Finance Highlights 2010 0518 - Laserfiche WebLink

Home

CITY OF SAN LEANDRO MEMORANDUM DATE: May 18, 2010 TO: Finance Committee FROM: Perry Carter, Interim Finance Director BY: Mary Ann Perini, Budget & Compliance Manager ~'~ SUBJECT: Investment Report -Quarter Ended March 31, 2010 RECOMMENDATION Staff recommends that the Committee review and accept the attached investment report for the quarter ended March 31, 2010. OVERVIEW At March 31, 2010, the City's investment portfolio had a market value of $82.5 million. Of this amount, $55.0 million was with the Local Agency Investment Fund (LATE) and bank accounts and $27.5 million was in the Chandler Asset Management program. The rate of return for LAIF for the quarter was 0.55% and for Chandler managed funds, the Average Book Yield was 2.21 %. For the most part, the City's portfolio exceeded the Investment Policy benchmark which is the rate of return on two and five year US Treasury securities, which was 1.02% and 2.56% respectively. The only shortfall to target is the LAIF 0.55% return versus 5-year Treasury yield of 2.56%. Amounts invested with LAIF are essentially liquid and funds can be withdrawn with minimal notice. The rate of return earned by LAIF follows fixed income securities rates in general. For example, a year ago the LAIF rate was 1.51%, currently it is 0.55%. The balance of the City's portfolio is under the Chandler management program. The attached report~notes that the City is in compliance with all provisions of the City's Investment Policy. The basic strategy recommended by Chandler is to gradually lengthen the average maturity of the portfolio, to capture higher interest rates. Staff is generally in agreement with this approach, but will carefully monitor maturity dates to ensure that both short and long-term liquidity needs are met.