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Investment Oversight Committee

SYNOPSIS: 

The Investment Oversight Committee met Friday, February 4, 2000 and discussed various issues detailed in the Committee report. The next Investment Oversight Committee meeting is a special meeting scheduled for Monday, March 13, 2000 at 12:00 noon in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file.

Norma J. Glover
Investment Oversight Committee

Attendance: Present were Committee members Norma Glover, Gary Burton and David Ertel. Absent were Committee members Michael Antonovich, William Burke and Jerry Rogers.

Investment Committee Action Items:

Quarterly Report of Investments: Reviewed the quarterly investment report to the Governing Board. Committee member Norma Glover asked if the Carl Moyer Fund was included in these investments and how interest was allocated. Rick Pearce responded that all available cash in the Carl Moyer Fund is invested in the County pool (PSIP) and that interest is apportioned to each fund based on the amount invested. Committee member Gary Burton asked what were the investment limits in the State’s Local Agency Investment Fund (LAIF), which Rick Pearce replied $30 million. Currently the AQMD has $26 million invested in LAIF. The committee approved this report.

Approval of Annual Investment Policy and Delegation of Authority to Los Angeles County Treasurer to Invest AQMD Funds: Rick Pearce reported that the Governing Board is required by State law to annually approve its Investment Policy and delegation of authority to invest or reinvest AQMD funds. This authority expires in March 2000.

Mr. Pearce stated that staff, in consultation with AQMD’s investment consultant, were preliminarily proposing no change to the Investment Policy that was adopted last March; however, as Chairman Burke has asked that we delay the approval of the resolution of authority to the Los Angeles County Treasurer to invest AQMD funds so that Committee may further study the matter, the Committee took no action on this item. Moreover, a special IOC meeting has been scheduled for March 13, 2000 to discuss the Investment Policy and delegation of authority resolution.

Investment Committee Discussion Items:

Cash Flow Forecast: Rick Pearce reported on the cash flows for the current year and projected for the next two years. AQMD Investment Policy limits its Special Purpose investments to 75% of the minimum amount of funds available for investment during the Cash Flow Horizon. That limit, which includes all funds (General, MSRC, Clean Fuels) is approximately $72.8 million.

Report on Earned Interest Yields for AQMD and Other Local Entities: Terry McGuire, AQMD’s Investment Consultant, summarized for the committee a survey of recent investment returns of AQMD and other local government entities. Based on his analysis he concluded that the AQMD was earning investment returns comparable to other local governments in California and that the AQMD’s program benefits from the expertise and low expenses of the two largest pools in the State, enhances the yield of its program with Special Purpose Investment in safe U.S. Agency securities, and accomplishes the objectives of the District’s Investment Policy.

Other Business: None

Public Comment: None

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