Case study: a municipality

A municipality in the Mid-South came to us to help them with the retirement fund for their city employees. Their assets were invested solely in CDs, which made it challenging to generate the return needed to meet their needs.

Like all municipalities we serve, they wanted experienced investment consultants to guide them through the entire process, while being transparent in their actions in accordance with public record. They had never invested in the market before, so we gradually moved them from CDs through a progression of other investments – balanced managers specializing in various asset classes, bank money manager, a mutual fund format to seek additional diversification and ultimately, liquid alternative investments.

Liquid alternatives are designed to emulate alternative investments without their three drawbacks – lack of liquidity, lack of transparency and expense. Due to our size and relationship with entities offering liquid alternatives, they reduced their minimum requirements, allowing us access for our smaller clients.

Our client also wanted their retirement plan to be participant-directed, so we assisted them in finding a record-keeper and making the transition from being trustee-directed to enabling plan participants to make their own investment selections.

Our client has remained loyal to us over many years and has seen the assets in its retirement fund grow from $5 million to more than $50 million.

This material is not intended for use as investment advice. It does not guarantee the attainment of your goals. Individual results will vary. There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Asset allocation and diversification do not ensure a profit or protect against a loss. Past performance is not indicative of future results.