HomeMy WebLinkAboutItem 4.02 CT Investment Rpt
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 12, 1993
SUBJECT:
City Treasurer's Investment Report as of
June 30, 1993
(Prepared by Paul S. Rankin, Assistant City
Manager/Administrative Services Director)
EXHIBITS ATTACHED: ~ City Treasurer's Listing of Investments as of
~ J ~une 30, 1993
RECOMMENDATION: /~ Receive Report
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Attached is a list which details City of Dublin investments as of June 30,
1993.
The investment portfolio total as shown on the attachment totals
$18,635,000. This remains unchanged from the report covering the period
ending May 31, 1993.
On June 30, 1993, the Treasurer executed a trade with Dean Witter to
purchase $1 million of the U. S. Government Securities Trust Mutual Fund.
The actual settlement date for this transaction will be July 8, 1993.
During the time frame from the "Trade Date" until the "Settlement Date,"
these funds are invested in a Dean Witter Money Market Fund. For the
current reporting period, this only applies to one day. (June 30th)
The investment in the mutual fund will further diversify the City's
portfolio, without subjecting public monies to significant risk. The Dean
Witter Mutual Fund is the largest Standard & Poors rated fund, with
investments of approximately $12.6 billion. The fund is currently rated
MAf and invests in only U. S. Government Securities, including Ginnie
Maes.
Investing as part of a mutual fund provides the City with an opportunity to
benefit from the larger total pool of funds, which can spread maturities
and purchase a blend of investments which would be difficult for the City
to individually select. The current mix of securities in the fund have an
average maturity of 5 years. The fund has over 5 years of history and has
outperformed LAIF.
Although a mutual fund investment has liquidity and can be sold without a
set maturity, Staff recommends that the investment be held for six years.
This will allow for withdrawal of the principal investment, without any
redemption charge. Di vidends and earnings on the fund are distributed
without a redemption charge and will be reported as interest earning on an
annual basis. As of the 12 months ending June 30, 1993, the fund paid
dividends equivalent to an annualized earnings yield of 6.92%.
During the month of June, the amount invested in the Local Agency
Investment Fund decreased by $1 million, to reflect the purchase of the
Dean Witter Investment. The LAIF quarterly interest rate remained the same
as the figure presented for May 31, 1993. Interest from LAIF is paid
quarterly; however, it operates as a money market fund in that there is no
fixed maturity date.
The schedule of investment maturities is anticipated to allow the City to
meet anticipated expenditures in the upcoming month.
PSR/lss a:712Invest.doc.agenda#12
CITY CLERK
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COPIES TO:
ITEM NO.
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city of Dublin
City Treasurer's Listing of Investments
As of June 30, 1993
This listing excludes Dublin Boulevard Extension Assessment District and COP
reserve fund balances, which are held by third party Trustees and invested in
accordance with the financing legal documents.
INSTITUTION MATURITY INVESTMENT
Type of Investment Date Value Rate Cost Yield
state of California
LAIF $14,850,000.00 $14,850,000.00 (1) 4.514%
Bank of California
FHLB Debentures ( 2 ) 8/26/96 $490,000.00 7.700 $490,000.00 7.700%
FNMA Debentures (2) 6/10/97 $1,205,000.00 9.200 $1,300,000.00 7.066%
FNMA Debentures (2) 5/13/98 $500,000.00 5.250 $495,000.00 5.482%
FFCB Debentures (2) 2/02/98 $400.000.00 5.800 $400.000.00 5.800%
$2,595,000.00 $2,685,000.00 6.701%
World Savings
Cert of Deposit 1/29/98 $100,000.00 6.010 $100,000.00 6.010%
Subtotal $17,635,000.00 4.855%
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Dean Witter Reynolds Inc.
Money Market Fund (3 ) $1,000,000.00 $1,000,000.00 ( 3 )
Total Investments - per books $18,635,000.00
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Footnotes
(1) Interest rate shown reflects quarter to date as of June 29, 1993.
(2) Federal Home Loan Bank (FHLB), Federal National Mortgage Association
(FNMA), and Federal Farm Credit Bank (FFCB) are lawful investments for
local governmental agencies.
(3) Temporary placement of funds pending settlement of trade. Interest rate
of 2.58% is based on a 7 day rolling average.