Council Approves Brokers, Dealers, and Financial Institutions for Town Investments

Fri 4/23/21
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The Town of Addison previously contracted with Hilltop Securities Asset Management (HSAM) to provide investment advisory services. As the Town's investment advisor, HSAM would propose investment transactions for the Town to consider from a list of approved brokers, dealers, and financial institutions which they were responsible for performing due diligence on and maintaining. During the first quarter of Fiscal Year 2021, Town staff notified HSAM of our intention to terminate the investment advisory contract effective April 1, 2021 and perform those services with existing Town staff who possess the necessary Public Funds Investment Act training and experience in the management of municipal funds. The cost of the investment advisory contract was based on the average size of the Town's investment portfolio and totaled approximately $70,000 annually. In addition to the savings, Town staff believes the portfolio will be managed more effectively utilizing staff resources.

The Town's Fiscal Year 2021 Investment Policy requires the City Council to annually adopt the list of recommended qualified brokers, dealers, and financial institutions vetted by Town staff, which they did at the April 13 meeting. Since the list was previously maintained by HSAM it was not required to be approved by the Council.