TITLE
Recommendation to receive and file the Investment Report for Quarter Ending September 30, 2010. (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 September 30, 2010, these funds had a market value of approximately $1.623 billion, with approximately $562 million, or approximately 35 percent of funds, maturing 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/CFO, City Treasurer, City Controller, Budget and Performance Management Bureau staff, and designated representatives from the Harbor, Water and Development Services departments, meets monthly, or as needed, to review investment policies, strategies and performance.
Investment Pool Rating
As of September 30, 2010, Standard and Poor’s reaffirmed the City’s investment portfolio rating of 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.
Investment Performance
The City Treasurer's Office invests in a variety of fixed-income secu...
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