representative told trustees portfolios were up roughly 3.5–4% year-to-date through February, highlighted last year's international-equity outperformance (quoted as ~33% vs. the S&P ~17%), and recommended no immediate tactical rebalancing; trustees discussed policy ranges and last full rebalance in 2021.
An RBC representative presented the trust portfolios' performance and allocation approach, telling trustees the funds were up about 3.5–4% year-to-date through February and that average long-term returns for the trust accounts run near 8%.
"Last year international equities was up about 33% compared to the S and P up 17," the representative said, noting that international exposure had been a major contributor to recent returns and that the firm favors broad diversification rather than tactical overweighting. He also said the portfolios remain within the trustees' targeted allocation ranges and that the last comprehensive rebalance occurred in 2021.
Trustees pressed on rebalancing thresholds and bookkeeping implications. One trustee recited the policy targets as "70% equities plus or minus 5%" and "30% fixed plus or minus 5%," and the group discussed the administrative effort involved in frequent rebalancing and the state reporting burden that accompanies realized gains. The RBC representative said there are no transaction fees to move funds within certain American Funds products, but emphasized that trustees typically avoid rebalancing for small, short-lived deviations from policy to limit bookkeeping workload.
The presentation concluded with trustees agreeing to circulate the investment policy for signatures and to follow up by email on CD placement and cash timing related to town meeting receipts.
