Title
Fiscal Year 2022-2023 Fourth-Quarter City of San Leandro Investment Report Update
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends the City Council Finance Committee review and recommend the City Council approve the City Investment Report for the quarter ended, June 30, 2023.
BACKGROUND
The purpose of the City of San Leandro Investment Report is to inform the City Council of the City's investment portfolio status as of the end of the fourth quarter (and fiscal year), June 30, 2023. The City's Investment Policy Statement requires this quarterly reporting on specific investments, amounts invested with approved institutions, and purchase and maturity dates and interest yields.
DISCUSSION
As of June 30, 2023, the City's investment portfolio had a market value of $243,375,000 which is $14,363,000 higher than the prior quarter, March 31, 2023. The increase was mainly due to receipt of monthly sales tax revenue during the quarter. Nearly $85,091,000 of the total market value was placed with the Local Agency Investment Fund (LAIF) and bank accounts. A total of $158,283,000 was placed in the Chandler Asset Management portfolio.
The rate of return for cash deposits (LAIF and bank balances) at end of the quarter was 1.51%, while the average book yield for the Chandler managed funds was 2.67%. The cash deposit return was 0.02 percentage points higher than the previous quarter, while the Chandler return was 0.27 percentage points higher. LAIF's investment (46% of cash deposits) rate reflects a snapshot in time (the quarterly apportionment rate), while Chandler's reflects the performance of the portfolio over the entire quarter.
The City's investment policy establishes criteria for the standard for portfolio performance. The Chandler managed fund criteria are compared with the ICE Bank of America 1-3-year US Treasury and Agency Index. This index is an unmanaged index tracking performance of direct sovereign debt of the U.S. Government having...
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