To the Editor:

In response to Robert Hennessey’s letter in the May 29, 2015 Letter Hive [“A New Approach?”], contrary to his assertions, the Town of Newtown Pension Fund has had net investment gains over and above fees and expenses of $8.5 million, not losses over the last several years. Moreover, the Pension Fund has achieved net investment gains of over $22.2 million for the 16-year period that Westport Resources has managed the investments.  That means $2.4 million more in the fund than would have been achieved by benchmark index returns.

Unfortunately, over the last several years, the investment gains have trailed the benchmark.  That is what was reported in the paper and what Finance Director Tait was referring to when he showed minus returns and a lesser gain, the numbers were relative to the performance of the benchmark indexes over a five-year period, not actual losses as most people think of them.

Mr Hennessey chose to implicate me by name in his letter.  I am very proud of my long affiliation with Westport Resources which began in 1986.  They have successfully served hundreds of clients over that period with investments of over $1.3 billion. In addition, Westport Resources managers and their CEO, John Adams Vaccaro, have been recognized as a leading registered investment advisory firm in Connecticut and nationally by Barron’s, Morningstar, PSN Informa and other investment reviewers.

However, I cannot take credit for their management of the Newtown Pension Fund.  I publicly disclosed my relationship with the firm on many occasions when I was first selectman.  Therefore, I did not take part in the public selection process conducted by the Newtown Pension Committee and selectmen when Westport Resources was chosen over other competing firms.  Nor did I take part in approving their management fees or continued retention.  In addition, my compensation from Westport Resources did not then nor does it now involve fees paid by the Town of Newtown, and I am not involved in the management of the fund.  I work exclusively with other Westport Resources clients and prospective clients.

I congratulate the Pension Committee for their efforts over the last 38 years.  The committee was established by First Selectman Jack Rosenthal in 1977.  The town pension plan began in 1965, but was totally unfunded. The committee has successfully supervised the fund, first by making the investments themselves until 1999, and since with the investment management advice of Westport Resources.  The Newtown pension plans have been consistently “funded” at near or above 100 percent, unlike many Connecticut municipalities and the State of Connecticut itself that have large unfunded pension liabilities.

Last but not least, on behalf of my late father and myself, I want to thank Dunham Smith, who recently resigned due to a move from town, for 38 years of outstanding dedicated service on the Pension Committee, to my knowledge, the longest service of any current Newtown appointed committee member.

Sincerely,

Herbert C. Rosenthal

70 Main Street, Newtown June 1, 2015

To the Editor:

In response to Robert Hennessey’s letter in the May 29, 2015 Letter Hive [“A New Approach?”], contrary to his assertions, the Town of Newtown Pension Fund has had net investment gains over and above fees and expenses of $8.5 million, not losses over the last several years. Moreover, the Pension Fund has achieved net investment gains of over $22.2 million for the 16-year period that Westport Resources has managed the investments.  That means $2.4 million more in the fund than would have been achieved by benchmark index returns.

Unfortunately, over the last several years, the investment gains have trailed the benchmark.  That is what was reported in the paper and what Finance Director Tait was referring to when he showed minus returns and a lesser gain, the numbers were relative to the performance of the benchmark indexes over a five-year period, not actual losses as most people think of them.

Mr Hennessey chose to implicate me by name in his letter.  I am very proud of my long affiliation with Westport Resources which began in 1986.  They have successfully served hundreds of clients over that period with investments of over $1.3 billion. In addition, Westport Resources managers and their CEO, John Adams Vaccaro, have been recognized as a leading registered investment advisory firm in Connecticut and nationally by Barron’s, Morningstar, PSN Informa and other investment reviewers.

However, I cannot take credit for their management of the Newtown Pension Fund.  I publicly disclosed my relationship with the firm on many occasions when I was first selectman.  Therefore, I did not take part in the public selection process conducted by the Newtown Pension Committee and selectmen when Westport Resources was chosen over other competing firms.  Nor did I take part in approving their management fees or continued retention.  In addition, my compensation from Westport Resources did not then nor does it now involve fees paid by the Town of Newtown, and I am not involved in the management of the fund.  I work exclusively with other Westport Resources clients and prospective clients.

I congratulate the Pension Committee for their efforts over the last 38 years.  The committee was established by First Selectman Jack Rosenthal in 1977.  The town pension plan began in 1965, but was totally unfunded. The committee has successfully supervised the fund, first by making the investments themselves until 1999, and since with the investment management advice of Westport Resources.  The Newtown pension plans have been consistently “funded” at near or above 100 percent, unlike many Connecticut municipalities and the State of Connecticut itself that have large unfunded pension liabilities.

Last but not least, on behalf of my late father and myself, I want to thank Dunham Smith, who recently resigned due to a move from town, for 38 years of outstanding dedicated service on the Pension Committee, to my knowledge, the longest service of any current Newtown appointed committee member.

Sincerely,

Herbert C. Rosenthal

70 Main Street, Newtown June 1, 2015