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HomeMy WebLinkAbout11-12-2020 IOC Agenda PacketCity of San Luis Obispo, Agenda, Planning Commission Agenda INVESTMENT OVERSIGHT COMMITTEE Thursday, November 12, 2020 Based on the threat of COVID-19 as reflected in the Proclamations of Emergency issued by both the Governor of the State of California, the San Luis Obispo County Emergency Services Director and the Investment Oversight Committee (IOC) of the City of San Luis Obispo as well as the Governor’s Executive Order N-29-20 issued on March 17, 2020, relating to the convening of public meetings in response to the COVID -19 pandemic, the City of San Luis Obispo will be holding all public meetings via teleconference. There will be no physical location for the Public to view the meeting. Below are instructions on how to view the meeting remotely and how to leave public comment. Additionally, members of the Investment Oversight Committee are allowed to attend the meeting via teleconference and to participate in the meeting to the same extent as if they were present. Using the most rapid means of communication available at this time, members of the public are encouraged to participate in Committee meetings in the following ways: 1. Remote Viewing - Members of the public who wish to watch the meeting can view: ➢ View the Webinar: ➢ Registration URL: https://attendee.gotowebinar.com/register/6388824874180785676 ➢ Webinar ID: 501-249-875 ➢ Phone +1 (415) 655-0052 ➢ Access Code: 979-117-900 2. Public Comment - The Investment Oversight Committee will still be accepting public comment. Public comment can be submitted in the following ways: • Mail or Email Public Comment ➢ Received by 10:00 AM on the day of meeting - Can be submitted via email to advisorybodies@slocity.org or U.S. Mail to City Clerk at 990 Palm St. San Luis Obispo, CA 93401 ➢ Emails sent after 10:00 AM and up until public comment is opened on the item – Limited to one page emailed to cityclerk@slocity.org, which will then be read aloud during the public comment period on the item specified. • Verbal Public Comment ➢ Received by 10:00 AM on the day of the meeting - Call (805) 781-7164; state and spell your name, the agenda item number you are calling about and leave your comment. The verbal comments must be limited to 3 minutes. All voicemails will be forwarded to the IOC and saved as Agenda Correspondence. ➢ During the meeting – Comments can be submitted up until the Public Comment period is opened for the item when joining via the webinar (instructions above). Once you have entered the webinar/meeting please type your name and the Item # in the questions box. Your mic will be unmuted when Public Comment is called for the item you indicated. All comments submitted will be placed into the administrative record of the meeting. Investment Oversight Committee Agenda for November 12, 2020 Page 2 1:30 p.m. REGULAR MEETING TELECONFERENCE Broadcasted via webinar CALL TO ORDER: Chair Brigitte Elke ROLL CALL : Committee Members Heidi Harmon, Natalie Harnett, Daniel Humphrey (Public Member), Derek Johnson, Debbie Malicoat, and Chair Brigitte Elke OTHERS PRESENT: Monique S. Spkye, Managing Director for PFM Asset Management LLC, and Serenity Whorley, Recording Secretary PUBLIC COMMENT: At this time, people may address the Committee about items not on the agenda. Persons wishing to speak should come forward and state their name and address. Comments are limited to three minutes per person. Items raised at this time are generally referred to staff and, if action by the Committee is necessary, may be scheduled for a future meeting. CONSIDERATION OF MINUTES 1. Minutes of the Investment Oversight Committee of September 24, 2020 BUSINESS ITEMS 2. Presentation of the Quarterly Investment Report on Portfolio Performance Recommendation: Approve and confirm investment policy compliance. COMMENT AND DISCUSSION 3. Cash Flow Analysis and agenda forecast Investment Oversight Committee Agenda for November 12, 2020 Page 3 ADJOURNMENT The next Regular Meeting of the Investment Oversight Committee is scheduled for Thursday , February 11, 2021 at 1:30 p.m., in the Council Hearing Room, 990 Palm Street, San Luis Obispo, California. The City of San Luis Obispo wishes to make all of its public meet ings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the Finance Department at (805) 781-7125 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107. Meeting audio recordings can be found at the following web address: http://opengov.slocity.org/WebLink/1/fol/61037/Row1.aspx Minutes - Draft Investment Oversight Committee Thursday, September 24, 2020 Regular Meeting of the Investment Oversight Committee CALL TO ORDER A Regular meeting of the Investment Oversight Committee was called to order on Thursday, September 24, 2020, at 1:30 p.m. via teleconference, by Chair Brigitte Elke. ROLL CALL Present: Committee Members Heidi Harmon, Natalie Harnett Derek Johnson, Debbie Malicoat, and Chair Brigitte Elke Absent: Committee Member Daniel Humphrey (Public Member) Others Present: Monique Spyke, Managing Director for PFM Asset Management LLC, David Reeser Managing Director for PFM Asset Management LLC, and City Clerk Teresa Purrington Note: Due to Covid-19 “Shelter at Home” orders, the meeting was held via Webinar. PUBLIC COMMENT ITEMS NOT ON THE AGENDA None. --End of Public Comment-- APPROVAL OF MINUTES 1. Review of Minutes of the Investment Oversight Committee Meeting of May 14. 2020: ACTION: UPON MOTION BY COMMITTEE MEMBER JOHNSON, SECONDED BY COMMITTEE MEMBER MALICOAT, CARRIED 5-0-1 (COMMITTEE MEMBER HUMPHREY ABSENT), to approve the May 14, 2020 minutes, as presented. PUBLIC COMMENT None --End of Public Comment-- BUSINESS ITEMS 2. Presentation of the Quarterly Investment Report on Portfolio Performance Monique Spyke, Managing Director for PFM Asset Management LLC, provided a PowerPoint presentation and responded to Committee inquiries. City of San Luis Obispo, Title, Subtitle Minutes - Investment Oversight Committee Minutes of September 24, 2020 Page 2 Public Comment None. --End of Public Comment-- ACTION: UPON MOTION BY COMMITTEE MEMBER JOHNSON, SECONDED BY COMMITTEE MEMBER MALICOAT, CARRIED 5-0-1 (Committee Member Humphrey absent), recommendation to approve and confirm investment policy compliance. 3. ESG Investment Criteria Monique Spkye PFM and David Reeser, PFM provided a PowerPoint presentation and responded to Committee inquiries. Public Comment None. -End of Public Comment-- ACTION: UPON MOTION BY COMMITTEE MEMBER HARMON, SECONDED BY COMMITTEE MEMBER MALICOAT, CARRIED 5-0-1 (Committee Member Humphrey absent), to move forward with Investment Approach #3 with private prisons added to Industry Exclusion Approach #3 ESG Investment Criteria ESG Risk Rating Limit Issuer ESG Risk Rating < 30 (medium or better risk category) ESG Risk Rating Exception: Top ESG Performers Within Subindustry Peer Groups Issuer ESG Risk Rating is between 30-39.99 and the Issuer subindustry ranking is in the top 25th percentile Industry Exclusions Energy Services Oil & Gas Producers Refiners & Pipelines Aerospace & Defense Paper & Forestry Private Prisons Sub-Industry Exclusion Tobacco Authorized and Suitable Investments subject to ESG Investment Criteria Banker’s Acceptances Commercial Paper Negotiable Certificates of Deposit Corporate & Bank Notes Asset-Backed Securities City of San Luis Obispo, Title, Subtitle Minutes - Investment Oversight Committee Minutes of September 24, 2020 Page 3 ADJOURNMENT The meeting was adjourned at 2:57 pm. The next Regular Meeting of the Investment Oversight Committee is scheduled for Thursday, November 12, 2020, at 1:30 p.m. APPROVED BY INVESTMENT OVERSIGHT COMMITTEE: XX/XX/XXXX Quarterly Investment Report AS OF SEPTEMBER 30, 2020 November 12, 2020 This report presents the City’s investment portfolio for the quarter ending September 30,2020.It has been prepared to comply with regulations contained in California Government Code Section 53646.The report includes all investments managed by the City on its own behalf as well as for other third-party agencies on a fiduciary basis such as the Whale Rock Commission. It also includes all City-related investments held by trustees for bond debt service obligations.As required, the report provides information on the investment type, issuer,maturity date,cost,and current market value for each security. Market Themes Markets Face Many Uncertainties Moving into the Fourth Quarter Coronavirus •Spread during colder months and flu season •Development of vaccines •Impact on economic recovery Markets •Valuations of bonds and equities •Further fiscal stimulus •Fed policies Presidential election •Priorities of government spending •Tax law changes •Foreign and trade policies •Future of ACA Market Considerations •The U.S. Treasury yield curve steepened modestly in the third quarter amid high levels of issuance and the Fed policy shifts on inflation. •At the September Federal Open Market Committee (FOMC) meeting, the FOMC policymakers extended the time period of expected zero rates through 2023, and in a major policy shift announced in August will now seek “to achieve inflation that averages 2% over time.” Source: Bloomberg. Market Projection as of October 2, 2020. Fed Funds Futures Projections as of October 5, 2020. 0.09% 0.28% 0.70% 0.0% 0.5% 1.0% 1.5% 2.0% 3 M 1 Y 2 Y 3 Y 4 Y 5 Y 10 Y Maturity US Treasury Yield Curve Dec 31, 2019 June 30, 2020 Sept 30, 2020 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Inflation Core PCE (YoY)Effective Fed Funds Rate Fed’s 2% Inflation target Fed Fund Futures show zero rates through 2023 Market Considerations •Diversification away from Treasuries was again additive to performance in the third quarter. •The Investment Grade corporate sector was a top performer as spreads retraced nearly all the widening experienced earlier in the year. Continued support from the Fed helped to anchor spreads, as did better- than-expected corporate earnings and robust demand as investors continued to search for yields in the ultra -low- rate environment. Source: Bloomberg as of September 30, 2020. 0.10%0.20% 0.48%0.46% 1.12% 0.0% 0.4% 0.8% 1.2% 1.6%U.S. TreasuryAgencyABS 0-3Corp A-AAACorp BBB1-3 Year Indices 0.13%0.26% 0.65%0.67% 1.58% 0.0% 0.4% 0.8% 1.2% 1.6% 2.0%U.S. TreasuryAgencyABS 0-5Corp A-AAACorp BBB1-5 Year Indices What we are watching… •U.S. second quarter GDP plunged by a record annualized rate of 31.7%. However, other economic indicators were surprisingly strong and recovered at a faster pace than originally expected. •Getting back to pre - pandemic growth and employment levels will likely be challenging as another surge in COVID -19 cases, rising geopolitical tensions, and the presidential election could hinder the recovery. . Source: Federal Reserve, economic projections as of June and September 2020. -3.7% 4.0%3.0%2.5%1.9% -8% -4% 0% 4% 8% 2020 2021 2022 2023 Longer Run Change in Real GDP June Projections September Projections 7.6% 5.5% 4.6% 4.0%4.1% 0% 2% 4% 6% 8% 10% 2020 2021 2022 2023 Longer Run Unemployment Rate June Projections September Projections Current Cash & Investment Summary The following is a summary of the City’s cash and investments based on market value, as of September 30, 2020, compared to the prior quarter. Investment Entity September 30, 2020 June 30, 2020 Percent of Total** City Held Cash & Investments $40,839,184 $43,648,304 28% LAIF Held Investments $23,862,150 $23,775,399 16% PFM Managed Investments*$83,585,116 $83,233,029 56% Trustee Held Investments $72,376 $72,113 <1% TOTAL $148,358,826 $150,728,845 100% *Figures shown exclude accrued interest. **Details may not add up to total due to rounding. Current Cash & Investment Summary There are several factors which result in changes in cash and investment balances from month-to-month and quarter-to- quarter, dependent on the receipt of revenues or a large disbursement. •Some major City revenues are received on a periodic rather than a monthly basis. Property Tax is received in December, January, April, and May of each year. Transient Occupancy Tax is received monthly but varies considerably due to seasonality. •Payments for bonded indebtedness or large capital projects can reduce the portfolio substantially in the quarter in which they occur. •The City pays its CalPERS obligation in a lump sum at the beginning of the fiscal year to achieve interest savings. Factors Securities Security Type Market Value % of Portfolio % Change vs. 6/30/20 Permitted by Policy In Compliance U.S. Treasury $25,831,836 30.9%-8.1%100%✓ Federal Agency $30,487,052 36.5%+9.3%100%✓ Municipal Obligations $1,531,772 1.8%+0.5%30%✓ Negotiable CDs $6,623,838 7.9%-1.8%30%✓ Corporate Notes $14,813,164 17.7%+0.1%30%✓ Asset-Backed Securities $4,286,945 5.1%-0.1%15%✓ Securities Sub-Total $83,574,607 Money Market Fund $10,509 <0.1%-20%✓ Accrued Interest $298,046 Securities Total $83,883,162 Securities in the City’s portfolio are priced by Refinitiv, an independent pricing service at the end of every month. In some cases, the City may have investments with a current market value that is greater or less than the recorded value. These changes in market value are due to fluctuations in the marketplace having no effect on yield, as the City does not intend to sell securities prior to maturity. Nevertheless, these market changes can impact the total value of the portfolio. Socially Responsible Investment Policy The City’s Investment Policy restricts issuers from the portfolio who generate revenue from tobacco, electronic cigarette, or tobacco-related products, or who support the direct production or drilling of fossil fuels. The City’s portfolio is in compliance with SRI restrictions. The tables to the right show the Bloomberg Industry Classifications (“BICS”) for all the portfolio’s holdings. Issuer Sector (BICS) Ally Auto Receivables Trust Automobiles Manufacturing American Honda Finance Automobiles Manufacturing CarMax, Inc Automobiles Manufacturing Copart, Inc.Automobiles Manufacturing Hyundai Auto Receivables Trust Automobiles Manufacturing Nissan Auto Receivables Automobiles Manufacturing Toyota Motor Credit Corp Automobiles Manufacturing Credit Suisse New York Banks Nordea Bank AB NY Banks Skandinav Enskilda Banken NY Banks Societe Generale NY Banks Sumitomo Mitsui Bank Ny Banks Swedbank NY Banks Wells Fargo & Company Banks Apple Inc Communications Equipment Mastercard, Inc Consumer Finance JPMorgan Chase & Co Diversified Banks San Diego Community College District Education University Of California Education Issuer Sector (BICS) Walt Disney Company Entertainment Content BNY Mellon Financial Services DNB Bank Financial Services Hershey Company Food & Beverage California State General Government Maryland State General Government FFCB Government Agencies FHLB Government Agencies FHLMC Government Agencies FNMA Government Agencies Wal-Mart Stores Mass Merchants Bristol-Myers Squibb Co Pharmaceuticals Pfizer Inc.Pharmaceuticals Amazon.com, Inc.Retail -Consumer Discretionary Home Depot Retail -Consumer Discretionary Intel Corp Corporate Notes Semiconductors Adobe, Inc Software & Services IBM Software & Services U.S. Treasury Sovereigns Source: Bloomberg. BICs is an industry classification system developed and utilized by Bloomberg that classifies securities b ased on business, economic function, and other characteristics. Total Return Total return is calculated based on interest and both realized and unrealized changes in market value; this is expressed as a rate of return over a specified period of time based on cost and is backward-looking. •Focused on long -term performance and growth •Affected by both yield and market value fluctuations •Reflects “true value” of the portfolio •Recommended approach by the Government Finance Officers Association PFM Managed 09/30/2020 06/30/2020 Average Maturity (Years)2.44 2.55 Effective Duration1 2.18 2.29 Average Market Yield 0.41%0.43% Total Rate of Return 3 Months 1 Year 3 Years Since Inception City of SLO 0.24%4.18%3.12%2.18% 0–5 Treasury Index 0.11%3.96%2.91%1.99% Variance +0.13%+0.22%+0.21%+0.19% 1Effective duration is the approximate percentage change in price for each 1% change in interest rates. Summary of Activity for the Quarter & Future Liquidity As of September 30, 2020, the investment portfolio was in compliance with all State laws, the City's Statement of Investment Policy, and the City’s Investment Management Plan. Cash receipts and disbursements are consistent with past trends for the quarter. The cash management program contains enough liquidity to meet at least the next three months of expected expenditures by the City as well as by related parties. If you have any questions concerning this report, or require additional information, contact Brigitte Elke, Finance Director at (805) 781-7510. Investment Portfolio Benefits All Funds The City’s cash and investment portfolio represents money from all City funds, including the General Fund, enterprise funds (Water, Sewer, Parking, Transit), special revenue funds (Tourism, Downtown Assessments), capital projects funds, and other funds which are restricted to specific purposes. In general, monies held by the City are either allocated by the City Council for spending or are purposefully retained in reserve. For example, the money in the Capital Outlay Fund has been identified to provide particular capital projects for the community, and there is a plan for spending down the cash balance as the projects progress. Balances held in reserve per the City’s financial policies equate to 20% of the operating budget. Investment Objectives The investment objectives of the City of San Luis Obispo are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all operating requirements; and third, to earn a commensurate rate of return consistent with the constraints imposed by the safety and liquidity objectives. The City follows the practice of pooling cash and investments for all funds under its direct control. Funds held by outside fiscal agents under provisions of bond indentures are maintained separately. Interest earned on pooled cash and investments is allocated quarterly to the various Quarterly Investment Report funds based on the respective fund’s average quarterly cash balance. Interest earned from cash and investments with fiscal agents is credited directly to the related accounts. It is common for governments to pool the cash and investments of various funds to improve investment performance. By pooling funds, the City can benefit from economies of scale, diversification, liquidity, and ease of administration. The City uses the services of an investment advisor, PFM Asset Management, to manage a portion of the City’s portfolio. The City’s strategy is to retain approximately 25% of the portfolio to manage its day- to-day cash flow needs, while PFM’s focus is on longer-term investment management. In addition, the City has retained direct control of several investments that had been acquired before the City began to use investment advisors. All investments are held by the City in a safekeeping account with Bank of New York Mellon, except for investments held by trustees related to bond financings, which are held by either US Bank or Bank of New York Mellon. Distribution List City Council Heidi Harmon Mayor Andy Pease Vice Mayor Aaron Gomez Council Member Erica A. Stewart Council Member Carlyn Christianson Council Member Investment Oversight Committee Heidi Harmon Mayor Daniel Humphrey Public Member Derek Johnson City Manager Brigitte Elke Director of Finance Debbie Malicoat Accounting Manager/Controller Natalie Harnett Principal Financial Analyst—Budget Independent Auditor Badawi & Associates PFM Asset Management LLC Monique Spyke Managing Director © PFM 0 City of San Luis Obispo Cash Flow Analysis PFM Asset Management LLC Monique Spyke, Managing Director spykem@pfm.com (415)982-5544 pfm.com 50 California Street Suite 2300 San Francisco, CA 94111 September 17, 2020 © PFM 1 PFM’s Cash Flow Model Identifies cash flow needs in the near term Determines “seasonality” and historical seasonal factors The cash flow model helps identify an appropriate allocation between assets invested short term (“liquidity”) to meet cash needs and assets that can be invested longer term (“core” portfolio) Portfolio Strategy Uses Liquidity/ Short-term Overnight to 12 months •Highly liquid for daily needs and unforeseen expenditures •Funds are meant to cover specific, predictable cash flows (payrolls, debt service) •Can be lower during periods of net cash inflow •Comprised of short-term money market instruments; e.g., bank deposits, money market mutual funds, and LGIP Core Longer Duration Strategy •Funds not expected to be spent in the near term •May be disbursed in extraordinary circumstances •Can be invested in longer-term securities © PFM 2 $0 $20 $40 $60 $80 $100 $120 $140 $160 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20MillionsHistorical Portfolio and Seasonal Factors Month Average Monthly Balance* Historical Factor Average 116,585,674 100.00% January 127,932,948 104.06% February 129,973,912 105.72% March 130,516,404 106.16% April 132,327,751 107.64% May 132,978,038 108.17% June 125,454,087 102.05% July 109,139,131 88.78% August 110,685,776 90.03% September 115,191,065 93.70% October 116,639,855 94.88% November 119,373,469 97.10% December 125,037,327 101.71% *This analysis represents four-year averages which include lower balances of prior years. Total Historical Portfolio June 2016 –June 2020 The City generally demonstrates consistent seasonality with peak balances in May and minimum balances in July. © PFM 3 Actual Core and Liquidity Balances Core = Longer-term investment portfolio Liquidity = LAIF + Pacific Premiere + Chase + Mission Community Historical Portfolio Breakdown June 2016 –June 2020 55% 45% $0 $20 $40 $60 $80 $100 $120 $140 $160 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20Millions Historical Liquidity Historical Core © PFM 4 Estimated Portfolio Allocations at Various Liquidity Cushions Using historical balances, the model estimates the minimum amount of the overall portfolio that should be kept liquid to meet ongoing liquidity needs. The liquidity balance calculated is based on the lowest projected balance over the next 12 months. To address any unexpected liquidity needs, the model builds in an additional liquidity cushion in excess of the minimum balance. The remainder of the portfolio represents core funds that could potentially be invested out longer without impairing short-term liquidity needs. The following shows, as of June 30, 2020, the allocation between Liquidity and Core funds using different liquidity cushion levels. (in millions)Modeled Liquidity Modeled Core 10% Liquidity Cushion $25.8 $124.9 15% Liquidity Cushion $33.3 $117.4 20% Liquidity Cushion $40.9 $109.8 © PFM 5 As of June 30, 2020, the City had approximately $34.2 million of excess liquidity based on a 15% liquidity cushion, leaving an investable core balance of $117.4 million. $0 $20 $40 $60 $80 $100 $120 $140 $160 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20MillionsHistorical Analysis of Core Portfolio June 2016 –June 2020 Historical Liquidity Historical Core Modeled Core Historical Analysis of Core Portfolio 1. Historical Core includes the City’s Operating Funds Portfolio holdings, as of June 30, 2020. 2. Historical Liquidity Includes the City’s Chase, Pacific Premiere, Mission Community, and LAIF balances as of June 30, 2020 . $34.2 million in excess liquidity 12 © PFM 6 Recommendation: Invest Excess Liquidity in Longer-Term Assets Based on a 15% liquidity cushion, the City currently has excess liquidity of $34.2 million. •Excess liquidity = Modeled Core –Actual Core Based on the City’s historical balances, we believe the City can safely move investments further out. Excess liquidity may be reinvested in longer-term, higher-yielding securities to optimize the portfolio’s performance. (in millions)Modeled Core Actual Core Excess Liquidity 10% Cushion $124.9 million $83.2 million $41.7 million 15% Cushion $117.4 million $83.2 million $34.2 million 20% Cushion $109.8 million $83.2 million $26.6 million © PFM 7 Disclosures This material is based on information obtained from sources generally believed to be reliable and available to the public;however,PFM Asset Management LLC cannot guarantee its accuracy,completeness,or suitability.This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation.All statements as to what will or may happen under certain circumstances are based on assumptions,some but not all of which are noted in the presentation.Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control.Changes in assumptions may have a material effect on results.Past performance does not necessarily reflect and is not a guaranty of future results.The information contained in this presentation is not an offer to purchase or sell any securities. © PFM 8 Thank You Investment Oversight CommitteeRegular MeetingNovember 12, 2020 Public Comment: •Participants of the webinar can provide Public Comment by: Submitting a ‘question’ that includes their name and item number (or public comment) for the item they would like to speak on. Once public comment for the item is called, your microphone will be unmuted. You will have three minutes to speak. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA At this time, people may address the Committee on items not on the agenda. Items raised are generally referred to staff and, if action by the Committee is necessary, may be scheduled for a future meeting. Public Comment: •Participants of the webinar can provide Public Comment by: Submitting a ‘question’ that includes their name and item number (or public comment) for the item they would like to speak on. Once public comment for the item is called, your microphone will be unmuted. You will have three minutes to speak. Item #1 CONSIDERATION OF MINUTES 1.Minutes of the Investment Oversight Committee meeting of September 24, 2020. _______________________________________________ Recommendation: Approve the minutes of the Investment Oversight Committee meeting of September 24, 2020. Item #2 BUSINESS ITEM 2.Presentation of the Quarterly Investment Report on Portfolio Performance ________________________________________________ Recommendation: Approve and confirm investment policy compliance. Item #3 COMMENT AND DISCUSSION 3.Cash Flow Analysis and Agenda Forecast ADJOURNMENT The next Regular Meeting of the Investment Oversight Committee is scheduled for Thursday, February 11, 2020 at 1:30 p.m. location to be determined.