HomeMy WebLinkAboutAttachment Inv Rep (Finance)BACKGROUND
ATTACHMENT
California Government Code Section 53646 requires the City Treasurer or the Chief
Financial Officer to submit to the City Council a quarterly report of the City's investment
portfolio consisting of the following information:
➢ Type of investment or description,
➢ Issuers (bank or institution),
➢ Dollar amount,
➢ Interest rate,
➢ Current market valuation as of the date of the report,
➢ And the date of maturity.
In addition, the code requires that the report states the City's compliance with it's
investment policy and include a statement on the City's ability to meet it's pool's
expenditure requirements.
OVERVIEW OF CITY INVESTMENTS
The City's pooled investment portfolio as of the quarter ended December 31, 2010 is
summarized below and compared to the quarter ended December 31, 2009.
Par Value
POOLED INVESTMENT PORTFOLIO
QUARTER ENDED AS OF
41,721,649.71
12/31/2009'
Book Value (1)
Market Value (2)
41,721,399.71
41, 754, 909.89
42,317,063.94
42,316,738.94
42,443,832.99
(1) The book value is the actual cost of investments.
(2) The market value is the amount at which the investments could be sold.
The City of National City has 70.32% of the total portfolio invested in the California
Treasurer's Local Agency Investment Fund (LAIF). This is a liquid investment pool,
which allows participants to earn market rate returns of large investments, while
retaining access to funds within 24 hours of a withdrawal request. Due to the current
circumstances of the economy and the market conditions, LAIF return has been
plunging for the last 24 months. For the month ended December 31, 2010, LAIF's
monthly average effective yield was 0.462%.
The summary of the City's investment portfolio is illustrated in the following chart.
SUMMARY OF INVESTMENT PORTFOLIO
As of December 31, 2010
INVESTMENTS HELD BY THE CITY
Investment Type
LAIF
Medium Term Notes
Federal Agency Securities
Certificates of Deposit
Negotiable CD/CDARS
Totals for December 2010
Totals for December 2009
Portfolio decrease from same quarter
last year
YTM % of
Book Value Market Value 365 Equiv. Portfolio
29,336,649.71
500,000.00
9,489,750.00
395,000.00
2,000,000.00
29,379,520.03
513,820.00
9,466,102.40
395,467.46
2,000,000.00
0.462%
4.000%
2.129%
2.478%
2.750%
70.32%
1.20%
22.75%
0.95%
4.79%
41,721,399.71
41,754,909.89 1.012% 100.00%
42,316,738.94
-595,339.23
Negotiable
Certificates of Deposit CD/CDARS
0.95% 4.79 /0
Federal Agency
Securities
22.75%
Medium Term Notes
1.20%
Investments Liquidity
On Demand
Within One Month
One Month to One Year
Within One to Five Years
City of National City
Finance Department
Book Value % of Portfolio
29,336,649.71
0.00
2,395,000.00
9,989,750.00
70.32%
0.00%
5.74%
23.94%
41,721,399.71 100.00%
Federal Agency Securities account for 22.75% of the investment portfolio. The average
rate of return is 2.129% which is the average yield offered in the current market of
Security Bonds with same terms.
The City has 1.0% invested in Certificates of Deposit. These investments are in
increments of $99,000 to ensure that the funds meet the Federal Deposit Insurance
Corporation (FDIC) requirements. The average rate of return is 2.478%.
On 9/13/2007 and 7/24/2008, City Council approved a $2 million and $1 million
investments in the CDARS program. To date the total investment is $2 million. The
current investment yield is 2.75% and accounts for 4.79% of the portfolio.
The pooled investment portfolio has the ability to meet the City's financial needs.
The next chart shows the distribution by Fund of the City's total $41.7M investment
portfolio.
FUND EQUITY IN POOLED INVESTMENTS
OTHER FUNDS, $12.5
GENERAL FUND, $5.9
SEWERSERVICE FUND,
$11.8
SPECIAL REVENUE
FUNDS, $1.2
INTERNAL SERVICE
FUNDS, $10.3
Investments
City of National City
Portfolio Management
Portfolio Summary
December 31, 2010
City of National City
Par Market Book % of Days to YTM/C YTM/C
Value Value Value Portfolio Term Maturity 360 Euiv. 365 Equiv.
Certificates of Deposit - Monthly 395,000.00 395,467.46 395,000.00 0.95 731 104 2 444 2 478
LAIF
Medium Term Notes 29,336,649.71 29,379,520.03
29,336,649.71 70.32 1 1 0.456 0.462
Federal Agencyy Securities 500,000.00 513,820.00 500,000.00 1.20 1,462 410 3.945 4.000
CDARS 9,490,000.00 9,466,102.40 9,489,750.00 22.75 1,826 196 2.100 2.129
2,000,000.00 2,000,000.00 2,000,000.00 4.79 728 68 2.712 2.750
41,721,649.71 41,754,909.89
Investments
41,721,399.71 100.00% 475 54 0.998 1.012
Total Earnings
Current Year
Average Daily Balance
tive Rate of - ' um
Jea '-tte Ladrido, Finance Director
December 31 Month Ending
Reporting period 12/01/2010-12/31/2010
Run Date: 01/18/2011 -16:39
35,607.54
42,431,077.13
0.99%
09/11
Fiscal Year To Date
237,231.57
46,144,190.55
1.02%
Portfolio CNC
CC
PM (PRF_PM1) SymRept 6.41.202b
Report Ver. 5.00
CUSIP
Investment #
Certificates of Deposit - Monthly
SYS11328
SYS11324
SYS11336
SYS11330
LAIF
98-37-576
Issuer
11328 CIT Bank
11324 Discover Bank
11336 Tennesse Commerce Bank
11330 First Tuskegee Bank
Subtotal and Average
City of National City
Portfolio Management
Portfolio Details - Investments
December 31, 2010
Average Purchase
Balance Date
11058 Local Agency Investment Fund
Medium Term Notes
36966RV94 11269
Federal Agency Securities
3133XSZ43 11318
313371363 11367
3133712V7
3133713E4
313371N93
313371KF2
313371KJ4
3128X8N57
3128X92S8
3134G1RS5
3134G1RA4
3134G1YF5
3136FHJF3
3136FPAB3
31398A3S9
3136FPVC8
3136FPYS0
3136FPXD4
3136FPB22
3136FPC70
3136FPA98
3136F82A2
Run Date: 01/18/2011 -16:39
11366
11369
11373
11375
11376
11342
11354
11363
11364
11370
11329
11362
11366
11371
11372
11374
11377
11378
11379
11266
395,000.00
Subtotal and Average 30,352,778.74
GEN ELEC CAP CRP
Subtotal and Average 500,000.00
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Horne Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Mrtgage Corp
Federal Horne Loan Mrtgage Corp
Federal Home Loan Mrtgage Corp
Federal Home Loan Mrtgage Corp
Federal Home Loan Mrtgage Corp
Federal Natl. Mortgage Assoc.
Federal Natl. Mortgage Assoc.
Federal Natl. Mortgage Assoc.
Federal Natl. Mortgage Assoc.
Federal Natl. Mortgage Assoc.
Federal Natl. Mortgage Assoc.
Federal Natl. Mortgage Assoc.
Federal Natl. Mortgage Assoc.
Federal Natl. Mortgage Assoc.
Fannie Mae
04/08/2009
04/02/2009
04/28/2009
04/17/2009
Par Value Market Value
98,000.00
99,000.00
99,000.00
99,000.00
98,467.46
99,000.00
99,000.00
99,000.00
Stated
Book Value Rate
98,000.00
99,000.00
99,000.00
99,000.00
395,000.00
395,467.46
29,336,649.71 29,379,520.03
395,000.00
2.350
2.510
2.650
2.400
29,336,649.71 0.462
29,336,649.71 29,379,520.03
02/14/2008 500,000.00
02/18/2009
10/05/2010
10/05/2010
10/05/2010
11/23/2010
11/24/2010
11/24/2010
06/18/2009
04/15/2010
08/25/2010
08/25/2010
11/17/2010
04/21/2009
08/18/2010
09/30/2010
11/19/2010
11/23/2010
11/23/2010
11/30/2010
12/15/2010
12/15/2010
02/12/2008
500,000.00
250,000.00
500,000.00
500,000.00
500,000.00
250,000.00
250,000.00
250,000.00
240,000.00
250,000.00
500,000.00
500,000.00
500,000.00
250,000.00
500,000.00
500,000.00
500,000.00
500,000.00
250,000.00
500,000.00
500,000.00
500,000.00
250,000.00
513,820.00
513,820.00
29,336,649.71
Page 2
YTM/C Days to Maturity
S&P 365 Maturity Date
300
226
143
2.350 2.510
2.650
2.400
97 04/08/2011
93 04/04/2011
117 04/28/2011
107 04/18/2011
2.478 104
0.462 1
0.462 1
500,000.00 4.000 AA+ 4.000 410 02/15/2012
500,000.00
250,517.50 250,000.00 3.000
491,090.00 500,000.00 2.000
495,965.00 500,000.00 2.050
496,855.00 500,000.00 2.000
241,182.50 250,000.00 1.700
243,970.00 250,000.00 1.050
243,930.00 250,000.00 1.000
248,822.40 240,000.00 3.000
251,660.00 250,000.00 3.000
498,580.00 500,000.00 2.000
494,325.00 500,000.00 2.125
491,580.00 500,000.00 1.750
251,035.00 250,000.00 2.000
494,525.00 500,000.00 2.000
497,015.00 500,000.00 2.000
485,480.00 500,000.00 1.250
487,295.00 499,750.00 1.250
246,757.50 250,000.00 1.000
492,755.00 500,000.00 2.000
494,960.00 500,000.00 2.000
499,855.00 500,000.00 2.120
266,900.00 250,000.00 4.000
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
4.000 410
3.000
2.000
2.050
2.000
1.700
1.050
1.000
3.000
3.000
2.000
2.125
1.750
2.000
2.000
2.000
1.250
1.300
1.000
2.000
2.000
2.120
4.000
48 02/18/2014
4 10/05/2015
4 10/05/2015
94 10/05/2015
53 11/23/2015
54 11/24/2015
54 11/24/2015
534 06/18/2014
104 04/15/2015
55 08/25/2015
55 08/25/2015
47 11/17/2015
110 04/21/2014
48 08/18/2015
88 09/30/2015
138 11/19/2015
326 11/23/2015
326 11/23/2015
333 11/30/2015
165 12/15/2015
165 12/15/2015
773 02/12/2013
Portfolio CNC
CC
PM (PRF_PM2) SymRept 6.41.2026
CUSIP
City of National City
Portfolio Management
Portfolio Details - Investments
December 31, 2010
Average Purchase
Investment # Issuer Balance Date
Federal Agency Securities
3136F82A2 C 11267 Fannie Mae
3136F9CB7 11274 Fannie Mae
Subtotal and Average
9,183,298.39
02/12/2008
03/11/2008
Par Value
Page 3
Stated YTM/C Days to Maturity
Market Value Book Value Rate S&P 365 Maturity Date
500,000.00 533,705.00
250,000.00 267,342.50
9,490,000.00 9,466,102.40
500,000.00 4.000 AAA 4.000 773 02/12/2013
250,000.00 4.000 AAA 4.000 800 03/11/2013
9,489,750.00 2.129 196
CDARS
SYS11327
11327 Neighborhood National Bank 03/12/2009 2,000,000.00 2,000,000.00 2,000,000.00 2.750 2.750 68 03/10/2011
Subtotal and Average 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2.750 68
Total and Average 42,431,077.13
Run Date: 01/18/2011 -16:39
41,721,649.71
41,754,909.89 41,721,399.71
1.012 54
Portfolio CNC
CC
PM (PRF_PM2) SymRept 6.41.202b
City of National City
Portfolio Management
Interest Earnings Summary
December 31, 2010
December 31 Month Ending Fiscal Year To Date
Page 4
CD/Coupon/Discount Investments:
Interest Collected 6,774.72
Plus Accrued Interest at End of Period 61,581.47
Less Accrued Interest at Beginning of Period ( 49,301.78)
Less Accrued Interest at Purchase During Period ( 0.00)
Interest Earned during Period
Adjusted by Capital Gains or Losses
Earnings during Periods
109,145.96
61,581.47
53,158.60)
0.00)
19,054.41 117,568.83
0.00 250.00
19,054.41 117,818.83
Pass Through Securities:
Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
Less Accrued Interest at Purchase During Period
Interest Earned during Period
Adjusted by Premiums and Discounts
Adjusted by Capital Gains or Losses
Eamings during Periods
0.00 0.00
0.00 0.00
0.00) ( 0.00)
0.00) ( 0.00)
0.00 0.00
0.00
0.00
0.00
0.00
0.00 0.00
Cash/Checking Accounts:
Interest Collected 0.00 133,605.66
Plus Accrued Interest at End of Period 364,373.19 364,373.19
Less Accrued Interest at Beginning of Period ( 347,820.06) ( 378,566.11)
Interest Earned during Period
16,553.13 119,412.74
Total Interest Earned during Period
Total Capital Gains or Losses
35,607.54 236,981.57
0.00 250.00
Total Earnings during Period
Run Date: 01/18/2011 -16:39
35,607.54 237,231.57
Portfolio CNC
CC
PM (PRF_PM6) symRept 6.41.2026