WHEREAS - Watsonville California

stockpiles as demand slowed, and climbing oil costs pushed up prices
for imported goods.
Fewer jobs, falling home values and the biggest loss of household
wealth on record may limit consumers’ ability to spend for years,
analysts said.
The City has used LAIF (Local Agency Investment Fund) as a primary
benchmark for the last several years. LAIF is a good benchmark for
the City as the average days to maturity of their investments is similar
to the City’s investment maturity. Over the period of the last 22 months
we have been able to exceed LAIF’s average yield earnings.
PORTFOLIO RESULTS:
Table I
January February March April
Cash Invested ($MM) 38.9 34.2 30.3 40.9
Average Maturity (Days) 461.6 427.5 459.6 331.9
Average Yield 2.68% 2.52% 2.50% 2.29%
LAIF Yield 2.05% 1.87% 1.822% 1.607%
LAIF Cash Invested ($MM) 23.8 21.2 17.2 27.8
PORTFOLIO MANAGEMENT:
Over the next few months the strategy will be to maintain the current
balance of securities with LAIF and invest when Treasuries and
Agency yield’s exceed LAIF. The committee will continue to invest
only after the safety and liquidity needs of the City are met.
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Writer’s name 5/13/2009 4:37:15 PM
P:\MARISSA\Investments\Investments\INVESTME.MO\MEMORAND.UMS\2009\April 2009 staff report.docx