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NATIONAL L Ci i
1.+NC,ORPORATED -i
City Council Staff Report
July 31, 2013
ITEM
Staff Report: Investment Report for the quarter ended June 30, 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 June 30, 2013 is summarized below and
compared to the balance as of June 30, 2012.
6/30/13
6/30/12
Book Value (1)
$ 59, 246, 949
$ 55, 855, 617
Market Value (2)
$ 58,969,729
$ 55,814,463
(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 61.43% of the City of National City's total investment
portfolio (52.99% and 8.44 %, 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
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Staff Report: Investment Report for the quarter ended June 30, 2013.
July 31, 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 June 30, 2013
Total Market % of
Book Value Market Value Yield to Mat. Portfolio
Local Agency Investment Fund 31,393,226 31,408,418 0.25% 52.99%
Chandler Asset Management 20,353,723 20,073,957 0.49% 34.35%
County of San Diego 5,000,000 4,968,000 0.41% 8.44%
Neighborhood National Bank 2,000,000 2,000,000 0.65% 3.38%
First Tennessee National Bank2 500,000 519,354 1.97% 0.84%
Totals for June 2013 59,246,949 58,969,729 100.00%
1 includes accrued interest
2 calculated on 30/360 basis
County of San
Diego
$4,968,000
Chandler Asset
Neighborhood
National Bank
$2,000,000
�\I
TOTAL MARKET
VALUE
$58,969,729
First Tennessee
National Bank
$519,354
Local Agency
Investment Fund
$31,408,418
Management
$20,073,957
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Staff Report: Investment Report for the quarter ended June 30, 2013.
July 31, 2013
INVESTMENT PERFORMANCE BY ISSUER/MANAGER
Issuer/Manager
For the Quarter Ended June 30, 2013
Total Market Values
3/31/13 6/30/13 Change Rate (Net)
Local Agency In estment Fund $ 21,393,226 2 $ 31,408,418 $ 10,015,192 3 0.24%
Chandler Asset Management 20,142,370 20,073,957 (68,413) -1.36%
County of San Diego 4,989,000 4,968,000 (21,000) -1.68%
Neighborhood National Bank (CDARS CD) 2,000,000 2 2,000,000 3,244 0.65%
First Tennessee National Bank 519,894 519,354 (540) 2.00%
Totals for June 2013 '$ 49,044,490 $ 58,969,729 $ 9,928,483
1 includes accrued interest
2 March 31, 2013 report total incorrect
3 $10M transferred to LAIF account 5/29/13
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
Realized and unrealized gains/(losses), reflected below, for the period were ($71,517). These
changes include changes in security market values, gain/(loss) from the sale of assets, accrued
interest, and reinvested interest/earnings.
Issuer/Manager Gain/(Loss)
Local Agency Investment Fund $ 15,192
Chandler Asset Management (68,413)
County of San Diego (21,000)
Neighborhood National Bank (CDARS CD)1 3,244
First Tennessee National Bank' (540)
Totals for June 2013 $ (71,517)
interest paid to the City is not reinvested
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 June 30, 2013.