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City of San Leandro <br />Meeting Date: March 16, 2020 <br />Staff Report <br />Agenda Section:File Number:20-096 CONSENT CALENDAR <br />Agenda Number:8.E. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:James O'Leary <br />Finance Department <br />FINANCE REVIEW:Liz Warmerdam <br />Interim Finance Director <br />TITLE:Staff Report for a City of San Leandro City Council Resolution Approving the <br />Investment Report for the Quarter Ended December 31, 2019 <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends the City Council review and accept the investment report for the quarter ended <br />December 31, 2019. <br />BACKGROUND <br />The purpose of the City Council Investment Report is to inform the City Council of the City’s <br />investment portfolio status as of the end of the quarter, December 31, 2019. The City’s <br />Investment Policy Statement requires this quarterly report on the types of investments, amounts <br />invested with approved institutions, and purchase and maturity dates and interest yields. <br />DISCUSSION <br />As of December 31, 2019, the City’s investment portfolio had a market value of $157 million, $8 <br />million greater than on December 31, 2018. Of the total market value, $48 million was placed <br />with the Local Agency Investment Fund (LAIF) and bank accounts and $109 million was placed in <br />the Chandler Asset Management portfolio. <br />The rate of return for LAIF at the end of the quarter was 2.29%, while the average book yield for <br />the Chandler managed funds was 2.39%. The LAIF return was 0.11% greater on December 31, <br />2018, while the Chandler return was 0.10% lower. LAIF’s investment report reflects a snapshot in <br />time (referred to as quarterly apportionment rate) while Chandler’s reflects the performance of the <br />portfolio over the entire quarter. <br />The City’s investment policy establishes three criteria for the performance standard-the LAIF rate <br />of return and the rates for both 2-year and 5-year U.S. Treasury securities. Amounts invested in <br />LAIF met this performance standard. The Chandler managed funds average book yield was <br />2.39%, above the benchmark rates of return on the 2-year U.S. Treasury Bill of 1.89%, and the <br />Page 1 City of San Leandro Printed on 3/11/2020 <br />229