Title
Review of Statement of Investment Policy
Staffreport
SUMMARY
This report provides an update on the City's investment management portfolio manager, PFM Asset Management, as well as the review of proposed updates to the Statement of Investment Policy.
RECOMMENDATIONS
That the Committee reviews and comments on the proposed updates to the 2025-2026 Statement of Investment Policy (Attachment A) from the City's portfolio manager, PFM Asset Management.
BACKGROUND AND ANALYSIS
California Government Code Section 53600 et seq. and Section VIII of the San Leandro Investment Policy Statement require the City Council to annually review and approve the City's Investment Policy Statement. The policy was last approved on May 22, 2024
In July 2025, through a request for proposal process, the City changed investment management services from Chandler Asset Management to PFM Asset Management, a subsidiary of U.S. Bancorp Asset Management, Inc.
Sound investment practices are facilitated by the written governing policy. The City's Statement of Investment Policy includes the primary objective of preserving the safety of principles, followed by objectives of meeting liquidity needs, and obtaining a fair rate of return. Return on investment is the least important criterion compared to the safety and liquidity of the City's assets. Additionally, investments can be made bearing in mind the responsibility of city government to the community and alternative investments which enhance the quality of life.
The City's Statement of Investment Policy provides specific guidelines for the City's investment functions and is consistent with the model policies of the Association of Public Treasurers of the United States and Canada, and the California Government Code. The Statement of Investment Policy serves as a guide for setting and achieving investment objectives, defines rules and established benchmarks, and prohibits and/or restricts certain investment instruments. Esta...
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