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Investment review: portfolio dips on tax-timing but yield rises; committee receives report

Investment Review Committee · November 21, 2024

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Summary

The Investment Review Committee received the fiscal-year 2425 first-quarter report showing a roughly $18.4 million net portfolio decline tied to property-tax timing and a year-over-year portfolio yield increase to about 2.93%. The committee approved minutes and staff flagged monitoring of pooled funds CAMP and LAIF.

The Investment Review Committee on Oct. 24 received its fiscal-year 2425 first-quarter investment review showing a net $18,400,000 decrease in the portfolio and a decline in pooled cash driven by the timing of property-tax receipts.

Committee Chair Corak presented the report and said, "In total, there has been a 13.8 decrease in overnight cash as well as an $18,400,000 net decrease in total portfolio." She identified maturities of $52,100,000, purchases of $59,700,000 and just over $12,000,000 in calls during the quarter.

Corak told the committee the timing of general-fund revenue — notably that property taxes post in two installments with the first arriving in November — accounts for the seasonal reduction in overnight cash and that cash balances are expected to increase in the next quarterly review.

The report recorded 118 investment transactions in the quarter and a portfolio-wide weighted average yield of 2.16% for securities at Sept. 30, 2024, up from about 1.43% a year earlier. Corak said the overall portfolio yield rose from 2.33% to approximately 2.93% year over year.

Corak highlighted pooled investment vehicles, naming CAMP and LAIF and citing current yields reported in the presentation of roughly 5.29% for CAMP and 4.58% for LAIF. She said staff will continue to monitor daily yields and consider transfers to maximize returns in pooled cash when appropriate.

As next steps, Corak noted certification of the city treasurer election is underway and that the new treasurer is expected to be sworn in on 12/10/2024; the presentation also listed the second quarterly investment review as scheduled for Feb. 20, with the transcript not specifying the year.

The committee moved and unanimously approved the minutes of the special meeting of 10/24/2024 before receiving the report.