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Trustees debate OPEB custodial options; local adviser and broker-dealer options explored
Summary
The board discussed whether to keep its current investment adviser (Asset Strategy), move to Marquette, or use a broker-dealer/family-of-funds approach led by a local representative (Edward Jones). Trustees cited cost, underperformance and transfer friction as key concerns.
Trustees discussed the library’s OPEB (other post-employment benefits) custody and advisory arrangements at length, weighing continuing with the current adviser against switching to Marquette or using a broker-dealer/family-of-funds approach through a local firm.
Why it matters: The board manages a modest OPEB balance that trustees said does not justify high ongoing advisory fees; members emphasized cost, performance and the administrative difficulty of moving custodians.
Key points: Trustee John Johnston described a plan to explore using a fund-family approach through a local broker-dealer such as Edward Jones that could avoid sales charges at breakpoint levels and potentially reduce annual fees. Board members and staff said Marquette’s proposal and the library’s current adviser, Asset Strategy, would both be more expensive than current costs; a Marquette engagement would start with lower fees and scale up toward higher annual fees over three years. Blackwell and trustees noted previous custodial changes have complicated transfers and can be costly.
Trustees asked the county attorney to review potential fiduciary and audit implications of any change. John Johnston and others said a mutual-fund-family approach could produce monthly or quarterly statements adequate for audit while reducing fees; other trustees warned that using a broker-dealer rather than a registered investment adviser shifts some fiduciary responsibility to the library and emphasized the need for legal review.
Next steps: Johnston said he has contacted a local Edward Jones representative and will present a more detailed option next month; in the meantime the board will likely stay with the current adviser until it decides on a replacement or transition plan. Blackwell will check with the county attorney about potential audit or legal implications of switching custody and adviser.
