Title
Staff Report for a City of San Leandro City Council Resolution Approving the Investment Report for the Quarter Ended March 31, 2021
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends the City Council review and accept the investment report for the quarter ended March 31, 2021.
BACKGROUND
The purpose of the City Council Investment Report is to inform the City Council of the City's investment portfolio status as of the end of the quarter, March 31, 2021. The City's Investment Policy Statement requires this quarterly report on types of investments, amounts invested with approved institutions, and purchase and maturity dates and interest yields.
DISCUSSION
As of March 31, 2021, the City's investment portfolio had a market value of $178.7 million, $9.3 million higher than the prior quarter ended December 31, 2021. The increase was mainly due to payments from the county for the ROPS and property tax totaling $9.9 million.
Of the total market value, $56.5 million was placed with the Local Agency Investment Fund (LAIF) and bank accounts and $106.2 million was placed in the Chandler Asset Management portfolio.
The rate of return for LAIF at the end of the quarter was 0.44%, while the average book yield for the Chandler managed funds was 1.62%. The LAIF return was 0.19% less than previous quarter, while the Chandler return was 0.16% lower. LAIF's investment 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 three criteria for the performance standard, the LAIF rate of return and the rates for both 2-year and 5-year U.S. Treasury securities. Amounts invested in LAIF exceeded both standards. The Chandler managed funds average book yield was 1.62%, exceeding the benchmark rates of return on the 2-year U.S. Treasury Bill of 0.16%, and the 5-year U.S. Treasury Note of 0.92%.
Amounts invested with LAIF a...
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