Public Financial Management Inc. this week celebrates four decades of financial and investment advisory services, in which it grew five to 500 employees and evolved from start-up to industry leader.
The firm, which opened its doors in Philadelphia on April 11, 1975, is among the nation's leading providers of independent financial advisory services to state, local, and regional government and non-profit institutions and clients throughout the country, the firm said in a press release on Tuesday.
For the past 17 years, PFM has been the top-ranked municipal advisory firm in the nation, advising nearly $750 billion in total debt through 15,000 transactions during that time, according to Thomson Reuters.
The firm has thrived over the past 40 years because it focuses on clients' evolving needs - from the simple to the comprehensive, chief executive officer and managing director John Bonow said in the release.
That has included developing expertise in multiple sectors and specialties, and the formation of a management and budget consulting group, Bonow said.
The firm follows three primary principles: independence, initiative, and integrity, according its website, PFM.com.
"As we begin our fifth decade, PFM continues to focus on helping clients overcome their financial challenges, access the capital markets on the best and most appropriate terms, invest resources wisely, and develop sustainable finances," Bonow said.
He said what distinguishes PFM from other public finance firms is "its commitment to finding the optimal funding solution for each client, including those that may not involve debt."
Its expansion included adding an asset management practice, called PFM Asset Management LLC. That affiliated firm provides consulting services as well as investment management of money market, fixed income, and multi-asset class portfolios for pension funds, endowments and foundations, and similar institutional investors.
In January, PFM was ranked first by a sizable margin as the nation's most active municipal advisor for municipalities and non-profit organizations, based on number of transactions and dollar value for those transactions for 2014, according to Thomson.
According to Thomson, PFM advised on a total of 783 transactions with an aggregate principal amount of $48.6 billion. It garnered a market share of 18.9% -- versus 10.8% for the nearest competitor, First Southwest.
Thomson Reuters also ranked PFM first in market sectors including combined utilities, primary and secondary education, higher education, industrial development, transportation, public power, water, sewer and gas, and economic development. It also ranked first in most geographic regions, including the Midwest, Northeast, Southeast, Mideast, and West, according to Thomson.
Of its other noteworthy accomplishments, PFM Asset Management was hired in January to manage over $1 billion on a discretionary basis for the NFL Player Annuity Program and advise on over $1.6 billion for the NFL Player Second Career Savings Plan, a 401(k) plan, as well as the NFL Player Capital Accumulation Plan on a non-discretionary basis, according to its website, PFM.com.
As of Dec. 31, 2014 PFMAM has $103.4 billion in total assets, including $53 billion in discretionary assets under management and $50.4 billion in non-discretionary assets under advisement.
Overall, PFM credits its growth to a team of employees and partners that enables it to deliver on its fiduciary responsibilities to public finance issuers and clients, according to Bonow.
"We are grateful to the many wonderful people who have helped build and grow PFM over the past forty years," he said.
