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STAFF REPORT <br />TO:Mayor Keis and Members of City Council <br />FROM:Brenda Malinowski, Finance Director <br />DATE:March 7, 2019 <br />RE: Morgan Stanley Investment Account <br />BACKGROUND: <br />Morgan Stanley Investments has informed the City that they are no longer providing municipal <br />investments services, and the City’s investment portfolio at Morgan Stanley will need to be <br />transferred to another firm by March 29, 2019. The portfolio balance at Morgan Stanley as of <br />2/28/2019 was $1,921,332.64. <br />Staff is recommending that the Morgan Stanley investment portfolio be transferred to UBS <br />Financial Services. With the transfer, it will allow for a reallocation of the portfolio between the <br />investment firms as follows: <br />Investment Firm <br />Before <br />Transfer <br />After <br />Transfer <br />Wells Fargo Advisors 27%27% <br />Morgan Stanley 13%0% <br />UBS 13%26% <br />PMA(4M Fund)28%28% <br />Royal Credit Union 19%19% <br />Total 100%100% <br />(Note-The City of Little Canada bond that the City owns is not reflected in the numbers above) <br />In addition, the transfer to a current investment firm will allow time for City staff to evaluate the <br />need for five investment firms. If staff concludes that five firms are needed, an analysis can be <br />made regarding the appropriate firm to add as an investment firm. <br />STAFF RECOMMENDATION: <br />Transfer the Morgan Stanley investment portfolio to UBS Financial Services.