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Home My WebLink AboutItem 4.07 CT InvestmntRpt -.,.. . 1; . "- 'E . . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: November 8, 1993 ~~City Treasurer's Investment Report: october 31, 1993 ~(Prepared by: Paul S. Rankin, Assistant city Mgr) EXHIBITS ATTACHED:~isting of Investments as of october 31, 1993 RECOMMENDATION: ~eceive Report DESCRIPTION: The attached listing details the city's investments as of October 31, 1993. The total amount invested is less than shown in the previous month by approximately $226,630. OVerall, the total yield on the City'S portfolio for the month of october declined slightly from the rate shown for the month of September (4.966% vs. 5.005 % respectively) . SUBJECT: Two primary factors have affected the total yield. The first is the continuing decline in the rate pa~d by LAIF. As a type of money market fund this investment vehicle ~s subject to fluctuations in the market~lace. The second impact is a change in the figure used for the Dean W~tter Mutual Fund investment. Previous reports have calculated a yield based upon the monthly performance. The current report uses a yield based upon the dividends earned for the quarter to date. This :provides a consistent methodology for both LAIF and the Mutual Fund ~nvestment. The September report estimated the yield on the Dean Witter investment at 6.529% based on monthly dividends. Using the quarterly data the October report estimates the yield at 6.113%.. The final earnings rate will be impacted by share price at any point in time. In the month of September one new investment transaction was completed. The City purchased an original issue Federal National Mortgage Associat~on ("Fannie Mae"), five year note. The investment has provisions for an early call in October of 1996. Although the coupon rate on this investment is 4.875%, it was purchased at a discount which brings the yield to maturity up to 4.889%. The cost of this investment was $ 999,375.00. This transaction increased the portion of the city's portfolio invested in Federal Securities to approximately 23.3%. It also extends the total amount of funds invested, which will mature in more than one year.. LAIF is a pooled investment account managed by the State Treasurer. currently over $ 10.3 Billion from various agencies is managed in this fund. The total invested by various agencies in the fund increased by 8.4% in the month of October as compared to the month of September.. The fund continues to provide an important investment option for public agencies. The fund allows cities to move monies in and out similar to a money market fund. The quarterly average was 4.380% as of october 31, 1993. This is down slightly from the 4.427% rate reported last month. The city of Dublin has continued to decrease its reliance on LAIF as an investment vehicle. The total percentage of the City'S portfolio placed in LAIF declined from 70.4% in September to 64.4% in October.. The City has continued with a schedule of incremental movement of a portion of the portfolio into investment vehicles other than LAIF, each month since May of 1993. The schedule of investment maturities is anticipated to allow the city to meet anticipated expenditures in the upcoming month. COPIES TO: I7EJ1 AS CI~ FILE ~ -, . . ~ . . city of Dublin city Treasurer's Listing of Investments As of oct. 31, 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. TYPE OF INVESTMENT MATURITY ~ Value ~ POOLED INVESTMENTS 64.4% of Total portfolio state of california LAIF MUTUAL FUND 9.5% of Total portfolio Dean witter Revnolds u.s. Govt securities (2) INVESTMENT ~ Yield $11,545,000.00 $11,545,000.00 (1) 4.380% (2) CERTIFICATES OF DEPOSIT 2.7% of Total Portfolio $95,000.00 5.250 $99,000.00 5.560 $98,000.00 5.250 $99,000.00 5.200 S100.000.00 6.010 $491,000.00 GVRNT/AGEHCY SE~ITIES (4) 23.3% of Total portfolio First Republic T & L Investors Thrift & Loan southern calif FS&L Standard Pacific Svgs World savings 9/14/98 7/30/98 9/14/98 7/30/98 1/29/98 Bank of California(Safekeeping) FHLB 8/26/96 FNMA 6/10/97 FNMA(Callable 5/13/96) 5/13/98 FFCB 2/02/98 Lehman Brothers(safekeeping) FHLMC(Callable 9/9/94) 9/09/98 FNMA(callable 10/15/96) 10/15/98 Total Invesbaents - per books $490,000.00 7.700 $1,205,000.00 9.200 $500,000.00 5.250 $400,000.00 5.800 $500,000.00 4.950 $1.000.000.00 4.875 $4,095,000.00 $1,699,995.50 (3) 6.113% $95,000.00 $99,000.00 $98,000.00 $99,000.00 S100.000.00 $491,000.00 $490,000.00 $1,281,000.00 $495,000.00 $400,000.00 $498,359.38 $999.375.00 $4,163,734.38 $17,899,729.88 ============== 5.250% 5.560% 5.250% 5.200% 6.010% 5.457% 7.700% 7.066% 5.482% 5.800% 5.020% 4.889% 6.063% 4.966% ------- ------- Footnotes (1) Interest rate shown is quarterly average as of october 31, 1993. (2) As a mutual fund investment this can be liquidated at any given time, however, the asset value will fluctuate based upon the current market rate. The investment strategy assumes that $1 million will be held through July 8, 1999,and $699,995 through September 10, 1999 without a deferred sales charge. Value is calculated at original cost. (3) The yield on a mutual fund fluctuates with the share price of shares currently held. The yield presented is an annualized amount based upon the quarter to date dividends reinvested. (4) Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA), Federal Farm Credit Bank (FFeB) and Federal Home Loan Mortgage Corp (FHLMC) are lawful investments for local governmental agencies.