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Page 2 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />2021, a new agreement was entered into with PFMAM, after an open procurement process that yielded <br />three responses. In October 2024, the PFMAM registered investment adviser was consolidated with its <br />parent, U.S. Bancorp Asset Management, Inc. (USBAM); PFMAM is now a division of USBAM. The City’s <br />primary investment objectives continue to be safety, liquidity, return on investment (yield), and <br />sustainability, in that order. <br />The attached reports represent all areas in which the City invests funds, excluding bond proceeds held <br />with a trustee. <br />ANALYSIS <br />The attached investment report indicates that as of March 31, funds (excluding cash with fiscal agents) <br />from all sources produced an average annual earnings rate of 4.15%, two basis points higher than <br />the prior quarter ending December 31. The market value of the portfolio as of March 31 was <br />$409,904,147, down from $438,179,101 as of the prior quarter primarily due to a decline in Local Agency <br />Investment Fund (LAIF) and San Mateo County Pool balances. The investment balance of $409.9 million <br />includes the funds managed by PFMAM, funds held in the San Mateo County Treasurer’s investment pool, <br />and funds with the State Treasurer’s investment pool. All these investments comply with the City’s <br />investment policy. The City has sufficient liquid resources available to meet expenditure requirements for <br />the next six months. <br /> <br />The portion of the City’s portfolio that is managed by PFMAM has a total market value of $293,501,904 as <br />of March 31, up from $292,528,207 as of December 31. As of March 31, the portfolio earned a yield at <br />cost of 4.22%, up from 4.16% as of December 31, and the yield at market was 4.0%, up from 3.76% as <br />of December 31. Yield at market is the yield that the portfolio would be earning if the entire portfolio <br />were purchased on March 31, using current investment costs and yields. <br /> <br />The market benchmark, selected in consultation with the City Council Finance/Audit Sub-Committee, is <br />the Intercontinental Exchange Bank of America 1-5 Year Treasury Index. (ICE BofA 1-5 year U.S. Treasury <br />Index). Below is a table summarizing the City’s portfolio performance compared to the benchmark, for <br />the period ending March 31, 2026. <br /> <br />Portfolio/Benchmark <br />Total Return <br />Quarter Ended <br /> <br />3/31/26 <br />Total Return <br />Since Inception (12/31/16 <br />) <br />Effective Duration (years <br />) <br />Redwood City 0.33% 2.19% 2.47 <br />ICE BofA 1- <br />5 year U.S. Treasury Index <br /> <br />0.20% 1.89% 2.47 <br /> <br />7.C. - Page 2 of 71 <br />18