City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024 INVESTMENTS The City of Laguna Niguel’s Investment Policy provides a framework for managing its investment portfolio. The policy’s primary objectives, in order of priority, are: 1) Safety - the City intends to preserve its investment; 2) Liquidity - the portfolio should remain liquid enough to meet all operating needs; and 3) Return on Investment - the portfolio should be designed with the objective of attaining a market rate of return, while taking into account investment risk constraints and cash flow characteristics. The average return of the State Treasurer's Local Agency Investment Fund (LAIF) is used as benchmark for the City's portfolio. $68.3 3.1% $2.9 AVG YIELD MILLION MILLION TOTAL PORTFOLIO FOR THE YEAR EARNED FOR THE YEAR CITY & LAIF PORTFOLIO YIELDS - 5 YEAR HISTORY The Local Agency Investment Fund (LAIF), managed by the State Treasurer, serves as an alternative investment pool for public agencies. The LAIF yield is used as benchmark for the City's portfolio. The graph on the right compares the City’s portfolio yields with the LAIF portfolio yields over the past five years. City LAIF PORTFOLIO DIVERSIFICATION 5-YEAR PORTFOLIO SIZE TREND (IN MILLIONS) $68.3 $67.1 $65.7 $59.3 $51.3 Agency Securities 52% US Treasuries 26% Certificate of Deposits 7% Money Market 15% cityoflagunaniguel.org 14