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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Bill Greene, Chief Financial Officer |
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PRESENTER(S): |
Troy Bingham, Comptroller |
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Rob Lamph, Assistant Treasurer |
TITLE:
title
Investment Report - Fourth Quarter 2022
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 December 31, 2022, the benchmark return (Fed Fund Rate) was 4.22%. Investment returns at the State of Utah’s Public Treasurer’s Investment Fund (PTIF) (3.853%), Zions Corporate Trust (3.853%), and Chandler Asset Management (2.05%) did not exceed the benchmark return. Investment returns in the overnight account at Zions Bank (4.04%) were also below the benchmark return, but the overnight sweeps account is still outperforming all other investments at UTA.
The blended portfolio return rate of 2.782% did not exceeded the benchmark rate due to the rapidly increasing interest rate environment we are currently experiencing.
All investments are in accordance with the State Money Management Act.
Chandler Investments Advisors have invested UTA’s funds as outlined on the attached chart.
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:
Investment for 2022 earned UTA $8,470,320. The investment income budget for 2022 was $3,668,000. Investments in the Chandler Investment Portfolio are subject to mark-to-mark adjustments in UTA’s financial statements for 2022 which will reflect lower then presented today.
ATTACHMENTS:
UTA Chandler Investment Portfolio