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Investment manager: trustees’ portfolios down in Q1, up sharply Q2; no policy changes recommended
Summary
At the May 20 meeting, the trustees heard a quarterly investment review from their TD representative who reported a Q1 loss of about 1.92% but a Q2 rebound near 8% that pushed the scholarship portfolio’s market value above $16 million; TD recommended maintaining the current investment policy and said it would consider a fee request within weeks.
At the May 20, 2026 meeting of the Trustees of Trust Funds, a TD representative reviewed quarterly performance across the trust portfolios, saying the scholarship portfolio stood at roughly $14.15 million at the end of first quarter and was now over $16 million after a strong Q2 rebound.
TD’s presenter said the portfolios are managed to a consistent model allocation — roughly 75% equities and 25% fixed income — with a 2% cash target and a large weighting to U.S. large-cap exposure. The presenter reported the scholarship portfolio was down about 1.92% in Q1 but was up nearly 8% quarter-to-date in Q2 and roughly 5.6% year-to-date.
Peter asked why corporate profits for oil companies had risen sharply. The TD representative attributed the profit gains and the market’s energy-sector strength to global oil prices and the resulting market reaction, noting that energy stocks were the quarter’s largest winner.
On sector performance, the presenter said energy returned about 38% in Q1, which supported value and dividend-style segments even as information technology and several growth sectors lagged. He cautioned that the same diversification that limited losses in Q1 was a relative detractor during the early Q2 S&P 500 rally.
TD reviewed interest-rate moves and the yield curve, saying the 2-year and 10-year Treasury yields rose in the period tracked and that the firm had modest overweights to equities and underweights to fixed income in its tactical view. On inflation, TD noted April CPI was reported at 3.8% and that while some inflationary pressure was tied to energy, they expected that pressure to be temporary.
Summarizing advice to the trustees, TD emphasized adhering to the board’s investment policy. "Staying to your investment policy targets has been by far, the best thing that investors can do," the presenter said, pointing to the long-term historical record in the firm’s slides. When a trustee asked whether TD would consider reducing fees because assets managed had grown, TD said it would bring that question to an internal committee and return an answer in a few weeks.
The trustees asked clarifying questions about international allocations, rebalancing and the firm’s tactical calls; TD said no immediate changes to the investment policy were recommended but confirmed it would review fee questions and follow up.
