The document outlines the investment policy for the City of Corona. It has three main objectives: safety, liquidity, and yield. The policy establishes guidelines for managing and investing temporary cash as required by California government codes. It discusses the treasury committee that oversees investments and meets quarterly with Chandler Asset Management, the investment advisor. The policy is reviewed annually. Recent changes lowered credit rating requirements and increased the allowed investment in securitized assets. An economic outlook shows a strong labor market and low, stable inflation.

1. 1
Investment Policy
City of Corona

2. Introduction
■ Three objectives:
■ Safety
■ Liquidity
■ Yield
■ Maintain compliance with Government Codes
2
■ Establish overall guidelines for the management and
investment of temporary inactive cash
Investment Policy
Investment Management

3. CA Government Code
3
Sections
■ Allowable investment (§53601)
■ Qualified dealers (§53601.5)
■ Credit rating requirement (§53601)
■ Reporting (§53601)
■ Policy review requirement (§53646)

4. Treasury Committee
4
Responsibilities
■ Oversees investment activities
■ Issues monthly investment reports
■ Meets quarterly with investment advisor
■ Investment Policy approved annually by
Council

5. Investment Advisor
5
Chandler Asset Management
■ Providing investment advisory services
to the City since 2006
■ RFP in May 2014
■ Re-selected Chandler Asset
Management
■ Contracted through June 2017

6. Chandler Asset Mgmt.
6
Ownership
■Independent &
Employee-Owned
■ Fixed income specialist
since 1988
■ Serve institutions with
public sector focus
■ Fully aligned with client
interests
Assets Under Management
$10.2 Billion

7. Chandler Asset Mgmt.
7
The Team
■Skilled Fixed Income
Team
■ Strategic team-based
decision making
■ Disciplined, forward-
thinking investment
philosophy and process
Programs
■Custom Investment
Programs
■ Designed to address your
objectives and policies
■ Proactive approach to
communication
■ Full suite of timely,
comprehensive reports

8. Portfolio
8
Summary

9. Portfolio
9
Performance

10. Investment Policy
10
Changes
■ Credit rating requirement lowered from A2/A to A
■ Consistent with California Code
■ Provides additional flexibility in managing portfolio
■ Additional risk to portfolio is negligible
■ Maximum allowable investment in securitized asset
class (MBS, ABS, and CMOs) from 10 % to 15%
■ California Government Code - 20%
■ Forecasting total allocation to grow slightly over 10%
■ Supranational Securities will not be added
■ California Code added as eligible investment in 2015

11. Economic Outlook
11
0
50
100
150
200
250
300
350
400
450
(000's)
Nonfarm Payroll (000's)

12. Economic Outlook
12

13. Economic Outlook
13

14. Economic Outlook
14
(0.5)
0.0
0.5
1.0
1.5
2.0
2.5
Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15
CPI - year over year %
CPI CPI Core
(0.5)
0.0
0.5
1.0
1.5
2.0
2.5
Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15
PCE - year over year %
PCE PCE Core
Source: US Bureau of Labor Statistics Source: US Bureau of Economic Analysis

15. Economic Outlook
15
Yield on the Two-Year Note
May 2013 through May 2015
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
February 28, 2015 and May 31,
2015
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
2/28/15 5/31/15
Source: Bloomberg

16. 16
Conclusion &
Questions