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Investment adviser outlines plan to manage Vernon County bond proceeds, cites 0.25% fee
Summary
An Ehlers Investments presenter recommended professionally managing roughly $5 million in recent bond proceeds to seek returns above the county's LGIP, described a 0.25% annual fee and emphasized safety through U.S. Treasuries; committee members asked for references and clearer earning estimates.
An investment representative from Ehlers Investments presented an informational plan to manage Vernon County's recently received bond proceeds and urged the county to consider a professional manager to try to net more return than the local government investment pool (LGIP).
The presenter (speaker 11) told the committee Ehlers operates as an SEC-registered fiduciary and described the proposed fee: "It is 0.25 of 1% per year." He said the firm would build portfolios around U.S. Treasuries for liquidity and suggested that, when timing is right, the county could "earn more than you would in a pool," net of fees. He outlined operational mechanics for drawdowns and record-keeping via ACH and said there is no minimum term or onerous contract provisions.
Committee members pressed for concrete examples and clearer net-return estimates. One committee member (speaker 3) said the county's $5,000,000 bond proceeds and the fee raised questions about whether the extra yield would justify the cost over a short spending horizon. The presenter responded with a conservative example and noted clients in Wisconsin and Pierce and Saint Croix counties who have used the firm.
The committee asked staff to obtain references and follow-up materials before making a decision. The presentation was informational; no formal procurement or contract vote occurred at the meeting.
