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.
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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
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
|Assets in Excess of $25,000,000
|Stable Value Fee Schedule
|In the excess of $500,000,000
|Multi-Asset Class Fee Schedule
|In the excess of $100,000,000
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.
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