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Home My WebLink AboutItem 4.04 CT InvestRpt 03-31-1994 (2) ~ , .." e e city of Dublin city Treasurer#s Listing of Investments As of Mar. 31, 1994 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 Imt.e. . Value ~ INVESTMENT QQat Yield POOLED INVESTMENTS 35.8% of Total Portfolio state of California LAIF $6,590,000.00 $6,590,000.00 (1) 4.261% MUTUAL FUND 9.2% of Total Portfolio Dean Witter Reynolds U.S. Govt Securities (2) (2) $1,699,995.50 (3) 5.927% CERTIFICATES OF DEPOSIT 2.7% of Total Portfolio_ First Republic T & L 9/14/98 $95,000.00 5.250 $95,000.00 5.250% Investors Thrift & Loan 7/30/98 $99,000.00 5.560 $99,000.00 5.560% Southern Calif FS&L 9/14/98 $98,000.00 5.250 $98,000.00 5.250% Standard Pacific Svgs 7/30/98 $99,000.00 5.200 $99,000.00 5.200% World Savings 1/29/98 $100.000.00 6.010 $100.000.00 6.010% $491,000.00 $491,000.00 5.457% GVRNT/AGENCY SECURITIES (4) 52.3% of Total Portfolio Bank of California(Safekeeping) $490,000.00 FHLB 8/26/96 $490,000.00 7.700 7.700% FFCB(Callable 3/03/95) 3/03/97 $500,000.00 5.120 $495,937.50 5.420% FNMA 6/10/97 $1,205,000.00 9.200 $1,281,000.00 7.066% FNMA(Callable 5/13/96) 5/13/98 $500,000.00 5.250 $495,000.00 5.482% FHLMC(Callable 9/9/94) 9/09/98 $500,000.00 4.950 $498,359.38 5.020% FNMA(Callable 10/15/96)10/15/98 $1,000,000.00 4.875 $999,375.00 4.889% U S Treasury Note 10/31/98 $1,000,000.00 4.750 $984,687.50 5.101% FHLB(Callable 11/3/94) 11/03/98 $1,000,000.00 5.110 $1,000,000.00 5.110% FHLB(Callable 1/12/95) 1/12/99 $2,000,000.00 5.460 $2,000,000.00 5.460% FNMA(Callable 2/12/96) 2/12/99 $400,000.00 5.550 $399,750.00 5.564% FNMA(Callable 12/10/96)12/10/98 $1. 000.000.00 5.310 $999/531. 25 5.311% $9,595,000.00 $9,643,640.63 5.620% Total InvestJaents - per books $18,424,636.13 5.158% --------------- ------- --------------- ------- Footnotes (1) Interest rate shown is quarterly average as of March 29, 1994. (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 $700,001 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 nine months of dividends at the share price as of 3/31/94. (4) Federal Home Loan Bank (FHLB), Federal Farm Credit Bureau (FFCB), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage corp (FHLMC) are lawful investments for local governmental agencies. ..,." -.. , e e CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 11, 1994 SUBJECT : city Treasurer's Investment Report: March 31, 199~ L (Prepared by: Paul S. Rankin, Assistant City Mgr) ~ ~ ATTACHED: ~ ing of Investments as of March 31, 1994 Report EXHIBITS RECOMMEHDATION" DESCRIPTION: The attached listing details the city's investments as of March 31, 1994. The total amount invested is approximately $11,000 more than shown at for the end of the previous month.. This minimal increase is actually less due to a temporary transfer of cash from the operating account to !.AIF and the release of approximately $400,000 in payments on April 1, 1994. overall, the total yield on the city's portfolio for the month of March has increased slightly from the rate shown for the month of February ( 5..158% vs.. 5.133% respectively). This was primarily due to the purchase of a new security while rates at the Local Agency Investment Fund and the Dean Witter Mutual Fund yields remained relatively stable.. As noted in previous reports the market value of the Dean witter as well as any Federal securi ties will fluctuate. As a public agency, the auditors have the city record all investments in the City'S financial records, based upon ,--~e purchase cost. Typically a goverIllllent is buying the investment and holding it until maturity.. Therefore, fluctuations in market value from month to month are not a significant issue. On an annual basis the Notes prepared to accompany the Annual Financial Audit, disclose the market value as of June 30th.. However, no adjustment is made to the city Financial records, unless the investment l.S actually sold. This is true for Mutual Funds as well as individual Agency Notes.. With the recent fluctuations in the interest rates on Federal and Agency Bonds, the "Market Value " of the Mutual Fund investment has also fluctuated. The city originally purchased this investment at an average share price of $9.48. The share price as of the date of the March Dividend was $8.90.. Dean witter arranged a conference call between the Fund Manager and the city Treasurer to discuss fund performance.. Based upon historical trends and other economic data the Fund Manager believes that over the longer term ( i . e. 5 years), there is opportunity for the share price to return to the levels at which it was purchased. The fund continues to have an attractive yield and has positioned itself to take advantage of some of the current bond market trends. In the month of March, one new $ 500,000 investment transaction was completed. The city purchased a Federal Farm Credit Bank (FFCB) Note, with a maturity date of March 1997 and is callable March 3, 1995. The investment has a coupon yield of 5.12%. However, it was purchased at a discount which results in a yield to maturity of 5.420%. The total amount of the discount was $4,062.50. This transaction increased the total portfolio maintained in Federal or Agency Securities.. The FFCB Note had a shorter maturity than purchases made earlier this year, and it still provided a good return compared to !.AIF and other alternatives. LAIF is a pooled investment account managed by the State Treasurer. 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 4.261% as of March 29, 1994. This is down slightly from the 4.270% rate reported last month. !.AIF comprised approximately a smaller percentage of the total portfolio as the previous month (35.8%, vs. 38.4% in February). The schedule of investment maturities is anticipated to allow the city to meet anticipated expenditures in the upcoming month. ---------------------------------------------------------------------- COPIES TO: 4.4 CITY CLERK FILE ~