Porter County Council and Commissioners had a joint meeting Tuesday evening
of the County Non-Profit Charitable Foundation.
Presenting a third-quarter report of the foundation’s finances were Joe Bill
Wiley and Peter Harvey of the Indianapolis-based investment consultant
Capital Cities. As of the end of September, Wiley and Harvey said, the
foundation’s investment portfolio was valued at $163,986,110.
then recommended that the foundation switch its index fund from Vanguard to
Charles Schwab because Schwab has recently lowered fees and is projected to
produce higher returns. The change would save the foundation $1,660 in fees
right off the bat, Wiley and Harvey said.
addition, because Schwab has incentivized its money market accounts with
lower fees, Wiley said that the foundation could gain an additional $20,000
in net income by switching from the short-term account that it has now to
the money market account, which they would use as a purchasing vehicle.
current account, which has served as a holding place for money waiting to
change hands, is working fine, but purchasing the new account is an
opportunity which Wiley and Harvey said they came across while looking for
ways to improve the return on investment for the portfolio. “We’re just
doing our ongoing due diligence, monitoring the investment universe for the
cheapest ways to make your investments,” Harvey said.
Council Vice-President Dan Whitten, D-at large, for his part inquired about
the balance of the accounts in the portfolio. Wiley said that three
communities--Portage, Chesterton, and Valparaiso--have municipal bonds
outstanding to the tune of $3.9 million. Those transactions are expected to
start at the beginning of 2018. Harvey also noted that the portfolio is
doing well, comprised of 40 percent money for strategic allocation and 60
percent fixed income. He also says active management will likely shield it
against rising interest rates. “We’re very happy with the way things have
worked out,” Wiley added.
Katz, Sapper & Miller has been approved to perform the audit of the
foundation for fees not to exceed $20,000 for the first year and $20,750 for
the second year. County Auditor Vicki Urbanik expects the audit to be a
quick process, with the audit of the 2016 fiscal year likely completed
Jessen, R-4th, welcomed new non-voting member Mark Ritzi.