TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 5, 2020
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
Title
Report on investments purchased during September 2020
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 2020.
During the month, 28 individual investments were made with a total par value of $32,820,000.00 at an average annual yield of 0.71%. The interest income to maturity of these investments is $764,934.40.
Additionally, 9 investments were made in Money Market Funds during the month, with a par value of $3,087,388.39 at an average annual yield of 0.27%.
The fixed income market will continue to be challenged for a prolonged period due to the health and economic crisis brought on by the COVID-19 virus. Exceptionally low investment yields are expected for a prolonged period. There is very little risk premium to be earned by extending maturities for uncollateralized investments, such as commercial paper, beyond a 60-day period. The District continues to purchase investments that meet the liquidity demand for debt service, payroll, and other operating expenditures. Investments purchased are based upon the best yield offered on the date of investment and the diversification requirements of the District’s Investment Policy. Commercial Paper and High Yield Savings continue to provide the highest yields for short-term investment requirements.
Respectfully Submitted, Mary Ann Boyle, Treasurer, MAB
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