HomeMy WebLinkAbout1998-05-04 City Council (13)C ty
City of Palo Alto
Manager, sRep0rt
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE
SERVICES
DATE:?dAY 4, 1998 CMR:218:98
SUBJECT:CITY OF PALO ALTO’S INVESTMENT ACTIVITY REPORT
FOR THE THIRD QUARTER, FISCAL YEAR 1997-98
This is an informational report and no Council action is required.
BACKGROUND
The purpose of this report is to inform Council on the status of the City’s investment
portfolio, as of the end of the third quarter of the 1997-98 fiscal year. The City’s investment
¯ policy requires that staff report to Council on: the City’s portfolio composition compared
to Council-adopted policy, portfolio performance, and other key investment and cash flow
information.
DISCUSSION
Investment Portfolio as of March 31, 1998
The City’s investment portfolio is detailed in Attachment B. It is grouped by investment type
and includes the category of investment, date of maturity, current market value, as well as
the book and face (par) value, and the weighted average maturity of each type of investment
and of the entire portfolio, as of March 31, 1998.
The face value of the City’s portfolio is $249.6 million. The portfolio consists of $23.7
million in liquid money market accounts and $225.9 million in U. S. government agency
notes and treasury securities. The $225.9 million includes $92.6 million in investments
maturing in less than two years, which represents 41.0 percent of the City’s investment in
notes and securities. The current market value of the portfolio is 100.6 percent of the book
value. Bond yields have continued to decline, meaning that market prices, which move in
CMR:218:98 Page 1 Of 4
the opposite direction of yields, have gone up. Because the City’s investment policy and
practice is to hold securities until they mature, changes in market price do not affect what the
City earns in real dollars. The average life to maturity of the investment portfolio is 2.02
years. The market valuation is provided bE_Union Bank of California, which is the City’s
safekeeping agent.
Investments Made During the Third O_uarter
During the third quarter of the fiscal year, the City’s portfolio grew by $7.8 million. Staff
replaced $13.0 million in matured and called similar government agency securities that had
an average yield of 5.92 percent, with $12.3 million in similar securities having an average
yield of 5.87 percent. Of the $12.3 million purchased, only one security had a maturity
greater than three years. Finally, short-term money market funds increased by $8.5 million
compared to last quarter.
The combination of no interest rate increases by the Federal Reserve Open Market
Committee (FOMC) and a high demand for safe and secure U. S. bonds due to the Asian
economic crisis, has causedyields to remain consistently lowduring the third quarter. As
demand for u. s. bonds increase, bond prices are pushed up and interest yields move down
(bond interest yields move in the opposite direction of bond prices). It is interesting to note
that the yield on two year treasury notes was 5.57 percent at the end of March 1998, while
the yield on the same type of notes was 6.41 percent at the end of March 1997.
Historically low yields in the .third quarter prompted staff to shorten the term of funds
invested. As interest rates begin to rise in the future, staff will begin to draw down funds
invested in overnight funds (Local Agency Investment Fund (LAIF) and money market
accounts), and will begin investing in longer terms (i.e. back up to three-year terms).
Availability of Funds for the Next Six Months
The normal flow of revenues from the City’s utility billings, sales and property taxes,
transient occupancy taxes and general user fees is sufficient to provide funds for ongoing
expenditures. Projections indicate receipts will be $112.2 million and expenditures will be
$103.6 million over the next six months, indicating an overall growth of the portfolio of
about $8.6 million. At March’s end, $23.7 million was also available in funds which could
be withdrawn on a daily basis from the City’s LAIF and Fidelity money market fund
investments. In addition, securities totaling $18.0 million will mature between March 1998
and September 1998. On the basis of the above projections, the City will have more than
sufficient funds to meet expenditure requirements for the next six months.
Compliance with City. Investment Policy
During the third quarter of 1997-98, staff complied with all aspects of the investment policy.
Attachment C lists the restrictions in the City’s investment policy, compared with the
portfolio’s actual compliance.
CMR:218:98 Page 2 of 4
Investment Yields
Interest income on an accrual basis for the third quarter of 1997-98 was $3.7 million. Year-
to-date, the City has earned $11.0 million or 81.9 percent of the 1997-98 Budget of $13.4
million. As of March 31, the yield to maturity of the City’s portfolio was 6.11 percent, a
slight .01 percent below the yield reported in the last quarter.
Yield Trends
During this quarter, the FOMC made no change in either the discount rate or the Federal
.funds rate. In preparation for the March 31 FOMC meeting, Federal Reserve analysts
described inflation as "eerily calm, as domestic competition, productivity gains, and the
Asian situation help constrain production costs." As the FOMC keeps a watchful eye on
inflationary signs, the local, State and national economies continue their strong performance.
Given the low level of inflation and a steady economy, the FOMC is not expected to raise
interest rates in the immediate future.
Funds Held by the City_ or Managed Under Contract
Attachment A is a consolidated report of all City investment funds, including those not held
directly in the investment portfolio. Those include cash in the City’s regular bank account
with Bank of America; bond proceeds, which the City itself manages in a separate
investment account; bond reserves and debt service payments being held by the City’s fiscal
agents;, and employee deferred compensation accounts, investments directed by the
individual employee but technically considered City funds reserved for the employees. The
most recent data on funds held by thefiscal agent is as of March 31, 1998, while balances
in the deferred compensation accounts are as of December 31, 1997.
RESOURCE IMPACT
This is an informational report with no fiscal impact resulting.
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act.
ATTACHMENTS:
A)Consolidated Report of Cash and Investments
B)Investment Portfolio, as of March 31, 1998
C)Investment Policy Compliance
CMR:218:98 Page 3 of 4
PREPARED BY: Joe Saccio, Senior Financial Analyst
DEPARTMENT HEAD APPROVAL: - )~~ _..(-~ ~~ ~
MEL-I~;SA CAV-ALLO
Acting Director,
Administrative Services
CITY MANAGER APPROVAL:
Assistant City Manager
CC:N/A
CMR:218:98 Page 4 of 4
Attachment A
Consolidated Report
City of Palo Alto Cash and Investments
Third Quarter, Fiscal Year 1997-98
Book Value Market Value
City_ Investment Portfolio (see Attachment B)$250,101,010 $ 251,711,803
Other Funds Held by the City_
Cash with Bank of America
1995 Utility Revenue Bond Proceeds
Fidelity Fund - Treasury Class I
Total for Other Funds
$2,423,179
3,282,546
$ 5,705,725
$2,423,179
3,282,546
$ 5,705,725
Funds Under Management of Contracted Parties
Fiscal Agent Debt Service Payments a~d Reserves
First Trust California
Golf Course Corporation Lease/Reserve Fund
Palo Alto Public Improvement Corporation
Lease/Reserve Fund
$154,312
762,246
$ 916,558Total Under Management
Employee Deferred Compensation Accounts
(December 31, 1997)
Great Western Bank
ICMA Retirement Corporation
ITT Hartford
$ 753,873
20,687,739
30,819,002
Total $52,260,614
$308,983,907GRAND TOTAL
$154,312
762,246 .
$ 916,558
$ 753,873
20,687,739
30,819,102
$ 52,260,614
$ 310,594,700
ATTACHMENT B
04/16/1998 City of Palo Alto FI -1
CPAInvestment by Type ACCRUAL
MARCH 31, 1998
INVESTMENT PURCHASE STATED ....YTM ....MATURITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALLrE MARKET VALUE RATE 360 365 DATE TO MAT
MANAGED POOL ACCOUNTS
158 Fidelity Investments
159 Local Agency Invest. Fund
3,743,970.21 3,743,970.21 3,743,970.21 5.460 5.385 5.460
19,996,000.00 19,996,000.00 19,996,000.00 5.684 5.606 5.684
SUBTOTALS and AVERAGES 23,739,970.21 23,739,970.21 23,739,970.21 5.571 5.649
FEDERAL AGENCY ISSUES - COUPON
221
222
146-Cali
147-Cali
148-Cali
149-Call
150-Call
166
167-Cali
173
177-Cali
179-Cali
187
188
189
202
203
2O5
206
207
210
215
216
228
238
239
246
25O
252-Cali
253-Cali
254-Cali
255-Cali
178-Cali
212
213
217
218
229
230
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
02/04/97 1,096,962.69
02/04/97 898,811.49
02/18/94 2,000,000.00
02/14/94 .2,000,000.00
02/09/94 2,000,000..00
02/10/94 2,000,000.00
02/11/94 2,000,000.00
11/16/95 4,998,730.20
12/27/95 3,000,000.00
02/15/96 4,003,449.03
02/21/96 1,550,000.00
02/28/96 2,000,000.00
04/23/96 2,000,000.00
04/23/96 2,000,000.00
05/06/96 2,000,000.00
08/09/96 4,001,066.37
09/27/96 3,001,622.33
10/25/96 2,230,891.57
11/15/96 1,152,826.12
11/15/96 2,006,516.77
12/18/96 990,085.36
01/28/97 999,884.42
01/28/97 1,998,954.43
04/17/97 2,995,208.33
06/26/97 2,996,028.65
07/11/97 3,006,762.15
11/14/97 4,~997,612.49
12/18/97 2,999,272.4~
01/29/98 1,997,413.19
01/29/98 1,997,671.88
02/12/98 3,992,171.01
02/18/98 4,275,000.00
02/23/96 2,000,000.00
12/18/96 1,007,174.32
12/18/96 1,007,129.19
01/10/97 1,340,337.17
01/10/97 3,011,308.59
04/14/97 1,987,898.11
04/16/97 2,986,738.28
1,100,000.00 1,120,449.00 6.420 6.416 6.505 02/04/02 1,405
900,000.00 916,731.00 6.420 6.372 6.461 02/04/02 1,405
2,000,000.00 1,996,240.00 5.380 5.496 5.572 12/14/98 257
2,000,000.00 1,996,240.00 5.380 5.496 5.572 12/14/98 257
2,000,000.00 1,996,240.00 5.380 5.496 5.572 12/14/98 257
2,000,000.00 1,996,240.00 5.380 5.496 5.572 12/14/98 257
2,000,000.00 1,996,240.00 5.380 5.496 5.572 12/14/98 257
5,000,000.00 5,000,000.00 5.660 5.706 5.785 11/09/98 222
3,000,000.00 2,993,430.00 6.250 6.193 6.279 12/27/00 1,001
4,000,000.00 3,980,000.00 5.055 4.945 5.014 02/09/99 314
1,550,000.00 1,542,498.00 5.965 5.965 6.048 02/21/01 1,057
2,000,000.00 1,987,180.00 5.860 5.860 5.941 02/28/01 1,064
2,000,000.00 2,009,380.00 6.100 6.100 6.185 04/23/99 387
2,000,000.00 2,009,380.00 6.100 6.100 6.185 04/23/99 387
2,000,000.00 2,009,680.00 6.210 6.210 6.296 05/06/99 400
4,000,000.00 4,016,880.00 6.260 6.153 6.238 08/09/99 495
3,000,000.00 3,025,320.00 6.335 6,208 6.294 09/23/99 540
2,235,000.00 2,243,023.65 6.050 6.096 6.180 10/25/99 572
1,150,000.00 1,155,635.00 6.030 5.780 5.860 11/08/99 586
2,000,000.00 2,009,380.00 6.090 5.781 5.862 11/01/99 579
990,000.00 994,643.10 6.090 5.997 6.081 11/01/99 579
1,000,000.00 1,008,120.00 6.173 6.096 6.180 01/28/00 667
2,000,000.00 2,016,240.00 6.173 6.120 6.205 01/28/00 667
3,000,000.00 3,050,640.00 6.670 6.665 6.758 04/17/00 747
3,000,000.00 3,056,250.00 6.400 6.349 .6.437 06/26/02 1,547
3,000,000.00 3,029,520.00 6.225 6.031 6.115 07/11/00 832
5,000,000.00 5,018,750.00 5.950 5.970 6.053 11/14/00 958
3,000,000.00 3,004,230.00 5.835 5.850 5.931 12/16/99 624
2,000,000.00 1,982,820.00 5.600 5.649 5.728 01/29/01 1,034
2,000,000.00 1,982,820.00 5.600 5.644 5.723 01/29/01 1,034
4,000,000.00 3,976,880.00 5.776 5.859 5.941 02/12/01 1,048
4,275,000.00 4,246,272.00 6.000 5.999 6.082 02/18/03 1,784
2,000,000.00 1,978,440.00 5.600 5.600 5.678 02/23/01 1,059
1,000,000.00 1,013,280.00 6.550 6.015 6.098 01/04/00 643
1,000,000.00 1,013,280.00 6.550 6.015 6.098 01/04/00 643
1,285,000.00 1,366,314.80 7.900 6.352 6.440 09/19/01 1,267
3,000,000.00 3,069,360.00 6.520 6.313 6.401 01/02/02 1,372
2,000,000.00 2,064,680.00 6.780 6.865 6.960 04/10/02 1,470
3,000,000.00 3,102,660.00 6.830 6.866 6.961 04/16/02 1,476
ATTACHMENT B
04/16/1998 City of Palo Alto FI -2
Investment by Type CPA
ACCRUAL
MARCH 31, 1998
INVESTMENT PURCHASE STATED ....YTM ....MATURITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALUE .MARKET VALUE RATE 360 365 DATE TO MAT
FEDERAL AGENCY ISSUES -COUPON
231 Fed Home Ln Mort Corp 04/14/97 1,987,519.92
240 Fed Home Ln Mort Corp 09/10/97 2,007,943.08
123 Fed Nat Mortgage Assn 10/05/95 4,000,257.33
124 Fed Nat Mortgage Assn 10/06/95 4,000,250.97
168 Fed Nat Mortgage Assn 01/26/96 4,001,404.24
170 Fed Nat Mortgage Assn 01/26/96 4,263,001.32
171 Fed Nat Mortgage Assn 02/09/96 3,002,895.87
180 Fed Nat Mortgage Assn 03/07/96 2,995,478.06
181 Fed Nat Mortgage Assn 03/13/96 2,984,889.65
186 Fed Nat Mortgage Assn 04/18/96 1,994,496.05
194 Fed Nat Mortgage Assn 05/06/96 1,994,421.12
195 Fed Nat Mortgage Assn 05/06/96 1,764,481.80
196 Fed Nat Mortgage Assn 05/31/96 2,256,439.56
197 Fed Nat Mortgage Assn 05/31/96 2,046,657.20
200 Fed Nat Mortgage Assn 07/11/96 2,627,425.21
201 Fed Nat Mortgage Assn 07/11/96 2,283,461.41
204 Fed Nat Mortgage Assn 10/25/96 1,996,917.81
211 Fed Nat Mortgage Assn 12/18/96 994,807.12
219 Fed Nat Mortgage Assn 01/13/97 2,002,317.54
220 Fed Nat Mortgage Assn 02/03/97 4,134,060.43
223 Fed Nat Mortgage Assn 03/07/97 1,978,895.28
224 Fed Nat Mortgage Assn 03/07/97 1,483,697.61
225 Fed Nat Mortgage Assn 03/07/97 1,484,342.34
226 Fed Nat Mortgage Assn 03/21/97 1,495,229.53
227 Fed Nat Mortgage Assn 03/21/97 1,495,071.83
232-Cali Fed Nat Mortgage Assn 04/14/97 1,972,981.11
233-Cali Fed Nat Mortgage Assn 04/14/97 2,962,653.13
234 Fed Nat Mortgage Assn 05/21/97 2,995,228.50
235 Fed Nat Mortgage Assn 06/25/97 2,011,072.18
236 Fed Nat Mortgage Assn 06/25/97 2,011,337.42
237 Fed Nat Mortgag~ Assn 06/26/97 2,019,679.33
241-Cali Fed Nat Mortgage Assn 09/10/97 3,000,000.00
242 Fed Nat Mortgage Assn 09/25/97 4,997,715.33
243 Fed Nat Mortgage Assn 09/29/97 3,993,096.10
244 Fed Nat Mortgage Assn 10/22/97 2,979,233.59
245 Fed Nat Mortgage Assn 10/22/97 2,980,343.25
247-Cali Fed Nat Mortgage Assn 12/08/97 5,002,141.36
248-Cali Fed Nat Mortgage Assn 12/11/97 2,000,868.06
249 Fed Nat Mortgage A~sn 12/11/97 3,110,421.77
251 Fed Nat Mortgage Assn 12/31/97 4,000,671.63
169 Student Loan Mktg. Assn 01/26/96 4,134,332.41
2,000,000.00
2 000,000.00
4 000,000.00
4 000,000.00
4 000,000.00
4 000,000.00
3 000,000.00
3 000,000.00
3,000,000.00
2,000,000.00
2,000,000.00
1,790,000.00
2,205,000.00
2,000,000.00
2,705,000.00
2,300,000.00
2,000,000.00
1,000,000.00
2,000,000.00
4,000,000.00
2,000,000.00
1,500,000.00
1,500,000.00
1,500,000.00
1,500,000.00
2,000,000.00
3,000,000.00
3,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
3,000,000.00
5,000,000.00
4,000,000.00
3,000,000.00
3,000,000.00
5,000,000.00
2,000,000.00
3,000,000.00
4,000,000.00
4,000,000.00
2,064,680.00 6.780 6.871 6.966 04/i0~02 1,470
2,027,500.00 6.400 6.122 6.207 08/01/00 853
4,005,640.00 5.950 5.854 5.935 09/28/98 180
4,005,640.00 5.950 5.854 5.935 09/28/98 180
3,968,760.00 5.550 5.459 5.535 01/17/01 1,022
4,256,240.00 8.900 5.415 5.490 06/12/00 803
2,987,340.00 5.200 5.087 5.158 01/25/99 299
2,989,230.00 5.280 5.385 5.460 03/01/99 334
2,992,980.00 5.400 5.907 5.989 03/12/99 345
2,001,880.00 5.840 6.061 6.145 03/29/99 362
2,049,060.00 6.625 6.641 6.733 04/18/01 1,113
1,809,009.80 6.160 6.631 6.723 04/03/01 1,098
2,279,065.95 8.700 6.421 6.510 06/10/99 435
2,067,180.00 8.700 6.421 6.510 06/10/99 435
2,700,780.20 5.720 6.779 6.873 03/08/01 1,072
2,350,301.00 6.590 6.766 6.860 05/24/01 1,149
2,012,500.00 6.070 6.095 6.180 10/18/99 565
998,750.00 5.740 6.080 6.164 12/09/99 617
2,046,880.00 6.580 6.447 6.537 10/02/01 1,280
4,220,000.00 7.500 6.381 6.470 02/11/02 1,412
2,027,500.00 6.230 6.460 6.550 03/01/02 1,430
1,520,625.00 6.230 6.470 6.560 03/01/02 1,430
1,5~0,625.00 6.230 6.457 6.547 03/01/02 1,430
1,511,010.00 6.250 6.342 6.430 03/20/00 719
1,511,010.00 6.250 6.348 6.436 03/20/00 719
2,021,240.00 6.630 7.042 7.140 02/04/02 1,405
3,037,020.00 6.680 7.035 7.133 03/14/02 1,443
3,032,820.00 6.410 6.404 6.493 05/22/00 782
2,052,500.00 6.590 6.342 6.430 05/21/02 1,511
2,052,500.00 6.590 6.337 6.425 05/21/02 1,511
2,061,560.00 6.700 6.332 6.420 06/04/02 1,525
3,005,610.00 6.470 6.381 6.470 08/17/00 869
5,023,450.00 5.970 5.908 5.990 09/25/00 908
4,036,240.00 6.090 6.132 6.217 09/30/02 1,643
3,004,230.00 5.830 6.132 6.217 10/16/00 929
3,026,190.00 6.100 6.270 6.357 10/21/02 1,664
4,997,650.00 6.190 6.270 6.357 12/07/00 981
1,998,120.00 6.140 6.117 6.202 12/11/00 985
3,077,820.00 8.350 5.994 6.077 11/10/99 588
4,006,880.00 5.910 5.888 5.969 02/25/00 695
4,126,240.00 7.500 5.458 5.534 03/08/00 707
SUBTOTALS and AVERAGES 203,975,664.00203,485,000.00205,459,623.50 6.063 6.147 869.
TREASURY SECURITIES - COUPON
182 U.S. Treasury 03/21/96 2,994,940.92 3,000,000.00 2,998,590.00 5.250 5.792 5.873 07/31/98 121
ATTACHMENT B
04/16/1998 City of Palo Alto
Investment by Type
MARCH 31, 1998
FI -3
CPA
ACCRUAL
INVESTMENT PURCHASE STATED ....YTM ....MATURITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
TREASURY SECURITIES - COUPON
183 U.S. Treasury 03/21796 2,995,364.58 3,000,000.00 2,998,590.00 5.125 5.797 5.877 06/30/98 90
184 U.S. Treasury 03/27/96 2,988,191.94 3,000,000.00 2,991,570.00 4.750 5.697 5.776 08/31/98 152
190 U.S. Treasury 05/01/96 2,000,163.90 2,000,000.00 2,001,560.00 6.125 5.967 6.050 05/15/98 44
191 U.S. Treasury 05/03/96 2,000,166.78 2,000,000.00 2,001,560.00 6.125 5.966 6.049 05/15/98 44
192 U.S. Treasury 05/03/96 3,015,788.49 3,000,000.00 3,037,980.00 6.750 6.158 6.244 05/31/99 425
198 U.S. Treasury 06/17/96 3,005,774.76 3,000,000.00 3,041,250.00 6.750 6.486 6.576 06/30/99 455
199 U.S. Treasury 07/10/96 3,007,144.66 3,000,000.00 3,048,270.00 6.875 6.581 6.672 07/31/99 486
SUBTOTALS and AVERAGES 22,007,536.03 22,000,000.00 22,119,370.00 6.064 6.148 244
GINNIE MAE’S
161 Fed Home Ln Mort Corp 07/05/83 31,695.90 30,922.83 28,796.28 12.450 11.875 12.039 09/15/09 4,185
162 Fed Home Ln Mort Corp 02/16/79 82,429.60 83,880.03 90,336.24 10.000 10.120 10.261 02/01/09 3,959
160 Govt. Natl. Mortgage Assn 01/26/87 263,714.02 255,800.20 273,706.28 9.000 8.449 8.566 11/15/16 6,803
SUBTOTALS and AVERAGES
TOTAL INVESTMENTS and AVERAGES
377,839.52 370,603.06 392,838.80 9.101 9.227 5,963
249,595,573.27
250,101,009.76 251,711,802.51 6.021%6.105%739
====================================================================================
Attachment C
Investment Policy Compliance
as of March 31,1998
No more than 10 percent of the portfolio in collateralized Certificates of 0.00%
Deposit (CDS) of any institution.
No more than 30 percent of the portfolio in Banker’s Acceptance Notes.0.00%
- No more than $5 million with any one institution.
No more than 15 percent of the portfolio in Commercial Paper.0.00%
- No more than $3 million with any one institution.
Limit investments exclusively to those stipulated under types of investment.No exceptions
No more than 10 percent of the portfolio in Farm Credit Securities..80%
No more than 2 percent of the portfolio in the Guaranteed Portion of Small 0.00%
Business Administration Notes.
No more than 20 percent of portfolio in Mutual Funds with no more than 10 1.5%
percent of portfolio in any one Mutual Fund.
No more than 20 percent of portfolio in callable or Multi-Step-up 18.4%
government agency securities.
Enough liquidity to meet one month’s cash needs.$23.7 million
At least $50 million maturing in less than 2 years.$92.6 million
No more than 20 percent of the portfolio shall be in investments maturing in .15%
more than five years.
Market value of the portfolio will exceed 95 percent of the amortized cost 100.6%
basis of the portfolio.
a:invcompl