DEPARTMENT: Finance
FILE TYPE: Consent Action
TITLE
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Authorization To Execute Contracts For Investment Portfolio Management
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PURPOSE/ACTION REQUESTED
Authorize the Enterprise Finance and Information System (EFIS) Director to execute contracts with PFM Asset Management LLC (PFMAM), RBC Global Asset Management Inc. (RBC), and PMA Asset Management, LLC (PMA) 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 to Minnesota Statute Chapter 118A and County Policy 2254 to ensure the preservation of principal, provide for liquidity, and gains interest. Minnesota Statute Chapter 118A.04 provides a list of the 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.
Dakota County issued a request for proposal for portfolio management in October 2022. Four responses were received, and an internal evaluation committee reviewed and selected three as finalists. Committee members considered the value of proposals, knowledge and experience with local government investment portfolios, and references. Two of the three finalists (RBC and PFMAM) are currently under contract with Dakota County. They will retain their current holdings and market value of investments. The third (PMA) will be a new contract. PMA will replace an existing vendor and assume their current investment holdings. Dakota County Finance Department will continue to manage a small portion of the investment portfolio.
Over the past three completed years (2019 - 2021), fees for services averaged 1.9 percent of the total int...
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