Title
Recommendation to Accept the Treasury Report for the Quarter Ending September 30, 2014. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Recommendation to Accept the Treasury Report for the Quarter Ending September 30, 2014
BACKGROUND
Each fiscal quarter, an Investment Summary Report is provided to the City Council for review, per City policy. Attached is the Treasury Report for the fiscal quarter ending September 30, 2014, which includes detailed information on the City's investments.
DISCUSSION
The investment report includes all cash and investments as summarized in the six categories listed below as of September 30, 2014. The investment portfolio's average yield of .35% (before adjustments for changes in market value) is slightly over the two-year rate for U.S. Treasury bills, which was .32% as of September 30, 2014.
The investments in Federal/Agency Issues and Medium Term Notes/Commercial Pager are managed by PFM Asset Management and Chandler Asset Management, the City's two registered investment advisors. PFM is responsible for managing investments ranging from one to three years, and Chandler manages investments ranging from one to five years, all of which have been made in accordance with the City's investment policy. These advisors invested approximately 65% of the portfolio investments in U.S. treasuries and agency notes and 35% in Corporate Notes and Commercial Paper. Most of these investments were rated either AA or AAA by independent rating firms, with none having a rating below an A-.
As of September 30, 2014, approximately 59% of the State's Local Agency Investment Fund (LAIF) investments were in U.S. treasuries and agency notes, 15% in CDs, and 26% in other types of investments. Additional economic summaries and specific information related to each of the investment advisors and LAIF is included in the Quarterly Investment Report, ...
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