REPORT TO COUNCIL
SUBJECT
Title
Receive and File the City of Sunnyvale Investment Report for First Quarter 2025
Report
BACKGROUND
In accordance with California Government Code Section 53646, staff is submitting the attached investment report for Council's review. The report includes all investments held by the City of Sunnyvale. Chandler Asset Management (Chandler), the City's investment adviser, manages the long-term portion of the City's portfolio, while staff manages the liquid/short-term portion.
Funds for the City's Deferred Compensation Plan, the City's Retirement Plan, the City's Pension Trust, Other Post-Employment Benefits Trust, and any unspent proceeds from debt issuance are not included in this report. Third-party administrators and trustee custodial banks manage and hold these funds.
EXISTING POLICY
California Government Code Section 53600 et seq. strictly governs which investments public agencies can hold. In some cases, state law also governs what percentage of the portfolio can be invested in certain security types, maximum maturities, and minimum credit ratings by major rating agencies (Standard & Poor's and Moody's Investors Service). Public agencies can only invest in fixed-income securities, and the purchase of stock is prohibited. Therefore, the City primarily invests in highly rated securities such as U.S. Treasuries, federal agencies, government-sponsored enterprise debt, and high credit quality, non-governmental debt securities.
The California Government Code also requires investment objectives of safety, liquidity, and return, in that order. As such, the safety of principal is the foremost objective of the City's investment program. The portfolio must remain sufficiently liquid to enable the City to meet all cash requirements.
The City Council first adopted a policy (Council Policy 7.1.2, Investment and Cash Management) governing the investment of City funds on July 30, 1985. The City Council reviews and adopts this policy annua...
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