Title
Adopt a Resolution to Accept the 2026 Second Quarter Investment Report Ended June 30, 2026
Staffreport
COUNCIL PRIORITY
• Fiscal Sustainability and Transparency
SUMMARY
City of San Leandro Investment Report for the quarter ended June 30, 2026 is for information only.
RECOMMENDATIONS
Staff recommend the City Council adopt a Resolution to accept the City’s Investment Report for the quarter ended June 30, 2026.
BACKGROUND
The purpose of the City of San Leandro Investment Report is to inform the City Council of the investment portfolio status as of the quarter ended June 30, 2026. The City’s Investment Policy Statement requires quarterly reporting on specific investments, amounts invested with approved institutions, purchases, maturity dates and interest yields.
Analysis
As of June 30, 2026, the City's investment portfolio had a market value of $164.8 million, invested through the City’s investment advisor, PFM Asset Management (PFMAM), a subsidiary of U.S. Bancorp Asset Management, Inc.; $41.9 million on deposit with Local Agency Investment Fund (LAIF), and $13.7 million in the City’s general bank accounts.
This report focuses on the quarterly investment report ended June 30, 2026 prepared by PFMAM; PFMAM manages the City’s investment portfolio (Attachment B).
The rate of return for cash deposits at LAIF for the quarter was at 3.92%, bank transactions yielding 0.1% rate of return, while the average market yield for the PFMAM managed funds was 4.35%. The total return on the PFMAM managed investments for the three-month period was 0.53%, compared to the benchmark of 0.37%. The LAIF rate of return on investment is an annualized number reflecting the earnings rate for the three months ended June 30, 2026 (the quarterly apportionment rate), while the PFMAM total return reflects the portfolio’s realized earnings and unrealized market value changes for the past three months, and the number is not annualized.
The City’s investment policy establishes criteria for the standard for portfolio performance. The PFMAM managed fund criteria are compared with the ICE Bank of America 0-5 Year U.S. Treasury Index. This index is an unmanaged index tracking performance of direct sovereign debt of the U.S. Government having a maturity of less than five years. The benchmark’s yield as of June 30, 2026 was 4.05%. The market yield on the PFMAM managed funds was 4.35%.
Amounts invested with LAIF are liquid funds that can be withdrawn with minimal notice as City operations may require. The rate of return earned by LAIF follows fixed income security rates.
PFMAM manages 75% of the portfolio with a market value of $164,830,300. These investments have maturities of five years and under, with average maturity at 2.06 years.
ATTACHMENT
A: Resolution
B: 2026 Q2 Investment Report, Prepared by PFMAM
PREPARED BY: Felicia Silva, Assistant Finance Director