Finance commission reviews four finalists to replace Western Asset as investment manager

The South Pasadena Finance Commission on an unspecified date heard detailed presentations from Morgan Stanley, BlackRock, Invesco and Payden & Rygel as it considers replacing Western Asset as the city’s day‑to‑day investment manager.

The selections matter because the manager oversees reserve funds and short‑term portfolios that affect yield, liquidity and reporting for the city’s operating and reserve accounts. Commissioners focused on net returns, service and how each firm would operate inside the city’s investment policy.

Brian Longpre, a Morgan Stanley liaison who has worked with the city for more than a decade, laid out Morgan Stanley’s sample portfolio and fees. The Morgan Stanley sample emphasized corporate and taxable municipal allocations and proposed a sample fee of about 16…