Vaughan Fund Minutes 09/23/2014
September 23, 2014
Chairman Webster called the meeting to order at 6:05pm. Trustees present included Gerald MacPherson, Sr., Jean Demetracopoulos, John C. Kareckas, and Russell H. Abell. Town Manager Perry Ellsworth was also present.
Approval of Minutes
1. 09-09-14: On a motion by Mr. Kareckas, seconded by Mrs. Demetracopoulos, it was unanimously voted to adopt the minutes as written.
1. Ryan Hale of Kennebunk Investment Services was present to aid the Trustees in their discussion regarding the Fund’s investment strategy. Mr. Hale explained that the portion of the Fund that he manages has realized a 10% gain over the past 12 months (Sept to Sept). The current amount in the Fund managed by Mr. Hale totals approximately $256,066. He explained the current market conditions and the issues that may affect the Fund’s performance. Mr. Hale stated that he likes the current asset mix, although it is a little over-weighted in stocks. He recommended loosening up the language in the Investment Policy to allow for a better back and forth mechanism in investments.
The Trustees agreed that maintaining $100,000 in cash equivalent accounts is more than necessary to cover any grant disbursements and a lower cap would be appropriate. This would allow additional funds to be transferred into higher earning accounts. (This would not change the overall Policy Investment objective of maintaining a minimum Fund balance from all investments at $100,000).
On a motion by Mrs. Demetracopoulos, seconded by Mr. Abell, it was unanimously voted to amend the Vaughan Fund Investment & Disbursement Policy Statement by changing the third paragraph under Strategy & Investments to read, “The intent of the Trustees is to keep a minimum of $75,000 in secure, yet liquid holdings such as treasury bills”.
On a motion by Mrs. Demetracopoulos, seconded by Mr. MacPherson, it was unanimously voted to discontinue the CD with Edward Jones and transfer the funds to Kennebunk Savings.
On a motion by Mrs. Demetracopoulos, seconded by Mr. Abell, it was unanimously voted to move $25,000 from the Kennebunk Savings CD to the investment portfolio.
The Trustees thanked Mr. Hale for his clear and concise explanation.
On a motion by Mr. Kareckas, seconded by Mrs. Demetracopoulos, it was unanimously voted to adjourn the meeting at 6:48pm.
Barbara Bennett, CCM