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File #: 2025-0519   
Type: Agenda Item Status: Agenda Ready
File created: 1/8/2025 In control: City Council
On agenda: 1/21/2025 Final action:
Title: Approve one-year renewals of the contracts with PFM Asset Management, LLC, Sawgrass Asset Management, LLC, and Seix Investment Advisors, LLC for the provision of investment manager services for the City's treasury funds with an estimated aggregate expenditure of $180,000
Attachments: 1. FOR COUNCIL - Amendment 2 - Investment Manager Services - Short Term Funds - PFM Asset Management LLC (FIN 14-006), 2. FOR COUNCIL - Amendment 2 - Investment Manager Services - Intermediate Funds - Virtus Investment Advisors - Seix (FIN 14-007), 3. FOR COUNCIL - Amendment 2 - Renewal for Investment Manager Services For Intermediate Funds - Sawgrass Asset Management, LLC(FIN 14-008), 4. Rate Comparison - City Investments, 5. Policy Exception Approval, 6. EXECUTED CONTRACT - First Amendment to Agreement for Investment Manager Services, PFM Asset Management LLC (FIN 14-006), 7. EXECUTED CONTRACT - First Amendment to Agreement for Investment Manager Services, Sawgrass Asset Management LLC (FIN 14-008), 8. EXECUTED CONTRACT - First Amendment to Agreement for Investment Manager Services, Seix Investment Advisors LLC (FIN 14-007), 9. Council Report FIN-14-006,007,008 2-18-2020, 10. EXECUTED CITY COUNCIL FIN-14-007 Seix Investment Advisors LLC, 11. EXECUTED CITY COUNCIL FIN-14-008 Sawgrass Asset Management, LLC, 12. FULLY EXECUTED - PFM Investment Manager Services Agreement - Short Term Funds (FIN-14-006)
Date Action ByMotionResultAction DetailsMeeting DetailsVideo
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Submitted By: Marcella Hughes
presenter
Presentation By: Peter Brill
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Department: Finance

STAFF RECOMMENDATION (Motion Ready):
title
Approve one-year renewals of the contracts with PFM Asset Management, LLC, Sawgrass Asset Management, LLC, and Seix Investment Advisors, LLC for the provision of investment manager services for the City's treasury funds with an estimated aggregate expenditure of $180,000
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OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable

PROOF OF PUBLICATION:
N/A

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BACKGROUND:
The City's investment portfolio is diversely invested, with portions allocated to Truist Bank and local government investment pools; however, the core portfolio is managed by professional asset management firms. The City of Ocala contracts with three asset management firms to invest its treasury funds. To further diversify the investments, managers are separated by determined area of expertise, maturity pools, and benchmarks as follows:
* PFM Asset Management, LLC - Pool I -- Short Term 1-3 years
* Sawgrass Asset Management, LLC - Pool II -- Short/Intermediate 1-5 years
* Seix Investment Advisors, LLC - Pool III -- Intermediate 1-10 years
The City has contracted with the various investment managers since 2003. Due to excellent service and a great price structure, the City desires to continue with these investment managers under a one-year renewal agreement. An analysis of manager fees indicates that the City's current fees are highly competitive compared to other managed portfolios of the same size. In today's market environment, investment returns for the managers continue to outperform assigned benchmarks; these management firms are highly ranked amongst industry peers. The managers assist in crafting the City's investment strategy, and each adheres to the requirements of the investment policy statement to safeguard City funds.
FINDINGS AND CONCLUSIONS:
The Investment Committee recommends approval of the amendments to renew each investme...

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