HomeMy WebLinkAboutInvestment Report for Quarter ended March 31, 2011. (Finance)CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE:
May 17, 2011
AGENDA ITEM NO.
ITEM TITLE:
Investment Report for quarter ended March 31, 2011.
PREPARED BY: Arnold Ocana l DEPARTMENT:
PHONE: '619-336-4342, APPROVED BY:
EXPLANATION:
See attached report.
Finance
FINANCIAL STATEMENT: APPROVED: A,,, 0" U0 Finance
ACCOUNT NO. APPROVED: MIS
Staff certifies that there are sufficient funds to meet the City's financial needs.
ENVIRONMENTAL REVIEW:
N/PSI
ORDINANCE: INTRODUCTION: FINAL ADOPTION:
STAFF RECOMMENDATION:
Accept and File the Investment Report for the Quarter ended March 31, 2011.
BOARD / COMMISSION RECOMMENDATION:
N/A
ATTACHMENTS:
1. Background/Investment Overview
2. Portfolio Summary — Quarter ended March 31, 2011.
ATTACHMENT 1
BACKGROUND
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 March 31, 2011 is
summarized below and compared to the quarter ended March 31, 2010.
POOLED INVESTMENT PORTFOLIO
QUARTER ENDED AS OF
3/31/2011
3/31/2010
Par Value
47,508,709.52
45,624,819.47
Book Value (1)
47,508,459.52
45,624,494.47
Market Value (2)
47,520,627.06
45,769,601.80
(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 69.72% 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 36 months. For the month ended March 31, 2011, LAIF's monthly
average effective yield was 0.500%.
The summary of the City's investment portfolio is illustrated in the following chart.
SUMMARY OF INVESTMENT PORTFOLIO
As of March 31, 2011
Investment Type
INVESTMENTS HELD BY THE CITY
YTM % of
Book Value Market Value 365 Equiv. Portfolio
LAIF
Medium Term Notes
Federal Agency Securities
Certificates of Deposit
CDARS Program
Totals for March 2011
Totals for March 2010
Portfolio increase from same quarter
last year
33,123,709.52
500,000.00
11,489,750.00
395,000.00
2,000,000.00
33,165,516.78
513,600.00
11,446,494.60
395,015.68
2,000,000.00
0.500%
4.000%
2.253%
2.478%
1.050%
69.72%
1.05%
24.18%
0.83%
4.21%
47,508,459.52
47,520,627.06 1.012% 100.00%
45,624,494.47
1,883,965.05
CDARS Program
Certificates of Deposit 4.21%
0.83%
Federal Agency
Securities
24.18%
Medium Term Notes ???,
1.05%
Investments Liquidity
LAIF
69.72%
Book Value % of Portfolio
On Demand
Within One Month
One Month to One Year
One Year to Two Years
Five Years
City of National City
Finance Department
33,123,709.52
3,895,000.00
8,749,750.00
1,240,000.00
500,000.00
69.72%
8.20%
18.42%
2.61%
1.05%
47,508,459.52 100.00%
Federal Agency Securities account for 24.18% of the investment portfolio. The average
rate of return is 2.253% which is the average yield offered in the current market of
Security Bonds with same terms.
The City has 0.83% 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%.
The City has $2 million investment in the CDARS program with Neighborhood National
Bank. The current investment yield is 1.050% and accounts for 4.21 % 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 $47.5M investment
portfolio.
FUND EQUITY IN POOLED INVESTMENTS
OTHER FUNDS, $14.670
INTERNAL SERVICE
FUNDS, $12.057
GENERAL FUND, $5.914
SEWER SERVICE FUND,
$13.695
SPECIAL REVENUE
FUNDS,-$1.173
Investments
City of National City
City of National City
Portfolio Management
Portfolio Summary
March 31, 2011
Par Market Book %of Days to YTM/C YTM/C
Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv.
Certificates of Deposit - Monthly 395,000.00 395,015.68
LAIF 33,123,709.52 33,165,516.78
Medium Term Notes 500,000.00 513,600.00
Federal Agency Securities 11,490,000.00 11,446,494.60
CDARS 2,000,000.00 2,000,000.00
Investments
47,508,709.52 47,520,627.06
395,000.00 0.83 731 14 2.444 2.478
33,123,709.52 69.72 1 1 0.493 0.500
500,000.00 1.05 1,462 320 3.945 4.000
11,489,750.00 24.18 1,826 215 2.222 2.253
2, 000, 000.00 4.21 364 342 1.036 1.050
47,508,459.52 100.00% 479 71 0.987 1.000
Total Earnings
March 31 Month Ending Fiscal Year To Date
Current Year
Average Daily Balance
Effective Rate of Return
52,019.58
49,316,524.04
1.24%
c512 tztll
Tess Limfueco, Financial Servic%s Officer
Reporting period 03/01/2011-03/31/2011
Run Date: 04/13/2011 - 07:56
363,779.59
46,620,659.27
1.04%
Portfolio CNC
CC
PM (PRF PM1) SymRept 6.41.202b
Report Ver. 5.00
CUSIP Investment#
Certificates of Deposit - Monthly
SYS11324
SYS11328
SYS11330
SYS11336
Issuer
City of National City
Portfolio Management
Portfolio Details - Investments
March 31, 2011
Average Purchase
Balance Date
Par Value Market Value
Page 2
Stated YTM/C Days to Maturity
Book Value Rate S&P 365 Maturity Date
11324 Discover Bank
11328 CIT Bank
11330 First Tuskegee Bank
11336 Tennesse Commerce Bank
Subtotal and Average
395,000.00
04/02/2009
04/08/2009
04/17/2009
04/28/2009
99.000.00
98,000.00
99,000.00
99,000.00
99,000.00
98,015.68
99,000.00
99,000.00
99,000.00
98.000.00
99,000.00
99,000.00
395,000.00
395,015.68
395,000.00
2.510
2.350
2.400
2.650
300 2.510
2.350
143 2.400
226 2.650
3 04/04/2011
7 04/08/2011
17 04/18/2011
27 04/28/2011
2.478 14
LAIF
98-37-576
11058 Local Agency Investment Fund
Subtotal and Average 34,278,548.23
33,123,709.52 33,165,516.78
33,123,709.52 0.500
33,123,709.52 33,165,516.78
33,123,709.52
0.500 1
0.500 1
Medium Term Notes
36966RV94 11269
GEN ELEC CAP CRP
Subtotal and Average 500,000.00
02/14/2008 500,000.00
513.600.00 500,000.00 4.000 AA+ 4.000 320 02/15/2012
500,000.00
513,600.00
500,000.00
4.000 320
Federal Agency Securities
3136F82A2 11266
3136F82A2 C 11267
3136F9CB7 11274
3136FHJF3 11329
3128X8N57 11342
3128X92S8 11354
3136FPAB3 11362
3134G1RS5 11363
3134G1RA4 11364
313371383 11367
3133712V7 11368
3133713E4 11369
3134G1YF5 11370
3136FPVC8 11371
313371N93 11373
3136FPYSO 11372
3136FPXD4 11374
313371KF2 11375
313371KJ4 11376
3136FP822 11377
3136FPC70 11378
3136FPA98 11379
Run Date: 04/13/2011 - 07'56 PM (PRF_PM2) SymRept 6 91.202b
Fannie Mae
Fannie Mae
Fannie Mae
Federal Natl. Mortgage Assoc.
Federal Home Loan Mrtgage Corp
Federal Home Loan Mrtgage Corp
Federal Natl. Mortgage Assoc.
Federal Home Loan Mrtgage Corp
Federal Home Loan Mrtgage Corp
Federal Home Loan Bank
Federal Horne Loan Bank
Federal Home Loan Bank
Federal Home Loan Mrtgage Corp
Federal Natl. Mortgage Assoc.
Federal Home Loan Bank
Federal Natl. Mortgage Assoc.
Federal Natl. Mortgage Assoc.
Federal Home Loan Bank
Federal Home Loan Bank
Federal Natl. Mortgage Assoc.
Federal Natl. Mortgage Assoc.
Federal Natl. Mortgage Assoc.
02/12/2008 250,000.00 264.750.00 250,000.00 4.000 AAA 4.000
02/12/2008 500,000.00 529,450.00 500,000.00 4.000 AAA 4.000
03/11/2008 250,000.00 265,220.00 250,000.00 4.000 AAA 4.000
04/21/2009 250,000.00 250,172.50 250,000.00 2.000 AAA 2.000
06/18/2009 240,000.00 247,149.60 240,000.00 3.000 AAA 3.000
04/15/2010 250,000.00 250,217.50 250,000.00 3.000 MA 3.000
08/10/2010 500.000.00 496,870.00 500,000.00 2.000 AAA 2.000
08/25/2010 500,000.00 491,605.00 500,000.00 2.000 AAA 2.000
08/25/2010 500,000.00 498,140.00 500,000.00 2.125 AAA 2.125
10/05/2010 500,000.00 493,215.00 500,000.00 2.000 AAA 2.000
10/05/2010 500,000.00 495,780.00 500,000.00 2.050 AAA 2.050
10/05/2010 500,000.00 494,710.00 500.000.00 2.000 AAA 2.000
11/17/2010 500,000.00 487,450.00 500,000.00 1.750 AAA 1.750
11/19/2010 500,000.00 485,590.00 500,000.00 1.250 AAA 1.250
11/23/2010 250,000.00 241,962.50 250.000.00 1.700 AAA 1.700
11/23/2010 500,000.00 486,975.00 499,750.00 1.250 AAA 1.300
11/23/2010 250,000.00 247,432.50 250,000.00 1.000 AAA 1.000
11/24/2010 250,000.00 244,930.00 250,000.00 1.050 AAA 1.050
11/24/2010 250,000.00 245,770.00 250,000.00 1.000 AAA 1.000
11/30/2010 500.000.00 489,985.00 500,000.00 2.000 AAA 2.000
12/15/2010 500,000.00 493,090.00 500,000.00 2.000 AAA 2.000
12/15/2010 500,000.00 497,860.00 500,000.00 2.120 AAA 2.120
683 02/12/2013
683 02/12/2013
710 03/11/2013
20 04/21/2014
444 06/18/2014
14 04/15/2015
1,600 08/18/2015
54 08/25/2015
54 08/25/2015
4 10/05/2015
4 10/05/2015
4 10/05/2015
16 11/17/2015
48 11/19/2015
52 11/23/2015
236 11/23/2015
236 11/23/2015
53 11/24/2015
53 11/24/2015
243 11/30/2015
75 12/15/2015
75 12/15/2015
Portfolio CNC
CC
CUSIP
Investment # Issuer Balance Date
City of National City
Portfolio Management
Portfolio Details - Investments
March 31, 2011
Average Purchase Stated
Par Value Market Value Book Value Rate
Page 3
YTM/C Days to Maturity
S&P 365 Maturity Date
Federal Agency Securities
3134G1 P99 11380 Federal Home Loan Mrtgage Corp 01/13/2011
313372TR5 11381 Federal Home Loan Bank 03/14/2011
313372XS8 11383 Federal Home Loan Bank 03/30/2011
Subtotal and Average 10,723,620.97
1,000,000.00
750,000.00
1,000,000.00
1,000,020.00
749,580.00
998,570.00
1,000,000.00
750,000.00
1,000,000.00
11,490,000.00
11,446,494.60 11,489,750.00
2.750 AAA 2.750 12 01/13/2016
2.640 AAA 2.640 348 03/14/2016
2.700 AAA 2.700 90 03/30/2016
2.253 215
CDARS
SYS11382 11382 Neighborhood National Bank 03/10/2011 2,000,000.00 2,000,000.00 2,000,000.00 1.050 1.050 342 03/08/2012
Subtotal and Average 3,419,354.84
2,000,000.00 2,000,000.00
2,000,000.00 1.050 342
Total and Average 49,316,524.04
Run Date: 04/13/2011 - 07:56
47,508,709.52
47,520,627.06 47,508,459.52
1.000 71
Portfolio CNC
CC
PM (PRF PM2) SymRept 641.202b