Laserfiche WebLink
CITY OF LA PORTE <br />Interoffice Memorandum <br />TO: Chuck Engelken, Councilmember <br /> Jay Martin, Councilmember <br />John Zemanek, Councilmember <br />Corby Alexander, City Manager <br />Jason Weeks, Assistant City Manager <br />FROM: Michael Dolby, Director of Finance <br /> Shelley Wolny, Treasurer <br />DATE: November 15, 2018 <br />SUBJECT: Quarterly Investment Report <br />For the fourth and final quarter of the 2018 fiscal year, the City’s investment portfolio yield averaged 1.60%, <br />which is below the average yield of our benchmark at 1.78 % (see graph below). Since the City’s practice <br />is to hold investments until maturity, many of the agencies in the portfolio are yielding lower than the <br />benchmark of the 6-month T-Bill rate. As securities mature, staff will reinvest at higher rates. The total <br />interest earned through September 2018 for all funds is $1,378,663, which is 257% of the budget of <br />$536,150. <br /> <br />City vs. Benchmark <br />2.50% <br />2.00% <br />1.50% <br />1.00% <br />` <br />0.50% <br />0.00% <br />Portfolio YieldBenchmark <br /> <br /> <br />th <br />At September 30,the City’s portfoliototaled $90,109,620and consisted of 21% in Texpool, 47% in <br />Agency Notes, and 30% in Logic and 2% in Texas CLASS. Half of the portfolio remains in the investment <br />pools to maintain adequate liquidity while pursuing opportunities for to optimize yield. Staff will continue <br />to focus on laddering and diversifying the portfolio through the purchase of agencies to strengthen returns. <br />During the third quarter, three new agencies were purchased with yields ranging from 2.75% to 2.80%. <br /> <br />By Investment Type <br />2% <br />30% <br />47% <br />21% <br />TexpoolLogicTexas CLASSAgency Notes <br /> <br /> 1 <br /> <br />