Managing Public Funds Safely

Managing Public Funds Safely

Scott Stitcher, CFA & Richard Pengelly, CFA, CTP

November 9, 2016

? 2016 PFM Asset Management LLC

The Mission

Local Government Officials Have a Significant Fiduciary Responsibility

? 2016 PFM Asset Management LLC

2

Government Investment Objectives

Safety Liquidity Yield

What is

Safety ?

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3

Losing Power

Purchasing Power Loss is a Component of Protecting Principal

2.50

2.00

Inflation Rate

(Core PCE)

1.50

Percent (%)

1.00

0.50

0.00 Jan-2009

? 2016 PFM Asset Management LLC

Apr-2012

Investment Rate (3 month Treasury)

Jul-2015

4

Federal Reserve's Dual Mandate

Fed Uses Interest Rate Tools to Manage the Economy

Maximum Employment

Price Stability

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5

Government Investment Objectives

Safety What is

Liquidity Liquidity

Yield

?

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6

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