TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Investment Advisory Agreement
No. 33749 with Chandler Asset Management, Inc., of San Diego, CA, for investment advisory and management services, to include authorization for as-needed trading and managing of short and intermediate investment portfolios, increasing the annual amount by $168,000, for a revised annual amount not to exceed $468,000. (Citywide)
DISCUSSION
City Council approval is requested to amend Investment Advisory Agreement No. 33749 (Agreement) with Chandler Asset Management, Inc. (Chandler), to include authorization for as-needed trading and managing of short-term and intermediate-term investment portfolios, and to increase the annual amount of the Agreement by $168,000.
The City’s short-, intermediate- and long-term investment portfolios need to be continually managed to ensure the City of Long Beach (City) receives appropriate interest earnings. Chandler currently manages the City’s long-term investment portfolio. Following the City’s emergency declaration related to the COVID-19 pandemic on March 4, 2020, the City Treasurer’s Office reviewed its business continuity plan and determined that additional backup support for the short- and intermediate-term investment function is in the best interests of the City. The requested amendment provides a contingency plan to ensure the continuity of trading and management of the City’s short- and intermediate-term investment portfolios in the event that City management staff is not able to perform this function due to an emergency situation. When authorized in such an emergency situation, Chandler will have the discretionary authority to execute trades on the City’s behalf in accordance with the amended Scope of Services. The firm is familiar with the City’s investment policy and compliance requirements. It also maintains the City’s investment data in its system and can step in expediently to pur...
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