January 19, 2021 Investment Committee Meeting Minutes
January 25, 2021Morrill Memorial and Harris Library Investment Committee
Minutes of January 19, 2021 Meeting
Present: Cindy Stableford, Betsy Ruml, Gretchen Rittenhouse, John Hawkins, Rachel
Kurland
Minutes of the 5/19/20 meeting were approved.
Rachel provided an update report for the Library Trustees:
1. While the pandemic forced the cancellation of both the July Book Sale and the
in-person Holiday Sale, the library still made $2,600 from the wreath sale
and raffle. The Annual Appeal had a strong response.
2. The Library received some large bequests/donations amounting to about
$15,000 and used about $3,000 for operating expenses. They will use these
funds for planned interior painting, also.
3. The Library has seen heavy use this year, so the Trustees are planning to buy
more books. While in the future they will use fundraising for this purpose,
this year they will use approx. $8,000 from the CD account.
4. Will apply to the Terrell Fund for support this year.
5. No capital needs expected.
6. No need to draw on endowment funds.
Cindy reported for the Friends:
1. The Holiday Sale could not be held this year, but the wreath sale and raffle
were successful.
2. Cindy has finished her time on the Friends Board. Either Rachel or Rebecca
Seibel (the new Friends Treasurer) will take over the report to the
Investment Committee on behalf of the Friends.
Report from the Chair (Cindy):
1. No transfers/changes since May meeting.
2. Cindy presented the draft of the 2020 Annual Report, which the Committee
reviewed and approved. Cindy will send it to Nellie Pennington.
3. $1,237.13 will be transferred out to the Library as per restricted funds. This
amount is lower than last year, even though the overall endowment
performed well, because the restricted funds are heavily weighted to FI
investments, while most of the market growth in 2020 was in equities.
4. Annual distribution to Library: Although there is $8,838 available to be
transferred per our formula, the Trustees indicate that they do not need it in
2021, so it will be added to previously deferred funds. The total of deferred
funds now stands at $38,551. The deferred funds are not invested separately
from the other endowment investments.
5. Cindy presented an analysis that showed that endowment performance
would continue to beat inflation even if all distributions had been made.
Betsy reviewed the portfolio:
1) All asset classes except real estate were up this year and the portfolio ended the
year up approximately 15% higher than YE2019.
2) The asset allocation is 68% equities, 32% FI at this time. Betsy recommended no
change as there is currently very little upside in the bond market. We discussed
our Equity/FI target and agreed that at this time our target allocation should be
in the range of 65/35 to 70/30.
3) John re-visited the earlier discussion re carbon-free investments and suggested
that rather than “chasing” carbon-free investments, we should look into existing
ESG funds and ETFs, which may be an easier way to approach a socially and
environmentally conscious investing strategy as we move forward. He will share
some information for our next meeting.
4) Betsy suggested re-balancing slightly within our existing equity investments.
Currently our large cap investments are 38% of the portfolio, so she suggests
that we bring that back to 35% by moving $12,000 to the International fund.
The Committee approved moving $12K from the Large Cap Index (VLCAX) fund
to the International Stock Index (VTIAX) fund.
The meeting was adjourned. Next meeting is scheduled for Tuesday, May 18, 2020
at 9AM.
Respectfully Submitted,
Gretchen Rittenhouse
Secretary
Posted by Morrill Memorial & Harris Library.
