TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 2, 2023
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
Title
Report on investments purchased during September 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 September 2023.
During the month, 5 individual investments were made with a total par value of $28,500,000.00 at an average annual yield of 5.31%; the interest income to maturity of these investments is $264,702.77. Additionally, 14 investments were made in Money Market Funds during the month, with a par value of $17,609,550.12 at an average annual yield of 4.81%.
The current investment landscape continues to be volatile due to the aftershocks of the pandemic, the ongoing war in Ukraine, and recent bank failures; the combination of these events has led to high inflation. To fight this, the Federal Reserve has raised rates eleven times by a total of 5.25% since the beginning of 2022; it has also stated that it will keep rates at the current level longer than originally expected and may raise them again if needed. In response to the steep rise in interest rates during this period, the District maintained a balanced approach in its investment activities, continuing to purchase a diversified mix of investments to meet funding needs to cover debt service, payroll, and other operating expenditures. All decisions were based upon the best option available on the date of investment, given the District’s investment time horizon, investment constraints, diversification needs, and adherence to our Investment Policy. Investment maturities comprised a diversified selection of short- and long-term investments. Government agency and municipal bonds added duration and yield to the portfolio. As of this report, commercial paper, money market funds, and government agencies provide the most competitive yield for the District’s short- and long-term investment requirements.
Respectfully Submitted, Mary Ann Boyle, Treasurer, MAB:eh
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