The County entered into an Investment Management Agreement with Wells Fargo Bank, N.A. on March 30, 1993 to manage a portion of assets of County’s Treasury Pool. Currently, Wells Capital Management, Inc., an investment management subsidiary of Wells Fargo Bank, N.A. manages approximately $44 million assets on behalf of the County. Given the existing IMA has been in place for about 28 years, many terms and conditions are outdated. A proposed new IMA has been negotiated, which is more comprehensive than the existing one and includes provisions that reflect existing laws, regulations, and industry practice. The IMA also includes a mutual indemnification clause.
The County funds managed under the IMA are to be maintained by a custodian, Wells Fargo Bank, NA, under a separate Custody Agreement. The Custody Agreement contains a clause whereby the County indemnifies the custodian and agrees to waive the custodian’s liability for damages.
As part of the account set-up, the County must submit a certification of authorized signers for the custodian-managed account, which authorizes certain individuals to take actions with respect to the account.
If a new IMA and Custody Agreement are not entered into, the parties will operate under out-of-date provisions and the fee schedule for services will not be reduced.