Title
Informational report regarding update on the City of South San Francisco's investment portfolio as of September 30, 2024 (Frank Risso, Treasurer, Karen Chang, Director of Finance, Carlos Oblites, Chandler Asset Management)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council receive an information report on the investment portfolio for the quarter ended September 30, 2024.
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BACKGROUND/DISCUSSION
California Government Code Section 53600 et seq., strictly governs the investment activities related to public funds. Code provides guidance and restrictions related to permitted investment sectors, concentration limits, minimum credit quality, and maximum maturities permitted. Public agencies may only invest in fixed income securities. The purchase of stock is prohibited. Therefore, the City primarily invests in highly rated debt securities, such as U.S. Treasury obligations, federal agency, and government-sponsored enterprise debt, as well as obligations issued by high credit quality, and non-governmental entities such as corporations, issuers of passthrough securities, and supranational issuers.
California Government Code also specifies that the investment objectives of public agency investment programs shall be safety, liquidity, and return, in that order. As such, the safety of principal is the foremost objective of the City's investment program. The investment program must remain sufficiently liquid to enable the City to meet all cash requirements. The City collaborates with its registered investment advisor, Chandler Asset Management, in managing the City's funds. The City's investment program totals nearly $335 million, of which Chandler Asset Management (Chandler) currently manages $280 million. The Chandler-managed portion is comprised of the City's Mid-Term Portfolio targeting a duration of 2.76 years ($207,645,629), Limited Maturity Portfolio which is structured to achieve competitive yields for a portion of the City's ...
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