HomeMy WebLinkAbout16 INVESTMENT RPT 11-20-95 NO. 16
11-20-95
Inter-Com
,ATE:
NOVEMBER 15, 1995
TO: WILLIAM~HUSTON, CITY MANAGER
FROM: RONALD~ FINANCE DIRECTOR
SUSJECI: INVESTMENT REPORT, JUNE AND JULY, 1995
RECOMMENDATION
Receive and file
DISCUSSION
The attached investment reports for June and July, 1995 have been
reformatted per recommendations by the City's AUditors as a result
of their review at the close of fiscal year 1995. We have provided
a more defined report that corresponds with the current investment
policy referenced both by investment type and the allowable
percentage by type. The allowable percentage is an element of our
current policy and reflects the City's desire for prudent
diversification of investments to mitigate market risk yet take
advantage of positive changes in the investment markets.
Footnotes are provided for reference, but I want to draw your
attention to notes (1) and (8) specifically. Note (1) describes
each category of authorized investment and any limitation on
concentration by investment type. Note (8) addresses the actual
concentration per the current report which should be compared with
any limitation noted in the description-limits column. For
example, medium term notes (mtn) are limited to 10% of the current
portfolio which can be compared to the 3.91% of mtn's in the
current report.
It is important to. note that the critical test of specific
investment concentrations per our policy is the time of purchase.
Because of the uncertainty of cash flow at times a month-end report
may indicate certain investments exceeding their limit. For
example, the Fidelity Money Market deposit of $9.5 million in the
June report will soon be used in the assessment district refunding,
thereby reducing the total portfolio by 25%. It is conceivable
that all investment limits will be exceeded by virtue of the
significant cash outflow.
November 15, 1995
Agenda Item to: William A. Huston (cont'd.)
The current report indicates that federal agency bonds or notes is
3.3% above the current authorized limit of 25%. This is a
temporary situation that is driven by current cash flow
considerations as addressed above. Future reports should show
changes in this area.
We are also looking at adding graphs to the report for a very quick
view of the investments in summary. We are always looking at ways
to improve the report to give the City Council and others the
information they need to feel confident about the use of City
funds. While there are certain elements of the report that are
required by code, I will make any changes to the report that will
make a more meaningful report for the reader.
a:agenda.3
DATE: 11/14/95
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: RONALD A. NAULT, FINANCE DIRECTOR
SUBJECT: INVESTMENT SCHEDULE AS OF:
JUNE 30,1995
(1)
DESCRIPTION-LIMITS
YIELD
TO PURCHASE
MATURITY DATE
MATURIT:Y
DATE
(2)
ORIGINAL
PURCHASE
PRICE
(3)
CURRENT
BOOK
VALUE
(4)
CURRENT
MARKET
VALUE
Certificates of Deposit (CD's)-No Umit ]
Commercial Paper-25%, Max 90 Days
Bankers Acceptances-25%, Max 180 Day~
Current Total:
Current Total:
(5)
J Medium Term Notes- 10%
PFIZER INC. Rating-(AAA/AAA) 6.32%
KF] I ~ CO. Rating-(AAA/AAA) 6.22%
PAC TELL CAP. Rating-(AA3/M-) 5.52%
SHFI/OIL CO.- (AA2/AAA) 6.72%
I Federal Agency Bonds or Notes-25% t
FNMA 1992- IOOE
FED FARM CR BK
FHLB FRN (6)
FHLMC 1325-C (6)
FED FARM CR BI( FRN
FED FARM CR BK FRN
FHLMC 1402- H
FHLMC 1436- SB
FHLB FRN
FHLB FRN (6)
FHLMC 1296-J FRN
TVA (AANA.z~).
I US Treasury Bills/Bonds/Notes-No Umit I
Treasury Note (6)
Treasury Note
3.01%
6
4.05%
5
2.22%
3.42%
2.89%
3.66%
2.55%
3.63%
8.07%
5.60%
6.19%
5.59%
05/12_/94
05/15/95
03/17/93
11/05/94
02/01/97
07/15/97
10/15/97
07/01/99
Current Total:
$251,078
$149,034
$574,140
$690,228
0)
$250,431
$149,034
$537,070
$69o,228
02/25/93
02/28/94
10/20/93
05/06/94
01/31/94
11/09/93
01/28/94
03/21/94
09/29/93
10/21/'93
06/09/95
02/03/94
01125197
02/10/97
06/02/97
07115/97
07128/97
O9123/97
10/15/97
12/15197
03/23/98
05/07/98
07/15/99
08/01/99
Current Total:
$230,066
$742,500
$2,550,000
$.1,024,371
$1,050,000
$1,025,000
$1,006,886
$723,054
$1,507,500
$1,343,400
$1,626,763
3.91%]
(8)
$19553
$742 50O
$2,532 145
$.934 364
$1,032 199
$1,008 865
$97O 019
$649 147
$1,5O5 001
$502 500
$515,556
05/27/94
08/06/95
Current Total:
$251,640
$149,594
$519,500
$709,023
$1,629,757
$18,437
$750,000
$2,251,990
$595,622
$1,001,090
- $990,880
$977,877
$638,241
$1,251,705
$467,894
$1,294,948
$500,470
$11,755,249 $11,039,154
28.28%1
05/15/97 $2,021,360 $2,017,088 ' $2,022,500
02/15/00 $1,998,599 $1,998,5~ $1,975,678
Daily-No Umit
Cash
Fidelity Money Market. (AAA/~
Local Agency Invesl~ent Fund
I
5.20%
5.80°/0
5.96%
Current Total:
Current Total:
(8)
$1,021,767 $1,021,767
$9,529,162 $9,529,162
$13,620,094 $13,620,094
$24,171,023 $24,171,023
TOTAL CITY INVESTMENTS
$41,568,722 $40,838,112
PERFORMANCE MEASUREMENT:
Average P~3rtfolio Life (Years): 2.14
Average Portfolio Yield: 5.47%
Current 2 yr Treasury;.'_ 5.38%
(1)
DESCRIPTION-lIMITS
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
(2)
YIELD ORIGINAL
TO PURCHASE MATURITY PURCHASE
MATURITY DATE DATE AMOUNT
(3) (4)
CURRENT CURRENT
BOOK MARKET
VALUE VALUE
Certificates of Deposit (CD's)-No Umit 1
Commercial Paper-25%, Max 90 Days
1 Bankers Acceptances-25%, Max 180Day~
(5)
Medium Term Notes- 10%
Franklin Universal Trust-(AAA/AAN
GE Capital- (AANAAA)
Norwest Corp- (ANAA)
Federal Aqency Bonds or Notes-25% I
FHLB FRN
FED FARM CR BK FRN
..
FED FARM CR BK FRN
FHR 1402-F
FHLB FRN
TVA (AAA/AAA).
Current Total: $0 $0
Current Total: $0 $0
Current Total:
(8)
4.94% 09/14/93 09/01/98 $1,029,800 $1,020,860 $976,050
5.19% 11/18/93 11/18/98 $2,006,060 $2,004,242 $1,941,580
7.26% 04/19/95 04/01/00 $994,450 $994,450 $1,029,020
Current Total:
$4,019,552 $3,946,650
21.37%I
(8)
4.05% 10/20/93 06/02/97 $2,040,000 $2,028,572 $1,785,630
2.94% 01/31/94 07/28/97 $1,058,750 $1,037,770 $967,444
3.15% 11/09/93 09/23/97 $1,435,000 $1,412,726 $1,274,953
7.33% 06/01/95 10/15/97 $348,928 $348,928 $343,112
5.95% - 06/01/95 03/04/98 $487,431 $487,431 $487,445
5.60% 02/18/94 08/01/99 $515,048 $511,704 $500,470
Current Total:
I US Treasury Bills/Bonds/Notes-No Limit1
US Treasury Strip
$5,827,131 $5,359,054
I
Daily-No Umit
RDA Cash
Local Agency Investment Fund
(8)
5.60% 06/06/95 02/15/00 $1,998,5~ $1,998,599 $1,975,678
Current Total:
$1,998,599 $1,975,678
10.63% J
TOTAL RDA INVESTMENTS
5.70°4, (7)
5.96%
Current Total:
PERFORMANCE MEASUREMENT:
Average Portfolio Life (Years): 2.61
Average Portfolio Yield: 5.34%
Current 3 yr Treasu_ry: 5.86%
(8)
$321,482 $321,482
$6,642,928 $,6,642,928
$6,964,410 $6,964,410
37.03% ]
$18,809,692 $18,245,792
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 Ir~vestment 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 report reflects ali City and RDA pooled investments. Due ,to current cas flow considerations maturities
in excess of one year and Federal Agency Bonds or Notes temporarily exceed the current Investment Policy limits by
aproximately 10%. Projected cash flows, maturing investments and the prudent sale of longer maturities will mitigate this
condition. In all other aspects the investments represented in this 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 thirty days estimated expenditures..
This statement is prepared in conformance with Section 53646 of the Government Code.
Ronam A. Nault, Treasurer
LEGEND:
CD-Certificate of deposit
FRN- Floating rate note
DATE: 11/15/95
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: RONALD A. NAULT, FINANCE DIRECTOR
SUBJECT: INVESTMENT SCHEDULE AS OF:
~qELD
(1) TO
DESCRIPTION- lIMITS MATURITY
JULY 31,1995
(2) (3)
ORIGINAL CURRENT
PURCHASE MATURITY PURCHASE BOOK
DATE DATE PRICE VALUE
(4)
CURRENT
MARKET
VALUE
Certificates of Deposit (CD's)-No Umit I
Commercial Paper-25%, Max 90 Days
I Bankers Acceptances-25%, Max 180 Day~
SAKURA BANK, NY 5.83%
(5)
I Medium Term Notes-10% j
PFIZER INC. Rating-(AANAAA)
KELLOGG CO. Rating- (AANAAA)
PAC TELL CAP. Rating- (AA3/AA-)
Current Total: $0 $0
Current Total: $0 $0
07/20/95 01/02/96 $974, f78 $974,178 $974,178
Current Total: $.974,178
[ 2.45% 1
6.32% 05/12/94 02/01/97 $251,078
6.22% 05/15/95 07/15/97 $149,034
5.52% 03/17/93 10/15/97 $574,140
(8)
$250,647
$149,034
$537,070
$974,178
$251,743
$149,406
$5 19,500
Federal Agency Bonds or Notes-25% '~
Current Total: $936,751 $920,649
2.36%1
(8)
FED FARM CR BK
FHLB FRN (6)
FHLMC 1325-C (8)
FED FARM CR BK FRN
FED FARM CR BK FRN
FHLMC 1402- H
FHLMC 1436-SB
FHLB FRN
FHLB FRN (6)
FHLMC 1296-J FRN
TVA (AANAAA)
I US Treasury Bills/Bonds/Notes-No Umitl
Treasury Note (6)
Treasury Note
Treasury Note
I Daily-No Limit
Cash
Fidelity Money Market (AAA/AAA)
Local Agency Investment Fund
6.06'% 02/28/94 02/10/97 $742,500 $742,500 $750,000
4.05% 10/20/93 06/02/97 $2,550,000 $2,532,145 $2,238,043
5.84% 05/06/94 07/15/97 $1,024,371 $934,364 $885,007
2.22% 01/31/94 07/28/97 $1,050,000 $1,028,623 $1,001,090
3.42°,4, 11/09/93 09/23/97 $1,025,000 $1,008,865 $990,880
2.89% 01/28/94 10/15/97 $1,006,886 $970,019 $977,877
3.66% 03/21/94 12/15/97 $723,054 $649,147 $638,241
2.55% 09/29/93 03/23/98 $1,507,500 $1,505,001 $1,257,495
3.63% 10/21/93 05/07/98 $502,500 $502,500 $466,003
8.07% 06/09/95 07/15/99 $1,343,400 $1,343,400 $1,294,948
5.60% 02/03/94 08/01/99 $520,000 $515,556 $498,750
6.19%
5.49%
5.59%
Current Total:
05/27/94 05/15/97. $2,021,360
07/11/95 09/30/98 $1,956,250
06/06/95 02/15/00 $1,998,599
$11,732,120 $10,998,3,.34
2 .52 l
(8)
$2,017,088 $2,020,500
$1,956,250 $1,295,000
$1,998,599 $1,966,794
5.05% (7)
5.72%
5.97%
Current Total:
Current Total:
$5,971,937 $5,282,294
I $.02%1
(8)
$324,636 $324,636
$9,573,649 $9,573,649
$10,235,094 $10,235,094
TOTAL CITY INVESTMENTS
PERFORMANCE MEASUREMENT:
Average Portfolio Life (Years): 1.85
Average Portfolio Yield: 5.490/,,.
Current 2¥r Treasury: 5.86%]
.$39,7~,~5 $38,309,034
(1)
DESCRIPTION- LIMITS
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
(2)
YIELD ORIGINAL
TO PURCHASE MATURITY PURCHASE
MATURITY DATE DATE AMOUNT
(3) (4)
CURRENT CURRENT
BOOK MARKET
VALUE VALUE
Certificates of Deposit (CD's)-No Umit t
Commercial Paper-25%, Max 90 Days
i~ Bankers Acceptances-25%, Max 180Da~
SAKURA BANK, NY
(5)
Medium Term Notes- 10% ]
Franklin Universal Trust- (AAA/AAA)
GE Capital- (AANAAA)
Current Total: $0 $0
Current Total: $0 $0
5.83% 07/20/95 01/02/96 $974,178 $974,178 $974,178
Current Total: $974,178 $974,178
(8)
4.94% 09/14/93 09/01/98 $1,029,800 $1,020,860 $971,200
5.19% 11/18/93 11/18/98 $2,006,060 $2,004,242 $1,936,280
~ Federal Aqency Bonds or Notes-25% I
FHLB FRN
FED FARM CR BK FRN
FED FARM CR BK FRN
FHR 1402- F
FHI..B FRN
TVA (AAN~)
Current Total: $3,025,102 $2,907,480
I 14.35% 1
(8)
4.05% 10/20/93 06/02/97 $2,040,000 $2,028,572 $1,790,434
2.94% 01/31/94 07/28/97 $1,058,750 $1,033,574 $976,640
3.15% 11/09/93 09/23/97 $1,435,000 $1,412,726 $1,274,815
7.33% 06/01/95 10/15/97 $348,928 $348,928 $343,112
5.95% 06/01/95 03/04/98 $487;431 $487,431 $487,445
5.60% 02/18/94 08/01/99 $515,048 $511,704 $498,750
[ US Treasury Bills/Bonds/Notes-No Limit
US Treasury
US Treasury Strip
I Daily-No Umit J
RDA Cash
Local Agency Investment Fund
Current Total: $5,822,935 $5,371,196
. J 27.63°,4, J
(8)
5.50% 07/11/95 09/30/98 $2,445,313 $2,445,313 $1,975,678
5.60% 98/06/95 02/15/00 $1,998,599 $1,998,599 $1,975,678
Current Total: $4,443,912 $3,951,356
(8)
5.70% (7) $169,292 $169,292
5.96% $6,642,928 $6,642,928
Current Total: $6,812,220 $6,812,220
TOTAL RDA INVESTMENTS
$21,078,347 $20,016,430
PERFORMANCE MEASUREMENT:
Average Portfolio Life (Years): 1.29
Average Portfolio Yield: 5.34%
Current 2 yr Treasury_: 5.86%
(1)
(2)
(3)
(4)
(5)
(6)
(7)
FOOT NOTES:
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.
Original Purchase Price is the amount paid for a security less any discount plus any premium.
Current Book Value is a securities original cost less rceipt of principal payments, net of amortized premiums/discounts.
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.
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.
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.
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 report reflects all City and RDA pooled investments. Due to current cas flow considerations maturities
in excess of one year and Federal Agency Bonds or Notes temporarily exceed the current Investment Policy limits by
aproximately 10%. Projected cash flows, maturing investments and the prudent sale of longer maturities will mitigate this
condition. In all other aspects the investments represented in this 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 thirty days estimated expenditures.
This statement is prepared in conformance with Section 53646 of the Government Code.
LEGEND:
CD- Certificate of deposit
FRN-Floating rate note