Title
Staff Report for Resolution Approving the Agreement between the City of San Leandro and Chandler Asset Management for Investment Services effective July 1, 2016
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council review and approve the agreement between the City of San Leandro and Chandler Asset Management for investment services effective July 1, 2016.
BACKGROUND
On April 12, 2004, City Council approved a consulting services agreement with Chandler Asset Management for investment services of City funds. Chandler was selected based on their ability to assist the City in establishing an investment management program, appropriate duration of investment needs of the City and the investment philosophy aligned with the City's conservative approach of Safety, Liquidity and Yield.
Originally, Council approved initial investments of $40 million with an estimated annual cost to the City of $40,000 for services provided by Chandler.
Analysis
Over the last eleven years, Chandler Asset Management has provided the following services to the City of San Leandro:
* Monthly consultation with City staff regarding the City's cash flow needs, investment opportunities and market conditions
* Trade execution, trade confirmation and trade settlement with City's safekeeping bank
* Annual review of the City's investment policy ensuring all regulatory updates are included
* Monitoring of creditworthiness of investments
* Monthly and quarterly reporting and analysis of investment holdings and performance
* Adherence to the City's investment philosophy of Safety, Liquidity and Yield
Over the years, the amounts invested in the City's portfolio ranged from a low of $27.8 million for fiscal year ended June 30, 2010, to a high of $48.4 million as of December 31, 2005. Currently, the City has invested through Chandler Asset Management, $44.8 million as of August 31, 2016. The average annual amount paid to Chandler for services provided since incept...
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