TITLE
Recommendation to receive and file the Investment Report for Quarter Ending June 30, 2013. (Citywide)
DISCUSSION
The Department of Financial Management, City Treasurer's Office, invests the City’s funds in compliance with the California Government Code, Section 53600 et. seq., and the City’s Investment Policy. As of June 30, 2013, these funds had a book value of approximately $1.367 billion.
Approximately $700 million of the total investment pool, or approximately 51 percent of funds, will mature within six months, ensuring that sufficient funds are available to meet the City's liquidity needs.
Statutory Compliance
All investment transactions have been executed in conformance with the City's Investment Policy and the California Government Code. According to the California Government Code, the maturity term of all investments is limited to a maximum of five years, unless the local agency legislative body gives prior approval to exceed this limitation. The City’s Investment Policy currently requires that all funds invested in the City’s investment pool not exceed a weighted average maturity of three years. In addition, the Investment Advisory Committee, composed of the Assistant City Manager, the Deputy City Auditor, Assistant City Attorney, Director of Financial Management, City Treasurer, City Controller, Budget and Performance Management Bureau staff, and designated representatives from the Harbor and Water departments, meets monthly, or as needed, to review investment policies, strategies and performance.
Investment Pool Rating
Standard and Poor’s Fund Credit Quality rating of the City’s investment portfolio is AAAf/S1. The AAAf rating means the current investment holdings provide extremely strong protection against losses from credit defaults, while the S1 rating indicates a low sensitivity to market value changes from changes in interest rates or market conditions.
Overall Investment Pool Performance
The City Treasurer's Office invests in ...
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