City of Los Angeles Office of Finance - Investment Report - May 28, 2026

Sep 5, 2026

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Investment Report for the City of Los Angeles, Office of Finance, dated May 28, 2026, covering activities and performance through the month ending January 31, 2026. The report summarizes the economic environment, describes current and forward interest rates using the Treasury yield curve, and confirms compliance with applicable California and City investment policies. It presents General Pool portfolio characteristics, book yield and total return performance tables by portfolio segment, and explains measurement methodology, benchmarks, and reporting standards for risk and budgetary evaluation.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages42

Reading Time1 h 46 min

AccessFree to download

Economic Environment

Current and Forward Interest Rates

Compliance

Review and Monitoring

General Pool Characteristics

Investment Performance

City of Los AngelesOffice of Finance Investment ReportJanuary 31,2026 Diana MangiogluCity Treasurer/Director of Finance Tom JuarezChief Investment Officer 200N.Spring StreetRoom 220,City HallLos Angeles,CA90012(213)978-1774 The Honorable Members of City Council of the City of Los Angelesc/o Office of the City ClerkCity Hall,Room 395 The U.S.economy (as measured by the GrossDomestic Product-GDP)increased 1.4%on anannualized basis for the fourth quarter of 2025.Thecurrent anticipated growth rate for all of 2025 is 2.2%which matches last month's 2025 full-yearforecast.The U.S.unemployment rate for January2026 was 4.3%.The Consumer Price Index(CPI)increased 2.4%for the twelve months endingJanuary 2026.Prices were up in large part due towages,shelter,education,and services.U.S.consumer spending,as measured by Retail Sales,increased 2.4%over the past twelve months. May 28,2026 Dear Honorable Members: ECONOMIC ENVIRONMENT¹ CITY OF LOS ANGELES OFFICE OF FINANCE 200N,SPRING ST. ROOM 220-CITY HALL CALIFORNIA (213)978-1774 KAREN R.BASS MAYOR This is the Investment Report for the month ending January 31,2026.It is provided to ensure the CityCouncil is informed of the Department's activities.It satisfies the recommended reportingrequirements of the City of Los Angeles Administrative Code,Chapter 5.1,Article 1,Section 20.90,which addresses the City Council's request for monthly financial information. The Federal Reserve cut the Fed Funds rate withinthe 3.50%to 3.75%range at its December 10,2025meeting.The Committee stated,"Availableindicators suggest that economic activity has beenexpanding at a moderate pace.Job gains haveslowed this year,and the unemployment rate hasedged up through September.More recentindicators are consistent with these developments.Inflation has moved up since earlier in the year andremains somewhat elevated.In assessing theappropriate stance of monetary policy,theCommittee will continue to monitor theimplications of incoming information for theeconomic outlook.The Committee would beprepared to adjust the stance of monetary policy asappropriate if risks emerge that could impede theattainment of the Committee's goals." # CURRENT AND FORWARD INTEREST RATES The current U.S.Treasury yield curve is invertedon the front end of the curve and upward slopingon the longer end of the curve,giving longer terminvestors more yield as they realize more interestrate risk than shorter term investors.Forward yieldcurves,which are based upon the current rates,indicate lower short-term rates and higher long-term rates in the future. # COMPLIANCE Investment transactions were executed in accordance with the California State Government Code andthe City's Investment Policy.The City Treasurer believes the General Pool contains sufficient cashflow liquidity to meet the next six months of expected expenditures. # REVIEWAND MONITORING Meeder Public Funds,the City's investment advisor,currently monitors the Department's investmentactivities. GENERAL POOL CHARACTERISTICS The Office of Finance invests in a variety of fixed income securities in accordance with current policyand guidelines.The following table summarizes the key characteristics of the City's investmentportfolios as of January 31,2026. | Portfolio Funds | Amount of Funds at
Market Value | Effective Yield | Average
Weighted
Maturity | Average
Credit
Rating | | --- | --- | --- | --- | --- | | Core Portfolio | $6,071,616,237 | 3.27% | 99 Days | AA+ | | Reserve Portfolio | $7,154,262,187 | 3.07% | 2.7 Years | AA+ | | Extended Reserve Portfolio | $3,149,913,811 | 3.75% | 7.0 Years | AA+ | | General Pool | $16,375,792,235 | 3.28% | 2.6 Years | AA+ | # INVESTMENT PERFORMANCE¹ Month-End Book Yield(Annualized) | | Core | Reserve | Extended
Reserve | General Pool | | --- | --- | --- | --- | --- | | Month-End Book Yield | 3.27% | 3.07% | 3.75%

FAQs

What period does the investment report cover?

The report covers activities for the month ending January 31, 2026, and is dated May 28, 2026.

What guidance does the report cite regarding monthly reporting?

It states the report satisfies the recommended reporting requirements of the City of Los Angeles Administrative Code, addressing the City Council’s request for monthly financial information.

How does the report distinguish book yield from total return?

Book yield is used primarily for budgetary purposes, while total return is used primarily to measure risk, including realized and unrealized gains and losses calculated to the last business of the month.

Sep 5, 2026

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