Trustees of the Trust Fund

City of Laconia, NH Trustees of the Trust Funds October 22, 2018 Meeting called to order at 2:00 PM. Present were Peggy Selig and Jon Nivus, Trustees; Charlie Nason and Laurie Leduc, Citizens Bank Investment Review Charlie noted that US economic data remained strong in September. The Feld has continued to raise rates and is expected to raise them again in December and probably three times in 2019. US stocks were mixed in September as large cap stocks established new highs and mid and small cap stocks posted negative returns. Stock gains have been supported by strong domestic growth and tax reform. Bonds continue to underperform, because of the increasing rates by the Fed. This does however produce higher yield for the bond portfolio. The total fund had a total return of 8.12 % for the year ended 9/30/18, exceeding the benchmark and inflation. The portfolio is approaching $4,500,000. There continues to be a gradual shift from large cap stocks to fixed income, to reduce risk and increase yields. Investment Review After discussion, it was moved, seconded and passed 2-0 to adopt the revisions to the investment policy by changing the benchmark in paragraph 2, increasing the duration of the fixed income portfolio to 8 years in paragraph 5, and eliminating the paragraph on proxies. Reporting There was a discussion of the reporting from Citizens Bank. Laurie will provide Jon with a copy of the reporting, “MS-9” that they provide to other cities. Also, the monthly transfer of income will be changed to an earlier date in the month. Next Meeting The next meeting will be January 28, 2019 at 2 PM in the Mayor’s office. Charlie and Laurie left the meeting. Minutes Minutes of the July 16 and Aug 14 meetings were approved. Putnam Fund It was moved, seconded, and passed 2-0 that $78,797.59 be appropriated for the Putnam Fund for 2018-19, based on a 7% spending policy. The trustees reviewed the calculation of the carryover amount, $60,941.51, for the fiscal year 2018. The trustees also reviewed the amount $54,194.82, that needs to be transferred from principal to income for expenditures in 2017-18. Copies of calculation are attached to the minutes. Communications Two thank you notes for scholarship were received. Meeting was adjourned at 3:30 PM. Respectfully submitted, Jon Nivus