Board Agenda - May 15, 2007

m. Resolution to Extend Investment Advisory Services Contract

Presenter: Richard Matkin

Purpose: A - Request decision - closure required

Time: No time limit

Description:

During the 1998-99 school year, the District began using First Southwest Asset Management, Inc. as our investment advisors.  Prior to this time the District had a broker/dealer relationship with First Southwest Asset Management, Inc. (FSAM).  FSAM provides only non-discretionary investment management services for the District.  As such, FSAM performs the following duties:
- recommends appropriate strategies based upon spending requirements as communicated by the district Financial Services staff;
- advises the District on current market conditions and other general investment information;
- assists in the selection of investment securities;
- performs an annual review of our investment policy;
- prepares monthly and quarterly investment report.

Recommendation:

The Administration extending the investment advisory contract with First Southwest Asset Management, Inc. for the period from June 2007 to May 2009.

Business Impact:  
 

In consideration for the services rendered by FSAM, a fee is calculated and applied against the yield of the investment being purchased according to a percentage (basis points) schedule based on the maturity duration of the security.  Through the months of October 2006 through March 2007, the fee ammounted to $43,620.  Previous fees paid were $41,581 in FY 2005 and $46,794 in FY 2006.  The District pays a smaller fee through FSAM than required by either pool or money market funds.

Summary:

Appendix:

Return to Meeting Agenda