HomeMy WebLinkAboutTreasurer Report Attachment-FinanceBACKGROUND
ATTACHMENT 1
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, 2011 is
summarized below and compared to the quarter ended December 31, 2010.
Par Value
POOLED INVESTMENT PORTFOL 0'
QUARTER ENDED AS OF
43,935,327.39
Book Value (1)
Market Value (2)
43,935,327.39
44,067,558.86
41,721,649.71
41,721,399.71
41,754,909.89
(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 86.37% 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 December 31, 2011, LAIF's
monthly average effective yield was 0.382%.
The summary of the City's investment portfolio is illustrated in the following chart.
SUMMARY OF INVESTMENT PORTFOLIO
As of December 31, 2011
INVESTMENTS HELD BY THE CITY
LAIF 37,945,327.39 38,008,012.96 0.382% 86.37%
Medium Term Notes 500,000.00 501,670.00 4.000% 1.14%
Federal Agency Securities 3,490,000.00 3,557,875.90 2.887% 7.94%
CDARS Program 2,000,000.00 2,000,000.00 1.050% 4.55%
Totals for December 2011 43,935,327.39 44,067,558.86 6.530% 100.00%
YTM % of
Investment Type Book Value Market Value 365 Equiv. Portfolio
Totals for December 2010 41,721,399.71
Portfolio increase from same quarter
last year
2,213,927.68
CDARS Program
Federal Agency 4.55%
Securities
7.94%
Medium Term Notes
1.14%
LAIF
86.37%
Investments Liquidity Book Value % of Portfolio
On Demand
Within One Month
One Month to One Year
One Year to Two Years
Three Years to Four Years
City of National City
Finance Department
37,945,327.39
1,000,000.00
3,490,000.00
1,000,000.00
500,000.00
86.37%
2.28%
7.94%
2.28%
1.14%
43,935,327.39 100.00%
Federal Agency Securities account for 7.94% of the investment portfolio. The average
rate of return is 2.887% which is the average yield offered in the current market of
Security Bonds with same terms.
The City has $2 million investment in the CDARS program with Neighborhood National
Bank. The current investment yield is 1.050% and accounts for 4.55% of the portfolio.
The pooled investment portfolio has the ability to meet the City's financial needs.
i$
Investments
LAIF
Medium Term Notes
Federal Agency Securities
CDARS
Investments
Total Earnings
Current Year
Average Daily Balance
Effective Rate of R - urn
City of National City
Portfolio Management
Portfolio Summary
December 31, 2011
Par Market
Value Value
37,945,327.39
500,000.00
3,490,000.00
2,000,000.00
38,008,012.96
501,670.00
3,557,875.90
2,000,000.00
43,935,327.39 44,067,558.86
December 31 Month Ending
Tina Norrdin, Fin.:ncial Services Officer
Reporting period 12/01/2011-12/31/2011
Run Date: 01/27/2012 - 15:22
24,116.99
43,935,327.39
0.65%
City of National City
Book % of Days to YTM/C YTM/C
Value Portfolio Term Maturity 360 Equiv. 365 Equiv.
37, 945, 327.39 86.37 1 1 0.377 0.382
500,000.00 1.14 1,462 45 3.945 4.000
3,490,000.00 7.94 1,827 343 2.847 2.887
2,000,000.00 4.55 364 67 1.036 1.050
43,935,327.39 100.00% 179 32 0.644 0.653
Fiscal Year To Date
171,229.65
46,768,915.27
0.73%
Portfolio CNC
CC
PM (PRF_PMI) SymRept 6.41.202b
Report Ver. 5.00
CUSIP
LAIF
98-37-576
City of National City
Portfolio Management
Portfolio Details - Investments
December 31, 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 37,945,327.39
Medium Term Notes
36966RV94 11269
Federal Agency Securities
37,945,327.39
37,945,327.39
GEN ELEC CAP CRP 02/14/2008 500,000.00
Subtotal and Average 500,000.00 500,000.00
38,008,012.96 37,945,327.39 0.382 0.382 1
38,008,012.96 37,945,327.39 0.382 1
501,670.00
501,670.00
313372TR5 11381 Federal Home Loan Bank 03/14/2011 750,000.00
3128X8N57 11342 Federal Home Loan Mrtgage Corp 06/18/2009 240,000.00
3136FPAB3 11362 Federal Natl. Mortgage Assoc. 08/18/2010 500,000.00
3136FRB51 11385 Federal Natl. Mortgage Assoc. 07/27/2011 1,000,000.00
3136F82A2 11266 Fannie Mae 02/12/2008 250,000.00
3136F82A2 C 11267 Fannie Mae 02/12/2008 500,000.00
3136F9CB7 11274 Fannie Mae 03/11/2008 250,000.00
Subtotal and Average 3,490,000.00
3,490,000.00
CDARS
SYS11382
753,652.50
242,918.40
517,405.00
1,001,520.00
260,357.50
520,960.00
261,062.50
11382 Neighborhood National Bank 03/10/2011 2,000,000.00
Subtotal and Average 2,000,000.00 2,000,000.00
Run Date: 01/27/2012 - 15:22
Total and Average 43,935,327.39
3,557,875.90
2,000,000.00
2,000,000.00
500,000.00 4.000 AA+ 4.000 45 02/15/2012
500,000.00 4.000 45
750,000.00 2.640 AAA 2.640 73 03/14/2016
240,000.00 3.000 AAA 3.000 169 06/18/2014
500,000.00 2.000 AAA 2.000 1,325 08/18/2015
1,000,000.00 2.375 AAA 2.375 26 07/27/2016
250,000.00 4.000 AAA 4.000 408 02/12/2013
500,000.00 4.000 AAA 4.000 408 02/12/2013
250,000.00 4.000 AAA 4.000 435 03/11/2013
3,490,000.00 2.887 343
2,000,000.00 1.050 1.050 67 03/08/2012
2,000,000.00 1.050 67
43,935,327.39
44,067,558.86 43,935,327.39
0.653 32
Portfolio CNC
CC
PM (PRF_PM2) SymRept 6.41.202b