Long Beach, CA
Share to Facebook Share to Twitter Bookmark and Share
File #: 20-0443    Version: 1 Name: FM - Investment Report for Qtr Ending March 31, 2020
Type: Agenda Item Status: Approved
File created: 4/30/2020 In control: City Council
On agenda: 5/19/2020 Final action: 5/19/2020
Title: Recommendation to receive and file the Investment Report for Quarter Ending March 31, 2020. (Citywide)
Sponsors: Financial Management
Attachments: 1. 051920-C-6sr&att.pdf
TITLE
Recommendation to receive and file the Investment Report for Quarter Ending March 31, 2020. (Citywide)

DISCUSSION
The City Treasurer's Office in the Financial Management Department invests the City of Long Beach’s (City) funds in compliance with California Government Code, Section 53600 et. seq., and the City’s Investment Policy. As of March 31, 2020, these funds had a book value of approximately $1.737 billion.

Statutory Compliance

All investment transactions have been executed in conformance with the City's Investment Policy and the California Government Code. The Investment Advisory Committee, composed of the Assistant City Auditor, Deputy City Attorney, City Treasurer, City Controller, Budget Management Bureau staff, and designated representatives from the Harbor and Water Departments, meets quarterly, or as needed, to review investment policies, strategies, and performance. All portfolio transactions as of March 31, 2020 can be found in the Investment Trading Activity (Attachment A).

Investment Strategies

The Investment Policy divides the City's investment portfolio into short-maturity, intermediate-maturity, and long-maturity portfolios. Their respective benchmarks are the Three-Month Treasury Bill Index, the One-Year Constant Maturity Treasury (CMT), and the ICE BOA Merrill Lynch One-to-Five Year Treasury/Agency.

The short-maturity portfolio maintains a weighted average maturity of three to six months and provides sufficient liquidity to satisfy the City’s short-term cash needs. The intermediate-maturity portfolio maintains a weighted average maturity of approximately one year and provides for the cash needs with maturities greater than six months. The long-maturity portfolio maintains a weighted average maturity of one to five years to satisfy the City’s longer-term cash needs.

The City's cash management goals are to maintain and preserve the safety of funds in custody and provide adequate liquidity for anticipated expenditure needs. Ap...

Click here for full text