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Town board hears pitch for new municipal investment pool, EPIC Fund New York
Summary
Presenters for EPIC Fund New York told the Cheektowaga Town Board the pooled investment vehicle would offer safety, liquidity and competitive yields to New York local governments, with daily liquidity through 2 p.m. ET and fees capped at 17 basis points; board members pressed for fee detail and risk limits.
Leslie Murphy of PFM Asset Management, presenting for EPIC Fund New York, briefed the Cheektowaga Town Board on a proposed pooled investment option for New York local governments during the Jan. 13 meeting.
Murphy said the pool is structured to meet New York General Municipal Law requirements and adheres to GASB 79. The fund would invest in high‑credit instruments — U.S. Treasuries, repurchase agreements backed by Treasuries and New York State municipal obligations — with the stated goals of safety, liquidity and a competitive net yield. Murphy told the board the fund manager fee would be netted monthly and that the product’s overall fee cap is 17 basis points (0.17%). She also said investors would be able to withdraw funds same day up until 2 p.m. Eastern.
Board members asked how the fee structure is allocated, whether there are exit or lock‑up fees, and how yields compare to existing options. Murphy said there are no exit or lock‑up fees and that the manager expects yields to track near the federal funds target rate; she cited an analogous program in New Jersey that yielded roughly 3.66% in a comparable period. Murphy offered to provide a detailed information statement specifying fee caps and estimated net yields to Supervisor Nowak after the meeting.
Supervisor Nowak thanked the presenters and said the board would discuss the proposal further. Council members and the town finance director noted competition among funds is healthy but emphasized caution: they asked for written fee caps and for staff to review legal and operational terms before considering any deposit decisions.
