TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 21, 2023
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
Title
Report on investments purchased during November 2023
Body
Dear Sir:
Attached is a report indicating the investments made in securities and overnight money market funds for the various District Funds during the month of November 2023.
During the month, 8 individual investments were made with a total par value of $65,000,000.00 at an average annual yield of 5.45%; the interest income to maturity of these investments is $660,841.67.
Additionally, 14 investments were made in Money Market Funds during the month, with a par value of $90,919,857.55 at an average annual yield of 5.19%.
High inflation resulting from post-pandemic policies and international instability continue to shape market conditions. To curb inflation, the Federal Reserve is expected to keep target rates elevated in the near term.
In response to persisting high short-term interest rates and delayed property tax receipts, the District has been more conservative in its investment strategy. Treasury is maintaining a balanced approach in its investment activities by continuing to purchase a diversified mix of investments to meet funding needs to cover debt service, payroll, and other operating expenditures. All decisions are based upon the best option available on the date of investment, given the District’s investment time horizon, investment constraints, and adherence to the Investment Policy. Maturities of investments purchased to date comprise a diversified selection of safe, liquid, and competitive rate investments. As of this report, money market instruments and government agency securities provide the most competitive yields for the District’s short- and long-term investment requirements.
Respectfully Submitted, Mary Ann Boyle, Treasurer, MAB:eh
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