TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve and Authorize the City Manager to Execute the Assignment, Assumption, and Second Amendment of Investment Advisory Agreement with PFM Asset Management, LLC to its Parent, U.S. Bancorp Asset Management, Inc. and the Consent Form to Transfer From PFM Asset Management, LLC to its Parent, U.S. Bancorp Asset Management, Inc.
Recommended Action
Approve and authorize the City Manager to execute the Assignment, Assumption, and Second Amendment of Investment Advisory Agreement with PFM Asset Management, LLC to its parent, U.S. Bancorp Asset Management, Inc. and the Consent Form to transfer from PFM Asset Management, LLC to its parent, U.S. Bancorp Asset Management, Inc.
Background Information
PFM Asset Management, LLC (PFMAM) was acquired in 2021 by U.S. Bancorp Asset Management, Inc. (USBAM). From December 7, 2021, to present, PFMAM has been operating as a wholly owned subsidiary of USBAM. On November 23, 2021, the City Commission approved the Consent to Deemed Assign of Investment Advisory Agreement from PFM Asset Management LLC to U.S Bancorp Asset Management, Inc., and ratified all the City’s prior Consents to Assignment related to the Investment Advisory Agreement. PFMAM and USBAM have been operating under two separate legal entities and maintained two separate registrations as investment advisers with the U.S. Securities and Exchange Commission (SEC).
At the beginning of the fourth quarter of 2024, PFMAM will be consolidated under its parent company, USBAM. PFMAM entity will be dissolved and its registration with the SEC will be withdrawn. USBAM will be the continuing legal entity and registered investment adviser that will serve PFMAM clients following the consolidation. USBAM will service PFMAM’s public sector and related clients under the PFMAM brand name, operating as a division of USBAM.
The City Attorney’s Office has reviewed the Assignment, Assumption, and Second Amendment of Investment Advisory Agreement with PFM Asset Management, LLC to its parent, U.S. Bancorp Asset Management, Inc. and the Consent Form to transfer from PFM Asset Management, LLC to its parent, U.S. Bancorp Asset Management, Inc. and they are legally correct as to form.
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. Assignment Assumption Amendment
2. Consent Form
3. U.S. Bancorp Asset Management Inc. ADV Part 2A
4. One RIA FAQs Final
Prepared by: Tiffany Fowler, Accountant III
Department Director: Kimberly Williams, Finance Director