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HomeMy WebLinkAboutA200 Inv report (Finance)CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: September 4, 2012 AGENDA ITEM NO. ITEM TITLE: Investment Report for quarter ended June 30, 2012. PREPARED BY: Arnold Ocana PHONE: 619-336-4342j DEPARTMENT: APPROVED BY: EXPLANATION: On November 15, 2011, the City Council selected Chandler Asset Management Inc. to provide investment management services for the City of National City. On February 14, 2012, the City transferred $20 million to Chandler Asset Management. As of June 30, 2012 the average coupon was 2.52%. Of the total investment portfolio, 30.63 % is invested in Federal Agency Securities and 7.92 % is invested in US Treasuries. Currently, the City also has $5 million invested within the San Diego County Treasurer's Pooled Money Fund. This fund is managed by San Diego County Treasurer's investment staff on behalf of the County, School Districts and Agencies. The objective is to safeguard principal, maintain liquidity and to achieve a market investment return. This investment accounts for 8.95% of the City's investment portfolio. Previously the City was self managed with the majority of the investment in LAIF. It is premature to compare the returns since most investments are measured on a one year term. Finally, the City has $2 million invested in the CDARS program with Neighborhood National Bank. The current investment yield is .80% and accounts for 3.58% of the City's investment portfolio. The pooled investment portfolio has the ability to meet the City's financial needs. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Staff certifies that there are sufficient funds to meet the City's financial needs. ENVIRONMENTAL REVIEW: NI/ ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: lAccept and File the Investment Report for the Quarter ended June 30, 2012. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Background/Investment Overview 2. Portfolio Summary — Quarter ended June 30, 2012.