Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Investments Fees topic
No spam. Unsubscribe anytime.
Lincoln trustees bar some actively managed funds, press Bank of New Hampshire for fee details
Summary
Trustees adopted a policy to prohibit certain actively managed funds, asked the Bank of New Hampshire for clearer breakdowns of embedded and account-level fees, and heard the bank explain its fund‑selection process and fee schedule (0.38% capital-reserve fee; 0.80% trust fee plus $100/month reporting).
The Lincoln Trustees on an unspecified date moved to tighten their investment policy and pressed Bank of New Hampshire representatives for clearer fee and performance information after raised concerns about previously discussed fund choices.
Trustees adopted language added to their investment policy that, according to a trustee speaking at the meeting, states that eligible investments must comply with limits and that “the trustees do not allow investment in the interest funds due to higher fees and inferior performance compared to index funds.” The board also asked the bank for a breakdown of embedded fund fees, expense ratios and past performance for proposed new investments.
Frank, a bank representative who introduced visiting colleague Bob McGahn, said the bank formalized the earlier complaint and that compliance is aware. The bank described its managed-allocation approach—evaluating correlations, performance and expense ratios when adding funds—and said it monitors fund returns and will replace funds that slip in performance. On the board’s preference, bank staff confirmed they will favor S&P-indexed vehicles where appropriate.
The bank provided a fee schedule at the meeting. The firm said capital-reserve accounts are assessed a flat fee of 38 basis points (0.38%) of market value. Trust/managed accounts carry a higher fee—reported in the meeting as 80 basis points (0.80%)—and there is an additional $100 monthly charge for the bank’s reporting and recordkeeping tied to MS‑9/MS‑10 filings. The trustees asked the bank to include both the account-level fee and any embedded fees charged inside mutual funds or ETFs in future disclosures.
Trustees also reviewed account balances and asked clarifying questions about which funds in the portfolios are actively managed versus indexed. The board identified two equity funds described in the meeting as actively managed; trustees asked the bank to return at a work session to consider whether those positions should be converted to passive/indexed alternatives.
A trustee moved to accept the prior meeting minutes during the session; the motion was agreed to on a voice vote. The meeting concluded with a motion to adjourn that passed; the transcript records the meeting ending at 11:21.
Trustees said they will schedule a work session to review the bank’s proposed changes and the two active equity funds in detail. The bank offered to return in the fall with additional documentation and to provide a session for local municipal-trustee clients to share best practices.
