PowerPoint Presentation (Added 9/23/21)
Extracted text (via pymupdf)
8228 characters
Annual Portfolio Review Ash Mehta, Vice President September 28th, 2021 Presentation Overview Arizona State Statute 01 Market Update 02 2 Portfolio Review 03 Investment Policy 3 Investment of Public Monies is set by Arizona Revised Statute 35-323 -Sets a maximum maturity of 5 years -Defines Eligible Investments*: (*Other eligible include Repurchase Agreements, Pooled Investment Funds, Time Certificates of Deposit, Arizona Securities, Variable Rate Obligations, and Callable Securities) US Treasury Obligations Prime Commercial Paper Federal Agency & Instrumentality Securities Interest Bearing Savings Accounts Corporate Bonds City’s investment objectives per investment policy, presented in order of priority – Safety – Liquidity – Diversification – Yield 4 Investment Policy Investment Strategy – Liquidity Portfolio • Focused on short term (allows for liquidity) • Managed to meet cash flow needs – Core Portfolio • Focused on longer term (allows for diversity in investments) • Managed by Public Trust Advisors to a benchmark following the city investment policy and with quarterly strategy updates 5 Investment Policy Separately Managed Accounts (SMA) Both LGIP and SMA Administration Only 6 Public Trust Advisors 2021 © Who We Are 70+ Clients AUM As of 12/31/20 49B Office Locations *Please reference disclosure page at the end of this presentation. Source: Public Trust Advisors. Colorado Corporate Headquarters Managed Local Government Investment Pools (LGIP) 7 Public Trust Advisors 2021 © Glendale Partnering with Public Trust Partnering with the City Working on policy and strategy together since 2015 Expand Your Investment Team We have served as an extension of your finance team, collaborating with staff Build Your Portfolio Professionally We worked with staff to create a Liquidity and Core strategy to better suit your needs Gain Peace of Mind We will continue to serve as a fiduciary and partner in prudently managing your funds Market Update 9 PTA Macro Update - September 9, 2021 Macroeconomic Themes Source: Bloomberg The Rapid Spread of the Delta Variant Temporary Inflation? Federal Reserve Taper Talk 10 PTA Macro Update - September 9, 2021 COVID-19 US Daily New Cases Net Change Source: Bloomberg Daily New Cases Net Change 11 PTA Macro Update - September 9, 2021 U.S. Real Gross Domestic Product (Annual) Source: Bloomberg Federal Reserve Economic Forecast Real GDP YoY (Percent) 12 PTA Macro Update - September 9, 2021 Atlanta Fed GDP Now Forecast Source: Bloomberg Federal Reserve Economic Forecast Real GDP YoY (Percent) 13 PTA Macro Update - September 9, 2021 Inflation Economic Overview Source: Bloomberg -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Jun-13 Feb-14 Oct-14 Jun-15 Feb-16 Oct-16 Jun-17 Feb-18 Oct-18 Jun-19 Feb-20 Oct-20 Jun-21 Percent CPI Core PCE 14 PTA Macro Update - September 9, 2021 Institute for Supply Management Economic Overview Source: Bloomberg 40 42 44 46 48 50 52 54 56 58 60 62 64 66 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Survey Index ISM Manufacturing ISM Services Expansion Contraction 15 PTA Macro Update - September 9, 2021 Labor Market Economic Overview Source: Bloomberg Investments 17 Public Trust Advisors 2021 © Transparency Compliance Yield Liquidity Safety Public Trust Advisors 2021 © Aggregate Assets Under Management (Funds) June 30, 2021 18 Source: Public Trust Advisors monthly statement. Public Trust Advisors 2021 © Aggregate Funds by Portfolio and Maturity June 30, 2021 19 Source: Public Trust Advisors monthly statement, Market Value + Accrued Total: $192,938,928 Liquidity, $77,130,106.81 40% Core, $115,808,821.44 60% AGGREGATE ASSETS UNDER MANAGEMENT MARKET VALUE + ACCRUED JUNE 30TH, 2021 Public Trust Advisors 2021 © Liquidity Portfolio June 30, 2021 20 Source: Public Trust Advisors monthly statement Public Trust Advisors 2021 © Liquidity Portfolio by Maturity June 30, 2021 21 Source: Public Trust Advisors monthly statement Liquidity Total Market Value + Accrued $77,130,106 Public Trust Advisors 2021 © Core Portfolio June 30, 2021 22 Source: Public Trust Advisors monthly statement Public Trust Advisors 2021 © Core Portfolio by Maturity June 30, 2021 23 Source: Public Trust Advisors monthly statement Core Total Market Value + Accrued $115,808,821 24 Public Trust Advisors 2021 © Credit Research Process Industry & Sector Dynamics Security Structure Diversification by Industry & Issuer Issuer Business & Financial Risk Public Trust Approved List Rigorous & Dynamic Forward-Looking Systematic Proactive Public Trust Advisors 2021 © Strategy Looking Forward 25 Continue to coordinate with staff to: • Provide regular updates regarding outlook for economy • Review benchmark-based strategy for Core portfolio • Current benchmark: ICE BofA 1-5 year AAA-AA Govt/Credit Index • Continue to manage liquidity portfolio to City’s cash needs • Review portfolio balances every six months (May and December) Let’s Connect Ash Mehta Vice President, Investment Advisory (480) 573-8980 ash.mehta@publictrustadvisors.com Headquarters 717 17th Street, Suite 1850 Denver, CO 80202 (855) 353-3954 info@publictrustadvisors.com www.publictrustadvisors.com 26 Chris DeBow Managing Partner (513) 252-3830 chris.debow@publictrustadvisors.com Public Trust Advisors 2021 © Disclosures 27 This presentation is for informational purposes only. The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed. The materials in the attached are opinions of Public Trust Advisors, LLC and should not be construed as investment advice. Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. Performance comparisons will be affected by changes in interest rates. Investing involves risk including the possible loss of principal. The presentation is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. All comments and discussion presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. All calculations and results presented and are for discussion purposes only and should not be used for making and calculations and/or decisions. Past performance is not an indication of future performance.Any financial and/or investment decision may incur losses. The investment advisor providing these services is Public Trust Advisors, LLC, an investment adviser registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940, as amended. Registration with the SEC does not imply a certain level of skill or training. Public Trust is required to maintain a written disclosure brochure of our background and business experience. If you would like to receive a copy of our current disclosure brochure, privacy policy, or code of ethics please contact us. There is no guarantee that investment strategies will achieve the desired results under all market conditions, and each investor should evaluate its ability to invest long-term, especially during periods of a market downturn. This information may contain statements, estimates, or projections that constitute “forward-looking statements” as defined under U.S. federal and other jurisdictions’ securities laws. Any such forward looking statements are inherently speculative and are based on currently available information, operating plans, and projections about future events and trends.As such, they are subject to numerous risks and uncertainties. Public Trust Advisors 717 17th Street, Suite 1850 Denver, Colorado 80202