HomeMy WebLinkAboutItem 4.04 CT InvestRpt 03-31-1996 (2)
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SUBJEC';'T:
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: . (April 23, 1996)
EXHIBITS ATIACHED:
City Treasurer's Investment Report
",(L, For The Quarter Ended MareIt 31,1996 .
"'- Report Prepared 'by: P,uI S. RaDldn, Assistant CIty Manager
1. Detalled Listing of Investments
2. Summary of Investment Portfolio By Type
RECOMMENDATION: ~
Receive Report
DESCRIPTION: The attached listing (Exhibit 1) details the City'.investaelltsuofP4arch 31,
1996. The .total amount shown as invested is approximate1y$ 1.476 m.."es. than tlte amount
shown at December 31, 1995. This report includes additional information not previously shown in
the monthly reports. Due to a change in State Law the City is required to'.idelitify the .dditional
information.
REPORT ~RMAT .'
The major pieee of additional information shown on the detailed listing is a column for market
value. Although the market value of Federal Securities can :DuctUate daily the City portfolio
_~')assumes thatthe investments will be held to maturity. The question of cune>>imarket v.ueoRIy
e.lbecomes an issue if the City were required to . liquidate an investment pri~rto'the maturity. date.
The City has staggered the maturity dates and it is Dot anticipated that these fu~~:wiU need.tobe
called upon prior to their maturity date. - - .
Exhibit 2 provides a summary of the InvestmentPortfQlio ,by the typeofblv.maent. This schedule
also includes a weighted average maturity colul:l1n. It is iiBportantthattbe City ftnIds are available
in aecordance with needs for City expenditures. Approm.ately 28% of the portfolio at March 31,
1996 was maintained in the Local Agency lnve$tment Fund. This is-,I. ftaible,iuvestment account
managed by the State Treasurer. The aceount is similar to a money marketfwad which allows daily
access as monies are needed to cover operating expenditures.
On average the funds are invested in instruments which have a maturity oflessthaD 2.05yean in
the Government Securityaad Certificate of n.pO$it cateIories.:Forttie Beaa Witter Miltual Fund
Staff. has identified the average maturity of the investments held by th~ mutual ftapd. A mutual
fund does not have a stated date or maturity. .... As noted in the fOohaotes this iavestmeat is
anticipated to behekt through 1999. The Dean Witter Invesu..etltn;repreHilts, approximately
7.485%-of the total portfolio and at the end of eaehfiscal year the City withdraws the dividend
shares earned during the Fiseal Year.
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INVF~ACTIVfi'Y Jl'l TIllRD"QUARTER FISCAL YEAR199519f;::~'t}" .. L
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The CItf ..,:a paftial eaU'of.Jitbnwtmeat 8ndalso purchased two securities during the thfrtt . :~~
quarter. The following details,t..ttansaetion ....... to. the ~Dedseeurity:
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SECV:lUriEsC\LLlID BYTBEISSUER AT FACE V AL'OE
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Security Orltfaal, . o.taJUI.'~D*te . DIIte of . Interest Amount
.,'ate.. ,....rttr ..:f.1'tm .." ...rtill Rate Called
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Ff'qJ i, _080 .~~,' ..313195.'13'" "5.12% : $.171,428.57 .' $>>UtI~3"
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.AJthoafa. ft;.Jj"'~""":;the_er'I"_"""eaII;. .'CMldlot.from thenCB security bey.byth_
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hriG' A....~...:..~ dlj,nu.~lIIi.dautiI.tW..'_ritIW. 'this wuuDdertaken bu.ect ua6,tJU;,
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""':~,;,,;:"'....v':''',''eB....m'''''''''tio.of'a FIILB'Note lDatari!l.' ":/$0;"'...
., 1"'. ....~I Tale__..,;..:~....t:s.purehasedin the thircfquMer:. ".;J; ".0f':I,~(:,;?;::, "
,....":~. t" ,:':...". .... ...M~nurmQUARrER'FISCAL nAR 199519,1' .
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.... Both .,..:.... were bcfttPt.atJ.eev.... .they were.origli.i .issues. B9fk,;J.....are'
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CM4:.~~;~Partiei~o..:tia.~'~:orJ:999.thl... not.espected ,tq~eat.'''~''
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DeeeDlJJet;~;i.f %..""'t:' ,.\' .:';~!"" '~:,.... portiOn:.' ~'t"'lr rtfeIioc.... .
LAJf:....lD.........,:. .... . ~" ...,.UJli"~ted36...%.of..thr,.ttrel ....aU.A
of"pord~:!at "':3J~I.. '. )~:.....~. re~in '-.i.,;IeJd i:aleuJated.~_.;..: ;'
...Witt..M....IPtiutl.........t'(JJeeaaber at 6,;32% Vi. Mardi at,'~..A.). .'4) A mlaII aee--iD
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Tl.&AU'.~:~~.._5.7'%..Gt.Detlmier27~ 1995,wbiebisldptr than tbe)'S~Q%
l1l'terec:ord",:",'fIl. ..........'MirCh ~1..IW6~As.....uid iaVestlbmt the current Li\IP:rate .~.,....
'.rem..~_~", e.,.... tIf.fC!$..~ 41l:;JII,.tabedts wldckbave'less . flexibility. "',.., . ,,';:';,
.1'JI~~~~4a~ ~;'~~Iini&y~jlldedto allow theCily~_,;E'
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CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS
INCLUDING ~TE OF RETURN
. FOR THE QUARTER ENDING MARCH 31, 1996
COUPON
MATURITY VALUE AT INTEREST BOOK MARKET
INVESTMENT DATE MATURITY RATE YIELD VALUE VALUE
FID..,B 5/20/96 5500,000.00 6.200% 6.200% 5500,000.00 $500,625.00
FID..,B 8/26/96 5490,000.00 7.700% 7.700% $490,000.00 5494,596.20
U.S. Treaswy Note 2/15/97 5500,000.00 4.750% 5.724% 5496,092.37 5496,720.00
FFCB (Callable 313/95) 3/3/97 5328,571.43 5.120% 5.420% 5329,238.18 5327,851.86
FNMA 6/1 0/97 51,205,000.00 9.200% 7.660% 51,228,750.00 51,367,110.16
FNMA (Callable 6/17/96) 6/17/97 5500,000.00 6.190% 6.190% 5500,000.00 5501,855.00
FHLMC (Callable 2/26/97) 2/26/98 5500,000.00 5.1 00% 5.100% 5500,000.00 5491,875.00
FNMA (Callable 11/1/96) 5/1/98 5500,000.00 6.030% 6.030% $500,000.00 5498,230.00
FNMA (Callable 5/13/96) 5/13/98 5500,000.00 5.250% 5.482% 5497,875.00 $490,625.00
FID..,MC (Callable 9/9/94) 9/9/98 5500,000.00 4.950% 5.020% 5499,152.33 5486,250.00
FNMA (Callable 10/15/96) 10/15/98 51,000,000.00 4.875% 4.889% 5999,682.32 5970,000.00
U.s. Treaswy Note 10/31/98 51,000,000.00 4.750% 5.101% 5992,343.76 5972,810.00
FID..,B (Callable 1113/94) 1113/98 51,000,000.00 5.110% 5.110% 51,OOO,Ono.oo 5969,550.00
FNMA (Callable 12110/96) 12/10/98 51,000,000.00 5.310% 5.311% $999,749.99 5977,810.00
FFCB (Callable 12118/96) 12/18/98 $500,000.00 5.850% 5.850% $500,000.00 5493,300.00
Flll.B (Callable 6/29/96) 12129/98 5500,000.00 5.950% 5.950% 5500,000.00 $495,155.00
FNMA (Callable 12130/96) 12130/98 5500,000.00 5.890% 5.890% $500,000.00 $493,720.00
FHLB (Callable 1/12195) 1/12199 $2,000,000.00 5.460% 5.460% 52,000,000.00 51,948,580.00
FNMA (Callable 2/12196) 2/12/99 $400,000.00 5.550% 5.564% $399,858.35 5392,376.00
, ,Flll.B (Callable 3!26/97) 3/26/99 5500,000.00 6.250% 6.250% S500,000.00 5500,000.00
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.. 513,923,571.43 5.763% 513,932,742.30 513,869,039.22
CERTIFICATES OF DEPOSIT - FDIC INSURED
Home Savings of America 12/6/96 $99,000.00 5.450% 5.450% $99,000.00 599,000.00
Sanwa Bank of California 1219/96 $99,000.00 5.450% 5.450% 599,000.00 $99,000.00
World Savings 1/29/98 SI00,OOO.00 6.010% 6.010% $100,000.00 5100,000.00
Fremont Investment & Loan 7/30/98 599,000.00 5.560,*!, 5.560% 599,000.00 599,000.00
Standard Pacific Savings 7130/98 $99,000.00 5.200% 5.200% $99,000.00 599,000.00
First Republic Trust & Loan 9/14/98 595,000.00 5.250% 5.250% 595,000.00 595,000.00
Southern California FS&L 9/14/98 598,000.00 5.250% 5.250% 598,000.00 $98,009.00
5689,000.00 5.455% 5689,000.00 5689,000.00
MUTUAL FUND
Dean Witter U.S. Govenunent Securities See Note 1 6.090% $1,699,995.50 (2) 51,676,196.92 (3)
POOLED PUBLIC AGENCY INVESTMENTS
State of Calif.- Local Agency Investment Fund
(LAIF) 6,400,000.00 5.620% (4) $6,400,000.00 56,400,000.00
TOTAL INVESTED PORTFOLIO 5.738% $22,721,737.80 $22,634,236.14
NOTES:
(1) A Mutual Fund investment does not have a stated date of maturity and shares may be
sold at any time. The share price at the time of a sale may be either higher or lower than the original cost.
The current City investment strategy assumes that approximately 51 million will be held through
" July 1, 1999 and 5699,995 through October I, 1999 to avoid any deferred sales charge.
.!) Book Value is shown as the cost at the time the original shares were purchased.
tJ) Market value is based upon the original shares invested plus fiscal year to date dividends.
If the original shares were liquidated a deferred sales charge would apply.
(4) Interest Rate shown is the quarterly average as of March 31,1996.
EXHIBIT 1
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CITY OF DUBLIN
FOR THE QUARTER ENDED: MARCH 31, 1996
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SUMMARY COMPARISON OF INVESTMENT PORTFOLIO BY TYPE
AVERAGE
MARKET %OF MATURITY
TYPE OF INSTRUMENT FACE VALUE BOOK VALUE VALUE PORTFOLIO YEARS
U.S. Treasury Notes 1,500,000.00 1,488,436.13 1,469,530.00 6.604% 2.02
Fedetal Farm Credit Bureau (FFCB) 828,571.43 829,238.18 821,151.86 3.648% 2.01
Federal Home Loan Bank(FHLB) 4,990,000.00 4,990,000.00 4,908,506.20 21.970% 2.26
Fed Home Loan Mortgage Corp(FHLMC) 1,000,000.00 999,152.33 978,125.00 4.403% 2.18
Federal National Mortsage Assn(FNMA) 5,605,000.00 5,625,915.66 5,691,726.16 . 24.678% 2.12
SUB -TOTAL GOVT/AGENCY 13,923,571.43 13,932,742.30 13,869,039.22 (I) 61.303% 2.05
Certificates of Deposit - FDIC Insured 689,000.00 689,000.00 689,000.00 3.034% 1.82
Mutual Funds- Dean Witter U.S. Govt 7.1 OJ"
Securities 1,699,995.50 1,699,995.50 1,676,196.92 (2) 7.485%
LAIF 6,400,000.00 6,400,000.00 6,400,000.00 28.178% N/A
GRAND TOTAL 22,712,566.93 22,721,737.80 22,634,236.14 100.000%
NOTES:
(1) The City intends to hold the investments until maturity or until market values
equal or exceed the current Book Value (Amortized Cost).
(2) Market value is based upon the original shares invested plus fiscal year to date dividends.
If the original shares were liquidated a deferred sales charge would apply.
(3) As a mutual Fund shares can typically be liquidated at any time. The weighted average
maturity stated in this chart was calculated by Dean Witter based upon all investment instruments owned
by the U.S. Government Securities Mutual Fund as of December 31, 1995. Dean Witter reports that the
average duration of those investments is approximately 5.0 years as of December 31, 1995.
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(4) The current City investment strategy assumes that approximately $1 million will be held through
July 1, 1999 and $699,995 through October 1, 1999 to avoid any deferred sales charge.
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EXHIBIT 2