Tunbridge trustees select American Funds "fund of funds" after Edward Jones follow-up

Trustee David Gold reported at the Jan. 24 meeting that Edward Jones does not offer fiduciary fee structures to municipal clients and presented alternative investment products that would reduce fees while avoiding transaction‑level approvals.

"They do not offer fiduciary fee structures to municipal clients," Gold said, describing his discussion with Edward Jones’ legal department. Gold told trustees that because the aggregate value of town-managed funds exceeds $1 million the accounts meet a commission‑free breakpoint for the alternatives he reviewed. He contrasted an American Funds "fund of funds" and a John Hancock "fund of funds," saying both are managed by mutual fund managers, automatically rebalance without per-transaction commissions, and can keep cash on hand for beneficiaries.

Trustee Matt Frost moved to adopt the American Funds option; Trustee Rob Howe seconded the motion and the trustees voted unanimously to proceed. Trustees noted the town's public cemetery fund will be placed in a fund that meets state regulatory requirements regarding the balance of bonds and equities. Gold advised the trustees the fund conversions will remain commission‑free provided the town does not withdraw from principal (as opposed to earnings) for the next 18 months.

As a procedural follow-up, Gold said his assistant will email the form needed so the town library treasurer can receive monthly statements and obtain phone balance information; Trustee Liz York will obtain the required signatures and return the paperwork.

The trustees adjourned at 11:15 a.m.