|
TO: |
Board of Trustees |
|
THROUGH: |
Jay Fox, Executive Director |
|
FROM: |
Viola Miller, Chief Financial Officer |
|
PRESENTER(S): |
Rob Lamph, Assistant Treasurer |
|
|
|
TITLE:
title
Investment Report - Third Quarter 2023
end
AGENDA ITEM TYPE:
Report
RECOMMENDATION:
Informational report for discussion.
BACKGROUND:
The Board of Trustees Policy No. 2.1, Financial Management, authorizes the Treasurer to manage the investment of all non-retirement Authority funds in compliance with applicable laws and requires the Chief Financial Officer to prepare and present to the Board a summary of investments, investment activity, and investment performance compared to benchmarks as soon as practical after the end of each calendar quarter. The investment report has been prepared in accordance with the Financial Management Policy and is being presented to the Board.
DISCUSSION:
As of September 30, 2023, the benchmark return (Fed Fund Rate) was (5.33%). Investment returns at Chandler Asset Management (2.38%) and the overnight account at Zions Bank (5.07%) did not exceed the benchmark return. Investment returns in the State of Utah’s Public Treasurer’s Investment Fund (PTIF) (5.43%), and Zions Corporate Trust (5.43%) were better than the benchmark return.
The blended portfolio return rate for the quarter was 4.23%, which did not exceed the benchmark rate due to long term investment strategy and the increased interest rate environment we are currently experiencing.
All investments are in accordance with the State Money Management Act.
ALTERNATIVES:
The Treasurer could continue to increase investments and extend the duration of the Chandler Investment Portfolio further than 5 years to ensure continued returns, but that strategy would forego the advantages of the higher rate portfolios like PTIF, and the overnight investment rate at Zions Bank.
FISCAL IMPACT:
Investments through 3rd QTR 2023 earned UTA $18,381,336. The investment income budget for 2023 is $7,250,000.
ATTACHMENTS:
Investment Report - Third Quarter 2023