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File Number: 21-105 <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 exceeded both standards. The Chandler managed funds average book yield was 1.78%, <br />far exceeding the benchmark rates of return on the 2-year U.S. Treasury Bill of 0.13%, and the <br />5-year U.S. Treasury Note of 0.36%. <br />Amounts invested with LAIF are liquid; funds can be withdrawn with minimal notice as City <br />operations may require. The rate of return earned by LAIF generally follows fixed income security <br />rates. <br />Chandler Asset Management manages the balance of the portfolio having a market value of $106 <br />million, 62.8% of the total portfolio. These investments range from one to almost five years to <br />maturity, with the average maturity at 1.83 years (a small decrease from September 30, 2020). <br />The report notes that the City is in compliance with all provisions of the City’s Investment Policy <br />and the City is able to meet its cash obligations during the next six-months. Chandler’s strategy is <br />gradually lengthening the average maturity of the portfolio in order to gain higher interest rates. <br />PREPARED BY <br />Karen Chang, Assistant Finance Director, Finance Department <br />Page 2 City of San Leandro Printed on 2/24/2021