HomeMy WebLinkAbout1997-10-27 City Council (22)TO:
City of Palo Alto
City Manager’s Report
ItONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
AGENDA DATE: OCTOBER 27, 1997 CMR:441:97
SUBJECT:CITY OF PALO ALTO’S INVESTMENT ACTIVITY REPORT
FOR THE FIRST QUARTER, FISCAL YEAR 1997-98
RECOMMENDATION
The purpose ~)fthis report is to provide Council with information on the status of the City’s
investment portfolio as of the-first quarter of the 1997-98 fiscal year. This is an
informational report and no Council action is required.
POLICY IMPLICATIONS
This report does not propose any changes to existing City policies.
EXECUTIVE SUMMARY
Current Investment Portfolio as of September 30, 1997
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 September 30, 1997.
The face value of the City’s portfolio is $235.8 million. The portfolio consists of $22.2
million in liquid money market accounts and $213.6 million in federal agency notes and
treasury securities. The $213.6 million includes $114.4 million in investments maturing in
less than two years, which represents 54 percent of the City’s investment in notes and
securities. The current market value of the portfolio is 100.4 percent of the book value.
Bond yields have declined recently, meaning that market prices, which move in 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
CMR:441:97 Page 1 of 4
in real dollars. The average life to maturity of the investment portfolio is 2.1 years. The
¯ market valuation is provided by Union Bank of California, which is the City’s safekeeping
agent.
Investments Made During the First Quarter
During the first quarter of the fiscal year, the portfolio grew by $13.2 million. Part of this
increase is due to normal yearly spending patterns: the largest expenses are capital, yet the
bulk of them will not occur until later in the year.
During the quarter, staff replaced $15 million in maturing U. S. Government agency notes,-
which had an average yield of 6.40 percent, with $17 million in U. S. Government agency
notes having a yield of 6.18 percent. In addition, $4 million was invested in U. S.
Government agency notes with a five-year maturity and a yield of 6.22 percent.
A net increase of $11.2 million in holdings in short-term money market funds occurred over
the quarter. Staff began setting aside securities that matured into more liquid accounts (Local
Agency Investment Fund [LAIF] and money market), rather than re-investing them. This
action was taken pending discussions with Northem California Power Agency (NCPA) over
the possibility of refinancing Calaveras Hydroelectric debt. A plan proposed by NCPA two
months ago would have required a cash payment from Palo Alto in April 1998. However,
since that time, another approach is now being proposed by NCPA which would pay off
existing geothermal debt outstanding sooner. Since Palo Alto has, no share of NCPA’s
geothermal debt obligations, Palo Alto will not be required to deposit any cash up front for
the proposed debt refmancing~ Therefore, surplus funds will not be needed. For that reason,
staff has already begun re-investing funds currently held in the LAIF and money market
accounts in 3-5 year securities.
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 fimds for ongoing
expenditures. Projections indicate receipts will be $109.3 million and expenditures will be
$103.7 million, over the next six months, indicating an overall growth of the portfolio of
about $5.6 million. In addition, securities totaling $22 million will mature between October,
1997 and March, i998. Currently, $22.2 million is also available in funds which can be
withdrawn on a daily basis from the City’s investments in the LAIF and Fidelity money
market fund. On the basis of the above projections, there are more than sufficient funds tO
meet Palo Alto’s expenditure requirements for the next six months.
CMR:441:97 Page 2 ot" 4
Compliance with City_ Investment Policy
During the first 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. :- -_ -~ - .
Investment Yields
Interest income on an accrual basis for the first quarter of 1997-98 was $3.6 million. This is
26.9 percent of the 1997-98 budget of $13.4 million. The effective rate of return for the
fiscal year, as of September 30, was 6.09 percent. This compares to LAIF’s yield for the
quarter of 5.68 percent, and the yield on the two-year Treasury note of 5.83 percent.
Yield Trends
During this quarter, the Federal Reserve Open Market Committee (FOMC) made no change
in either the discount rate or the federal funds rate. The economy remains strong based on
recent jobs, inventory and wage data. Inflationary indicators do not appear to be rising
significantly. Recent comments by the Federal Reserve Chairman, however, indicate that
the FOMC may raise interest rates in the near future tocombat inflation that may result from
demand for scarce labor. Although bond yields were expected to remain low, they may
begin to move upward in anticipation of a rate hike by the FOMC.
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, whose investment is directed by the
individual employee but are technically considered City funds reserved for the employees.
The most recent data on the funds held by the fiscal agent is as of September 30, 1997, while
the balances in the deferred compensation accounts are as of June 30, 1997.
FISCAL.IMPACT
This-is an informational report with no fiscal impact resulting.
ENVIRONMENTAL ASSESSMENT
There is no environmental assessment required for this report.
ATTACHMENTS
A)Consolidated Report of Cash and Investments
B)Investment Portfolio, as of September 30, 1997
C)Investment Policy Compliance
CMR:441:97 Page 3 of 4
PREPARED BY: Joe Saccio, Senior Financial Analyst
DEPARTMENT HEAD APPROVAL:
Melissa Cavallo
Acting Director
Administrative Services
CITY MANAGER APPROVAL:
Emil~-Harrison
Assistant City Manager
CC: n/a
CMR:441:97 Page 4 of 4
Attachment A
Consolidated Report
City of Palo Alto Cash and Investments
First Quarter, Fiscal Year 1997-98
Book Value Market Value
City Investment Portfolio (see Attachment B)$23,6,374,706 $ 237,281~138
,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
$1,743,100
$ 4,297,940
$ 6,041,040
$1,743,100
$ 4,297,940
$ 6,041,040
Funds Under Management of Contracted Par, ties
Fiscal Agent Debt Service Payments and Reserves . -
First Trust California
Golf Course Corporation Lease/Reserve Fund
Palo Alto Public Improvement Corporation
Lease/Reserve Fund
$167,133
¯ $ 770,339
Total Under Management $ 937,472
Employee...Defe~ed Compensation Accounts
(September 30, 1997)
Great Western Bank
ICMA Retirement Corporation
ITT Hartford
$ 766,362
$17,794,174
$29,698,872
Total $48,259,408
GRAND TOTAL $291,612,626
s\j saccio\consl 1 st
$
$
$
$
$
167,133
770,339
937,472
766,362
17,794,174
29,698,872
48,259,408
292,519,058
10/16/1997
ATTACHMENT B
City of Palo Alto
INVESTMENTS BY, T~YPE
SEPTEMBER 30, 1997
FI -1
CPA
ACCRUAL
INVESTMENT PURCHASE STATED ....YTM ....MATURITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE P~ATE 360 365 DATE TO MAT
MANAGED POOL ACCOUNTS
158 Fidelity Investments
159 Local Agency Invest. Fund
6,255,181.67 6,255,181.67 6,255,181.67 5.460 5.385 5.460
15,950,000.00 15,950,000.00 15,950,000.00 5.684 5.606 5.684
1
1
SUBTOTALS and AVERAGES 22,205,181.67 22,205,181.67 22,205,181.67 5.544 5.621
FEDERAL AGENCY ISSUES - COUPON
221
222
146-Cali
147-Call
148-Cali
149-Call
150-Call
166
167-Cali
172
173
177-Cali
179-Cali
187
188
189
2O2
203
2O5
206
207
210
215
216
228
238
239
178-Call
212
213
217
218
229
230
231
240
118
119
120
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal Home Loan Ba~k
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
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
02/04/97 1,096,567.37 i,i00,000.00 1,108,932.00 6.420 6.416 6.505 02/04/02 1,587
02/04/97 898,656.80 900,000.00 907,308.00 6.420 6.372 6.461 02/04/02 1,587
02/18/94 2,000,000.00 2,000,000.00 1,989,060.00 5.380 5.496 5.572 12/14/98 439
02/14/94 2,000,000.00 2,000,000.00 1,989,060.00 5.380 5.496 5.572 12/14/98 439
02/09/94 2,000,000.00 2,000,000.00 1,989,060.00÷ 5.380 5.496 5.572 12/14/98 439
02/10/94 2,000,000.00 2,000,000.00 1,989,060.00 5.380 5.496 5.572 12/14/98~439
02/11/94 2,000,000.00 2,000,000.00 1,989,060.00 5.380 5.496 5.572 12/14/98 439
11/16/95 4,997,681.73 5,000,000.00 4,991,400.00 5.660 5.~06 5.785 11/09/98 404
12/27/95 3,000,000.00 3,000,000.00 2,981,250.00 6.250 6.193 6.279 12/27/00 1,183
02/15/96 2,000,566.50 2,000,000.00 1,995,620.00 4.920 4.835 4.902 02/09/98 131
02/15/96 4,005,464.69 4,000,000.00 3,958,760.00 5.055 4.945 5.014 02/09/99 496
02/21/96 1,550,000.00 1,550,000.00 1,533,523.50 5.965 5.965 6.048 02/21/01 1,239
02/28/96 2,000,000.00 2,000,000.00 1,974,380.00 5.860 5.860 5.941 02/28/01 1,246
04/23/96 2,000,000.00 2,000,000.00 2,007,180.00 6.100 6.100 6.185 04/23/99 569
04/23/96 2,000,000.00 2,000,000.00 2,007,180.00 6.100 6.100 6.185 04/23/99 569
05/06/96 2,000,000.00 2,000,000.00 2,008,440.00 6.210 6.210 6.296 05/06/99 582
08/09/96 4,001,459.70 4,000,000.00 4,008,120.00 6.260 6.153 6.238 08/09/99 677
09/27/96 3,002,171.24 3,000,000.00 3,022,020.00 6.335 6.208 6.294 09/23/99 722
10/25/96 2,229,580.37 2,235,000.00 2,236,743.30 6.050 6.096 6.180 10/25/99 754
11/15/96 1,153,707.75 1,150,000.00 1,152,530.00 6.030 5.780 5.860 11/08/99 768
11/15/96 2,008,574.70 2,000,000.00 2,006,260.00 6.090 5.781 5.862 11/01/99 761
12/18/96 990,112.31 990,000.00 993,098.70 6.090 5.997 6.081 11/01/99 761
01/28/97 999,852.75 1,000,000.00 1,005,470.00 6.173 6.096 6.180 01/28/00 849
01/28/97 1,998,667.97 2,000,000.00 2,010,9~40.00 6.173 6.120 6.205 01/28/00 849
04/17/97 2,994,036.46 3,000,000.00 3,049,680.00 6.670 6.665 6.758 04/17/00 929
06/26/97 2,995,559.90 3,000,000.00 3,026,250.00 6.400 6.349 6.437 06/26/02 1,729
07/11/97 3,008,246.53 3,000,000.00 3,015,000.00 6.225 6.031 6.115 07/11/00 1,014
02/23/96 2,000,000.00 2,000,000.00 1,963,120.00 5.600 5.600 5.678 02/23/01 1,241
12/18/96 1,009,214.41 1,000,000.00 1,011,410.00 6.550 6.015 6.098 01/04/00 825
12/18/96 1,009,156.45 1,000,000.00 1,011,410.00 6.550 6.015 6.098 01/04/00 825
01/10/97 1,348,318.49 1,285,000.00 1,363,102.30 7.900 6.352 6.440 09/19/01 1,449
01/10/97 3,0i2,815.29 3,000,000.00 3 041 730.00 6.520 6.313 6.401 01/02/02 1,554
04/14/97 1,986,394.77 2,000,000.00 2,050,940.00 6.780 6.865 6.960 04/10/02 1,652
04/16/97 2,985,097.66 3,000,000.00 3,082,500.00 6.830.6.866 6.961 04/16/02 1,658
04/14/97 1,985,969.60 2,000,000.00 2,050,940.00 6.780 6.871 6.966 04/10/02 1,652
09/10/97 2,009,645.16 2,000,000.00 2,019,680.00 6.400 6.122 6.207 08/01/00 1,035
06/08/95 3,002,302.57 3,000,000.00 3,004,950.00 6.450 5.918 6.000 12/08/97 68
08/15/95 4,023,757.49 4,000,000.00 4,032,480.00 9.550 6.085k 6.170 12/10/97 70
01/11/93 .999,973.71 1,000,000.00 1,001,560.00 6.050 5.978 6.061 01/12/98 103
10/16/1997
ATTACHMENT B
City of Palo Alto
INVESTMENTS BY TYPE
SEPTEMBER 30, 1997
FI -2
CPA
ACCRUAL
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
121 Fed Nat Mortgage Assn 01/11/93 1,999,947.43
122 Fed Nat Mortgage Assn 01/12/93 1,999,947.40
123 Fed Nat Mortgage Assn 10/05/95 4,000,519.03
124 Fed Nat Mortgage Assn 10/06/95 4,000,506.19
165 Fed Nat Mortgage Assn 11/15/95 5,020,028.41
168 Fed Nat Mortgage Assn 01/26/96 4,001,655.50
170 Fed Nat Mortgage Assn 01/26/96 4,322,849.91
171 Fed Nat Mortgage Assn 02/09/96 3,004,668.86
180 Fed Nat Mortgage Assn 03/07/~6 2,993,011.55
181 Fed Nat Mortgage Assn 03/13/96 2,976,913.52
186 Fed Nat Mortgage Assn 04/18/96 1,991,728.69
194 Fed Nat Mortgage Assn 05/06/96 1,993,505.72
195 Fed Nat Mortgage Assn 05/06/96 1,760,236.63
196 Fed Nat Mortgage Assn 05/31/96 2,278,022.59
197 Fed Nat Mortgage Assn 05/31/96 2,066,233.64
260 Fed Nat Mortgage Assn 07/11/96 2,614,214.75
201 Fed Nat Mortgage Assn 07/11/96 2,280,833.92
204 Fed Nat Mortgage Assn 10/25/96 1,995,921.77
208-Call Fed Nat Mortgage Assn 12/23/96 2,000,000.00
209-Call Fed Nat Mortgage Assn 12/23/96 1,000,000.00
211 Fed Nat Mortgage Assn 12/18/96 993,269.75
214-Cali Fed Nat Mortgage Assn 01/14/97 3,000,000.00
219 Fed Nat Mortgage Assn 01/13/97 2,002,648.62
220 Fed Nat Mortgage Assn 02/03/97 4,151,420.77
223 Fed Nat Mortgage Assn 03/07/97 1,976,201.06
224 Fed Nat Mortgage Assn 03/07/97 1,481,616.45
225 Fed Nat Mortgage Assn 03/07/97 1,482,343.49
226 Fed Nat Mortgage Assn 03/21/97 1,494,018.41
227 Fed Nat Mortgage Assn 03/21/97 1,493,820.67
232-Cali Fed Nat Mortgage Assn 04/14/97 1,965,645.66
233-Cali Fed Nat Mortgage Assn 04/14/97 2,953,090.63
234 Fed Nat Mortgage Assn 05/2~/97 2,994,114.53
235 Fed Nat" Mortgage Assn 06/25/97 2,012,409.76
236 Fed Nat Mortgage Assn 06/25/97 2,012,707.04
237 Fed Nat Mortgage Assn 06/26/97 2,022,036.13
241-Cali Fed Nat Mortgage Assn 09/10/97 3,000,000.00
242 Fed Nat Mortgage Assn 09/25/97 4,997,255.33
243 Fed Nat Mortgage Assn 09/29/97 3,992,328.53
169 Student Loan Mktg. Assn 01/26/9~4,169,023.70
2,000,000.00
2,000,000.00
4,000,000.00
4,000,000.00
5,000,000.00
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
2,000 000.00
1,000 000.00
1,000 000.00
3,000 000.00
2,000 000.00
4,000 000.00
2,000 000.00
1,500 000.00
1,500 ooo,6o
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
4,000,000.00
2,003,120.00
2,003,120.00
4,007,480.00
4,007,480..00
5,020,300.00
3,938,760.00
4,253,760.00
2,975 160.00
2,977 020.00
2,973 270.00
1,997 500.00
2,031 560.00
1,795 029.90
2,302.505.10
2,088 440.00
2,671,620.30
2,334 868.00
2,005.000.00
1,999.060.00
999~530.00
996.250.00
3,002.340.00
2,029~680.00
4,201880.00
2,008,120.00
1,506090.00
1,506.090.00
1,510.785.00
1,510785.00
2,011.880.00
3,022.500.00
3,031.410.00
2,034.680.00
2,034,680.00
2,043,740.00
3,004,230.00
4,996,850.00
3,983,120.00
4,135,000.00
6.050 5.978 6.061 01/12/98 103
6.050 5.978 6.061 01/12/98 103
5.950 5.854 5.935 09/28/98 362
5.950 5.854 5.935 09/28/98 362
9.550 5.513 5.590 11/10/97 40
5.550 5.459 5.535 01/17/01 1,204
8.900 5.415 5.490 06/12/00 985
5.200 5.087 5.158 01/25/99 481
5.280 5.385 5.460 03/01/99 516
5.400 5.907 5.989 03/12/99 527
5.840 6.061 6.145 03/29/99 544
6.625 6.641 6.733 04/18/01 1,295
6.160 6.631 6.723 04/03/01 1,280
8.700 6.421 6.510 06/10/99 617
8.700 ’ 6.421.6.510 06/10/99 617
5.720 6.779 6.873 03/08/01 1,254
6.590 6.766 6.860 05/24/01 1,331
6.070 6.095 6.180 10/18/99 747
6.340 6.340 6.428 12/23/99 813
6.340 6.340 6.428 12/23/99 813
5.740 6.080 6.164 12/09/99 799
6.470 6.381 6.470 01/14/00 835
6.580 6.447 6.537 10/02/01 1,462
7.500 6.381 6.470 02/11/02 1,594
6.230 6.460 6.550 03/01/02 1,612
6.230 6.470 6.560 03/01/02 1,612
6.230 6.457 6.547 03/01/02 1,612
6.250 6.342 6.430 03/20/00 901
6.250 6.348 6.436 03/20/00 901
6.630 7.042 7.140 02/04/02 1,587
6.680 7.035 7.133 03/14/02 1,625
6.410 6.404 6.493 05/22/00 964
6.590 6.342 6.430 05/21/02 1,693
6.590 6.337 6.425 05/~i/02 1,693
6.700 6.332 6.420 06/04/02 1,707
6.470 6.381 6.470 08/17/00 1,051
5.970 5.908 5.990 09/25/00 1,090
6.090 6.132 6.217 09/30/02 1,825
7.500 5.458 5.534 03/08/00 889
SUBTOTALS and AVERAGES 188,798,248.41188,210,000.00189,533,901.10 6.055 6.139 909
TREASURY SECURITIES - COUPON
182 U.S. Treasury
183 U.S. Treasury
03/21/96 2,987,288.54 3,000,000.00 2,991,570.00 5.250 5.792 5.873 07/31/98 303
03/21/96 .2,985,989.58 3,000,000.00 2,991,090.00 5.125 5.797 5.877 06/30/98 272
ATTACHMENT B
10/16/1997 City of Palo Alto
INVESTMENTS BY TYPE
SEPTEMBER 30, 1997
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
184 U.S. Treasury 03/27/96 2,974,053.34 3,000,000.00 2,976,570.00 4.750 5.697 5.776 08/31/98 334
185 U.S. Treasury 03/27/96 2,991,850.84 3,000,000.00 2,996,250.00 5.125 5.634 5.712 03/31/98 181,
190 U.S. Treasury 05/01/96 2,000,841.87 2,000,000.00 2,006,880.00 6.125 5.967 6.050 05/15/98 226
191 U.S. Treasury ’05/03/96 2,000,856.64 2,000,000.00 2,006,880.00 6.125 5.966 6.049 05/15/98 226
192 U.S. Treasury 05/03/96 3,022,549.67 3,000,000.00 3,045,000.00 6.750 6.158 6.244 05/31/99 607
198 U.S. Treasury 06/17/96 3,008,084.67 3,000,000.00 3,046,860.00 6.750 6.486 6.576 06/30/99 637
199 U.S. Treasury 07/10/96 3,009,820.23 3,000,000.00 3,053,430.00 6.875 6.581 6.672 07/31/99 668
SUBTOTALS and AVERAGES 24,981,335.38 25,000,000.00 25,114,530.00 6.013 6.097 397
GINNIE MAE’S
161 Fed Home Ln Mort orp 07/05/83 28,937.44 28,231.65 43,880.12 12.450 11.875 12.039 09/15/09 4,367
162 Fed Home Ln Mort Corp 02/16/7~91,662.37 93,275.25 101,042.28 10.000 10.120 10.261 02/01/09 4,141
160 Govt. Natl. Mortgage Assn 01/26/87 269,340.78 261,258.11 282,602.96 9.000 8.449 8.566 11/15/16 6,985
SUBTOTALS and AVERAGES
TOTAL INVESTMENTS and AVERAGES
389,940.59 382,765.01 427,525.36 9.096 9.222 6,122
235,797,946.68
236,374,706.05 237,281,1.38.13 6.008%6.091%778
====================================================================================
Attachment C
Investment Policy Compliance
as of September 30, 1997
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..85%
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 2.64%
percent of portfolio in any one Mutual Fund.
No more than 20 percent of portfolio in callable or Multi-Step-up 13.80%
government agency securities.
Enough liquidity to meet one month’s cash needs.$22.2 million
At least $50 million maturing in less than 2 years.$114.4 million
No more than 20 percent of the portfolio shall be in investments maturing in .16%
more than five years.
Market value of the portfolio will exceed 95 percent of the amortized cost 100.38%
basis of the portfolio.
a:invcomp i