Vazetti presenter: withdrawals rising; trustees urged to boost reserve

At a meeting of the Grundy County Insurance Trust, a presenter from Vazetti Capital Management told trustees that the trust has seen increased withdrawals and fees this fiscal year and recommended considering larger annual contributions to rebuild reserves. The presenter said the account has experienced “up to almost a million dollars in fees and withdrawals” year to date and noted the portfolio currently stands “around 2.2.”

The presenter said the trust’s historical average withdrawals from the account have been about $500,000 per year but that recent years were higher. “Mike… would like to see it around 3,000,000 if possible,” the presenter said, urging trustees to think about putting additional funds back into the account instead of relying on repairs to the portfolio later.

The presenter summarized the portfolio composition and near-term maturities, saying the account has roughly $500,000 maturing in 2025, about $745,000 maturing in 2026 and about $550,000 maturing in 2027. He also said cash yields were “around 4%” and that fixed-income holdings contributed to a reported portfolio figure of “1.4 for a total of 2.2,” using the presentation’s terminology.

A trust member replied that “we do we do have $550,000 that’s earmarked to go in at the end of this fiscal year,” which the presenter said could be considered when the trustees decide contribution amounts. The presenter cautioned trustees that while the account has “plenty of cash for the next probably 18 months,” they should consider funding closer to the suggested target to avoid future “repair work” to the portfolio.

No formal vote or policy change on funding levels was taken during the meeting; the presentation was informational and intended to prompt trustee discussion about contribution levels.