The investment advisory needs of associations are unique, like almost everything else about this industry. Many associations rely on their bank to provide the investment vehicles they need. Others turn to investment advisors who have developed expertise over the years in understanding the industry who are not associated with a bank. The most common issues for associations are:
1) Statutory limitations. It is important for the investment advisor to be aware of each state's statutory limitations that are imposed on not-for-profit organizations incorporated in that state.
2) Governing documents limitations. The investment advisor must understand any limitations imposed by the association's governing documents, and these are potentially different for each association.
3) FDIC insurance or other limitations.
4) Investment policies. Most investment advisors can assist their clients in designing an appropriate investment polciy that allows maximization of return on investment while still protecting invested funds principal.
Through our own long involvement in the community association industry HOA Financial Group knows of many investment advisors. We will be providing a directory of investment advisors who serve this unique industry. A listing in the directory is not an endorsement by the HOA Financial Group but is simply an aggregation of information. COMING SOON.