Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
MARCH 15, 2023
Subject
SUBJECT: INVESTMENT MANAGEMENT SERVICES BENCH
Action
ACTION: AWARD CONTRACTS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award ten- (10) year bench Contract Nos. PS45150000 through PS45150007, for investment management services, to the firms listed below, for a total not-to-exceed amount of $12,393,750 for the initial five-year base term, plus $12,393,750 for the five-year option term, for a combined not-to-exceed amount of $24,787,500, effective April 1, 2023, subject to resolution of protest(s), if any:
A. Discipline 1: Intermediate duration fixed income managers
1.1 LM Capital Group, LLC
1.2 RBC Global Asset Management (U.S.), Inc.
1.3 Chandler Asset Management, Inc.
1.4 US Bancorp Asset Management, Inc.
1.5 Payden & Rygel
B. Discipline 2: Short-term duration fixed income managers
2.1 CSM Advisors, LLC dba CS McKee
2.2 Longfellow Investment Management Co., LLC
2.3 US Bancorp Asset Management, Inc.
2.4 Loop Capital Asset Management
2.5 Payden & Rygel
2.6 RBC Global Asset Management (U.S.), Inc.
Issue
ISSUE
The Los Angeles County Metropolitan Transportation Authority's (Metro) Investment Policy requires that temporarily idle funds of the agency be prudently invested to preserve capital and provide necessary liquidity while maximizing earnings. Metro hires external investment managers to obtain full time professional expertise in the field of fixed income at a reasonable cost. The external managers invest part of the operating portfolio in longer term maturities that increase diversification, improve risk management, and enhance performance.
Background
BACKGROUND
Operating funds are the pool of excess working capital used to fund expenses such as salaries, capital project expenditures, fuel and supplies, contract, and professional services.
The current investment management services contracts with LM Capital, a minority owned...
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