South Coast Air Quality Management District

Investment Oversight Committee

SYNOPSIS: 

The Investment Oversight Committee met Friday, February 2, 2001 and discussed various issues detailed in the Committee report. The next Investment Oversight Committee meeting is scheduled for Friday, May 4, 2001 at 12:00 noon in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file this report.

Michael Antonovich,
Investment Oversight Committee

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

Investment Committee Action Items:

Quarterly Report of Investments: Reviewed the quarterly investment report to the Governing Board. For the month of November 2000, the AQMD’s weighted average yield rate on total investments of $130,434,547 from all sources was 6.43%. The allocation by investment type was 55.7% in the Los Angeles County Pooled Surplus Investment Fund (PSI); 21.5% in the State of California Local Agency Investment Fund (LAIF); and 22.8% in Federal Agency securities. In addition, the Committee discussed including an earnings rate (yield at cost) calculation to the earnings report on SPI investments to better reflect AQMD investment returns. This additional earnings information is more consistent with the reporting methods used by the Los Angeles County Treasurer and the California State Treasurer. The committee approved this addition to the reporting of SPIs and approved the quarterly report.

Approval of Annual Investment Policy and Delegation of Authority to Los Angeles County Treasurer to Invest AQMD Funds: The Committee reviewed this item and discussed the three proposed changes to the Investment Policy. The first two changes incorporate revisions in State law that changed the maximum maturity limits for Bankers Acceptances and Commercial Paper. The third change increases from 35% to 50% the amount of Special Purpose Investments the AQMD can make in any one Federal Agency or U.S. Government Sponsored Enterprise. This change would provide slightly greater investment flexibility without decreasing the high credit quality or diversification of the AQMD portfolio.

In addition, the Committee discussed the renewal of its delegation of authority to its treasurer to invest and reinvest AQMD funds. The AQMD Annual Investment Policy and the reauthorization of the Los Angeles County Treasurer to invest and reinvest AQMD funds was recommended for approval at the March 16, 2001 meeting of the Governing Board.

Other Business: None

Public Comment: None

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