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Consent-General Government # 18.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Approve contract with PFM Asset Management LLC to provide investment advisory services to the county in 2016-17 with an option for two additional fiscal years. (No general fund impact) (Newens) |
| Recommended Action |
| Approve the attached contract with PFM Asset Management LLC for investment advisory services for 2016-17 with an option for two additional fiscal years with an annual cost not to exceed $177,000 ($162,500 for the County Investment Pool and an estimated cost for the Ceres and Demeter Funds of $14,500). |
| Strategic Plan Goal(s) |
Operational Excellence
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| Reason for Recommended Action/Background |
The contract with the current investment advisor to the County (PFM Asset Management LLC) is due to expire on 6/30/2016. Following County procurement policy, staff issued a request for proposals to provide investment services and received ten proposals.
| Summary of Proposals: |
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| Firm |
Cost for $300 million portfolio |
| Chandler Asset Management |
$ 167,500 |
| CS McKee Investment Managers |
$ 470,000 |
| Garcia Hamilton & Associates |
$ 248,000 |
| Insight Investment |
$ 172,500 |
| Logan Circle Partners |
$ 500,000 |
| Morgan Stanley |
$ 600,000 |
| PFM Asset Management LLC |
$ 177,000 |
| Public Trust Advisors |
$ 135,000 |
| Reams Asset Management |
$ 450,000 |
| Seix Investment Advisors LLC |
$ 395,000 |
A panel of three staff from the County Administrator and the Financial Services departments and one member from the Yolo County Office of Education evaluated the proposals using established technical and cost criteria and accepted procurement practices. After extensive review and deliberation, the panel recommended PFM Asset Management.
PFM Asset Management is a well known investment advisory firm with nationwide reputation for excellent service to the public sector. The firm has served the County well since 1998 at reasonable fees. The increase in investment earning above the average earning of the State Local Agency Investment Fund (LAIF), resulting from active management by PFM, was over $1 million in calendar year 2015, thus more than offset PFM fees. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The proposal evaluation panel included managerial staff from the Department of Financial Services, County Administrators' Office, and from the Yolo County Office of Education (to represent County schools and special districts that participate in the County investment pool). The County Financial Oversight Committee was informed of the selection process and the results thereof. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| The $162,500 cost of the Investment Advisor for the County Investment pool is fully chargeable against the investment earnings prior to the interest apportionment to County funds, school districts, special districts, and other depositors in the County Treasury. The estimated costs of $14,500 will be charged against the investment earnings of the Demeter and Ceres investment portfolios of the County. |
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