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File Number: 13-090 <br />for the performance standard: the LAIF rate of return and the rate of return on 2-year and <br />5-year U.S. Treasury securities. Amounts invested in LAIF meet this performance standard. <br />The Chandler managed funds average book yield was 0.78%, which exceeds both the <br />benchmark rate of return on the 2-year U.S. Treasury securities of 0.25% and the 5-year U.S. <br />Treasury security benchmark of 0.72%. <br />Amounts invested with LAIF are essentially liquid; funds can be withdrawn with minimal notice <br />as City operations require. The rate of return earned by LAIF generally follows fixed income <br />security rates. <br />The balance of the City’s portfolio is with Chandler Asset Management . These investments <br />range from one to four years in maturity. The attached report notes that the City is in <br />compliance with all provisions of the City’s Investment Policy . The basic strategy <br />recommended by Chandler is to gradually lengthen the average maturity of the portfolio in <br />order to gain higher interest rates. Staff is in agreement with this approach , but carefully <br />monitors maturity dates to ensure that both short and long-term liquidity needs are met. <br />ATTACHMENTS <br />·Chandler Asset Management City Council Investment Report for Quarter Ending <br />December 31, 2012 <br />PREPARED BY: David Baum, Finance Director, Finance Department <br />Page 2 City of San Leandro Printed on 2/26/2013