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File Number: 24-144 <br />deposit return was 0.95% lower than the previous quarter, while the Chandler return was 0.19% <br />higher. LAIF’s investment (56% of cash deposits) return reflects a snapshot in time (the quarterly <br />apportionment rate), while Chandler’s shows performance of 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 />Treasury and Agency Index. This index is an unmanaged index tracking performance of direct <br />sovereign debt of the U.S. Government having a maturity of at least one year and less than three <br />years. The benchmark for Average Market Yield for the period ending December 31 was 4.37%. <br />Chandler managed funds yield was 4.63%. <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Amounts invested with LAIF are liquid, funds can be withdrawn with minimal notice as City 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 follows fixed income security rates. <br />Chandler Asset Management manages 85% of the portfolio with a market value of $189,352,000. <br />These investments range from one to almost five years to maturity, with the average maturity at <br />1.84 years (lower than the 2.07 duration as of September 30, 2023). <br />The report notes compliance with all provisions of the City’s Investment Policy and the City can <br />meet its cash obligations during the next six months. Chandler’s strategy is gradually lengthening <br />the average maturity of the portfolio to gain higher interest rates. <br />Committee Review and Actions <br />·On March 27, 2024, the City Council Finance Committee reviewed the City Investment <br />Report for the quarter ended December 31, 2023 and unanimously recommended the <br />report be moved to the City Council for acceptance. <br />ATTACHMENTS <br />A: Resolution Accepting the Investment Report for the Quarter Ended December 31, 2023 <br />B: Investment Report for the Quarter Ended December 31, 2023, prepared by Chandler <br />Asset Management <br />PREPARED BY <br />T. Michael Yuen, Finance Director <br />Page 2 City of San Leandro Printed on 4/19/2024