Town of Lincoln trustees keep S&P-based investment policy and approve $700,000 bond purchase

The Town of Lincoln Trust Fund trustees met and voted to retain the draft investment policy’s S&P-diversified index requirement for equities and to invest $700,000 from capital reserve cash into bonds recommended by the Bank of New Hampshire.

Presenter (S2), who led the review of the trust and capital reserve accounts, told trustees the portfolio’s grand total was about $9,400,000 and that the capital reserve had roughly $1.8 million in cash — near the 15–19% range S2 identified. "Equities returned about 18% last year, while international returned about 30%," S2 said, and recommended that amounts above the $1,000,000 liquidity threshold be invested in fixed-income securities using a bond-ladder approach to preserve liquidity and lock in current yields.

The discussion centered on two decisions: how to treat excess cash in the capital reserve and whether to alter the investment policy’s language to explicitly allow a portion of equity exposure to be held in international funds. S2 explained the bond maturity schedule and liquidity plan, noting specific upcoming maturities (corporate maturities were cited including Apple and Merck) that create predictable cash inflows the trustees could use for reinvestment. S2 also described the plan to build a five-year maturity bucket (2031) to take advantage of current rates.

Trustee S3 pushed back on allowing international equity exposure in the policy, questioning transparency and what "developed international" actually meant. "I don't see the need for this, to be honest with you. I don't know what the heck they're investing," S3 said, urging caution and a preference for U.S.-based investments. S2 responded that the trustees’ existing holdings include a Vanguard global ex-U.S. fund that is primarily developed-market exposure and that a modest international weight (the draft benchmark included roughly 15% of the equity portion) can improve diversification while remaining trackable.

After discussion, S3 moved to continue the policy language as written — preserving the S&P-diversified index preference — and the trustees approved the motion (the transcript records an abstention by one member but does not record a full roll-call tally). The board then voted to invest $700,000 of capital reserve cash in bonds recommended by the Bank of New Hampshire; S3 moved the bond purchase and S1 seconded. The motion carried by voice vote (transcript records an affirmative vote and a pass; no detailed tally provided).

The trustees also approved the previous meeting minutes earlier in the session by voice vote. The meeting closed with the chair noting next meetings (a bank review scheduled for April 16 and a reorganization meeting to be held March 12) and adjourning at 11:32 a.m.

What trustees recorded and what remains to be clarified: the transcript documents the portfolio totals cited by the presenter and the trustees’ direction to keep a $1,000,000 minimum cash threshold for the capital reserve. Several precise figures were discussed in the presentation (dividends/interest and changes to investment values) and were described in the accompanying materials; trustees requested a follow-up email from the chief financial officer (S1 asked Paul to email Presenter S2) to confirm planned allocations and to finalize any minor policy wording changes outside the meeting.

The trustees did not adopt a substantive change to the investment policy at this meeting; they recorded their preference to leave the S&P-diversified index language in place while allowing staff and the financial officer to follow up with any clarifying wording.