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Committee recommends PMA Asset Management for village investment advisory services
Summary
After scoring proposals, staff recommended PMA Asset Management over incumbent Ehlers based on comparable technical scores and substantially lower projected fees under the village's asset assumptions; the committee voted to recommend PMA to the village board.
The General Government and Finance Committee voted to recommend PMA Asset Management as the Village of Germantown's investment advisory firm, based on staff scoring of proposals and a cost comparison tied to the village's projected portfolio assumptions.
Staff said Ehlers and PMA scored equally on qualifications and scope but that, under staff assumptions (an average of $10 million in investable assets and a one-time $30 million issuance invested for roughly one year), PMA's fees were estimated to be about $60,000 less per year than Ehlers. "Taking a look at that comparison, PMA asset management is roughly $60,000 less, on an annual basis than Ehlers," staff said.
Trustees who spoke said cost savings and having "fresh eyes" factored in their support. The committee clarified next steps: the recommendation to award PMA is advisory and will go to the village board for final approval; if the board approves PMA, staff will return to update the village's investment policy to add PMA to the list of authorized counterparties.
Votes and formal action: Motion to recommend award of the investment advisory contract to PMA Asset Management: moved and seconded; carried by voice vote. The recommendation will be forwarded to the village board for final action.
Background: The village issued an RFP for investment-advisory services, evaluated qualifications, scope and fees, and scored proposals. Staff said the top two firms tied on qualitative scoring but diverged materially on projected fees under the village's assumptions.
Next steps: If the village board approves PMA, staff will propose edits to the village's investment policy at a future GGF meeting to list PMA as an authorized advisor.
