Brief

The Office of Finance has submitted the 2025-26 Annual Statement of Investment Policy, which governs how Los Angeles manages and invests public funds. The policy outlines permitted investment types, risk parameters, and oversight procedures. The document was referred to the Budget and Finance Committee on September 4 and is scheduled for committee consideration on September 15, 2026.

Full summary

City Treasurer Diana Mangioglu submitted the 2025-26 Statement of Investment Policy, effective July 1, 2025, as required by the City Administrative Code. The Office of Finance reviewed the policy against California Government Code and determined no changes from the prior year were necessary. The file was referred to the Budget and Finance Committee on September 4, 2026, where it is currently pending. The policy governs how the City Treasurer and authorized Office of Finance staff invest the city's general pool of public funds, excluding pension assets, deferred compensation plans, bond proceeds, and special investment pools. Investment authority is delegated to the City Treasury under California Government Code Section 53607. The policy requires all investment activity to conform to the Prudent Investor standard, which holds staff to fiduciary obligations of care, skill, and diligence. The three ranked investment objectives are: safety of principal first, liquidity second, and rate of return third. The general investment pool is divided into three actively managed portfolios benchmarked to ICE Indices: a Core portfolio that handles daily cash flow needs, a Reserve portfolio optimized for long-term return, and an Extended Reserve portfolio aimed at further enhancing long-term returns. Permissible investments span a broad range of instruments authorized under California Government Code, including U.S. Treasury and agency obligations, municipal bonds, commercial paper, certificates of deposit, repurchase agreements, money market funds, medium-term notes, mortgage pass-through securities, and supranational obligations. Certain higher-risk derivatives — including inverse floaters, range notes, and mortgage interest-only strips — are explicitly prohibited. The policy caps concentration in any single non-Treasury, non-agency issuer at 10% of the portfolio and requires competitive bidding for most purchases. A small linked banking program, capped at $5 million, directs a portion of funds to community banks as an economic development tool. Internal controls require daily review of investment activity by the Treasurer or authorized staff, monthly and quarterly reports to the City Council, and an annual audit by the City Controller's Office conducted to Global Investment Performance Standards. Finance investment officers are encouraged to complete at least 16 hours of continuing education annually. The City Controller's annual audit assesses compliance with both the policy and the California Government Code.

Activity (3)

• 2026-09-11 Budget and Finance Committee scheduled item for committee meeting on September 15, 2026.
• 2026-09-04 Office of Finance document(s) referred to Budget and Finance Committee.
• 2026-09-03 Document submitted by Office of Finance, dated September 3, 2026.

Documents (1)

• 2026-09-03 Report from Office of Finance · report