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Home My WebLink About18 INVESTMENT REPORT 03-18-96CI7, OF TUSTIN INVESTMENT Rr, eOR T DATE: MARCH 11,1996 TO: HONORABLE MAYOR and MEMBERS OF THE CITY COUNCIL FROM: G. W. JEFFRIES, TREASURER SUBJECT: INVESTMENT SCHEDULE AS OF: JANUARY 31,1 996 YI ELD (1) TO PURCHASE MATURITY DESCRIPTION- UMITS MATURITY DATE DATE NO., 18 J-'18-96 (2). (3) (4) ORIGINAL CURRENT CURRENT PURCHASE BOOK MARKET P RICE' VALUE VALUE J Certificates of Deposit (CD's)-No Limit J J Commercial Paper-25%, Max 90 Days J J, Bankers Acceptances-25%, Max 180Days J (5) J Medium Term Notes- 10% J PFIZER INC. Rating- (AAA/AAA) KELLOGG CO. Ratin g- (AAA/AAA) PAC TELL CAP. Rating-(Al/A+) J Federal Agency Bonds or No~es-25% J FEDERAL FARM CREDIT BANKS FEDERAL HOME LOAN BANK FRN (6) FED. HOME LOAN MORT. CORP. 1325-C (6) FEDERAL FARM CREDIT BANKS FRN FEDERAL FARM CREDIT BANKS FRN FED. HOME LOAN MORT. CORP. 1402-H FED. HOME LOAN MORT. CORP. 1436-SB FEDERAL HOME LOAN BANK FRN FEDERAL HOME LOAN BANK FRN (6) TENNESSEE VALLEY AUTHORITY (AAA/AAA) J US Treasury Bills/Bonds/Notes- No Limit J Treasury Note (6) J Daily-No Limit Cash , Fidelity Money Market (AAA/AAA) Local Agency Investment Fund Current Total: $0 $0 Current Total: $0 $0 Current Total: $0 $0 o. oo%1 (8) 6.82% 05/12/94 02/01/97 $251,078 $250,431 $252,880 6.22% 05/15/95 07/15/97 $149,034 $149,034 $151,457 5.83% 03/17/93 10/15/97 $574,140 $529,656 $531,260 Current Total: $929,121 $935,597 I 2.28%J (8) 6.06% 02/28/94 02/~0/97 $742,500 $742,500 $750,000 4.05% 10/20/93 06/02/97 $2,550,000 $2,535,716 $2,251,990 5.84% 05/06/94 07/15/97 $1,024,371 $934,364 $918,579 2.73% 01/81/94 07/28/97 $1,050,000 $1,021,486 $1,008,530 2.09% 11/09/93 09/23/97 $1,025,000 $1,004,255 $1,000,000 3.01% 01/28/94 10/15/97 $1,006,886 $970,019 $934,422 8.98% 03/21/94 12/15/97 $723,054 $649,147 $612,908 2.55%. 09/29/93 03/23/98 $1,507,500 $1,505,001 . $1,359,375 3.63% 1.0/21/93 05/07/98 $502,500 $502,500 $461,071 5.60% 02/08/94 08/01/99 $520,000 $513,334 $509,530 Current Total: $10,878,322 $9,801,405 I ' ' 24.86%J (6) 6.19% 05/27/94 05/15/97 $2,021,360 $2,017,088 $2,038,120 Current Total: I 4.95% 4.75% 5.69% (7) Current Total: TOTAL CITY INVESTMENTS 5.09% 4.90% PERFORMANCE MEASUREMENT: Average Portfolio Life (Years): Average Portfolio Yield: Current 1 yr Treasury: $2,017,088 $2,038,120 4.83%I (6) $556,229 $556,229 $9,837,535 $9,837,535 $18,003,146 $18,003,146 $28,896,910 $28,396,910 I $41,721,441 ' $41,172,032 (1) DESCRIPTION-LIMITS C~ , -i~ OF TUSTIN 1NVF_.SIMF_.Ni REPORT TUSTIN COMM UNITY REDEVELOPMENT AGENCY JANUARY 1996 YIELD TO PURCHASE MATURITY MATURITY DATE DATE (2) (3) (4) ORIGINAL CURRENT CURRENT PURCHASE BOOK MARKET AMOUNT VALUE VALUE I Certificates of Deposit (CD's)-No Limit First Interstate Ban k First Interstate Bank Commercial Paper-25%, Max 90 Days [ Bankers Acceptances-25%, Max 180Days I (5) Medium Term Notes- 10% [ Franklin Un iversal Trust- (AAA/AAA) G E Capital- (AAA/AAA) 4.75% 08/30/95 04/30/96 $1 ,O00,000 $1,000,000 $1,000,000 4.75% 08/30/95 06/30/96 $1,250,000 $1,250,000 $1,250,000 Current Total: $2,250,000 $2,250,000 0.43% I Current Total: (8) Current Total: $0 0.00% J (8) 4.94% 09/14/93 09/01/98 $1,029,800 $1,017,880 $999,910 5.19% 11/18/93 11/18/98 $2,006,060 $2,003,636 $1,997,660 [ Federal Agency Bonds or Notes-25% FEDERAL HOME LOAN BANK FRN FEDERAL FARM CREDIT BANKS FRN FEDERAL FARM CREDIT BANKS FRN TENNESSEE VALLEY AUTHORITY (AAA/AAA) ] US Treasury Bills/Bonds/Notes-No Limit Daily-No Limit RDA Cash Local Agency Investment Fund Current Total: $3,021,518 $2,997,570 14.01% (8) 4.05% 10/20/93 06/02/97 $2,040,000 $2,025,715 $1,801,592 2.47% 01/31/94 07/28/97 $1,058,750 $1,029,378 $998,977 4.27% 11/09/93 09/23/97 $1,435,000 $1,406,362 $1,359,056 5.60% 02/18/94 08/01/99 $515,048 $510,032 $508,280 Current Total: $4,971,487 $4,667,905 I 23-05% i (8) Current Total: 5.35% (7) 5.70% Current Total: TOTAL RDA I NVESTM ENTS PERFORMANCE MEASUREMENT: Average Portfolio Life (Years): 1.17 Average Portfolio Yield: 5.22% Current 1 yr Treasury: 4.90% $0 $0 0.o0% ] (8) $133,018 $133,018 $11,195,918 $11,195,918 1,328,936 $11,328,936 52.52% I $21,571,939 $21,244,411 TOTALCITY/RDA INVESTMENTS: $63,293,380 $62,416,443 CI~ . OF TUSI1N1NVES~~ ~d?,PORT FOOT NOTES: (1) DESCRIPTION-LIMITS reflects the various authorized investments as documented in the most cUrrent adopted investment polcy and the allowable per-centage of total portfolio per investment type. (2) Original Purchase Price is the amount paid for a security less any discount plus any premium. (3) Current Book Value is a securities original cost less rceipt of principal payments, net of amortiZed premiums/discounts. (4) Current Market Value is the price that the security is currently trading and could presumablyu be purchased or sold. Current market values are provided by Bank of America and First Interstate Bank on all securities held in safekeeping for the City or RDA. Differences in value are only booked if the security is sold prior to maturity. (5) In compliance with Section II, paragraph f. of the City's Investment Policy, Corporate Medium Term Notes shall have a Moody's/Standard and Poors's long term debt rating of at least AA. (6) Securities held in Trust per the Funding Agreement between the City of Tustin and the Foothill/Eastern Transportation Corridor Agency adopted by the City Council On 6-5-95. (7) Earnings allowance on compensating bank balances to offset bank activity charges. Not included in the Average Yield calculation. (8) Current percentage by investment type to be measured against allowable limits in current investment policy. CERTIFICATION: I certify that this re port reflects all City and RDA pooled investments. Due to current cash flow considerations maturities in excess of one year temporarily exceed, the current Investment Policy limits by approximately 10%. Projected cash flows, maturing investments and the prudent sale of longer maturities will mitigate this condition. In all other aspects the investments re presented in th is report are in conformity with the current adopted investment policy of the City of Tustin. The investment program herein shown provides sufficent cash flow liquidity to meet the next sixty days estimated expenditu res. This statement is prepared i .n con~/~~ection 53646 of the Government Code. ' ' Sig6ed: // / /~/~~~ ' ~ ~ri~ea~urer EGEND' /. _ '/'-/~D-Certificate of deposit FRN- Floating rate note FN MA- Federal National Mortgage'Ass ociation' FFCB-Federal Farm Credit Bank FHLMC-Federal Home Loan Mortgage Corp. FHLB-Federal Home Loan Bank' 'l'VA-Tennesee Valley AuthOrity GLOSSARY OF COMMON TREASURY TERMINOLOGY USED IN THIS REPORT BANKERS' ACCEPTANCE (BA): A draft, bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large denomination CD's are typically negotiable.~ COMMERCIAL PAPER: Primarily issued by corporations to finance receivables, commercial paper is a short term, unsecured promissory note issued for a maturity specified by the purchaser not. to exceed 270 days. FEDERAL CREDIT AGENCIES: Agencies of the Federal Government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the California State Treasurer for investment and reinvestment. '. MEDIUM TERM NOTES: Primarily issued by corporations to finance capital improvements, typically issued for three to five years. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the. national debt. Most bills are issued to mature in three months, six months, or one year.. TREASURY BOND: Long-term U.S. Treasury.securities having initial maturities of more than ten years. TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury securities having initial maturities of from one to ten years. RAN4: G [ ossary. Jan