WATERVILLE — An executive with First National Wealth Management updated the Waterville City Council recently on the city’s investment portfolios, including nearly $2 million in undesignated funds and a nearly $2 million Pine Grove Cemetery maintenance fund.
Matt Weaver, the firm’s senior vice president and chief investment officer, discussed the portfolios’ holdings and performance.
Unlike trust funds, the undesignated funds are fixed-income bonds and certificates of deposit that are not held in perpetuity and can be used at any time. Financial statements show that most of the city’s financial portfolio consists of tax dollars, with a small portion in foreign bonds and cash.
The Pine Grove Cemetery fund is managed as an endowment. Tax dollars make up its largest portion, and the portfolio also includes large-, mid- and small-cap funds, cash, foreign bonds and developed and emerging markets. The fund realized an 11.2 percent annual return, compared with 11.5 percent for its benchmark, Weaver said.
The city also maintains two trust accounts. The smaller had a market value of $510,413 and a portfolio composition similar to the cemetery fund’s.
First National said the second quarter of 2026 demonstrated market resilience for investors. The firm focused on investments with “underlying corporate strength and continued economic expansion.” It said inflation remained the biggest market issue for investors and that it is watching revenue growth and margin expansion to see whether they match optimistic market valuations.
Based in Damariscotta, First National has been in the wealth management business for more than 150 years and manages more than $727 million in assets. The firm also manages finances for Fairfield, Vassalboro and several communities along the Midcoast.
The agenda packet for the Sept. 15 City Council meeting includes the full list of portfolio holdings and statements.
