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File Number: 21-514 <br />(the quarterly apportionment rate), while Chandler’s reflects the performance of the portfolio over <br />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 exceeded the 2-year U.S. Treasury yield. The Chandler managed funds average book yield <br />was 1.35%, exceeding the benchmark rates of return on the 2-year U.S. Treasury Bill of 0.25%, <br />and the 5-year U.S. Treasury Note of 0.87%. <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Amounts invested with LAIF are liquid; funds can be withdrawn with minimal notice as City 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 <br />$111.3 million, 55.7% of the total portfolio. These investments range from one to almost five <br />years to maturity, with the average maturity at 1.94 years (a slight longer duration than March 31, <br />2021). <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 <br />Page 2 City of San Leandro Printed on 9/15/2021