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City of San Leandro City Council Meeting Date: January 3, 2023 Agenda Number: 10.d. Agenda Section: CONSENT CALENDAR File Number: 22-745 File Type: Staff Report Adopt a Resolution to Accept the Fiscal Year 2022-2023, First Quarter City of San Leandro Investment Report Update SUMMARY AND RECOMMENDATIONS Staff recommends the City Council approve the City’s Investment Report for the quarter ending September 30, 2022. BACKGROUND The purpose of the City of San Leandro Investment Report is to inform the City Council of the investment portfolio status as of the end of the quarter, September 30, 2022. The City’s Investment Policy Statement requires this quarterly reporting on specific investments, amounts invested with approved institutions, and purchase and maturity dates and interest yields. Chandler is providing the Investment Report in an updated format. This layout used by most cities is more exhaustive and generally accepted. The report includes an economic update, more detailed account and portfolio summaries, and enhanced portfolio performance presentations. DISCUSSION As of September 30, 2022, the City’s investment portfolio had a market value of $198,184,000, $18,087,000 lower than on June 30, 2022. The decrease was mainly due to pre-payment of the CalPERS Annual Lump Sum Contribution amount ($17,322,000) during the quarter. Of the total market value, $71,126,000 was placed with the Local Agency Investment Fund (LAIF) and bank accounts, and $127,058,000 was placed in the Chandler Asset Management portfolio. The rate of return for cash deposits (LAIF and bank balances) at the end of the quarter was 1.38%, while the average book yield for the Chandler-managed funds was 1.75%. The cash deposit return was 0.58% higher than the previous quarter, while the Chandler return was 0.23% higher. LAIF’s investment (86% of cash deposits) return reflects a snapshot in time (the quarterly apportionment rate), while Chandler’s reflects the performance of the portfolio over the entire quarter. The City’s investment policy establishes criteria for the standard for portfolio performance. The Chandler managed fund criteria are compared with the ICE Bank of America 1-3-year US Treasury and Agency Index. This index is an unmanaged index tracking performance of direct sovereign debt of the U.S. Government having a maturity of at least one year and less than three years. The benchmark for Average Market Yield for the period ending September 30 was 4.30%. Chandler managed funds yield was 4.31%. Page 1 City of San Leandro Printed on 12/21/2022