HomeMy WebLinkAboutItem 4.02 Qty Invest Report~~~~ OF DpB~~
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STAFFREPORT CITY CLERK
DUBLIN CITY COUNCIL File # ^0[~~-~(~^
DATE: November 16, 2010
TO: Honorable Mayor and City Councilmembers
FROM: ~~ Joni Pattillo, City Manager
SUBJECI :,,,- City Treasurer's Investment Report for 1st Quarter 2010-2011
Prepared By: Paul S. Rankin, Administrative Services Director
EXECUTIVE SUMMARY:
The City's investment portfolio totals $90,326,716 (par value). As of September 30, 2010, funds
were invested at an average yield of 1.620%. The portfolio includes both discretionary and
restricted funds and the balance will fluctuate throughout the year. The report presented
provides background on the City investment portfolio as well as the investment results as of
September 30, 2010.
FINANCIAL IMPACT:
Investments are made in accordance with the City Investment Policy and State Law. Interest
earned is apportioned between the Funds (i.e. General Fund, Gas Tax Fund, etc) based upon
the proportionate share of the total cash balance. The current earning rate is slightly below the
1.73% projection in the Fiscal Year 2010/2011 Budget Projection. Actual revenue results will
also be impacted by fluctuations in the Total Funds invested.
RECOMMENDATION:
Receive the Quarterly Investment Report.
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Submitted By:
Administrative Services Director
v
Reviewed By:
Assistant City Manager
DESCRIPTION:
The format of the quarterly report consists of the following components:
Section I - Portfolio Information
• Portfolio Summary (Includes the Par Value; Market Value; and Yield)
• Portfolio Details (Includes a listing of individual securities and investments)
• Investments By Type (Includes a listing of Federal Securities including call
date if applicable)
Section II - Investment Charts
Section III - Listing of Investment Transactions by Month
Page 1 of 4 1TEM NO. !•~
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1ST QUARTER RESULTS
As shown on the Portfolio Summary the total investments as of September 30, 2010 were
approximately $90.3 million. The "Yield to Maturity" was calculated at 1.62% and the weighted
average maturity of the portfolio was 363 days ( slightly less than 1 year). The report also
displays the weighted average maturity based on the "Call Date". If all securities were assumed
to be called the portfolio average maturity drops to less than one year at 268 days.
The Market Value as of September 30, 2010 was approximately $1.4 million more than the Par
Value (Par Value =$90,326,716 and Market Value =$91,741,224). The Par Value is the "face
value" or principal amount at maturity of the note or bond. The typical investment approach
used by the City is to hold investments until maturity. The City does not actively sell securities
prior to their maturity. In the current market, the premature liquidation of a security would result
in less interest income upon reinvestment, diluting any gain achieved from selling the
investment prior to its stated maturity.
The following Table displays the comparative results based on information in the Portfolio
Summary for the most recent five quarters. This allows for a comparison to the most recent
quarter as well as the same three month period one year ago.
As noted in Table 1, the total portfolio is approximately $1.2 million less than one year ago. The
total portfolio will fluctuate between fiscal years based upon: planned expenditures, fluctuations
in revenue collected, and differences in timing of both revenue and expenditures. Expenditures
for Capital Projects as well as the final results for Fiscal Year 2009/2010 are largely responsible
for the decrease compared to one year ago.
The average maturity of the investments held has decreased over the past year from 1.5 years
to approximately 1 year. This is in part a response to the interest rate environment and
temporarily shortening the investment timeframe. Current projections made by investment
managers suggest that increases in the Federal short term rates are not expected until well into
2011. Many portfolio managers have maintained a shorter maturity in order to be in a position
to invest at higher r~tes when the market conditions change. Although the City has a shorter
maturity for the portfolio, the short term holdings (funds invested for one year or less) are
approximately $7.5 million less than the reported at June 30, 2010.
Page 2 of 4
Table 1: COMPARISON OF PORTFOLIO MEASURES
Most Recent Five Quarters
INVESTMENT ACTIVITY DURING THE FIRST QUARTER
This report discloses changes in individual securities due to Maturities, Called Securities, and
New Investments. A total of $ 6,000,000 in securities either matured or were called during the
quarter. As shown below one transaction was due to a maturing investment, and one security
was called prior to the stated maturity date.
TABLE 2: INVESTMENTS MATURED DURING THE FIRST QUARTER
' T e* 1/alue at
' M~turi Matur[ty :
' Date '
Gou on Rate ;
FHLB $ 3,000,000 9/10/2010 5.125%
Total $ 3,000,000
TABLE 3: INVESTMENTS CALLED DURING THE FIRST QUARTER
(?riginal
Date M~turity Cvupon
T e* Ac uired Par 1/alue ~ate' Rate Galt Date
FNMA 9/29/2009 $3,000,000 9/29/2014 3.125% 4/27/2010
TOTAL $3,000,000
* FHLB = Federal Home Loan Bank; FNMA = Federal National Mortgage Association
No new investments were purchased during the first quarter.
COMPOSITION OF PORTFOLIO
Section II of the Report contains charts which assist with reviewing the portfolio. The Charts
focus on key factors to monitor including the investment maturities as well as the composition of
the portfolio. The following are key highlights of the portfolio:
• At September 30, 2010, 53.3% of the portfolio was immediately available in the Local
Agency Investment Fund (LAIF) and Money Market instruments; this is slightly more than
the 52.6% reported as of June 30, 2010.
• Federal Agency Securities represented 46.7% of the Portfolio, which is a less than 1%
decrease from the percentage reported as of June 30, 2010.
• There was diversity in the issuers of the federal securities held in the portfolio. A total of
three different issuers were represented. (FHLB - 75%; FFCB-11 % and FHLMC-14%).
The previous quarter the City also held investments issued by FNMA, however the final
FNMA note held by the City, was called September 29, 2010.
• 60% of the funds are invested for one year or less compared to 62% reported in this
category as of June 30, 2010.
~ 2% of the funds are invested in securities with maturities of 3 years or more, compared to
10% reported in this category as of June 30, 2010.
Page 3 of 4
MONTHLY TRANSACTIONS
Section III of the Report provides a list of transactions related to investments in the City portfolio
for each month of the first quarter (July, August and September). This schedule provides
compliance with the Government Code requirement to disclose monthly transaction data. It is
incorporated as part of the quarterly investment report rather than individual monthly reports.
RECENT TRENDS COMPARED TO BUDGET
There have been significant downward trends in interest rates. For Budget purposes the Fiscal
Year 2010-2011 Budget assumed that LAIF would generate a rate of at least 0.50%. As noted
below the rate for the first quarter did achieve this threshold. The following Table shows the
deterioration in short-term rates at LAIF over the past year and they have continued to decline,
however, they remain higher than other short-term investment options.
TABLE 5: Local Agency Investment Fund (LAIF) Quarterly Rate
G~uarter End~ng : Rate
September 30, 2009 .90%
September 30, 2010 .51 %
The current trend in the market has been continued lower interest rates. In terms of new issues
of Federal Agency Securities there have been fewer new issues and most are at rates below
those of securities currently held in the City portfolio.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None
ATTACHMENTS:
1. Quarterly Investment Report for the Period Ending
September 30, 2010
Page 4 of 4
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CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
First Quarter Fiscai Year 2010-2011
September 30, 2010
Presented To City Council November 16, 2010
Section I - Portfolio Information
• Portfolio Summary (Includes the Par Value; Market
Value; and Yield)
~ Portfolio Details (Includes a listing of individual
securities and investments)
• Investments By Type (Listing of Federal Securities
including call date if applicable)
Section II - Investment Charts
Section III - Listing of Monthly Investment Transactions
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ATTACHM I,NT l
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Investments
Money Market
LAIF
Calif Asset Mgt Pgm (CAMP)
Federal Agency Coupon
Total / Average
Cash and Accrued Interest
Accrued Interest ~'~
CITY OF DUBLIN
Portfolio Management
Portfolio Summary
September 30, 2010
Market Book
Value Value
3, 047,438.91
45,060,907.06
63, 370.05
43,569,508.05
$91,741,224.07
270,738.21
% of Term /
Portfolio Days
3,047,438.91 3.37
45,060,907.06 49.89
63, 370.05 0.07
42,210,313.71 46.67
$ 90, 382, 029.73 100.00 %
270,738.21
Total Cash and $90,326,716.02 $92,011,962.28 $90,652,767.94
Investments Value
Days to YTM/C
Mat./Call 365 Equiv.
1 1 0.070
1 1 0.510
1 1 0.270
778 574 2.920
363 268 1.620%
363 268 1.620%
The schedule of investments, including the dates of maturity, provide adequate cash flow liquidity to meet anticipated expenditures over the next six inonths. The
investments and schedule of investments are in compliance with the City of Dublin Investment Policy, and all applicable laws and regulations.
-~~~~~ t o z~ 1 D
PAUL S. RANIUN, ADMINISTRATIVE SERVICES DIRECTOR DATE
(1) Accrued Interest represents the portion of interest earned as of the end of the quarter, that will be paid in a future month. Federal Securities typically pay interest twice a year
(6 month intervals).
Par
Value
3,047,438.91
45, 060, 907.06
63,370.05
42,155,000.00
$90,326,716.02
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City of Dublin
Portfolio Management
Portfolio Details - Investments
September 30, 2010
CUSIP Investment # Issuer Purchase par Value Market Value Book Value Coupon Days To Days To YTM @ Maturity
Date Rate Maturity Call/Mat Cost Date
Locaf Gavernment In~estment Pool'
CAMP California Asset Management Program 11/3/2008 63,370.05 63,370.05 63,370.05 0.27 ~ 1 1 0.27 N/A
LAIF LAIF 11/26/2008 45,060,907.06 45,060,907.06 45,060,907.06 0.51 1 1 0.51 N/A
Money Market
UNION
Sub'Total / Average' Fidelity US Government Portfolio 11/30/2008 3,047,438.91 3,047,438.91 3,047,438.91 0.07
3,447,438.91 3,047,438.91 3,0~7,438.97 ' 0:07 1 1 0.07 N/A
' 1 1'' q.0r
US Agency '
3133XQUH3 10069 Federal Home Loan Bank 4/28/2008 1,500,000.00 1,503,285.00 1,500,000.00 3.125 28 28 3.12502 10/28/2010
31331XNE8 10037 Federal Farm Credit Bank 2/14/2007 2,000,000.00 2,032,500.00 2,000,055.96 5.05 124 124 5.04013 2/1/2011
31331XRQ7 10055 Federal Farm Credit Bank 11/15/2007 1,655,000.00 1,688,613.05 1,659,105.86 4.85 160 160 4.24005 3/9/2011
31331XWU2 10049 Federal Farm Credit Bank 8/31/2007 1,000,000.00 1,025,630.00 1,000,247.87 4.8 207 207 4.75026 4/25/2011
3133XQ4C3 10065 Federal Home Loan Bank 4/3/2008 3,000,000.00 3,131,250.00 3,008,004.92 3.5 526 526 3.3003 3/9/2012
3133XYF91 10089 Federal Home Loan Bank 5/10/2010 4,000,000.00 4,057,520.00 4,000,000.00 1.25 697 697 1.25 8/27/2012
3133XYUR4 10091 Federal Home Loan Bank 6/30/2010 3,000,000.00 3,029,070.00 3,000,000.00 1.05 700 700 1.05 8/30/2012
3133XVZ53 10086 Federal Home Loan Bank 12/21/2009 1,500,000.00 1,501,875.00 1,500,000.00 1 813 82 1.69409 12/21/2012
3133XNST7 10058 Federal Home Loan Bank 12/27/2008 2,000,000.00 2,018,760.00 2,000,000.00 4.42 819 88 4.42003 12/27/2012
3133XXPH4 10088 Federal Home Loan Bank 4/14/2010 3,000,000.00 3,010,320.00 3,000,000.00 1.625 837 106 1.6253 1/14/2013
3133XYVW2 10092 Federal Home Loan Bank 6/25/2010 3,000,000.00 3,041,250.00 3,000,000.00 1.25 879 879 1.25 2/25/2013
3128X1EJ2 10084 Federal Home Loan Mtg Corp 10/14/2008 3,000,000.00 3,254,970.00 3,017,742.34 4.25 965 965 4.00207 5/22/2013
3128X7WV2 10074 Federal Home Loan Mtg Corp 6/10/2008 3,000,000.00 3,071,310.00 2,995,453.12 4.05 984 253 4.11273 6/10/2013
3133XRFL9 10077 Federal Home Loan Bank 7/25/2008 3,000,000.00 3,280,320.00 2,999,883.72 4.25 988 988 4.25023 6/14/2013
3133XYK53 10090 Federal Home Loan Bank 5/21/2010 3,000,000.00 3,073,140.00 3,000,000.00 1.65 1056 1056 1.65 8/21/2013
3133XD6A4 10082 Federal Home Loan Bank 9/26/2008 3,000,000.00 3,311,250.00 3,029,819.92 4.375 1079 1079 4.00007 9/13/2013
3133XW2R9 10087
Sub'Total /iAverage Federal Home Loan Bank 12/30/2009 1,500,000.00
42,165,OQ~~OQ 1,538,445.00
43;569,508.05 1,500,000.00
42;2~0,31~:71 1.5
2.9~~ 1552
' 778 456
57A. 2.95539
'. 2.92 12l30/2014
~TOtal / Average ~ ~ 90 326 716.02 91 741 224 07 90 382 029 73 1 621 363 268 1 62
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City of Dublin Investments By Type (September 30, 2010)
CUSIP Investment
#
Issuer Face
Amount/Shares
Cost Price
Book Value Coupon
Rate Maturity
Date Next Call
Date Next Call
Price
US Agenc
31331XWU2 10049 FFCB 1,000,000.00 100.159 1,000,247.87 4.8 4/25/2011
31331 XRQ7 10055 FFCB 1,655,000.00 101.863 1,659,105.86 4.85 3/9/2011
31331XNE8 10037 FFCB 2,000,000.00 100.033 2,000,055.96 5.05 2/1/2011
FFCB Total ~4~~~;~~ ;Q
3133XYUR4 10091 FHLB 3,000,000.00 100 3,000,000.00 1.05 8/30/2012
3133XYVW2 10092 FHLB 3,000,000.00 100 3,000,000.00 1.25 2/25/2013
3133XYF91 10089 FHLB 4,000,000.00 100 4,000,000.00 1.25 8/27/2012
3133XXPH4 10088 FHLB 3,000,000.00 100 3,000,000.00 1.625 1/14/2013 1/14/2011 100
3133XYK53 10090 FHLB 3,000,000.00 100 3,000,000.00 1.65 8/21/2013
3133XQUH3 10069 FHLB 1,500,000.00 100 1,500,000.00 3.125 10/28/2010
3133XQ4C3 10065 FHLB 3,000,000.00 100.728 3,008,004.92 3.5 3/9/2012
3133XRFL9 10077 FHLB 3,000,000.00 99.993 2,999,883.72 4.25 6/14/2013
3133XD6A4 10082 FHLB 3,000,000.00 101.671 3,029,819.92 4.375 9/13/2013
3133XNST7 10058 FHLB 2,000,000.00 100 2,000,000.00 4.42 12/27/2012 12/27/2010 100
3133XVZ53 10086 FH LB 1, 500, 000.00 100 1, 500, 000.00 1 12/21 /2012 12/21 /2010 100
3133XW2R9 10087 FHLB 1,500,000.00 100 1,500,000.00 1.5 12/30/2014 12/30/2011 100
FHLB Total ~~,~pf~,~uQQ.t~t~
3128X7WV2 10074 FHLMC 3,000,000.00 99.71875 2,995,453.12 4.05 6/10/2013 6/10/2011 100
3128X1 EJ2 10084 FHLMC 3,000,000.00 101.03 3,017,742.34 4.25 5/22/2013
FHLMC Total „~,~3Qt~~Gflt~~~p;
Grand Total 42,155,000.00
ISSUCRS: rFC[3 = Fede--at Farm Credit Bank; FHLB = Federal Home Loan Ban-c;
FHLMC = Feder~l Home Loan Mortgage Corporation ("Freddie Mac"); F1~TMA = Federal National Mortgage Association ("Fannie Mae")
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QUARTERLY INVESTMENT REPORT
First Quarter Fiscal Year 2010-2011
September 30, 2010
Section II - Investment Charts
INVESTMENT CHAR ~ ~ I I
TS FOR THE QUARTER ENDING SEPTEMBER 30, 2010 ~
INVESTMENTS BY TYPE (September 30, 2010)
MONEY MARKET
3.4%
FEDERAL
SECURITIES
46.7%
LAIF
49.8%
FEDERAL SECURITIES BY ISSUER (September 30, 2010)
FHLMC
14%
:B
%
75%
-- --- - -- - _ . _ _ _ J
Less than 1%
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INVESTMENT CHARTS FOR THE QUARTER ENDING SEPTEMBER 30, 2010 ~
September 30, 2010 - Portfolio Maturities
$60,OOQ000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
I $0
-
$48,171,716
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$24 500,000
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No Maturity Dtite ( I Yr or Less) ( I Yr - 2 Yr) (2 Yr - 3 Yr) (3 Yr - a Yr) (d Yr - S Yr) ~
-- ---_ _ - _ --__ _- - _ --- -- - i
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QUARTERLY INVESTMENT REPORT
First Quarter Fiscal Year 2010-2011
September 30, 2010
Section III -
Listing of Monthly Investment Transactions
City of Dublin
Cash / Checking Activity Report
July 1, 2010 - July 31, 2010
Issuer Transaction
Date Comment Deposits Withdrawals Interest Received Balance
California Asset Management Program (CAMP) s,459,546.98
California Asset Management Program 7/30/2010 Interest on account 2,208.44 8,461,755.42
Subtotal and Ending Balance 2~208,44 ' O.QQ 0'.0{~ 8,461,755.42
Fidelity US Go~er`nm'ent Portfalio M M 34,501.38
Fidelity US Government Portfolio MM 7/12/2010 UB fee collected (875.00) 33,626.38
Fidelity US Government Portfolio MM 7/12/2010 Payment of fees 875.00 34,501.38
Fidelity US Government Portfolio MM 7/14/2010 Interest on inv# 10088 ~2,187.50 46,688.88
Subtotal and Ending Balance 13,062'.5Q ~875.00~ 0'.00 46,688.$8 ,
`"~" ` ` 45,171,044.43
LAI F 7/7/2010
(3, 500, 000.00)
41, 671, 044.43
LAI F 7/21 /2010 (600,044.43) 41,071,000.00
LAI F 7/22/2010 (400, 000.00) 40,671, 000.00
LAIF 7/30/2010 (370,000.00) 40,301,000.00
Subtotal and Ending Balance ' 0',i?Q (4,870,044.4~) U,QQ ' 4Q,301,QOO.OD '
TOTAL 15,270.94 (4,870,919.43) 0.00 48,809,444.30
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City of Dublin
Cash / Checking Activity Report
August 1, 2010 - August 31, 2010
I Issuer I Transaction I Comment I Deposits I Withdrawals I Interest Receivedl Balance
Date
... ~~~M.lIVJVF ..~w~~c~y~~~~~uc r ~va~. iau~ ~vt+uv~r')-'; $,461,755.42
California Asset Management Program 8/23/2010 (8,400,000.00) 61,755.42
8/31/2010 Interest on account 1,600.63 63,356.05
Subtotal and Ending Balance ' 0'.OC} ', (8,400,Ut~tI.00) O;OU ;63,356,05 `f
Fidelity US Go~ernment Portfolio M M
46,s$$.ss
i,Fidelity US Government Portfolio MM 8/2/2010 Interest on account 2.83 46,691.71
Fidelity US Government Portfolio MM 8/2/2010 Interest on inv#10037 50,500.00 97,191.71
Fidelity US Government Portfolio MM 8/25/2010 Interest on inv# 10092 6,250.00 103,441.71
Fidelity US Government Portfolio MM 8/27/2010 Interest on inv# 10089 14,861.11 118,302.82
Subtotal and Ending Balance '~1,~~~,~1 p,pp ; ~,g~ 1~$,~Q~y$~ ,
LAIF
40,301,000.00
LAI F 8/6/2010 (1, 500, 000.00) 38, 801, 000.00
LAI F 8/19/2010 (7, 500, 000.00) 31, 301, 000.00
LAIF 8/23/2010 8,400,000.00 39,701,000.00
Subtotal and Ending Balance , 8,400:OQ4;fla !(9_bt~~_~t~0_OOt ' n.nn ~!~ ~n~ nnn nn +
TOTAL 8,471,611.11 (17,400,000.00) 2.83 39,882,658.87
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City of Dublin
Cash / Checking Activity Report
September 1, 2010 - September 30, 2010
Fidelity US Go~ernment Portfoli.o M Mi
Fidelity US Government Portfolio MM
9/1/2010
Interest on account
6.19 ~~s,so2.s2
118
309.01
Fidelity US Government Portfolio MM 9/9/2010 Interest on inv# 10055 40,133.75 ,
158
442.76
Fidelity US Government Portfolio MM 9/9/2010 Interest on inv# 10065 52,500.00 ,
210
942.76
Fidelity US Government Portfolio MM 9/10/2010 Interest on inv# 10036 76,875.00 ,
287
817.76
Fidelity US Government Portfolio MM 9/10/2010 Maturity of inv# 10036 3,000,000.00 ,
3,287
817.76
Fidelity US Government Portfolio MM 9/13/2010 Interest on inv#10082 65,625.00 ,
3,353,442.76
Fidelity US Government Portfolio MM 9/29/2010 Interest on inv# 10085 46,875.00 3,400
317.76
Fidelity US Government Portfolio MM 9/29/2010 Full Call Inv# 10085 3,000,000.00 ,
6,400
317.76
Fidelity US Government Portfolio MM 9/29/2010 Transfer to LAIF (3,353,000.00) ,
3,047
317.76
Fidelity US Government Portfolio MM 9/30/2010 Interest on account 121.15 ,
3,047,438.91
Subtotal and Ending Balance ' 6,282,129:90 t3,3~3,000.00~ ' 6.19 3,047,438.91
LAI F
LAIF
LAIF
LAIF
9/9/2010
9/24/2010
9/29/2010
9/30/2010
ransf from Union Ban
Intereston account
2,300,000.00
3,353,000.00
(345, 000.00)
1,907.06 39,701,000.00
39, 356, 000.00
41,656,000.00
45,009,000.00
45,060,907.06
Subtotal and Ending Balance 5,fi53,OQQ.OQ '{345,~QQ-:OQ~ 51,907.U6 ' 45,06Q,907»Q6 '
TOTAL 11,935,129.90 (3,698,000.00) 51,927.25 48,171,716.02
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Subtotal and Ending Balance p;~p ~~Ot# ~4.fl4 63~~7Q,a5