TITLE
Recommendation to receive and file the Investment Report for Quarter Ending December 31, 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 December 31, 2013, these funds had a book value of approximately $1.345 billion.
Approximately $716 million of the total investment pool, or approximately 53 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, Deputy 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 rates the City’s investment portfolio at AAAf and one of the lowest volatility ratings of S1. This rating confirms the safety of the City’s invested funds and qualifies the investment pool as an alternative investment for proceeds from bonds issued by the City.
Overall Investment Pool Performance
The City Treasurer's Office invests in a variety of fixed-income securities that vary in maturity f...
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