California Debt and Investment Advisory Commission

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Local agency officials tasked with managing a public funds investment portfolio must incorporate their fiduciary role with fundamental investment concepts and planning to safeguard the principal and liquidity needs of their agency. Join the California Municipal Treasurers Association (CMTA) and the California Debt and Investment Advisory Commission (CDIAC) in an interactive six-part webinar series that will provide the fundamental concepts, tools, and strategies necessary to manage and oversee public investment portfolios.

This page archives replays, slides, and reference material for the six-part webinar series that was aired in January 2021. Please follow the links below to jump to sections on this page:


Welcoming Remarks


Transcript

Session One: Introduction to Public Funds Investing

This first session will establish a foundation that will be built upon in subsequent sessions throughout this six-part webinar series. The roles and responsibilities of public sector officials and the private sector entities assisting them will be discussed as well as liability and ethical considerations that may be encountered. This session will also provide an introduction to terms and concepts used in the management of public funds and provide context as to why these terms are important to the public official. 

Introduction to Public Funds Investing


Slides  |  Quiz Show Slides  | Transcript

If you need a certificate, see Certificates of Attendance before starting the replay.

Originally Aired: January 12, 2021

Rick Phillips, President and Chief Investment Officer, FHN Financial Main Street

Rick Phillips is president and chief investment officer at FHN Financial Main Street Advisors. The firm provides investment management on $50+ billion of assets under management for states and local governments. Prior to starting FHN Main Street, Mr. Phillips was the chief investment officer at Clark County, Nevada, from 1998 to 2004 and was also the investment officer for the City of Las Vegas from 1989 to 1998. He has over 30 years of experience in cash and investment management.

Mr. Phillips is the founder of the Government Investment Officers Association, which has over 1,000 government investment officers as members. He has a Bachelor of Science in finance from Brigham Young University and a Master of Business Administration from the University of Utah.


Session Two: California Government Code, Legal Investments, and Investment Policy

California Government Code prescribes the authorized investments available to California public agencies. Further, agencies refine their available investment options and guide their investment decisions through their adopted investment policy. This session will introduce legal investments then discuss the process of developing an investment policy, setting realistic investment goals, maintaining an agency’s investment objectives, measuring performance against investment objectives, and determining risk tolerance.


California Government Code, Legal Investments, and Investment Policy


Slides  |  Transcript

If you need a certificate, see Certificates of Attendance before starting the replay.


Agency Profile on Investment Policy


Slides  |  Transcript

If you need a certificate, see Certificates of Attendance before starting the replay.

Originally Aired: January 14, 2021

Deborah Higgins, President, Higgins Capital Management

Deborah M. Higgins is the President and Chief Investment Officer of Higgins Capital. She has served in this role since 1995. Higgins Capital is a certified woman minority owned company. The company is a broker dealer and investment advisor. Ms. Higgins has worked with California Local Agencies since 1985. She supports California Local Agencies through educational seminars, webinars and workshops for CDIAC, CMTA and CSMFO.

She served on the CDIAC committee that developed the Local Agency Investment Guidelines and continues to work with CDIAC on the LAIG’s annual updates. Ms. Higgins serves on the CMTA’s Investment Policy Certification Committee as well as the CMTA Annual Conference Committee. She has served on the Investment Advisory Committee for the City of San Diego since 2007.

John Johnson, Chief Deputy Treasurer, County of San Bernardino

John Johnson is the chief deputy treasurer of the Treasury Division in the Office of the Auditor-Controller/Treasurer/Tax Collector for the County of San Bernardino. The division manages treasury operations for the County, K-12 schools, community colleges, special districts, and other public agencies, and is responsible for the day-to-day management of the County’s $9+ billion, AAAf/S1-rated investment pool. Mr. Johnson also serves on the county’s deferred compensation and debt advisory committees.

Mr. Johnson joined the County Treasury Division in 2004. He was appointed to Chief Deputy Treasurer in 2008 and has also served as Assistant Auditor-controller/Treasurer/Tax Collector. Prior to joining the County, Mr. Johnson spent 15 years in the private sector as a registered securities representative. Mr. Johnson earned a Bachelor of Science in business administration from the University of Southern Mississippi. He is an active participant in the California Association of County Treasurers and Tax Collectors, the California Municipal Treasurers Association, and the Investment Managers of Public Agencies Council.

Don Patterson, Director of Finance & Administrative Services, Las Virgenes Municipal Water District | Current CMTA President

Don Patterson is the director of Finance & Administration for Las Virgenes Municipal Water District and is responsible for Finance, Human Resources, and Information Technology. Mr. Patterson was appointed to his current position in 2014. Prior to joining Las Virgenes Municipal Water District, he served for 15 years in the City of Santa Monica, most recently as Assistant Director of Finance. Don earned Bachelor of Science degrees in sociology and political science from the University of California, Riverside and a Master of Public Administration degree from California State University, Northridge. He has earned his Certified Public Finance Officer (CPFO) certificate from the Government Finance Officers Association, is a Certified California Municipal Treasurer (CCMT), and a Certified Fixed Income Professional (CFIP). Mr. Patterson served as the CMTA Technology Chair in 2016 and 2017 and serves as 2019 and 2020 President.


Session Three: From Policy to Construction: Portfolio Structure and Diversification

This session will introduce many of the issues considered relevant to constructing a public fund portfolio and provides a framework for building either a book yield or a total return portfolio.


From Policy to Construction: Portfolio Structure and Diversification


Slides  |  Transcript

If you need a certificate, see Certificates of Attendance before starting the replay.

Agency Profile on Day-to-Day Investment of Public Funds


Slides  |  Transcript
 
If you need a certificate, see Certificates of Attendance before starting the replay.

Originally Aired: January 19, 2021

Ben Finkelstein, CFA, Managing Director, Cantor Fitzgerald

Ben Finkelstein is a managing director at Cantor Fitzgerald. He is a Chartered Financial Analyst holder and author of Politics of Public Fund Investing - How to Modify Wall Street to Fit Main Street.

Dan Matusiewicz, Former Finance Director and Treasurer, City of Newport Beach

Dan Matusiewicz is currently the principal and founder of Government Resource Group. He is a former Finance Director/Treasurer of the City of Newport Beach. In this position, he was responsible for overseeing a $300 million annual budget and a $300 million investment portfolio. He has more than 30 years of experience in municipal finance and accounting, having worked for local governments throughout California.

He is a frequent speaker at local government conferences and webinars including: California Society of Finance Officers (CSMFO), California Municipal Treasurer’s Association (CMTA), Government Investment Officers Association (GIOA), State Association of County Auditors (SACA), California Public Employers Labor Relations Association (CalPELRA) and the CalPERS Education Forum.

Mr. Matusiewicz is a graduate of the Leavey Business School at Santa Clara University and holds a Bachelor of Science degree in accounting. He is a Certified California Municipal Treasurer (CCMT), a Certified Fixed Income Professional (CFIP) and the Past President of the California Municipal Treasurer’s Association (CMTA).


Session Four: Benchmarking

This session focuses on benchmarking as a means to monitor and manage performance addressing the purpose and use of benchmarks, the benefits of benchmarking, the development of benchmarks, and the evaluation of investments against theses benchmarks. Instructions will be provided on how to participate in an exercise using Excel to develop a benchmark and evaluating investments against this benchmark.


Benchmarking Practical Applications – Return



Slides  | Transcript

If you need a certificate, see Certificates of Attendance before starting the replay.

Benchmarking – Activity



Benchmarking Activity Excel File (FRED WEBB Matrix Template) | LAIF Historical Data WEBB Query  | Transcript

If you need a certificate, see Certificates of Attendance before starting the replay.


Supplementary Resources:

Originally Aired: January 21, 2021

Kevin P. Webb, CFA, Piper Sandler

Kevin Webb joined Piper Sandler in 2018 and is constantly seeking sleep-adjusted returns in a sleepless world. He holds the Chartered Financial Analyst designation and is a member of both the CFA Institute and Global Association of Risk Professionals.


Session Five: Cash Flow and Cash Flow Forecasting

This session covers the management of a public agency’s cash requirements, including balancing revenues (taxes and fees) with monthly obligations, periodic debt-service payments, and other recurring or non-recurring cash demands. In addition, speakers will introduce the practice for preparing and implementing a cash flow forecast, using the forecast to make investment decisions, and the difference between forecasting operating cash and bond proceeds.


Cash Flow and Cash Flow Forecasting


Slides  |  Transcript  

If you need a certificate, see Certificates of Attendance before starting the replay.


Cash Flow and Cash Flow Forecasting Case Study


Transcript  

If you need a certificate, see Certificates of Attendance before starting the replay.


Originally Aired: January 26, 2021

Carlos Oblites, Senior Vice President and Portfolio Strategist, Chandler Asset Management

Carlos Oblites is a Senior Portfolio Strategist at Chandler Asset Management. He is responsible for building and maintaining client relationships with public agencies along with participating actively in the portfolio management process. Mr. Oblites has over 20 years of investment and financial experience, focused largely on managing fixed income and pension strategies for governmental and institutional non-profit clients.

Prior to joining Chandler, Mr. Oblites served as the Administrative Services Manager at Central Marin Sanitation Agency and was responsible for all aspects of the Agency’s financial, human resources, administrative support, and information systems activities. He also has significant expertise in serving California public agencies, healthcare, and insurance clients through his roles as Director at PFM Asset Management and as a Principal at Wells Capital Management. His current responsibilities include managing a variety of institutional client relationships and developing, implementing, and monitoring customized investment strategies for operating funds, bond proceeds, pension, and post-retirement funds. Mr. Oblites has also worked as a marketing/research consultant with Wells Fargo Bank and as teacher for the Long Beach Unified School District.

Mr. Oblites holds a Bachelor of Arts degree in History from the University of California, Santa Barbara, and earned a Master’s Degree in Business Administration from San Francisco State University.


Session Six: Investment Accounting, Disclosure, and Reporting

This session will introduce public funds investing accounting concepts suchas mark-to-market, cost value, book value, and Governmental Accounting Standards Board (GASB) standards 31, 40, and 72. Also included will be the disclosure of investment policies and ways to create an open and transparent dialog with constituents and community members.


Investment Accounting and Disclosure


Slides |  Transcript  

If you need a certificate, see Certificates of Attendance before starting the replay.



Investment Reporting


Slides |  Transcript  

If you need a certificate, see Certificates of Attendance before starting the replay.



Agency Profile on Investment Accounting and Reporting


Slides |  Transcript  

If you need a certificate, see Certificates of Attendance before starting the replay.

Originally Aired: January 28, 2021

Angelica Hernandez, Deputy Executive Director, CDIAC

Angelica Hernandez is the Deputy Executive Director of the California Debt and Investment Advisory Commission (CDIAC). Over the past fourteen years Ms. Hernandez has held various positions within CDIAC including Manager of the Policy Research Unit and Manager of the Technical Assistance Unit. Prior to her time at CDIAC, she was a staff loan officer with the California Infrastructure and Economic Development Bank.

Ms. Hernandez was instrumental in the development of the California Debt Financing Guide interactive application and is currently working on content for CDIAC’s Elected Officials Training modules. As the manager of the Policy Research Unit she managed researchers who are focused on Socially Responsible Investing for public agencies, climate change risk disclosures and green bonds. During her time at CDIAC, she has participated on numerous projects, including the recently published California Debt Financing Guide, the annual update to the Local Agency Investment Guidelines (LAIG), and she wrote a three-part series on public-private partnerships.

Ms. Hernandez serves as a member of the Sacramento County Treasury Oversight Committee and is a member for the Sacramento County Fair Foundation. She is a graduate of the University of California, Davis.

Karen Jones, Managing Director, PFM Asset Management

Karen Jones has management responsibilities for accounting and administration for PFM’s asset management business, including portfolio accounting, and client billing. She supervises a staff that annually processes over 100,000 security transactions with an average daily trade volume of nearly $2 billion. Ms. Jones has extensive experience as a Senior Accounting and Finance Executive, most recently with Bank of America in Charlotte, NC, where she was a Director for Centralized Regulatory Reporting. Prior to that she was Global Controller for General Electric Capital in Norwalk, CT, and served tours with ABN AMRO, the World Bank Group in Washington DC, and with several global banks in London and Australia.

Jenny Leisz, Deputy Director – Financial Services, City of Tustin

The first half of Ms. Leisz’s career was in private industry and her experience included positions such as Audit Manager for Sav-On Drugs, Inc. and working in the banking industry, managing various finance and accounting teams. Her first position in government was with the City of Laguna Beach, where she was hired to handle 5 open disasters impacting the City, resulting in several millions of dollars in federal and state funding. Since then she has served the cities of Lake Forest and Santa Ana, doing contract work, and has been with the City of Tustin since 2009, currently serving as Deputy Director – Financial Services. She is passionate about her role because everything the City does touches Finance; she is directly involved in making a difference with her employees and the community she serves! Originally from Illinois, home is now San Clemente where she enjoys walking on the beach and serving at Pacific Coast Church.

Dan Matusiewicz, Former Finance Director and Treasurer, City of Newport Beach

Please see bio under Session Three, From Policy to Construction: Portfolio Structure and Diversification.


Closing Remarks


Recommended Readings

California Public Fund Investment Primer
Helps public agencies understand and evaluate investments options by describing commonly used public investment concepts, terms, and instruments.

Local Agency Investment Guidelines
A guide on implementing California statute governing local agency investments.


Certificate of Attendance For Replays

CDIAC can issue a certificate of attendance to those who attend at least 70% of a replay. For us to track your participation time, you must register and attend through the below links to be eligible for a certificate. Please email CDIAC_Education@treasurer.ca.gov upon completion to request credits.

Participants can submit their Certificate of Attendance to their governing entity to request credits, such as CPE credits. CDIAC’s education programs are accepted by many governing entities as certifiable.

* CDIAC is an approved provider of Minimum Continuing Legal Education (MCLE) credit by the California State Bar and has approved California Government Code, Legal Investments, and Investment Policy for MCLE credits. Please email CDIAC_Education@treasurer.ca.gov upon completion to request credits.


CDIAC Contact and Information

If you have any questions regarding this program please contact CDIAC_Education@treasurer.ca.gov.

The Fundamentals of Public Funds Investing webinar series is designed to provide accurate and authoritative information in regard to the subject matter covered; it has been provided with the understanding that, through the Fundamentals of Public Funds Investing webinar series, neither the presenters nor CDIAC are engaged in rendering investment, accounting, legal, or other professional services. This webinar series should not be construed as providing legal advice or opinions on any specific facts. Participants should consult appropriate professional advisors if such services are sought. Participants should note that each public agency is unique, and while the Fundamentals of Public Funds Investing webinar series can be of use to various types of public agencies not everything contained in this webinar series is applicable to every public agency (e.g., not all investments described in this webinar series should be part of every local agency’s portfolio).