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HomeMy WebLinkAboutTreasurer Report Attachment-FinanceATTACHMENT 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 September 30, 2011 is summarized below and compared to the quarter ended September 30, 2010. POOLED INVESTMENT PORTFOL 0 QUARTER ENDED AS OF'. Par Value 46,648,557.87 45,672,181.98 Book Value (1) 46,648, 807.87 45,672,456.98 Market Value (2) 46,809,864.88 45,864,569.56 (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 82.34% 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 48 months. For the month ended September 30, 2011, LAIF's monthly average effective yield was 0.378%. The summary of the City's investment portfolio is illustrated in the following chart. SUMMARY OF INVESTMENT PORTFOLIO As of September 30, 2011 INVESTMENTS HELD BY THE CITY YTM % of Investment Type Book Value Market Value 365 Equiv. Portfolio LAIF 38,408,807.87 38,479,771.68 0.378% 82.34% Medium Term Notes 500,000.00 505,550.00 4.000% 1.07% Federal Agency Securities 5,739,750.00 5,824,543.20 2.228% 12.30% CDARS Program 2,000,000.00 2,000,000.00 1.050% 4.29% Totals for September 2011 46,648,557.87 46,809,864.88 0.857% 100.00% Totals for September 2010 45,672,181.98 Portfolio increase from same quarter last year 976,375.89 CDARS Program Federal Agency 4.29% Securities 12.30% Medium Term Notes 1.07% Investments Liquidity 82.34% 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 38,408,807.87 82.34% 0.00 0.00% 2,500,000.00 5.36% 1,000,000.00 2.14% 4,739,750.00 10.16% 46,648,557.87 100.00% Federal Agency Securities account for 12.30% 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 4.29% 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 September 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 38,408,807.87 38,479,771.68 38 408 807.87 82.34 1 1 0.373 0.378 500,000.00 505,550.00 500,000.00 1.07 1,462 137 3.945 4.000 5,740,000.00 5,824,543.20 5,739,750.00 12.30 1,827 282 2.393 2.426 2,000,000.00 2,000,000.00 2,000,000.00 4.29 364 159 1.036 1.050 Investments 46,648,807.87 Total Earnings Current Year Average Daily Balance Effective Rate of Return 47, 46,809,864.88 46,648,557.87 100.00% 257 44 0.688 0.698 September 30 Month Ending 26,948.30 45,565,224.54 0.72% Tina Norrdin, (financial Services Officer Reporting period 09/01/2011-09/30/2011 Run Date: 11/03/2011-14'.11 Fiscal Year To Date 91,246.23 48,458,351.02 0.75% Portfolio CNC CC PM (PRF_PM1) SymRept 6.41.202b Report Ver. 5.00 CUSIP Investment# Issuer City of National City Portfolio Management Portfolio Details - Investments September 30, 2011 Average Purchase Balance Date Par Value Market Value Stated Book Value Rate Page 2 YTM/C Days to Maturity S&P 365 Maturity Date LAIF 98-37-576 Medium Term Notes 11058 Local Agency Investment Fund 36966RV94 11269 Federal Agency Securities 313372TR5 3128X8N57 3134G2DA7 3136FPA83 3136FPVC8 3136FPYS0 3136FPXD4 3136FPB22 3136FRB51 3136F82A2 3136F82A2 C 3136F9C67 Subtotal and Average 37,058,807.87 GEN ELEC CAP CRP Subtotal and Average 500,000.00 11381 Federal Home Loan Bank 11342 Federal Home Loan Mrtgage Corp 11384 Federal Horne Loan Mrtgage Corp 11362 Federal Natl. Mortgage Assoc. 11371 Federal Natl. Mortgage Assoc. 11372 Federal Natl. Mortgage Assoc. 11374 Federal Natl. Mortgage Assoc. 11377 Federal Natl. Mortgage Assoc. 11385 Federal Natl. Mortgage Assoc. 11266 Fannie Mae 11267 Fannie Mae 11274 Fannie Mae CDARS SYS11382 11382 Subtotal and Average 6,006,416.67 Neighborhood National Bank Subtotal and Average 2,000,000.00 38,408,807.87 38,479,771.68 38,408,807.87 0.378 38,408,807.87 38,479,771.68 02/14/2008 500,000.00 38,408,807.87 0.378 1 0.378 1 505,550.00 500,000.00 4.000 AA+ 4.000 137 02/15/2012 500,000.00 03/14/2011 750,000.00 06/18/2009 240,000.00 04/14/2011 500,000.00 08/18/2010 500,000.00 11/19/2010 500,000.00 11/23/2010 500,000.00 11/23/2010 250,000.00 11/30/2010 500,000.00 07/27/2011 1,000,000.00 02/12/2008 250,000.00 02/12/2008 500,000.00 03/11/2008 250,000.00 5,740,000.00 03/10/2011 2,000,000.00 505,550.00 757,995.00 244,543.20 500,290.00 516,500.00 500,795.00 499,525.00 250,390.00 499,870.00 1,004,800.00 262,330.00 524,495.00 263,010.00 500,000.00 4.000 137 750,000.00 2.640 AAA 2.640 240,000.00 3.000 AAA 3.000 500,000.00 2.650 AAA 2.650 500,000.00 2.000 AAA 2.000 500,000.00 1.250 AAA 1.250 499,750.00 1.250 AAA 1.300 250 000.00 1.000 AAA 1.000 500,000.00 2.000 AAA 2.000 1,000,000.00 2.375 AAA 2.375 250,000.00 4.000 AAA 4.000 500,000.00 4.000 AAA 4.000 250,000.00 4.000 AAA 4.000 5,824,543.20 5,739,750.00 2,000,000.00 • 2,000,000.00 1.050 2,000,000.00 2,000,000.00 2,000,000.00 165 03/14/2016 261 06/18/2014 13 04/14/2016 1,417 08/18/2015 49 11/19/2015 53 11/23/2015 53 11/23/2015 60 11/30/2015 118 07/27/2016 500 02/12/2013 500 02/12/2013 527 03/11/2013 2.426 282 1.050 159 03/08/2012 1.050 159 Total and Average 45,565,224.54 46,648,807.87 46,609,864.88 46,648,557.87 0.698 44 Portfolio CNC CC Run Date: 11/03/2011 - 14:11 PM (PRF_PM2) SymRept 6.41.202b