HomeMy WebLinkAboutDocumentCALIFORNIA
NATIONAL L Ci i
1.+NC,ORPORATED -i
City Council Staff Report
May 30, 2013
ITEM
Staff Report: Investment Report for the quarter ended March 31, 2013.
BACKGROUND
The California Government Code (§ 53646(b)) requires that, when the treasurer or the chief
fiscal officer of a local agency renders to the legislative body of the agency a quarterly report on
the agency's investment portfolio, such report shall include the following information regarding
all securities, investments, and moneys held by the local agency:
➢ type of investment;
➢ issuer (bank or institution);
➢ date of maturity;
➢ dollar amount invested; and
➢ current market valuation as of the date of the report.
In addition, the Government Code (§ 53646(b)(2)) requires that the report state the City's
compliance with its investment policy and include a statement regarding the ability of the local
agency to meet its pool's ability to meet its expenditure requirements Code (§ 53646(b)(3)).
OVERVIEW OF CITY INVESTMENTS
The City's pooled investment portfolio balance as of March 31, 2013 is summarized below and
compared to the balance as of March 31, 2012.
3/31/13
3/31/12
Book Value (t)
$ 49,174,286
$ 50,427,873
Market Value (2)
$ 49,052,270
$ 50,461,213
(1) actual cost of investments
(2) amount at which the investments could be sold
The California Treasurer's Local Agency Investment Fund ("LAIF") and The County of San
Diego Pooled Money Fund comprise 53.8% of the City of National City's total investment
portfolio (43.63% and 10.17 %, respectively). These are liquid investment pools that allow
participants to earn market rate returns, while retaining access to funds within 24 to 48 hours of a
Neighborhood
National Bank
$2,000,891
County of San
Diego
$4,989,000
Chandler Asset/
Management
$20,142,370
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Staff Report: Investment Report for the quarter ended March 31, 2013.
May 30, 2013
withdrawal request with no penalty. The remainder of the City's portfolio is composed of
investments that may be liquidated at any time. However, these investments likely do not provide
the short liquidity (i.e., quick access to funds) of the pooled money funds, and
liquidation/withdrawal of these investments is at the risk of loss and/or penalty to the City.
Summaries of the City's investment portfolio are illustrated below.
INVESTMENT PORTFOLIO SUMMARY BY ISSUER/MANAGER
Issuer/Manager
As of March 31, 2013
Total Market % of
Book Value Market Value Yield to Mat. Portfolio
Local Agency Investment Fund
Chandler Asset Management
County of San Diego
Neighborhood National Bank
First Tennessee National Bank2
21,378,339
20,295,947
5,000,000
2,000,000
500,000
21,400,115
20,142, 370
4,989,000
2,000,891
519,894
0.29%
0.30%
0.47%
0.65%
1.97%
43.63%
41.06%
10.17%
4.08%
1.06%
Totals for March 2013
1 includes accrued interest
2 calculated on 30/360 basis
49,174,286 49,052,270 0.34% 100.00%
TOTAL MARKET
VALUE
$49,052,270
First Tennessee
National Bank2
$519,894
Local Agency
Investment Fund
$21,400,115
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Staff Report: Investment Report for the quarter ended March 31, 2013.
May 30, 2013
INVESTMENT PERFORMANCE BY ISSUER/MANAGER
For the Quarter Ended March 31, 2013
Issuer/Manager
Total Market Value'
12/31/12 3/31/13 Change Yield (Net)
Local Agency Investment Fund2 $ 21,359,627 $ 21,378,339 $ 18,712 0.29%
Chandler Asset Management 20,122,063 20,142,370 20,307 0.40%
County of San Diego 5,013,000 4,989,000 (24,000) -1.92%
Neighborhood National Bank (CDARS CD) 2,004,037 2,000,891 (3,146) 0.65%
First Tennessee National Bank 524,409 519,894 (4,515) 0.09%
Totals for March 2013 $ 49,023,136 $ 49,030,494 $ 7,358
1 includes accrued interest
2 LAIF book values
COMPLIANCE STATEMENT
All of the City's investments are in compliance with the City's investment policy (City Council
Policy No. 203) and the California Government Code (§ 53601 et seq).
FINANCIAL STATEMENT
Total gains/(losses), realized and unrealized, for the period were $39,246.
Staff certifies that there are sufficient funds to meet the pool's expenditure requirements.
RECOMMENDATIONS
Accept and file the Investment Report for the quarter ended March 31, 2013.