Laserfiche WebLink
6.B. - Page 3 of 39 <br />Looking ahead, PFM's risk mitigation strategy for the City's portfolio includes continued diversification in <br />the investment grade sectors and keeping distribution of maturities and duration in line with the <br />benchmark. Because of the outlook for slower economic growth, PFM will favor higher -grade fixed- <br />income sectors, and Treasuries over federal agencies. AAA—rated asset backed securities have widened <br />back to levels that offer attractive incremental income compared to similar duration government <br />securities, and PFM will seek to maintain those allocations. The range of short-term, high quality credit <br />has continued to shrink, and careful maturity selection. PFM will continue to focus the credit allocation <br />on high quality issuers with relatively less exposure to international trade risks. <br />PFM will continue to monitor incoming economic data, federal policy, and sector relationships to identify <br />market opportunities. PFM has provided an in-depth market summary and discussion on their investment <br />strategy and outlook in the attached investment report. <br />FISCAL IMPACT <br />The City's portfolio received $1,650,683 in net interest earnings over the reporting period. All interest <br />earnings are allocated monthly through a preset methodology that spreads earnings to the appropriate <br />funds. Fees for PFM's services during this period were $26,792, and are deducted from the total interest <br />earnings. There is no additional budget appropriation required. <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA <br />Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br />PUBLIC NOTICE <br />Public Notification was achieved by posting the agenda, with the agenda items being listed, at least 72 <br />hours prior to the meeting. After approval, the quarterly investment report will be posted on the City <br />website under Financial Information — Investments at the following link: Redwood City Investments <br />ALTERNATIVES <br />The Council can ask staff to provide the investment report in a different format, or to include different <br />information. Staff could return at a future Council meeting with an updated report. <br />Page 3 of 4 <br />It ALM <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />49 <br />