TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 18, 2023
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
Title
Report on investments purchased during March 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 March 2023.
During the month, 50 individual investments were made with a total par value of $206,500,000.00 at an average annual yield of 4.63%; the interest income to maturity of these investments is $4,965,744.17. Additionally, 13 investments were made in Money Market Funds during the month, with a par value of $19,890,036.08 at an average annual yield of 4.71%.
The current investment landscape continues to be volatile due to high inflation rates, the aftershocks of the pandemic, and the ongoing war in Ukraine. To fight inflation, the Federal Reserve has raised rates ten times by a total of five percentage points since the beginning of 2022. 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 of 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 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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