Title
MOTION TO APPROVE THE FOURTH AMENDMENT TO THE INVESTMENT MANAGEMENT AGREEMENT BETWEEN THE CITY OF PEMBROKE PINES AND U.S. BANCORP ASSET MANAGEMENT, INC. D/BA PFM ASSET MANAGEMENT TO ADD MULTI-ASSET CLASS INVESTMENTS FOR THE CITY’S PORTFOLIO AND ESTABLISH THE APPLICABLE FEE SCHEDULE.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. On May 15, 2019, the City of Pembroke Pines (“CITY”) and PFM Asset Management, LLC entered into an Investment Management Agreement (“Original Agreement”), pursuant to the award of RFP # FN-18-02 “Investment Management Services”, for an initial five (5) year term through May 31, 2024.
2. On December 3, 2021, following the acquisition of PFM Asset Management, LLC, the parties executed a First Amendment to assign the Original Agreement to PFM Asset Management LLC, a wholly-owned subsidiary of U.S. Bancorp Asset Management, Inc., which in turn is a subsidiary of U.S. Bancorp.
3. On March 18, 2024, the parties executed a Second Amendment to the Original Agreement to renew the term for the first of two allowable five (5) year renewal options, extending the term to May 31, 2029.
4. On August 21, 2024, the parties executed a Third Amendment to the Original Agreement after PFM Asset Management LLC was dissolved and its registration with the U.S. Securities and Exchange Commission was withdrawn. U.S. Bancorp Asset Management, Inc., a subsidiary of U.S. Bancorp, became the continuing legal entity and registered investment advisor, servicing its public sector clients, including the City, under the fictitious name “PFM Asset Management” (“MANAGER”).
5. The CITY and MANAGER now desire to enter into a Fourth Amendment to the Original Agreement to add Multi-Asset Class investments for the CITY’s portfolio and establish a separate asset-based fee schedule applicable to those assets. As part of the City’s ongoing investment management strategy, the addition of Multi-Asset fund investments is intended to enhan...
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