HomeMy WebLinkAboutItem 4.05 CT InvestRpt (2)
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: November 14, 1994
SUBJECT:
city Treasurer's Investment Report: October 31, 1994
~(prepared by: Paul S. Rankin, Assistant city Mgr)
EXHIBITS ATTACHED: ~isting
r/
RECOMMENDATION:~ Receive
of Investments as of October 31, 1994
Report
DESCRIPTION: The attached listing details the City's investments as of
October 31, 1994. The total amount shown as invested is approximately
$332,000 less than the amount shown at the end of the previous month. As
previously indicated it is typical in the early months of a fiscal year to
have expenditures exceed revenues. This results in a need to utilize
invested monies for on-going operations.
OVerall, the total yield on the city's portfolio for the month of October
showed a very slight favorable gain from the rate shown for the month of
September (5.648% vs. 5.559% respectively). This was primarily due to a
favorable change in the rates at the Local Agency Investment Fund and the
purchase of a new investment. The gains made by these investments were
partially offset by a slight decrease in the Dean witter Mutual Fund
investment. The Dean witter Mutual Fund earnings were calculated at 5.950%
for October vs. 6.010% in september.
After analyzing the City's eIP cash flow estimates for the next several
months, staff did proceed with the purchase of a one year investment. The
ei ty purchased $500,000 in Federal Home Loan Bank (FHLB) bonds maturing on
October 19, 1995. Although the investment carries a coupon rate of 5.82% the
investment was purchased at a discount. Factoring in the discount will
resul t in a yield to maturity of 6.165%. This purchase reduced the amount
retained by the city in the LAIF.
The LAIF quarterly average was 5.240% as of October 31, 1994. This is up
significantly from the 4.974% rate reported last month. For reporting
purposes this report includes the Quarterly Rate of 5.240%, since this is how
the interest is calculated and paid. The Daily Rate was at 5.319% on october
30, 1994. The october report shows a decreased reliance on LAIF. In
September 23.5% of the portfolio was invested in LAIF. As of the October
report this had been reduced to 19.4%.
LAIF tends to hold a mix of shorter term investments typically not extending
on an average basis much beyond one year. For the city this remains as a
very liquid professionally managed investment. Further it allows for
diversification undertaken by professional managers responsible for the
investment of billions of dollars of public funds.
The schedule of investment maturi ties is anticipated to allow the city to
meet anticipated expenditures in the upcoming month.
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COPIES TO:
4.7
CITY CLERK
FILE~
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city of Dublin
city Treasurer's Listing of Investments
As of October 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.
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MATURITY
Value
INVESTMENT
Cost Yield
TYPE OF INVESTMENT
Date
Rate
POOLED INVESTMENTS 19.4% of Total Portfolio
State of California
LAIF .
$3,570,000.00
$3,570,000.00 (1) 5.240%
MUTUAL FUND 9.3% of Total Portfolio
Dean witter Revnolds
U.S. Govt Securities
(2 )
(2 )
$1,699,995.50 (3) 5.950%
CERTIFICATES OF DEPOSIT 2.7% of Total Portfolio
..<
First Republic T & L
Fremont Investment & Loan
Southern Ca~ifES&L
Standard Pacific Svgs
World Savings
$95,000.00 5.250
$99,000.00 5.560
$98,000.00 5.250
$99,000.00 5.200
$100,000.00 6.010
$491,000.00
GVRNT/AGENCY SECURITIES (4) 68.6% of Total Portfolio
1
Bank of Ca1.'ifornia ( Saf ekeeping)
FNMA 6/30/95 $500,000.00 5.250
FHLB 10/19/95 $500,000.00 5.820
FHLB 5/20/96 $500,000.00 6.200
FHLB 8/26/96 $490,000.00 7.700
U S Treasury Note 2/15/97 $500,000.00 4.750
FFCB(Callable 3/03/95) 3/03/97 $500,000.00 5.120
FHLMC(Callable 5/24/95) 5/24/97 $500,000.00 6.510
FHLB(Callable 6/09/95) 6/09/97 $500,000.00 6.720
FNMA 6/10/97 $1,205,000.00 9.200
FNMA(Call~ble 5/13/96) 5/13/98 $500,000.00 5.250
FHLMC(Cal~able 9/09/94) 9/09/98 $500,000.00 4.950
FNMA(Callable 10/15/96)10/15/98 $1,000,000.00 4.875
U S Treasury Note 10/31/98 $1,000,000.00 4.750
FHLB(Callable 11/03/94)11/03/98 $1,000,000.00 5.110
FNMA(Callable 12/10/96)12/10/98 $1,000,000.00 5.310
FHLB(Callable 1/12/95) 1/12/99 $2,000,000.00 5.460
FNMA(Callable 2/12/96) 2/12/99 $400.000.00 5.550
$12,595,000.00
9/14/98
7/30/98
9/14/98
7/30/98
1/29/98
$95,000.00
$99,000.00
$98,000.00
$99,000.00
$100.000.00
$491,000.00
5.250%
5.560%
5.250%
5.200%
6.010%
5.457%
$500,000.00
$498,281.25
$500,000.00
$490,000.00
$488,274.35
$496,388.80
$500,000.00
$500,000.00
$1,262,000.00
$496,000.00
$498,578.12
$999,463.57
$986,984.38
$1,000,000.00
$999,585.92
$2,000,000.00
$399.770.85
$12,615,327.24
$18,376,322.74
5.250%
6.165%
6.200%
7.700%
5.724%
5.420%
6.510%
6.720%
7.066%
5.482%
5.020%
4.889%
5.101%
5.110%
5.311%
5.460%
5.564%
5.731%
Total Investments - per Books
5.648%
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Footnotes
(1 )
( 2)
Interest rate shown is quarterly average as of October 30, 1994.
As a mutual fund investment this investment can be liquidated at any given
time, "however the asset value will fluctuate based upon the current market
rate. The investment strategy assumes that approximately $1 million
will be held through July I, 1999, and $699,995 through October 1, 1999,
without a deferred sales charge.
Market value as of October 27, 1994, based upon original shares invested
plus fiscal year to date dividends is $1,541,716. The market value would
also be: affected by deferred sales charges, if the investment were
liquidated prior to the dates stated in note (2).
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 pr~vious twelve months of dividends at the share price as of 10/27/94
divided by the original cost.
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,
(3 )
(4 )
(5 )