Summary
To: Finance Board
From: Stefan Massol
Date: 11/16/2017
______________________________________________________________________
Subject:
Title
Investments policy review and update
Summary:
Staff will review the investment policy as currently constructed with members of the Finance Board for their review.
End
Body
Previous Commission Action: Commission approved Resolution No. 2002-26 as the Town’s investment policy, which is enclosed.
Background/Problem Discussion: The town investment policy was approved in 2002 to attain the town’s primary investment objectives, which are 1) safety of principal, 2) liquidity, and 3) return on investment.
Having reviewed the liquidity of the town, staff is of the belief that sufficient reserves now exist for the town to revisit its investment strategy to maximize returns. The current policy does not allow for investment in 2a-7 like pools or to utilize an investments manager, however it is possible that broadening the investment vehicles available and engaging qualified firms would provide opportunities for additional gains to be realized in the current marketplace.
Expenditure Challenges None
Financial Implications: None
Recommendation: For Finance Board to recommend that Town Commission revise the investment policy to allow for an investments manager.
Proposed Motion Recommendation that Resolution No. 2002-26 be amended to allow for an investments manager.