DEPARTMENT: Finance
FILE TYPE: Consent Action
TITLE
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Authorization To Execute Contract Extension For Investment Portfolio Management
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PURPOSE/ACTION REQUESTED
Authorize the Deputy County Manager to execute contract extension with PTMA Asset Management, LLC (PTMA) for external investment portfolio management.
SUMMARY
Prudent management of public funds on behalf of the citizens of Dakota County is a County Board objective. Funds shall be invested in accordance with Minn. Stat. ? 118A and County Policy 2254 to ensure safety, liquidity, and yield of the County's financial assets. Minn. Stat. ? 118A.04 provides a list of types of securities in which local governments may invest public funds. Unrestricted public funds are limited to the securities available in the bond market and commercial paper that are fully insured by the Federal Deposit Insurance Corporation. The portfolio will be actively managed to achieve growth of capital through appreciation of securities held and reinvestment of interest income.
Currently, the County utilizes three separate external investment partners for investment portfolio management. The current contracts are set to expire on December 31, 2025, with the option to extend individual contract for three one-year extensions. Staff recommend streamlining all external investment management responsibilities by consolidating them under PTMA, a single strategic partner. PTMA was chosen because it was the most cost-effective option and was successfully meeting its investment benchmark measures. The consolidation will allow Finance to streamline administrative oversight and reduce the complexity of compliance and reporting requirements. The consolidation also provides a more favorable unified fee structure. The consolidation of investment portfolio managers to a single manager is anticipated to save the County approximately $60,000 in management fees annually.
This contract extension will provide investment portfolio management servi...
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