HomeMy WebLinkAboutInvest Report for 4th Qtr FY11 FinanceCITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE:
August 2, 2011
AGENDA ITEM NO.
ITEM TITLE:
Investment Report for quarter ended June 30, 2011.
PREPARED BY: Arnold Ocana
PHONE: 619-336-4342
EXPLANATION:
See attached report.
FINANCIAL STATEMENT:
ACCOUNT NO.
DEPARTMENT: Financ
APPROVED BY:
APPROVED:
APPROVED:
Staff certifies that there are sufficient funds to meet the City's financial needs.
ENVIRONMENTAL REVIEW:
N/A
ORDINANCE: INTRODUCTION: FINAL ADOPTION:
STAFF RECOMMENDATION:
Accept and File the Investment Report for the Quarter ended June 30, 2011. j
BOARD / COMMISSION RECOMMENDATION:
N/A
ATTACHMENTS:
1. Background/Investment Overview
2. Portfolio Summary — Quarter ended June 30, 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 June 30, 2011 is
summarized below and compared to the quarter ended June 30, 2010.
POOLED INVESTMENT PORTFOL 0
QUARTER ENDED•AS OF
6/30/2010'
Par Value
50,756,020.00
51,556,846.76
Book Value (1)
50,755,770.00
51,556,596.76
Market Value (2)
50,899,287.33
51,751,808.20
(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 75.39% 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 June 30, 2011, LAIF's monthly
average effective yield was 0.448%.
The summary of the City's investment portfolio is illustrated in the following chart.
SUMMARY OF INVESTMENT PORTFOLIO
As of June 30, 2011
INVESTMENTS HELD BY THE CITY
YTM % of
Investment Type Book Value Market Value 365 Equiv. Portfolio
LAIF 38,266,020.00 38,326,345.23 0.448% 75.39%
Medium Term Notes 500,000.00 510,320.00 4.000% 0.99%
Federal Agency Securities 9,989,750.00 10,062,622.10 2.228% 19.68%
CDARS Program 2,000,000.00 2,000,000.00 1.050% 3.94%
Totals for June 2011
Totals for June 2010
Portfolio increase from same quarter
last year
Federal Agency
Securities
19.68%
Medium Term Notes
0.99%
50,755,770.00
50,899,287.33 0.857% 100.00%
51,556,596.76
-800,826.76
CDARS Program
3.94%
LAIF
75.39%
Investments Liquidity 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
38,266,020.00 75.39%
3,000,000.00 5.91%
7,489,750.00 14.76%
1,000,000.00 1.97%
1,000,000.00 1.97%
50,755,770.00 100.00%
Federal Agency Securities account for 19.68% of the investment portfolio. The average
rate of return is 2.228% which is the average yield offered in the current market of
Security Bonds with same terms.
The City has $2 million investment in the CDARS program with Neighborhood National
Bank. The current investment yield is 1.050% and accounts for 3.94% of the portfolio.
The pooled investment portfolio has the ability to meet the City's financial needs.
Investments
City of National City
City of National City
Portfolio Management
Portfolio Summary
June 30, 2011
Par Market Book % of Days to YTM/C YTM/C
Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv.
LAIF
Medium Term Notes
Federal Agency Securities
CDARS
Investments
38,266,020.00 38,326,345.23 38,266,020.00 75.39 1 1 0.442 0.448
500,000.00 510,320.00 500,000.00 0.99 1,462 229 3.945 4.000
9,990;000.00 10,062,622.10 9,989,750.00 19.68 1,826 263 2.198 2.228
2,000,000.00 2,000,000.00 2,000,000.00 3.94 364 251 1.036 1.050
50,756,020.00 50,899,287.33
50,755,770.00 100.00% 389 69 0.845 0.857
Total Earnings June 30 Month Ending
Fiscal Year To Date Fiscal Year Ending
Current Year
Average Daily Balance
Effective Rate of Ret
Leslie Deese, Assistant City Manager
Reporting period 06/01/2011-06/30/2011
Run Date: 07/21/2011 -11:47
41,706.40
52,155,770.00
0.97%
617 Lie u 1,
496,531.73
47,467,622.92
1.05%
496,531.73
Portfolio CNC
CC
PM (PRF PM1) SymRept 6.41.202b
Report Ver. 5.00
CUSIP
LAIF
98-37-576
City of National City
Portfolio Management
Portfolio Details - Investments
June 30, 2011
Page 2
Average Purchase Stated YTM/C Days to Maturity
Investment # Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date
11058 Local Agency Investment Fund
Subtotal and Average 38,466,020.00
38,266,020.00
38,326,345.23 38,266,020.00 0.448
38,256,020.00
38,326,345.23 38,266,020.00
0.448 1
0.448 1
Medium Term Notes
36966RV94 11269 GEN ELEC CAP CRP 02/14/2008 500,000.00 510,320.00 500,000.00 4.000 AA+ 4.000 229 02/15/2012
Subtotal and Average 500,000.00 500,000.00 510,320.00 500,000.00 4.000 229
Federal Agency Securities
3136F82A2 11266 Fannie Mae 02/12/2008 250,000.00 264,350.00 250,000.00 4.000 AAA 4.000 592 02/12/2013
3136F82A2 C 11267 Fannie Mae 02/12/2008 500,000.00 527,830.00 500,000.00 4.000 AAA 4.000 592 02/12/2013
3136F9C67 11274 Fannie Mae 03/11/2008 250,000.00 264,992.50 250,000.00 4.000 AAA 4.000 619 03/11/2013
3128X8N57 11342 Federal Home Loan Mrtgage Corp 06/18/2009 240,000.00 245,889.60 240,000.00 3.000 AM 3.000 353 06/18/2014
3136FPAB3 11362 Federal Natl. Mortgage Assoc. 08/18/2010 500,000.00 503,005.00 500,000.00 2.000 AM 2.000 1,509 08/18/2015
3134G1RS5 11363 - Federal Home Loan Mrtgage Corp 08/25/2010 500,000.00 500,445.00 500,000.00 2.000 AAA 2.000 55 08/25/2015
3134G1 RA4 11364 Federal Home Loan Mrtgage Corp 08/25/2010 500,000.00 500,540.00 500,000.00 2.125 AAA 2.125 55 08/25/2015
313371353 11367 Federal Home Loan Bank 10/05/2010 500,000.00 499,375.00 500,000.00 2.000 AAA 2.000 4 10/05/2015
3133712V7 11368 Federal Home Loan Bank 10/05/2010 500,000.00 500,480.00 500,000.00 2.050 AAA 2.050 4 10/05/2015
3133713E4 11369 Federal Home Loan Bank 10/05/2010 500,000.00 500,130.00 500,000.00 2.000 AAA 2.000 4 10/05/2015
3134G1YF5 11370 Federal Home Loan Mrtgage Corp 11/17/2010 500,000.00 498,275.00 500,000.00 1.750 AAA 1.750 16 11/17/2015
3136FPVC8 11371 Federal Natl. Mortgage Assoc. 11/19/2010 500,000.00 498,715.00 500,000.00 1.250 AAA 1.250 49 11/19/2015
313371N93 11373 Federal Home Loan Bank 11/23/2010 250,000.00 247,885.00 250,000.00 1.700 AAA 1.700 53 11/23/2015
3136FPYSO 11372 Federal Natl. Mortgage Assoc. 11/23/2010 500,000.00 495,655.00 499,750.00 1.250 AAA 1.300 145 11/23/2015
3136FPXD4 11374 Federal Natl. Mortgage Assoc. 11/23/2010 250,000.00 250,965.00 250,000.00 1.000 AAA 1.000 145 11/23/2015
313371KF2 11375 Federal Home Loan Bank 11/24/2010 250,000.00 250,145.00 250,000.00 1.050 AAA 1.050 54 11/24/2015
313371KJ4 11376 Federal Home Loan Bank 11/24/2010 250,000.00 250,512.50 250,000.00 1.000 AAA 1.000 54 11/24/2015
3136FPB22 11377 Federal Natl. Mortgage Assoc. 11/30/2010 500,000.00 499,675.00 500,000.00 2.000 AAA 2.000 152 11/30/2015
3136FPA98 11379 Federal Natl. Mortgage Assoc. 12/15/2010 500,000.00 500,295.00 500,000.00 2.120 AAA 2.120 1,628 12/15/2015
3134G1P99 11380 Federal Home Loan Mrtgage Corp 01/13/2011 1,000,000.00 1,000,390.00 1,000,000.00 2.750 AAA 2.750 12 01/13/2016
313372TR5 11381 Federal Home Loan Bank 03/14/2011 750,000.00 760,927.50 750,000.00 2.640 AAA 2.640 257 03/14/2016
3134G2DA7 11384 Federal Home Loan Mrtgage Corp 04/14/2011 500,000.00 502,145.00 500,000.00 2.650 AM 2.650 105 04/14/2016
Subtotal and Average 11,189,750.00 9,990,000.00 10,062,622.10 9,989,750.00 2.228 283
CDARS
SYS11382 11382 Neighborhood National Bank 03/10/2011 2,000,000.00 2,000,000.00 2,000,000.00 1.050 1.050 251 03/08/2012
Subtotal and Average 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1.050 251
Run Date: 07/21/2011 -11:47
Portfolio CNC
CC
PM (PRF_PM2) SymRept 6.41.202b
CUSIP
City of National City
Portfolio Management
Portfolio Details - Investments
June 30, 2011
Page 3
YTM/C Days to Maturity
Investment # Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date
Average Purchase Stated
Total and Average 52,155,770.00
50,756,020.00
50,899,287.33 50,755,770.00
0.857 69
Portfolio CNC
CC
Run Date: 07/21/2011 -11:47 PM (PRF_PM2) SymRept 6.41.202b