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PFM Asset Management Review

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PFM Asset Management, LLC

Taking its initials from parent company Public Financial Management, PFM Asset Management provides investment advisory services to local governments, pensions and other institutional clients in the public sector. The firm is headquartered in Pennsylvania’s state capital - Harrisburg.

If you are looking for a financial advisor who works with individuals, use our advisor matching tool. Within a few minutes, it connects you with up to three advisors in your area.  

PFM Asset Management Background

Public Financial Management, Inc. formed in 1975. In 2001, PFM Asset Management was created to deliver the parent company’s advisory services. PFM has a number of other affiliates as well.

PFM Asset Management Client Types and Minimum Account Sizes

PFM Asset Management primarily works with institutional investors, including:

  • State and local governments and their agencies
  • Local government investment pools
  • Non-profit organizations
  • Pension and other post-employment benefits (OPEB) funds 
  • Corporations

The firm doesn’t have a set account minimum. However, most of their clients are big government entities. In addition, some specific accounts may require minimum fees. 

Services Offered by PFM Asset Management 

PFM Asset Management provides government and non-profit clients with discretionary investment advisory services. This means the firm generally takes full control of asset-allocation design. It makes the investment decisions it deems suitable to help the client meet its goals. The firm invests across fixed income and multi-asset funds. 

In addition, PFM Asset Management offers investment advice on a non-discretionary basis, where it provides recommendations that clients then execute on their own. The firm also provides structured portfolios services, Treasury consulting services and services to banking institutions.  

PFM Asset Management Investment Philosophy

Depending on the strategy, investment decisions are made by either the firm’s fixed-income committee or multi-asset class investment committee. When evaluating securities, the teams use several sources of information including market research papers, financial news publications and analysis provided by third-party industry observers. 

Fees Under PFM Asset Management 

PFM Asset Management generally charges its fees as a percentage of assets under management. They currently charge the following fee schedules by service/investment type:

Fixed-Income Fee Schedule
AUM Annual Fee
First $25,000,000 0.25%
Assets in Excess of $25,000,000  0.15%

 

 

Stable Value Fee Schedule
AUM Annual Fee
First $50,000,000 0.30%
Next $50,000,000 0.25%
Next $150,000,000 0.15%
Next $250,000,000 0.10%
In the excess of $500,000,000 0.075%

 

Multi-Asset Class Fee Schedule
AUM Annual Fee
First $10,000,000 0.45%
Next $10,000,000 0.35%
Next $30,000,000 0.25%
Next $50,000,000 0.20%
In the excess of $100,000,000 0.15%

What to Watch Out For

PFM Asset Management does not work with individual investors. It also doesn’t provide financial planning or wealth management services. If you are looking for help steering your personal finances, this firm is likely not the right fit. 

PFM is also a fee-based financial advisory firm. This means that advisors may be able to earn commissions from the sale of financial products to clients. While this is a potential conflict of interest, the firm is still a fiduciary and is legally obligated to act in the best interests of clients at all times. 

Opening an Account With PFM Asset Management 

You can learn more about PFM Asset Management by visiting its official website or by calling the firm. You also have the option to visit the firm's offices in Harrisburg.

All information is accurate as of the writing of this article.

Tips On Finding The Right Financial Advisor 

  • There are plenty of financial advisors who can help you manage your investments and plan for your financial future. To find ones near you, use SmartAsset's free financial advisor matching tool, which will connect you with up to three financial advisors in your area. Get started now.
  • Ask how the advisor gets paid. Some are fee-only financial planners, which means they earn compensation directly from clients. Others are fee-based, which means their money can come from several sources, including commissions from third-party firms for selling specific products. This arrangement poses a conflict of interest.

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research