TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, City Manager
TITLE: Approve Consent to Deemed Assignment of Investment Advisory Agreement(s) With PFM Asset Management LLC to U.S Bancorp Asset Management, Inc., and Ratify all the City’s Prior Consents to Assignment Related to the Investment Advisory Agreement.
Recommended Action
Approve Consent to Deemed Assignment of Investment Advisory Agreement(s) with PFM Asset Management LLC to U.S Bancorp Asset Management, Inc., and ratify all the City’s prior Consents to Assignment related to the Investment Advisory Agreement.
Background Information
PFM Asset Management LLC (“PFMAM”) has entered into a Definitive Agreement to sell PFMAM to U.S. Bancorp Asset Management, Inc. (“USBAM”), a subsidiary of U.S. Bancorp. Upon closing of the sales transaction, PFMAM will become a wholly owned subsidiary of USBAM and will continue to operate as a separate registered investment advisor known as PFM Asset Management, a division of USBAM. After PFMAM officially becomes a division of USBAM, the majority of PFMAM leaders and professionals will remain in place to provide investment management, client service and day-to-day administration.
The City’s Investment Advisory Agreement with PFMAM allows assignment only upon consent. Once the sales transaction closes, the action would be treated under applicable law as a change in control of PFMAM and thus as a Deemed Assignment of the City of North Port’s Investment Advisory Agreement with no changes to its terms. The City continues to have the right, before and after the change in control, to terminate the Investment Advisory Agreement in accordance with its terms.
The Consent to Deemed Assign of Investment Advisory Agreement from PFM Asset Management LLC to U.S Bancorp Asset Management, Inc. has been reviewed by the City Attorney and is legally correct as to form.
Staff recommends Commission approval of the Consent to Deemed Assign of Investment Advisory Agreement from PFM Asset Management LLC to U.S Bancorp Asset Management, Inc., and ratify all the City’s prior Consents to Assignment related to the Investment Advisory Agreement.
Strategic Plan
Efficient and Effective Government
Financial Impact
Approval to sign the consent will result in continuity of Investment Agreement services that generate investment portfolio income.
Procurement
Not applicable.
Attachments:
1. Consent to Deemed Assignment of Investment Advisory Agreement(s)
2. PFM Investment Advisory Agreement and First Amendment
3. Frequently Asked Questions about PFM Asset Management Client Consent
Prepared by: Scott Skipper, Accounting Manager
Department Director: Kimberly Williams, Finance Director