PFM Asset Management Graduates Geneva Capital Management From Emerging/Minority Manager Program

PHILADELPHIA, June 14, 2011 /PRNewswire/ -- PFM Asset Management LLC (PFM) is pleased to announce that another investment management firm has graduated from PFM's Emerging/Minority Manager Program. Geneva Capital Management, Ltd., an employee-owned investment firm that PFM hired in 2007, has been engaged for a larger mandate as part of PFM's public fund client's pension fund.

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"We are delighted at Geneva's advancement to become one of the managers of our clients' general mandates," said Michael Harris, a PFM Managing Director and leader of the Emerging/Minority Managers Program. "By identifying and hiring Geneva Capital 3-1/2 years ago to manage an $8 million mid-cap growth mandate, we have given them the visibility they needed to grow their business," he explained. "This resulted in improved performance for our client and an enhanced opportunity for a deserving small firm."

PFM began identifying emerging and minority-owned firms some ten years ago in response to public clients' desires to diversify investment management and meet social responsibility goals while also improving performance. Emerging managers are typically defined as firms with less than $3 billion under management. They usually lack the exposure of mainstream firms and face other hurdles in establishing a relationship with major institutional clients. As a manager-of-managers, PFM identifies new emerging manager candidates, performs extensive due diligence, hires them on behalf of the client, and then monitors their performance and growth.

"We put a great deal of our substantial resources into initial manager screening and selection as well as ongoing compliance monitoring and oversight on behalf of our clients," Mr. Harris explained. "PFM assumes this responsibility and continuously evaluates emerging and minority-owned investment firms on qualitative and quantitative standards such as portfolio data, staff qualifications, and regulatory compliance. Ultimately, our Emerging/Minority Manager Program introduces institutional investors to a pool of untapped investment management talent, as demonstrated in Geneva Capital's case," he noted.

From October 2007 through December 2010, Geneva Capital Management exceeded the Russell Mid-Cap Growth benchmark. This strong performance led to Geneva's selection to manage approximately $50 million as part of a larger mandate for a PFM client.

This is the second graduation in the past three years for PFM's Emerging/Minority Manager Program; PENN Capital Management graduated in 2008. PFM's Emerging Manager Program Composite continues to consistently top the performance of the 80:20 Russell 3000/Barclays Capital Aggregate customized benchmark.  Since its inception in August 2000, the PFM Emerging Manager Program Composite outperformed the benchmark on an annualized basis as of March 31, 2011, net of fees. In fact, PFM's Emerging Manager Program Composite has surpassed the benchmark every calendar year since the program's inception over ten years ago.*

"The Emerging Manager Program is an important undertaking for PFM," Michael Harris continued. "It is a win-win for all concerned, as talented small firms get to gain the experience and opportunity to grow while PFM's clients are able to manage risk through diversification and maintain focus on their goals to enhance investment portfolio performance."

PFM Asset Management LLC, part of the PFM Group of companies, is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940, had $42.0 billion in assets under management, and provided investment consulting services for an additional $19.9 billion in securities as of March 31, 2011. The PFM Group of companies also provides financial advisory services and strategic consulting to local governments on operational and budgetary issues as well as offering pension fund advisory services to a broad group of not-for-profit entities.

*For institutional investors who are interested in more information about the performance of this strategy or details about the PFM Emerging Manager Program Composite, please contact Michael Harris at [email protected].

FOR LOCAL USE:

Geneva Capital Management, Ltd. is headquartered in Milwaukee, Wisconsin.

PENN Capital Management is headquartered in Philadelphia, PA.

SOURCE PFM Asset Management LLC