Lincoln Board of Trust Fund Commissioners
Minutes of January 22, 2003 Meeting
Carol Caswell, Chair
Donald Collins, Commissioner
John Murray, Commissioner
Roy M. Raja, Town Treasurer
Paul F. Sagarino, Jr., Assistant Town Treasurer
Joshua Paul, Bartholomew & Co.
Mrs. Caswell called the meeting to order at 7:30 AM and reviewed the morning’s agenda.
Mr. Sagarino informed the Board that the Codman Trust had presented the Town with $36,000.00 for the creation of a new Scholarship Trust Fund. The trust document provides for a substantial reward to be given to a Lincoln student for ongoing undergraduate higher education, which would include trade and technical schools. A copy of the trust document is attached.
Mr. Paul then proceeded to review the Town’s investments for the past quarter. A copy of the report he distributed at the meeting is attached. Mr. Paul noted that the Town’s portfolio was conservatively invested and therefore less volatile. He indicated that the pool was invested in short-term debt securities, as they were unsure at this point where interest rates were going and they did not want to be locked in if rates were to rise. Mr. Paul feels that after resolution of the crises that exist in Iraq and North Korea that financial markets should stabilize.
Mr. Collins noted that no new securities had been purchased in the pool’s equity portfolio since January 8, 2002. He questioned Mr. Paul as to how actively the portfolio was being managed. Mr. Paul responded that he didn’t feel there was reason to sell most of the companies that the fund holds now, as there were currently not better companies to be invested in.
A brief discussion followed. Mr. Collins asked for clarification of how management fees were determined for mutual funds and Mr. Murray asked for Mr. Paul’s opinion of an investment called TIPS.
Mr. Paul then presented his analysis of how much the Stabilization Fund should repay to the trust fund pool. The Commissioners felt that the Town’s decision to remove the Stabilization Fund monies from the trust fund pool in early 2002 had an adverse effect on the remaining trust funds’ investment earnings due to the timing of the removal and the accounting methods used to account for the funds. At the October 2002 meeting, the Commissioners asked the investment advisor to perform an analysis of the transactions to determine a dollar amount that could be repaid by the Stabilization Fund to the trust fund pool. Mr. Paul presented a figure of $7,749.25 and the Commissioners agreed that the rationale behind Mr. Paul’s calculation was sound. Mr. Sagarino indicated that the proposed payback amount was
acceptable to the Town Finance Department and Town Administrator and that he would prepare the necessary paperwork to facilitate the transfer of funds. A copy of Mr. Paul’s analysis is attached.
Mr. Collins suggested that the Board periodically meet without the investment advisor present and the Board agreed.
The meeting was adjourned at 8:50 AM.
Carol Caswell, Chair _____________________
Donald Collins _____________________
John Murray _____________________
| 
