Kodiak moves $20 million from bank and pool accounts into managed investments

Kodiak Finance Director Julie Liew moved $20 million in city cash into investments managed by Alaska Permanent Capital Management in August and September, according to the meeting packet for the city's Investment Committee, which meets Wednesday at 3 pm.

The move, first reported Oct. 3 after the first $10 million went in, lifted the city's managed balance from about $38.3 million at the end of July to $58.1 million at the end of September. That is 70.9% of an $82 million target set by the city's cash adviser, Three+One.

On Aug. 11, $10 million came out of the city's interest-earning Wells Fargo sweep account, dropping it from $40.4 million to $30.4 million. On Sept. 15, another $10 million came out of the city's main account in the Alaska Municipal League Investment Pool, cutting it from $30.4 million to $20.4 million.

On July 24, the committee authorized Liew to invest available city funds until the City Council adopts an updated investment policy.

Three+One estimates the bonds and other fixed-income securities bought in September will yield 4.62% if held to maturity. The pool earned 3.69% in September and the Wells Fargo sweep 3.52%. Compared with the pool, the firm said, that works out to about $93,000 more in yearly interest for every $10 million invested, if similar rates hold.

How much of the remaining $23.9 million can still be moved will depend on the city's cash-flow needs and fund restrictions, the firm said.