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Wauwatosa committee approves Dana Investments contract to manage a slice of city portfolio
Summary
The Financial Affairs Committee voted unanimously to add Dana Investment Advisors as a non‑discretionary manager for a portion of Wauwatosa’s reserves, with an initial proposed allocation of $5 million and a fee schedule starting at 20 basis points.
The Wauwatosa City Financial Affairs Committee on March 17 approved a staff recommendation to hire Dana Investment Advisors to manage a portion of the city’s investment portfolio.
Finance staff presented the proposal and introduced Dana representatives Dave Mazza and Matt Slowinski, who said the firm would provide an actively managed, limited‑volatility product designed to complement the city’s existing buy‑and‑hold fixed‑income strategy. Staff said the agreement would be non‑discretionary — Dana would make individual trades within parameters set by the city — and could provide additional diversification and potentially higher returns while limiting volatility.
City staff recommended an initial allocation of $5 million. The presented fee schedule was 20 basis points for assets under $10 million, 15 basis points for the next $10 million and 10 basis points for balances above $20 million. Dana said typical timelines for liquidating positions are short (agency securities that are marketable), noting roughly 5% of a portfolio naturally liquidates via cash flows and the entire portfolio could be liquidated within about two months, though staff emphasized sellers should consider market timing.
Committee members asked about fee justification and liquidity. Staff said the 20‑basis‑point fee compared favorably with similar municipal arrangements and that larger allocations would reduce the percentage fee. After questions, Alder Morton moved and Alder Arnie seconded the staff recommendation; the committee approved the contract 7–0.
The vote authorizes staff to finalize an agreement with Dana Investment Advisors consistent with the parameters presented. The staff memo and fee schedule were included in the committee packet.
