PUBLIC FUNDS ADVISORY
Customized
Investment Portfolios
Prepared for City of Richmond, CA
P R E S E N T E D B Y :
G R E G B A L L S , C F A
D I R E C T O R , A D V I S O R Y S E R V I C E S
M A Y 5 , 2 0 2 5
Agenda
2 01 FIRM OVERVIEW
02 OUR SERVICES
03 REVIEW AND ADVICE
04 VALUE ADD
Firm Overview
3 Founded in 1974. SEC Registered
Investment Advisor serving public
entities since 1990.
Customized solutions for states,
counties, cities, schools, townships,
libraries, higher education, and special
districts.
Seasoned Fixed Income Team
specializes in working with public
entities.
More than 400 public entity clients.
Over $165 billion in public funds
assets under advisement (12/31/24).
Focus on management of operating
and project funds.
1974
$165B
Assets under advisement consist of $59.25 billion of regulatory assets under management for which Meeder Public Funds provides continuous and regular investment management services as disclosed in the Form ADV and $107.75 billion of non-discretionary assets as to which Meeder Public Funds provides strategic advice or consultation but does not have the authority to effectuate transactions.
Why Meeder?
4 HOLISTIC
APPROACH
EXPERIENCE TRUSTED
ADVISOR
With you. For you.
Service Overview
5 Investment Policy Review The Investment Policy would be reviewed to ensure it is in line with state law.
Cash Flow Analysis/Modeling Throughout the year we will help you monitor your cash flows to determine the proper amount to have invested compared to liquid in cash.
Investment Strategy You will have access to our professional investment team that will strategically formulate a custom investment plan to meet your needs as well as the ever-changing interest rate environment.
Execution of Trades We utilize our purchasing power and expansive broker network to ensure best price execution.
Monthly Reporting
and Review
We provide consolidated reporting of your assets, including transactions summaries, monthly and quarterly reports, and custom reports for your board, council, or commissioners to keep everyone up to speed on changes in the portfolio and economy. Additionally, we will provide you with annual GASB reporting to aid you with your year-end processes.
Compliance Monitoring We have a best-in-class compliance monitoring system. This allows us to build rules for your investment policy, state law, and any additional restrictions placed on the portfolio, allowing us to run both pre- and post-trade compliance monitoring.
Credit Research Our in-house research team monitors corporate issuers in the marketplace, determining our approved issuer list and keeping you apprised of any changes.
Banking and Custody In the event you would look to establish a new banking or custody relationship, we are here to provide assistance through the process.
We provide the following services to public entities
Review and Recommendations
A N A L Y S I S S P E C I F I C T O Y O U
Your Portfolio
Cash Equivalents $168,648,563
Securities (CalTrust ST/MT) $216,999,378
Total Portfolio $385,647,941
Your Asset Allocation
Your Maturity Distribution
385,647,941
100% 0% 0% 0% 0% 0%
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
Overnight 0-1 year 1-2 years 2-3 years 3-4 years 4-5 years 18%
56%
0%
20%
5%
LAIF
CalTrust ST
CalTrust MT
Money Market Fund
Cash in Bank
7 Current Portfolio
City of Richmond portfolio as of 6/30/2024
SOURCE: CITY OF RICHMOND 2024 ACFR
CASH FLOW ANALYSIS
Historical Data
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Investment Balance
SOURCE: CITY OF RICHMOND ACFRS 8
Fed Funds
9 4.28%
4.13%
3.91%
3.72%
3.57%
3.41%
4.33%
3.25%
3.50%
3.75%
4.00%
4.25%
4.50%
May 7 Jun 18 Jul 30 Sep 17 Oct 29 Dec 10
2025 Upcoming Fed Meeting Months
2025 Fed Funds Rate Per Futures Market by Fed Meeting Months SOURCE: BLOOMBERG AS OF 4/16/25
• The current Effective Fed
Funds rate is 4.33%.
• The Fed is expecting 2 cuts
this year.
• The Fed Funds futures market
is projecting the year-end rate
of 3.41% (about 3 cuts).
• The futures market is
expecting the first cut of the
year to be the Jun meeting.
• Remaining Fed Meetings:
• 5/7
• 6/18
• 7/30
• 9/17
• 10/29
• 12/10
Opportunity to Create Longer-Term Certainty
AS OF 2/28/2025 SOURCE BLOOMBERG. Average LGIP represented by LGIP7D Net Index. 0 1
2 3
4 5
6 Aug-05
Jan-06
Jun-06
Nov-06
Apr-07
Sep-07
Feb-08
Jul-08
Dec-08
May-09
Oct-09
Mar-10
Aug-10
Jan-11
Jun-11
Nov-11
Apr-12
Sep-12
Feb-13
Jul-13
Dec-13
May-14
Oct-14
Mar-15
Aug-15
Jan-16
Jun-16
Nov-16
Apr-17
Sep-17
Feb-18
Jul-18
Dec-18
May-19
Oct-19
Mar-20
Aug-20
Jan-21
Jun-21
Nov-21
Apr-22
Sep-22
Feb-23
Jul-23
Dec-23
May-24
Oct-24
Average LGIP (7D)
• Short-term interest
rates topping out?
• Opportunity to lock in
high interest rates for
the long-term
• Creates budgetary
certainty for the long-
term
10 Percent
Opportunity to Create Longer-Term Certainty
AS OF 2/28/2025 SOURCE BLOOMBERG. Average LGIP represented by LGIP7D Net Index. 11 0%
1%
2%
3%
4%
5%
6%
2 Year and 5 Year Treasury Yields Past 20'ish Years
2Y 5Y
• Intermediate-term U.S.
Treasury rates have
generally been rangebound
the past two’ish years, and
still remain near their
highest levels since 2007.
• These rates most likely have
peaked for this cycle due to
economic growth slowing
and the rate of change of
inflation moderating.
• With fixed income investors
not seeing these higher
yields for the past 17 years,
we believe locking in these
intermediate-term rates is a
prudent strategy.
Sample Portfolio
Cash Equivalents $77,100,000
Securities $308,500,000
Total Portfolio $385,600,000
Sample Securities
Weighted Average Maturity 2.10 years
Sample Asset Allocation
Sample Maturity Distribution
77,100,000
52,445,000
63,242,500 63,242,500 64,785,000 64,785,000
20% 14% 16% 16% 17% 17% -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
Overnight 0-1 year 1-2 years 2-3 years 3-4 years 4-5 years 20%
12%
34%
14%
4%
16% JPAs/LAIF/MMF
U.S. Treasuries
U.S. Agencies/MBS
Commercial Paper
Municipal Securities
Corporate Bonds/ABS
12 Hypothetical Portfolio Illustration
City of Richmond as of 4/30/25 (using 6/30/2024 data)
PORTFOLIO ILLUSTRATION IS HYPOTHETICAL IN NATURE, DOES NOT REFLECT ACTUAL INVESTMENT RESULTS, AND DOES NOT GUARANTEE FUTURE RETURNS.
THE PORTFOLIO ILLUSTRATION PROJECTS THE WEIGHTED AVERAGE YIELD OF A HYPOTHETICAL PORTFOLIO INVESTED ON THE DATE SHOWN AND ALLOCATED ACROSS THE INDICATED ASSET CLASSES AND MATURITIES. THE ILLUSTRATION UTILIZES APPROPRIATE INDEXES AND BENCHMARKS TO PROJECT THE AVERAGE WEIGHTED YIELD OF THE ILLUSTRATED PORTFOLIO. CLIENTS INVESTED CONSISTENTLY WITH THE PORTFOLIO MAY HAVE EXPERIENCED INVESTMENT RESULTS MATERIALLY DIFFERENT FROM THOSE PORTRAYED IN THE ILLUSTRATION. ACTUAL YIELD FOR ANY PORTFOLIO INVESTED IN ACCORDANCE WITH THE ILLUSTRATION WILL VARY FROM THE HYPOTHETICAL DATA SHOWN HERE.
SOURCE: CITY OF RICHMOND 2024 ACFR
Getting started
13 ❑ Investment Advisory Agreement
❑ Custody Agreement
❑ Investment Policy
Cash Flow Analysis
+ Economic Outlook
Investment Strategy
▪ Assets Invested
▪ Daily reconciliation
▪ Reporting
▪ Education
▪ Cash Flow Reviews
▪ Economic Updates
▪ Strategy
Fee Structure
14 ASSETS UNDER MANAGEMENT INVESTMENT ADVISORY FEE $0 - $25,000,000 0.10%
$25,000,000 - $50,000,000 0.08%
$50,000,000 - $100,000,000 0.06%
Fees subject to $15,000 minimum per year.
For those clients who utilize Meeder’s Preferred Custodians, fees may be credited in an amount equal to the custodial fee up to a maximum annual credit of 0.01%.
The investment advisory fee shown above is inclusive of all fees associated with the management of this account and the services listed below.
Includes: ❖ Investment Policy Review
❖ Cash Flow Analysis
❖ Portfolio Management
❖ Reconciliation
❖ Reporting – Monthly, Quarterly,
Annual
❖ Best Execution
❖ Compliance Monitoring
❖ Credit Analysis
❖ Online Portal
❖ Meetings
❖ Staff Training/Education
Over $100,000,000 0.04%
Meeder Public Funds
6125 Memorial Drive
Dublin, OH 43017
901 Mopac Expressway
South, Building 1, Suite 300,
Austin, TX 78746
120 North Washington
Square, Suite 300, Lansing,
MI, 48933
111 West Ocean Blvd., 4th
Floor Long Beach, CA
90802
222 Main Street, 5th Floor,
Salt Lake City, UT 84101
10655 Park Run Drive, Suite
120, Las Vegas, NV 89144
250 Fillmore Street, Suite
150, Denver, CO 80206
meederpublicfunds.com
866.633.3371
Disclosures
15 PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Opinions and forecasts regarding markets, securities, products, portfolios or holdings are given as of the date provided and are subject to change at any time. No offer to sell, solicitation, or recommendation of any security or investment product is intended. Certain information and data has been supplied by unaffiliated third-parties as indicated. Although Meeder believes the information is reliable, it cannot warrant the accuracy, timeliness or suitability of the information or materials offered by third-parties.
Net interest income is illustrated net of investment advisory fees proposed for the assets under management. Fees are illustrated at the rate of 0.10% for the first $25,000,000 under management, 0.08% for sums $25,000,000 to $50,000,000,
0.06% for sums $50,000,000 to $100,000,000, and 0.04% for sums over $100,000,000. Investment advisory fees listed are inclusive of the custody fees.
Estimates and illustrations of expected yield for illustrated portfolios is hypothetical in nature, does not reflect actual investment results, and does not guarantee future returns. Hypothetical illustrations are offered to illustrate the yield expected from classes of securities and do not reflect actual securities available for investment. Estimates of current yield are generated from indexes and other information deemed by the adviser to provide a reliable estimate of the current yield available from investments in that asset class. Securities indices are unmanaged and investments cannot be made directly in an index. Yield assumptions were developed with the benefit of hindsight and the securities purchased for such an account may generate more or less than the illustrated yield.
Investment advisory services provided by Meeder Public Funds, Inc.
MeederPublicFunds.com
Disclosures