Morrill Memorial and Harris Library Investment Committee

Minutes of May13, 2015 Meeting

 

Present:  Cindy Stableford, Betsy Ruml, John Hawkins, Gretchen Rittenhouse,  Rachel Kurland

 

Rachel Kurland, Treasurer of the Library Trustees, will be serving on the Committee as the Board representative.

 

Minutes of January 20, 2015 approved.

 

Rachel provided the Library Board report:

1.     On target financially (except for snow removal), so no cash needs from the endowment.

2.     Looking for new grants to fund programs as Terrell Grant receipts decline.

3.     New lights upstairs were paid for by the Friends; no big projects on the immediate horizon.

4.     The Selectboard will meet next week to determine what to do about the $1,000 Harris Library bequest held among the Town Funds.  They are expected to issue a check to the Trustees of the Library, who will then pass it on to the endowment.  Since use is restricted to income, Betsy suggested putting the principal in the Vanguard Wellington fund with the other bequests.

 

Cindy reported for the Friends:

1.     They are setting up a “Little Free Library” at the Café.

2.     Preparations for the summer book sale are underway.

3.     At the upcoming meeting on 5/26, they are expected to make their annual donation to the Library.

4.     Annual membership letter has gone out.

 

Report from the Chair:

1.     Cindy carried out actions voted on last meeting, which are outlined in the attached Note 1).

2.     Cash balances are at $9K, so will deposit the Friends’ annual donation to this account to bring it back up to $10K target.

3.     We discussed new draft language regarding distributions from the endowment per the discussion at the previous meeting. Cindy will prepare the final draft and distribute it to Committee members for review.  The language will be presented to the Trustees for approval as a change to the Operating Guidelines at the 6/8/15 meeting.  A member of the Investment Committee will attend that meeting.  (See Note 2 below)

 

 

Portfolio review:

1.     As reported, changes made per decisions at previous meeting.

2.     Current balance is $255,989 (up from $251,460 on 12/31/14):  66% equity, 28% FI, 5% cash.  This is a 2.88% return since 12/31/14.  The Total US Stock Market Index return during this period was 2.29% but the 9.5% return in the Total International Stock Market Index boosted the overall return of our portfolio.  The return on the Wellington Fund for this period was 1.99%.

3.     No recommended changes.

 

The meeting was adjourned.  Next meeting is tentatively scheduled for Tuesday, October 6 at 8AM at the Library.

 

Gretchen Rittenhouse

Secretary

 

Note 1:

Transactions since last meeting

 

Step 1A 1/20/15

Exchanged 100% VTSAX (V Total Stock Mkt Index)       $38,138

And VEIPX (V Equity Income Fund)                                     20,774

To VLCAX (V Large Cap Index Fund)                              $58, 912

 

Step 1B 1/20/15

Sold LSBRX (Loomis Sayles Bd Fund)                               $29,997

Sold FSICX (Fid. Strategic Inc Fd)                                        37,928

Sold FLPSX (Fid Low Priced Stock Fd)                                            31,936

Into Money Mkt Acct                                                           $99,861

 

Balance Money Mkt acct 1/22/15                                  $112,080*

Exchanged to VIMAX (V Mid Cap Fund)                             17,400

Exchanged to VBTLX (V Total Bd Index)                                63,000

Exchanged to VLCAX (V Large Cap)                                         21,600

Balance MM 1/23/15                                                         $10,153**

 

1/26/15       

GNMA             Downer Fund                                                                       $-1,121**                                           

3/23/15

Exchanged 1,121.30 plus $4.77 (dividends)

From Money Market to GNMA Downer Fund                    $1,126

 

Money Market Balance                                                         $9,267.            

 

 

 

 

*Ck for 1,121 (disbursement from restricted funds to library hadn’t cleared yet)

 

**Check for $1121 to Library mistakenly written on GNMA Downer account.  Couldn’t correct for 90 days; $240 deposit cleared 1/26

 

Note 2:  Subsequent to the meeting, the Committee approved recommending the following changes to the Rules of Operations to the Library Trustees:

 

From the Current Rules of Operations:

It is the policy of the Trustees to limit disbursements from the Pooled Endowment to a maximum of 30% of the average annual appreciation of the total portfolio valuation of those funds based on the preceding five years, minus any gifts and transfers from the Operating Fund and minus an inflation adjustment.  

 

The Trustees have agreed that disbursements will be minimized until the total assets in the Endowment reach $250,000.

 

Proposed  change:

It is the policy of the Trustees to make disbursements from the Pooled Endowment only when the most recent calendar year-end valuation of the Pooled Endowment is $250,000 or greater.  Such disbursements will be calculated based on 3% of the 5 year rolling average calendar year-end valuations of the Pooled Endowment.