TO: Honorable Mayor and Council
FROM: Valerie Fenske, Administrative Services Director
SUBJECT:Title
Quarterly Investment Report at March 31, 2014
Body
FUNDING SOURCE:
N/A
PURPOSE:
To present the March 13, 2014 Quarterly Investment Report to Council.
BACKGROUND:
This quarterly investment report conforms with the City's adopted Investment Policy. The investment objectives of the City include safety, liquidity and yield. Standards of care as described in the Investment Policy have been used when making investment decisions for the City. Additionally, per policy, securities are held by an independent third-party custodian.
Comments:
For the quarter ending 03/31/14, the City under-performed compared to the same quarter prior year results by $4,249. This is largely attributable to decreases in the earnings received from the Local Government Investment Pool (LGIP). Long Term investments out-performed the same quarter, prior year by $19,145.
Looking forward, the Federal Reserve has announced their fourth round of tapering (decreasing) its bond purchases marking the half-way point of their tapering program. The Federal Reserve has made it clear their economic outlook could alter the pace of tapering. The corresponding effect should be a rise in interest rates. According to the Bloomberg Consumer Comfort Index, optimism remains high among households and the index rose to a six year high.
We will continue to monitor the interest rate environment and will capitalize on available investment opportunities
COMMUNITY IMPACT:
No direct impact. Indirect impact to the community is an increase or decrease in investment earnings based on the market environment which help fund government and enterprise activities.
FISCAL IMPACT:
N/A
ATTACHMENTS:
3-13-14 Quarterly Investment Report
SUGGESTED MOTION:Recommended Action
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