Title
Resolution to Approve Agreement with Cutwater Asset Management (Approximately $675,000.00; $135, 000.00 annually for 5 years with a 2-Year Optional Renewal)
Memorandum
Attached for your review and approval is a resolution to approve a professional services agreement with Cutwater Asset Management., for investment advisory services.
The City issued RFP #926 in March 2015 for investment advisory services. Responses were received from five companies: Cutwater Asset Management, Heber Fuger Wendin, PFM Asset Management, Public Fund Advisors, and Robinson Capital. Treasury staff reviewed and evaluated the responses.
After evaluating the responses, Cutwater Asset Management, Heber Fuger Wendin, and PFM Asset Management scored the highest, and were deemed acceptable proposals. Cost proposals for those three responses were then opened and evaluated. The results are summarized below:
Cutwater Asset Management's fee proposal of 6 basis points represents an annual cost of approximately $135,000. This is significantly less than it would cost the City to hire an investment manager and provide the necessary technology solutions to facilitate in-house investment management. The proposal of 6 basis points is a reduction of 1.5 basis points (20%) from the existing agreement, and is 0.89 basis points (13%) less than the next lowest respondent.
Cutwater Asset Management is the incumbent firm, and has been providing exceptional investment advisory services to the City since 1994. Their proposal meets all City requirements. Cutwater Asset Management received Human Rights approval on April 15, 2015, and complies with the City's living wage ordinance.
The term of the contract is five years, with an option to extend the term an additional two years, at the City's pleasure. Approval of this resolution is recommended.
Staff
Prepared by: Matthew V. Horning, City Treasurer
Reviewed by: Tom Crawford, Financial Services Administrator and CFO
Approv...
Click here for full text