CITY OF HUNTINGTON BEACHQUARTERLY INVESTMENT REPORTCITY TREASURER, ALISA BACKSTROM, MBA, CCMT, CPFIMQUARTER ENDED: MARCH 31, 2023
ECONOMIC UPDATE
Federal Reserve raised rates 475 basis points in 12 months as of March 2023 Slow process of bringing inflation down to 2% target:
Core services inflation remains elevated
Very tight labor market – March Unemployment: 3.5%
Inverted yield curve – signaled recession in past
INTEREST RATES – US TREASURY YIELD CURVEAPRIL 1, 2022 – MARCH 31, 2023:
2-year US Treasury
4.06%
at 3/31
5-year US Treasury
3.60%
at 3/31
INVESTMENT PORTFOLIO – SUMMARY QUARTER END 03/31/23:
INVESTMENT PORTFOLIO – INVESTMENTS BY TYPEQUARTER END 03/31/23:
INVESTMENT PORTFOLIO – SELECTED ACTIVITY QUARTER END 03/31/23:
MATURITIES
Liquidity funds moved from LAIF to CAMP
$5MM Corporate Bond (Apple) matured
$3MM U.S. Treasury matured
PURCHASES
Four U.S. Agencies purchased for a total of $20MM
$5MM Corporate Bond (Pfizer Inc.)
Current Year - Month
March 2023: $574,351
Up 77% from prior year
Current Fiscal Year-to-date
Through 03/31/23: $3,875,960
Up 56% from prior year
Effective Rate of Return
March 2023: 1.99%
Fiscal Year-to-date: 1.62%
Benchmark
March 2023: 3.63%
12-month moving average 1.5-year Treasury
INVESTMENT PORTFOLIO – EARNINGS:
SELECTED INVESTMENT POLICY COMPLIANCE REQUIREMENTSQUARTER END 3/31/23:
(Requirements are at purchase)
SUMMARY:
Safety – No principal losses
Liquidity – Sufficient funds for operations
Market rate of return – 1.99% March, 1.62% Fiscal Year-to-date (upward trend) Prudently managed – No compliance issues
Positive contributor to City – Earnings of $3.88 million fiscal year-to-date to be utilized for operating and other expenses