Title
2023 Third-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 September 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 third quarter, September 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 September 30, 2023, the City's investment portfolio had a market value of $212,670,000, which is $30,705,000 lower than the prior quarter, ending June 30, 2023. The decrease was mainly due to budgeted transactions, including pre-payment of the CalPERS Annual Lump Sum Contribution amount ($16,506,000) and contributions to the pension trust fund ($9,580,000) during the quarter. Nearly $28,189,000 of the total market value was placed with the Local Agency Investment Fund (LAIF) and bank accounts. A total of $185,480,000 was placed in the Chandler Asset Management portfolio.
The rate of return for cash deposits (LAIF and bank balances) at the end of the quarter was 2.00%, while the average book yield for the Chandler managed funds was 3.23%. The cash deposit return was 0.49 percentage points higher than the previous quarter, while the Chandler return was 0.56 percentage points higher. LAIF's investment (56% 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...
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