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City of San Leandro <br />Meeting Date: December 14, 2020 <br />Staff Report <br />Agenda Section:File Number:20-566 CONSENT CALENDAR <br />Agenda Number:8.N. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:Susan Hsieh <br />Finance Director <br />FINANCE REVIEW:Susan Hsieh <br />Finance Director <br />TITLE:Staff Report for a City of San Leandro City Council Resolution Approving the <br />Investment Report for the Quarter Ended September 30, 2020 <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends the City Council review and accept the investment report for the quarter ended <br />September 30, 2020. <br />BACKGROUND <br />The purpose of the City Council Investment Report is informing the City Council of the City’s <br />investment portfolio status as of the end of the quarter, September 30, 2020. The City’s <br />Investment Policy Statement requires reporting on types of investments, amounts invested with <br />approved institutions, and purchase and maturity dates and interest yields. <br />DISCUSSION <br />As of September 30, 2020, the City’s investment portfolio had a market value of $164 million, $13 <br />million greater than one-year earlier on September 30, 2019. Of the total market value, $55 <br />million was placed with the Local Agency Investment Fund (LAIF) and bank accounts and $109 <br />million with Chandler Asset Management portfolio. <br />The rate of return for LAIF at the end of the quarter was 0.84%, while the average book yield for <br />the Chandler managed funds was 1.89%. The LAIF return was 0.63% lower than on June 30, <br />2020, while the Chandler return was 0.14% lower. LAIF’s investment rate reflects a snapshot in <br />time (the quarterly apportionment rate), while Chandler’s reflects the performance of the portfolio <br />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 exceeded both standards. The Chandler managed funds average book yield was 1.89%, <br />far exceeding the benchmark rates of return on the 2-year U.S. Treasury Bill of 0.13% and the <br />Page 1 City of San Leandro Printed on 12/9/2020 <br />201