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Meeting Date:
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1/16/2025 - 7:00 PM
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Category:
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Information and Study Items
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Type:
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Action
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Subject:
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Budget: Wells Fargo Investments
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District Priorities:
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Enclosure
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File Attachment:
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Summary:
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About 25 years ago, the District selected Wells Fargo Advisors to invest capital facilities funds and currently handle about $5.4 million for the District. The portfolio majority is in Fixed Income Securities (public and private) earning around 4% at this time. Wells Fargo Advisors notified the District that they will no longer be doing business with us due to their new minimum limit of $10 million for municipal clients.
As the Board is aware, the property referred to as Metzler C, and the Firehouse properties have closed escrow on the Property Exchange. The final dollar amount that the District received was $10,307,907.44 for Metzler C, and $1,587,752.50 for the Firehouse property for a total of $11,895,659.94. These funds are used for property exchanges in real property investments.
The District also has property investments in various Delaware Statutory Trusts (DSTs), and Deeds of Trust on secured property in California with the current annual return on the exchanges totaling around 5.7%.
District staff recommends that we utilize a mixture of Delaware Statutory Trusts (DSTs) and deeds of trust as the investment tool for the funds currently held by Wells Fargo Advisors.
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Funding:
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Recommendation:
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Staff recommends that the Governing Board approve utilizing a mixture of Delaware Statutory Trusts and deeds of trust as the investment tool for the funds currently held by Wells Fargo Advisors.
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Approvals:
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Recommended By:
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Signed By:
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Carlena Grandey - Administrative Assistant to the Superintendent
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Signed By:
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Kristi Schwiebert - Superintendent
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