Title
Recommendation to Accept the Investment Report for the Quarter Ending December 31, 2017. [City Council and SACIC] (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Recommendation to Accept the Investment Report for the Quarter Ending December 31, 2017
BACKGROUND
Each quarter of the fiscal year, an Investment Report is provided to the City Council for review, per the Investment Policy. Attached is the Investment Report for the fiscal quarter ending December 31, 2017, which includes detailed information on the City of Alameda's cash and investments.
DISCUSSION
The investment report includes all cash and investments as summarized in the nine categories listed below as of December 31, 2017. The City utilizes U.S. Bank as its third-party custodian for safekeeping of all investments with the exception of investments held by Bond Trustees and several Certificates of Deposit purchased through Bank of Marin. The City also utilizes the Local Agency Investment Fund (LAIF) as a money market fund administered by the State Treasurer. LAIF has many governmental agency participants and holds securities through its own administrator. Investments held by Bond Trustees are administered in accordance with individual bond indentures.
As of December 31, 2017, the investment portfolio average yield (before adjustments for changes in market value) was 1.43%, which is lower than the rate for two-year U.S. Treasury bills at 1.89% and higher than the LAIF average monthly rate of 1.24%.
The investments in Certificates of Deposit, Federal/Agency Issues, Medium Term Notes/Commercial Paper, Asset Backed Securities and Supra-nationals are managed by PFM Asset Management (PFM) and Chandler Asset Management (Chandler), the City's two registered investment managers. Several Certificates of Deposits are held by Bank of Marin. PFM is responsible for managing investments ranging from one to three ye...
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