Boxborough FinCom Votes 4-1 to Back Aggressive OPEB Investment Shift

BOXBOROUGH -- September 17, 2024, Boxborough Finance Committee backs an aggressive 80-20 equity-to-bond investment ratio for the town's Other Post-Employment Benefits fund. The committee voted 4-1 Tuesday to express support for the shift, with Chair Tony Newton citing a 14-year horizon before the fund is likely to be drawn down and noting the town's OPEB assets stand at $1.8 million against a 2022-audited liability of $4.8 million. Town Treasurer Naomi Kwanzaa, who holds sole legal authority over the town's investments and works with advisor Bartholomew, said she can make the change at any time; the vote was intended to signal institutional backing rather than compel action. John Connor cast the lone dissenting vote, saying he wanted more information on Bartholomew's fee structure before registering support, a concern shared by others after the firm recommended adding private equity positions to diversify the portfolio. Kwanzaa was directed to ask Bartholomew directly how it is compensated and whether it receives any consideration from the instruments it recommends, and to report back at the next meeting.