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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Brian Reeves, Associate Chief Financial Officer |
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TITLE:
title
Investment Report - Third Quarter 2024
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, 2024, the benchmark return (Fed Fund Rate) was 5.16%. Investment returns in the State of Utah’s Public Treasurer’s Investment Fund (PTIF) 5.39 %, and Zions Corporate Trust 5.39% were above the benchmark. Chandler Asset Management 4.20% and the overnight account at Zions Bank 4.75% did not exceed the benchmark return.
The blended portfolio return rate for the quarter was 4.81%, 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 Utah State Money Management Act, Section 51, Chapter 7, Utah Code annotated.
ALTERNATIVES:
Utah Transit Authority could increase investments in the Chandler Investment Portfolio and extend the duration further than five years to potentially seek higher returns. However, that strategy would forego the current advantages of the shorter duration and higher return portfolios like PTIF, and the overnight investment rate at Zions Bank. Additionally, it would increase the liquidity risk by extending the portfolio duration, which is contrary to the Corporate Policy No. 3.1.4 Investments.
FISCAL IMPACT:
Investment earnings for UTA in the third quarter of 2024 was $5,091,597, and year to date earnings for 2024 was $16,654,982.
ATTACHMENTS:
Investment Report