A. Description of the Advisory Firm
Public Trust Advisors, LLC (Public Trust) is a limited liability company organized in the state of
Colorado.
This firm was founded on September 22, 2011, and currently has offices in seven states
including California, Colorado, Florida, Georgia, New York, Ohio, and Texas. The principal
owner is Flexpoint Ford, LLC (“Flexpoint”).
In 2023, Public Trust formed a strategic partnership with Flexpoint whereby Flexpoint acquired
67.8% of Public Trust. The partnership provides Public Trust access to Flexpoint’s significant
financial resources, industry expertise, and relationships. This strategic alliance has allowed
Public Trust to expand its product offerings, accelerate its core growth, and complete strategic
acquisitions. Certain Public Trust employees own the remaining 32.2% of the firm.
B. Types of Advisory Services
Public Trust offers the following services to its clients:
Investment Advisory Services
Public Trust offers investment advisory services to state and local U.S. government entities,
non-profit corporations, charitable organizations, and other institutional clients. Service
product offerings include:
Separately Managed Accounts (SMA) - Separate account portfolio management services are
provided on either a discretionary or non-discretionary basis depending upon each client's needs
and requirements and are subject to the written investment guidelines provided by each client.
The investment guideline information provided by each client, together with any other
information relating to the client's overall investment requirements (investment policy
statement), will be used by Public Trust to determine the appropriate investment strategy for
each client portfolio. Portfolio managers typically manage multiple accounts consisting of the
same or similar investment strategies. For certain SMAs, Public Trust may provide certain
accounting or other administrative services in addition to portfolio management.
Local Government Investment Pools (LGIP) – Local government investment pools are offered to
state and local municipalities, counties, school districts, utility districts, and other local
government units (Participants). LGIPs combine the cash of participating jurisdictions and invest
in securities allowed under state law, subject to each LGIP’s written investment guidelines on a
discretionary basis. These guidelines, together with any other information relating to the LGIPs
overall investment requirements (investment policy statement), are used by Public Trust to
determine the appropriate investment strategy. Public Trust serves as either the marketer,
investment advisor, administrator, or a combination thereof, for the following LGIPs: California
Cooperative Liquid Assets Securities System (California CLASS), Colorado Local Government
Liquid Asset Trust (COLOTRUST), Michigan Cooperative Liquid Assets Securities System
(Michigan CLASS), Nebraska Cooperative Liquid Assets Securities System (Nebraska CLASS),
New York Cooperative Liquid Assets Securities System (NYCLASS), Texas Cooperative Liquid
Assets Securities System Trust (Texas CLASS), Florida Cooperative Liquid Assets Securities
System (FLCLASS), North Carolina Cooperative Liquid Assets Securities System (North Carolina
CLASS), Virginia Investment Pool (VIP), Wyoming Cooperative Liquid Assets Securities System
(Wyoming CLASS), and TrustINdiana. Each LGIP is overseen by an authorized Governing Board
or a State Treasurer. The Governing Board is typically comprised of public officials from
Participants within each LGIP.
Public Trust invests client assets in fixed income securities and cash equivalents. Please refer
to Item 8 for additional information about methods of analysis and investment strategies used
by Public Trust and their associated risks.
Administrative and Transfer Agency Services
Public Trust offers administrative and transfer agency services to SMA and the LGIPs of
California CLASS, COLOTRUST, Michigan CLASS, Nebraska CLASS, NYCLASS, Texas CLASS,
TrustINdiana, Louisiana Asset Management Pool (LAMP), FLCLASS, North Carolina CLASS,
Wyoming CLASS, and VIP. Services offered include but are not limited to the maintenance of
Participant records, transactions and account balances, and money movements based on client
requests.
Certain administrative and transfer agency services are outsourced to a third-party service
provider, which is overseen by Public Trust.
Fund Accounting
Services
Public Trust offers fund accounting services for California CLASS, COLOTRUST, Michigan
CLASS, Nebraska CLASS, NYCLASS, Texas CLASS, TrustINdiana, LAMP, FLCLASS, North
Carolina CLASS, Wyoming CLASS, and VIP. Services offered include the daily accounting of
assets, income earned, and expenses incurred to derive a daily net asset value (NAV) and a
daily or periodic dividend rate to be paid to Participants. Additional services provided are
annual financials and Board reports.
Certain fund accounting services are outsourced to a third-party service provider, which is
overseen by Public Trust.
Consulting Services
Public Trust provides certain investment-related consulting services to clients. Consulting
services include but are not limited to the following:
Request for proposals (RFP) creation and implementation for investment related services;
Review of investment portfolio(s) and investment policies;
Review of organization structure and functions regarding the investment activities;
Review of investment compliance with applicable state and internally imposed
requirements;
Future investment planning strategies, implementation analysis, and recommendations;
Banking institution selection assistance;
Credit research evaluations;
Market updates;
Investment risk analysis.
Non-Managed Account Services
Some Public Trust clients request that we establish one or more non-managed account(s) for
the purposes of client reporting. These accounts do not receive ongoing supervision and
monitoring services like those provided to accounts through our investment advisory services
described above. Public Trust does not make any investment recommendations and will not
monitor specific securities or general portfolios for these accounts. The primary purpose for
this service is to include non-managed accounts owned by the client in the reports provided
by Public Trust. Public Trust does not currently charge a fee for this service: however, clients
are typically required to enter into a written agreement with Public Trust with respect to their
client relationship.
C. Client Tailored Services and Client Imposed Restrictions
Public Trust offers the same suite of services to all its SMA clients. However, specific client
services are dependent upon the client Investment Policy Statement that outlines each client's
current investment objectives (income, cash flow considerations, tax levels, and risk tolerance
levels) and is typically used to construct a client-specific plan to aid in the advice or selection
of a portfolio that matches restrictions, needs, and targets.
At the beginning of the client relationship, Public Trust contacts the client to gather
and discuss information regarding their overall investment objectives, risk tolerances, and
guidelines. Where applicable, an Investment Policy Statement is requested from the client and
utilized to tailor the investments and objectives of the portfolio. From there, Public Trust assists
the client in determining the investment strategy or strategies that are best suited to meet
the client's needs and objectives. Once a client has selected an investment strategy or
strategies, Public Trust provides continuous supervision and management of the assets unless
the client has an arrangement with Public Trust to provide credit research only. Clients are
responsible for informing Public Trust of any changes to their investment objectives and /or
restrictions. Public Trust evaluates client’s investment objectives and restrictions and will
recommend as necessary any changes to restrictions or strategy(s) if requested.
D. Wrap Fee Programs
A wrap fee program is an investment program where the investor pays one stated fee that
includes management fees, transaction costs, fund expenses, and any other administrative
fees. Public Trust does not participate in any wrap fee programs.
E. Assets Under Management
As of December 31, 2023, Public Trust had discretionary assets under management in the
amount of $68,932,216,524 and non-discretionary assets under management in the amount
of $12,207,022,571. In addition, Public Trust offers non-investment management services
including fund accounting, administrative, and transfer agency services to one LGIP with
respect to assets in the amount of $4,620,197,099.
Discretionary and non-discretionary assets presented above are determined based on how the
account is managed in practice, which may be inconsistent with the client contract.