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City of San Leandro <br />City Council <br />Meeting Date: February 20, 2024 <br />Agenda Number: 5.c. <br />Agenda Section: CONSENT CALENDAR <br />File Number: 24-037 <br />File Type: Staff Report <br />Adopt a Resolution to Accept the 2023 Third Quarter City of San Leandro Investment Report <br />COUNCIL PRIORITY <br />·Fiscal Sustainability and Transparency <br />SUMMARY <br />City Investment Report for the third quarter of 2023 is for information only. <br />RECOMMENDATION <br />Staff recommends the City Council adopt a resolution accepting the City Investment Report for <br />the quarter ended September 30, 2023. <br /> <br />BACKGROUND <br />The purpose of the City of San Leandro Investment Report is to inform the City Council of the <br />City’s investment portfolio status as of the end of the first quarter, September 30, 2023. The <br />City’s Investment Policy Statement requires this quarterly reporting on specific investments, <br />amounts invested with approved institutions, and purchase and maturity dates and interest yields. <br />Analysis <br />As of September 30, 2023, the City’s investment portfolio had a market value of $212,670,000, <br />which is $30,705,000 lower than the prior quarter, ending June 30, 2023. The decrease was <br />mainly due to budgeted transactions, including pre-payment of the CalPERS Annual Lump Sum <br />Contribution amount ($16,506,000) and contributions to the pension trust fund ($9,580,000) <br />during the quarter. Nearly $28,189,000 of the total market value was placed with the Local <br />Agency Investment Fund (LAIF) and bank accounts. A total of $184,480,000 was placed in the <br />Chandler Asset Management portfolio. <br />The rate of return for cash deposits (LAIF and bank balances) at the end of the quarter was <br />2.00%, while the average book yield for the Chandler managed funds was 3.23%. The cash <br />deposit return was 0.49 percentage points higher than the previous quarter, while the Chandler <br />return was 0.56 percentage points higher. LAIF’s investment (56% of cash deposits) rate reflects <br />a snapshot in time (the quarterly apportionment rate), while Chandler’s reflects the performance of <br />the portfolio over the entire quarter. <br />The City’s investment policy establishes criteria for the standard for portfolio performance. The <br />Chandler managed fund criteria are compared with the ICE Bank of America 1-3-year US <br />Page 1 City of San Leandro Printed on 2/14/2024