FINANCIAL ADVISORY BOARD AGENDA ITEM
ACTION REQUESTED:
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Discuss the investment benchmarks for the City’s fixed-income money managers
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Deputy Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City maintains an investment portfolio that is managed by two fixed-income money managers. The performance of each money manager is measured against a benchmark that is directed by the Financial Advisory Board, in consultation with City staff and Marquette Associates.
DISCUSSION:
Currently, the City measures money manager performance against the Bloomberg U.S. Government Intermediate benchmark. In 2018, the City amended its investment policy to allow for limited investment in corporate credit instruments. Given that change, an intermediate U.S. Government/Credit benchmark may also be an appropriate benchmark.
This discussion intends to evaluate the appropriate benchmark given the current portfolio makeup and the investment philosophy of the money managers. Supplemental materials provided by Marquette Associates are attached.