HomeMy WebLinkAboutStaff Report 3224 City of Palo Alto (ID # 3224)
City Council Informational Report
Report Type: Informational Report Meeting Date: 10/22/2012
October 22, 2012 Page 1 of 3
(ID # 3224)
Title: Investment Activity Report
Subject: City of Palo Alto Investment Activity Report for the First Quarter, Fiscal
Year 2013
From: City Manager
Lead Department: Administrative Services
Background
The purpose of this report is to inform Council of the City’s investment portfolio status as of the
end of the first quarter. The City’s investment policy requires that staff report quarterly to
Council on the City’s portfolio composition compared to Council-adopted policy, portfolio
performance, and other key investment and cash flow information.
Discussion
The City’s investment portfolio is detailed in Attachment B. It is grouped by investment type
and includes the investment issuer, date of maturity, current market value, the book and face
(par) value, and the weighted average maturity of each type of investment and of the entire
portfolio.
The par value of the City’s portfolio is $417.8 million; in comparison, last quarter it was $428.4
million. The decline in the portfolio of $10.6 million since the last quarter primarily results from
the timing of cash flows. For example, one quarter of the City Sales tax receipts (“triple flip”)
and in-lieu vehicle license fee tax payments are received in January and May 2012 instead of on
a monthly basis. Seasonality and the timing of remittances and expenditures can significantly
affect cash flow.
The portfolio consists of $16.7 million in liquid accounts and $401.1 million in U. S. government
treasury investments, agency securities, and certificates of deposit. The $401.1 million includes
$102.5 million in investments maturing in less than two years, comprising 25.6 percent of the
City’s investment in notes and securities. The investment policy requires that at least $50
million be maintained in securities maturing in less than two years.
The current market value of the portfolio is 104.3 percent of the book value. The market value
of securities fluctuates, depending on how interest rates perform. When interest rates
decrease, the market value of the securities in the City’s portfolio will likely increase; likewise,
when interest rates increase, the market value of the securities will likely decrease.
October 22, 2012 Page 2 of 3
(ID # 3224)
Understanding and showing market values is not only a reporting requirement, but essential to
knowing the principal risks in actively buying and selling securities. It is important to note,
however, that the City’s practice is to buy and hold investments until they mature so changes in
market price do not affect the City’s investment principal. The market valuation is provided by
Union Bank of California, which is the City’s safekeeping agent. The average life to maturity of
the investment portfolio is 3.86 years compared to 3.92 years last quarter.
Investments Made During the Fourth Quarter
During the first quarter, $35.3 million of government agency securities with an average yield of
2.6% percent matured. During the same period, government securities totaling $27.0 million
with an average yield of 1.8% percent were purchased. As higher yielding maturing investments
continue to be re-invested at lower interest rates and interest rates continue to remain at
historically low levels, the portfolio’s yield is expected to further decline. The City’s short-term
money market and pool account decreased by $2.3 million compared to the fourth quarter.
Investment staff continually monitors the City’s short-term cash flow needs and adjusts liquid
funds to meet those needs.
Availability of Funds for the Next Six Months
Normally, the flow of revenues from the City’s utility billings and General Fund sources is
sufficient to provide funds for ongoing expenditures in those respective funds. Projections
indicate receipts will be $211.2 million and expenditures will be $202.9 million over the next six
months, indicating an overall growth in the portfolio of $8.3 million.
As of September 30, 2012, the City had $16.7 million deposited in the Local Agency Investment
Fund (LAIF) and a money market account that could be withdrawn on a daily basis. In addition,
investments totaling $21.0 million will mature between October 1, 2012 and March 31, 2013.
On the basis of the above projections, staff is confident that the City will have more than
sufficient funds or liquidity to meet expenditure requirements for the next six months.
Compliance with City Investment Policy
During the fourth quarter, staff complied with all aspects of the investment policy. Attachment
C lists the major restrictions in the City’s investment policy compared with the portfolio’s actual
performance.
Investment Yields
Interest income on an accrual basis for the first quarter was $2.7 million. As of September 30,
2012, the yield to maturity of the City’s portfolio was 2.54 percent. This compares to a yield of
2.59 percent in the fourth quarter. The portfolio yield is expected to further decrease in future
quarters as staff continues to re-invest higher-yielding maturing securities at lower interest
rates. The City’s portfolio yield of 2.54 percent compares to LAIF’s average yield for the quarter
of 0.36 percent and an average yield on the two-year and five-year Treasury bonds during the
first quarter of approximately 0.25 percent and 0.66 percent, respectively.
October 22, 2012 Page 3 of 3
(ID # 3224)
Yield Trends
During the last four years, the Federal Open Market Committee (FOMC) maintained the
historically low federal funds and discount rate at 0.25 and 0.75 percent, respectively. FOMC
outlook is that there will be moderate economic growth and improvements in household
spending and the housing sector. Inflation rate continues to remain low though key
commodities such as gasoline prices have increased lately. Again, economic problems in
Europe, slowdowns in Asia, and job data in the U.S. are of concern. The FOMC remains
committed to keeping interest rates at exceptionally low levels through mid-2015 to stimulate
the economy and boost job growth. The FOMC monetary policy will continue to exert
considerable downward pressure on the City’s portfolio yield.
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. These include cash in the City’s regular bank account with
Wells Fargo. The bond proceeds, reserves, and debt service payments being held by the City’s
fiscal agents are subject to the requirements of the underlying debt indenture. The trustees for
the bond funds are U.S. Bank and California Asset Management Program (CAMP). Bond funds
with U.S. Bank are invested in federal agency and money market mutual funds that consist
exclusively of U.S. Treasury securities. Bond funds in CAMP are invested in banker’s acceptance
notes, certificates of deposit, commercial paper, federal agency securities, and repurchase
agreements. The most recent data on funds held by the fiscal agent is as of September 30,
2012.
Fiscal Impact
This is an information report on the past performance of the City’s investment portfolio.
Environmental Review
This information report is not a project under the California Environmental Quality Act;
therefore, an environmental review is not required.
Attachments:
Attachment A: Consolidated Report of Cash Management (PDF)
Attachment B: Investment Portfolio (PDF)
Attachment C: Investment Policy Compliance (PDF)
Book Value Market Value
City Investment Portfolio (see Attachment B)423,421,545$ 441,311,687$
Other Funds Held by the City
Cash with Wells Fargo Bank 902,683 902,683
(includes general and imprest accounts)
Petty/Working Cash 10,378 10,378
Total - Other Funds Held By City 913,061 913,061
Funds Under Management of Third Party Trustees *
US Bank Trust Services **
2002 Downtown Parking Impvt. (Taxable) Certificates of Participation
Reserve Fund 237,839 237,839
2009 Water Revenue Bonds (Build America Bonds)
Project, Debt Service, Reserve, Cost of Issuance Funds 20,604,638 20,604,638
2011 Utility Revenue Refunding Bonds
Debt Service, Reserve, and Cost of Issuance Funds 1,484,636 1,484,636
2012 University Ave. Parking Refunding Bonds
Cost of Issuance Fund 16,624 16,624
California Asset Management Program (CAMP) ***
2010 General Obligation (Library) Bond
Project Fund 21,013,945 21,013,945
2012 University Ave. Parking Refunding Bonds
Reserve Fund 2,522,381 2,522,381
Total Under Trustee Management 45,880,063 45,880,063
GRAND TOTAL 470,214,669$ 488,104,811$
* These funds are subject to the requirements of the underlying debt indenture.
** U.S. Bank investments are in money market mutual funds that exclusively invest in U.S. Treasury securities.
*** CAMP investments are in money market mutual fund which invest in bankers acceptance, certificate of deposit,
commercial paper, federal agency securities, and repurchase agreements.
First Quarter, Fiscal Year 2012-13
(Unaudited)
(Debt Service Proceeds)
Attachment A
Consolidated Report of Cash Management
City of Palo Alto Cash and Investments
City of Palo Alto City of Palo Alto
Administration Svcs. Dept.
250 Hamilton Ave., 4th Floor
Palo Alto, CA 94301(650)329-2362
September 30, 2012
Fund ALL - Portfolio Listings
Investments by Fund
Par Value Days ToMaturityMaturityDateCurrentRateMarket ValueCUSIPInvestment #Issuer
PurchaseDate Book Value YTM
360
YTM
365
Managed Pool Accounts
Fidelity Investments158 2,957,302.44SYS158 10.01007/01/2011 2,957,302.44 0.009 0.0102,957,302.44
Local Agency Investment Fund159 13,733,254.32SYS159 10.35007/01/2011 13,751,300.80 0.345 0.35013,733,254.32
Subtotal and Average 16,690,556.76 16,690,556.76 16,708,603.24 0.286 0.290 1
Federal Agency Issues - Coupon
Federal Agricultural Mortgage1028 3,000,000.0031315PPC7 02/21/2019 2,3341.79002/21/2012 3,072,090.00 1.765 1.7903,000,000.00
Federal Agricultural Mortgage1031 2,000,000.0031315PQC6 09/06/2018 2,1661.55003/06/2012 2,067,840.00 1.528 1.5502,000,000.00
Federal Agricultural Mortgage1052 1,500,000.0031315PTW9 04/10/2019 2,3821.87004/10/2012 1,560,630.00 1.844 1.8701,500,000.00
Federal Agricultural Mortgage1053 Call 2,000,000.0031315PTC3 04/12/2022 3,4802.87504/12/2012 2,016,720.00 2.835 2.8752,000,000.00
Federal Agricultural Mortgage1055 1,500,000.0031315PTQ2 04/10/2017 1,6521.26004/10/2012 1,527,495.00 1.242 1.2601,500,000.00
Federal Agricultural Mortgage1079 Call 1,000,000.0031315PWC9 05/07/2021 3,1402.45005/08/2012 1,001,570.00 2.416 2.4491,000,000.00
Federal Agricultural Mortgage1090 2,000,000.0031315PZQ5 06/05/2017 1,7081.11006/05/2012 2,031,460.00 1.094 1.1102,000,000.00
Federal Agricultural Mortgage1096 2,000,000.0031315PZQ5 06/05/2017 1,7081.11006/20/2012 2,031,460.00 0.998 1.0122,008,905.86
Federal Agricultural Mortgage1098 2,000,000.0031315PPK9 07/03/2017 1,7361.02007/03/2012 2,014,660.00 1.006 1.0202,000,000.00
Federal Agricultural Mortgage1109 2,000,000.0031315PSX8 08/23/2017 1,7871.03008/23/2012 2,022,980.00 1.015 1.0302,000,000.00
Federal Agricultural Mortgage820 2,000,000.0031315PLR8 08/11/2014 6793.25008/11/2009 2,098,340.00 3.205 3.2502,000,000.00
Federal Agricultural Mortgage838 2,000,000.0031315PES4 12/30/2014 8202.82012/30/2009 2,101,220.00 2.781 2.8202,000,000.00
Federal Agricultural Mortgage839 1,500,000.0031315PEY1 12/30/2019 2,6464.50012/30/2009 1,771,665.00 4.438 4.5001,500,000.00
Federal Agricultural Mortgage840 2,000,000.0031315PGE3 01/19/2017 1,5714.12501/19/2010 2,241,580.00 4.068 4.1252,000,000.00
Federal Agricultural Mortgage866 1,000,000.0031315PAT6 05/17/2017 1,6893.75005/17/2010 1,122,290.00 3.698 3.7501,000,000.00
Federal Agricultural Mortgage923 1,500,000.0031315PNM7 12/28/2017 1,9143.15012/28/2010 1,657,020.00 3.106 3.1501,500,000.00
Federal Agricultural Mortgage935 1,500,000.0031315PQN2 02/03/2014 4901.34002/03/2011 1,521,735.00 1.321 1.3401,500,000.00
Federal Agricultural Mortgage936 1,500,000.0031315PRG6 01/31/2016 1,2172.44002/03/2011 1,596,495.00 2.406 2.4401,500,000.00
Federal Agricultural Mortgage942 1,500,000.0031315PTU3 03/09/2021 3,0814.16003/09/2011 1,718,685.00 4.103 4.1601,500,000.00
Federal Agricultural Mortgage951 1,500,000.0031315PUN7 04/29/2016 1,3062.41004/29/2011 1,594,665.00 2.376 2.4101,500,000.00
Federal Agricultural Mortgage975 1,000,000.0031315PA25 07/27/2016 1,3952.00007/27/2011 1,049,240.00 2.063 2.092996,674.67
Federal Farm Credit Bank1002 2,000,000.0031331KF96 10/14/2014 7430.70010/14/2011 2,015,620.00 0.690 0.7002,000,000.00
Federal Farm Credit Bank1006 2,000,000.0031331KK90 10/26/2016 1,4861.35010/26/2011 2,058,140.00 1.331 1.3502,000,000.00
Federal Farm Credit Bank1032 950,000.003133EAGE2 03/07/2016 1,2530.75003/07/2012 957,581.00 0.739 0.750950,000.00
Federal Farm Credit Bank1046 1,000,000.003133EAJU3 03/28/2016 1,2741.05003/28/2012 1,019,390.00 1.035 1.0501,000,000.00
Federal Farm Credit Bank1088 2,000,000.003133EASF6 11/20/2014 7800.50005/29/2012 2,007,340.00 0.458 0.4652,001,484.49
Portfolio CPA
AP
Run Date: 10/15/2012 - 17:46 FI (PRF_FI) 7.1.1
Report Ver. 7.3.3a
September 30, 2012
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 2
CUSIP Investment #Issuer
Purchase
Date Book Value YTM360 YTM365
Federal Agency Issues - Coupon
Federal Farm Credit Bank1091 Call 2,000,000.003133EATB4 12/13/2021 3,3602.33006/13/2012 2,000,200.00 2.298 2.3302,000,000.00
Federal Farm Credit Bank1092 1,500,000.003133EAUF3 06/14/2019 2,4471.50006/14/2012 1,519,650.00 1.479 1.5001,500,000.00
Federal Farm Credit Bank653 2,000,000.0031331VY91 08/16/2013 3195.28009/26/2006 2,088,600.00 4.827 4.8942,005,721.64
Federal Farm Credit Bank655 4,000,000.0031331V4E3 09/15/2014 7145.18010/12/2006 4,379,720.00 5.059 5.1304,003,148.69
Federal Farm Credit Bank657 2,039,000.0031331VWS1 04/17/2014 5635.20010/16/2006 2,193,698.93 5.100 5.1712,039,747.11
Federal Farm Credit Bank658 1,500,000.0031331S3H4 02/18/2014 5054.75010/16/2006 1,592,775.00 5.104 5.1751,492,735.39
Federal Farm Credit Bank659 3,000,000.0031331XBS0 11/25/2013 4205.05010/25/2006 3,164,310.00 4.979 5.0483,000,000.00
Federal Farm Credit Bank660 2,000,000.0031331XCY6 05/06/2015 9475.05011/06/2006 2,241,260.00 4.980 5.0502,000,000.00
Federal Farm Credit Bank662 2,000,000.0031331VTY2 03/20/2013 1705.20011/16/2006 2,047,140.00 4.877 4.9452,002,022.97
Federal Farm Credit Bank677 2,000,000.0031331XPB2 02/07/2013 1295.15002/07/2007 2,034,900.00 5.079 5.1502,000,000.00
Federal Farm Credit Bank690 2,000,000.0031331XSR4 03/14/2014 5294.87503/27/2007 2,133,580.00 4.807 4.8742,000,000.00
Federal Farm Credit Bank702 3,500,000.0031331XB27 08/05/2013 3085.20006/05/2007 3,647,245.00 5.130 5.2013,500,000.00
Federal Farm Credit Bank703 2,000,000.0031331XC26 06/05/2014 6125.25006/05/2007 2,166,080.00 5.178 5.2502,000,000.00
Federal Farm Credit Bank705 2,000,000.0031331XD74 12/18/2013 4435.33006/12/2007 2,123,260.00 5.257 5.3302,000,000.00
Federal Farm Credit Bank707 3,000,000.0031331XC26 06/05/2014 6125.25006/08/2007 3,249,120.00 5.409 5.4842,990,281.29
Federal Farm Credit Bank715 3,000,000.0031331XU75 08/13/2014 6815.30008/20/2007 3,266,040.00 5.128 5.1993,004,636.88
Federal Farm Credit Bank720 1,500,000.0031331X3H3 09/17/2014 7165.00009/17/2007 1,632,870.00 4.931 5.0001,500,000.00
Federal Farm Credit Bank721 1,500,000.0031331X5Y4 10/03/2014 7325.00010/03/2007 1,640,490.00 4.931 5.0001,500,000.00
Federal Farm Credit Bank722 2,000,000.0031331YCJ7 10/30/2017 1,8554.90010/30/2007 2,404,800.00 4.832 4.9002,000,000.00
Federal Farm Credit Bank725 2,000,000.0031331YHQ6 12/15/2017 1,9014.62512/12/2007 2,384,300.00 4.561 4.6242,000,000.00
Federal Farm Credit Bank742 2,000,000.0031331VCQ7 10/19/2015 1,1134.80001/30/2008 2,269,560.00 3.945 4.0002,041,580.97
Federal Farm Credit Bank744 1,000,000.0031331SKH5 01/22/2015 8434.50001/30/2008 1,095,370.00 3.820 3.8731,012,570.86
Federal Farm Credit Bank747 1,500,000.0031331YSV3 02/11/2015 8633.85002/11/2008 1,623,165.00 3.797 3.8501,500,000.00
Federal Farm Credit Bank785 1,500,000.0031331GPN3 03/04/2013 1542.60003/04/2009 1,515,525.00 2.564 2.6001,500,000.00
Federal Farm Credit Bank788 1,000,000.0031331GLT4 01/29/2016 1,2153.75003/04/2009 1,107,460.00 3.698 3.7491,000,000.00
Federal Farm Credit Bank823 2,000,000.0031331GL80 09/22/2014 7213.00008/21/2009 2,107,540.00 2.959 3.0002,000,000.00
Federal Farm Credit Bank826 2,000,000.0031331GZ44 10/15/2012 141.55010/15/2009 2,001,080.00 1.528 1.5502,000,000.00
Federal Farm Credit Bank850 2,000,000.0031331JFZ1 03/08/2017 1,6193.37503/08/2010 2,233,440.00 3.328 3.3752,000,000.00
Federal Farm Credit Bank870 1,000,000.0031331JQB2 06/02/2017 1,7053.00006/02/2010 1,100,860.00 2.958 3.0001,000,000.00
Federal Farm Credit Bank872 2,000,000.0031331YEL0 11/15/2016 1,5065.00006/04/2010 2,334,060.00 3.027 3.0702,143,344.73
Federal Farm Credit Bank903 1,000,000.0031331JN90 09/29/2020 2,9202.87509/29/2010 1,090,550.00 2.835 2.8751,000,000.00
Federal Farm Credit Bank910 2,000,000.0031331JX32 10/28/2016 1,4881.70010/28/2010 2,086,260.00 1.676 1.7002,000,000.00
Portfolio CPA
AP
Run Date: 10/15/2012 - 17:46 FI (PRF_FI) 7.1.1
Report Ver. 7.3.3a
September 30, 2012
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 3
CUSIP Investment #Issuer
Purchase
Date Book Value YTM360 YTM365
Federal Agency Issues - Coupon
Federal Farm Credit Bank918 2,000,000.0031331J5F6 12/16/2020 2,9983.62512/16/2010 2,309,520.00 3.575 3.6252,000,000.00
Federal Farm Credit Bank925 1,500,000.0031331JX32 10/28/2016 1,4881.70001/04/2011 1,564,695.00 2.576 2.6111,448,582.88
Federal Farm Credit Bank932 3,000,000.0031331J2M4 11/22/2016 1,5131.87501/14/2011 3,151,170.00 2.483 2.5182,926,114.87
Federal Farm Credit Bank937 2,000,000.0031331KBX7 02/10/2017 1,5932.87502/10/2011 2,178,840.00 2.835 2.8752,000,000.00
Federal Farm Credit Bank959 1,500,000.0031331KQD5 06/27/2017 1,7302.30006/27/2011 1,593,675.00 2.268 2.3001,500,000.00
Federal Farm Credit Bank .1095 Call 2,000,000.003133EAUT3 12/18/2017 1,9041.30006/18/2012 2,000,000.00 1.282 1.3002,000,000.00
Federal Farm Credit Bank .1100 Call 1,500,000.003133EAZN1 07/24/2020 2,8531.84007/24/2012 1,501,140.00 1.814 1.8401,500,000.00
Federal Home Loan Bank1012 2,000,000.00313376BR5 12/14/2018 2,2651.75012/16/2011 2,080,800.00 1.725 1.7492,000,000.00
Federal Home Loan Bank1017 2,000,000.00313376V36 01/25/2017 1,5771.00001/25/2012 2,030,680.00 0.986 1.0002,000,000.00
Federal Home Loan Bank1021 2,000,000.00313376VN2 12/22/2016 1,5431.10001/30/2012 2,030,060.00 1.084 1.1002,000,000.00
Federal Home Loan Bank1027 2,000,000.003133787M7 02/27/2017 1,6101.05002/21/2012 2,025,080.00 1.035 1.0492,000,000.00
Federal Home Loan Bank1038 1,500,000.003133782N0 03/10/2017 1,6210.87503/08/2012 1,507,290.00 0.999 1.0131,491,042.23
Federal Home Loan Bank1039 1,500,000.003133782M2 03/08/2019 2,3491.50003/08/2012 1,529,085.00 1.574 1.5961,491,242.29
Federal Home Loan Bank1041 1,500,000.00313378LA7 02/25/2022 3,4342.33003/20/2012 1,551,210.00 2.298 2.3301,500,000.00
Federal Home Loan Bank1042 2,000,000.00313378LY5 07/30/2015 1,0320.60003/20/2012 2,011,800.00 0.591 0.6002,000,000.00
Federal Home Loan Bank1045 2,000,000.00313378QP9 03/28/2017 1,6391.26003/28/2012 2,043,240.00 1.242 1.2602,000,000.00
Federal Home Loan Bank1049 1,500,000.00313378VG3 05/22/2019 2,4241.85004/09/2012 1,564,020.00 1.824 1.8501,500,000.00
Federal Home Loan Bank1057 1,500,000.00313378ZW4 04/17/2017 1,6591.05004/17/2012 1,518,315.00 1.035 1.0501,500,000.00
Federal Home Loan Bank1058 1,500,000.003133792L2 10/20/2017 1,8451.23004/20/2012 1,521,495.00 1.213 1.2301,500,000.00
Federal Home Loan Bank1065 Call 1,500,000.003133796H7 01/26/2022 3,4042.50004/26/2012 1,509,525.00 2.465 2.5001,500,000.00
Federal Home Loan Bank1068 1,500,000.00313379BL2 12/29/2017 1,9151.25004/30/2012 1,529,340.00 1.232 1.2501,500,000.00
Federal Home Loan Bank1069 Call 1,500,000.00313379BC2 05/16/2022 3,5142.68005/16/2012 1,503,090.00 2.643 2.6801,500,000.00
Federal Home Loan Bank1070 1,500,000.00313379BG3 04/27/2017 1,6691.07004/27/2012 1,512,780.00 1.055 1.0701,500,000.00
Federal Home Loan Bank1073 2,000,000.00313379EC9 11/18/2020 2,9702.00005/18/2012 2,083,800.00 1.972 2.0002,000,000.00
Federal Home Loan Bank1075 Call 2,000,000.00313379F46 11/30/2020 2,9822.20005/30/2012 2,000,200.00 2.169 2.2002,000,000.00
Federal Home Loan Bank1078 Call 2,000,000.00313379E96 05/23/2022 3,5212.60005/23/2012 2,013,300.00 2.564 2.6002,000,000.00
Federal Home Loan Bank1083 Call 1,200,000.00313379FP9 06/06/2022 3,5352.62506/06/2012 1,200,144.00 2.589 2.6251,200,000.00
Federal Home Loan Bank1087 Call 2,000,000.00313379LL1 05/25/2017 1,6971.75005/25/2012 2,014,420.00 1.399 1.4192,029,611.20
Federal Home Loan Bank1089 2,000,000.00313379PD5 09/20/2017 1,8151.09006/07/2012 2,025,520.00 1.075 1.0902,000,000.00
Federal Home Loan Bank1093 Call 2,000,000.00313379TA7 01/03/2020 2,6501.98007/03/2012 2,000,160.00 1.952 1.9802,000,000.00
Federal Home Loan Bank1101 Call 1,500,000.003133805L7 08/08/2022 3,5982.25008/08/2012 1,500,435.00 2.219 2.2501,500,000.00
Federal Home Loan Bank1102 Call 1,500,000.003133802M8 07/30/2018 2,1281.37507/30/2012 1,501,035.00 1.356 1.3751,500,000.00
Portfolio CPA
AP
Run Date: 10/15/2012 - 17:46 FI (PRF_FI) 7.1.1
Report Ver. 7.3.3a
September 30, 2012
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 4
CUSIP Investment #Issuer
Purchase
Date Book Value YTM360 YTM365
Federal Agency Issues - Coupon
Federal Home Loan Bank1104 Call 1,500,000.003133807E1 08/15/2022 3,6052.29008/15/2012 1,500,645.00 2.258 2.2901,500,000.00
Federal Home Loan Bank1105 Call 1,500,000.00313380E86 11/30/2018 2,2511.33008/30/2012 1,501,425.00 1.311 1.3301,500,000.00
Federal Home Loan Bank1112 Call 2,000,000.00313380JH1 08/23/2022 3,6132.48008/23/2012 2,002,000.00 2.446 2.4802,000,000.00
Federal Home Loan Bank652 2,000,000.0031339Y7K2 07/16/2013 2885.00009/26/2006 2,074,420.00 4.850 4.9182,001,075.36
Federal Home Loan Bank654 2,000,000.003133XHBL5 06/13/2014 6204.87510/12/2006 2,156,380.00 5.020 5.0891,993,924.33
Federal Home Loan Bank663 2,000,000.003133XHXW7 11/27/2013 4224.87511/27/2006 2,107,540.00 4.808 4.8752,000,000.00
Federal Home Loan Bank667 2,000,000.003133XHW57 12/13/2013 4384.87512/14/2006 2,111,340.00 4.806 4.8732,000,000.00
Federal Home Loan Bank699 2,000,000.003133XGJ96 09/13/2013 3475.25005/16/2007 2,095,120.00 4.943 5.0112,003,815.02
Federal Home Loan Bank706 1,000,000.003133XGJ96 09/13/2013 3475.25006/08/2007 1,047,560.00 5.369 5.444998,442.42
Federal Home Loan Bank710 2,500,000.003133XLDG5 06/13/2014 6205.37506/28/2007 2,715,750.00 5.300 5.3742,500,000.00
Federal Home Loan Bank713 3,000,000.003133XLDG5 06/13/2014 6205.37508/20/2007 3,258,900.00 5.099 5.1703,008,652.33
Federal Home Loan Bank730 2,000,000.003133XPBA1 03/13/2015 8933.50001/25/2008 2,153,880.00 3.451 3.4992,000,000.00
Federal Home Loan Bank741 3,000,000.003133XPBA1 03/13/2015 8933.50001/30/2008 3,230,820.00 3.869 3.9232,973,034.13
Federal Home Loan Bank777 3,000,000.003133XSP93 12/13/2013 4383.12501/16/2009 3,104,130.00 2.794 2.8333,018,983.29
Federal Home Loan Bank789 2,000,000.003133XTCS3 03/13/2014 5283.00003/16/2009 2,079,660.00 2.958 2.9992,000,000.00
Federal Home Loan Bank793 3,000,000.003133XTFQ4 04/01/2014 5472.90004/01/2009 3,118,920.00 2.860 2.9003,000,000.00
Federal Home Loan Bank818 2,000,000.003133XTYD2 06/16/2015 9884.00006/16/2009 2,195,140.00 3.945 4.0002,000,000.00
Federal Home Loan Bank822 3,000,000.003133XUMS9 09/13/2019 2,5384.50008/12/2009 3,636,690.00 4.437 4.4993,000,000.00
Federal Home Loan Bank827 1,000,000.003133XUMR1 09/12/2014 7113.25010/21/2009 1,057,690.00 2.594 2.6311,011,222.63
Federal Home Loan Bank830 3,000,000.003133XDTL5 12/21/2015 1,1765.00010/21/2009 3,433,680.00 3.101 3.1453,161,781.68
Federal Home Loan Bank832 3,000,000.003133XVRJ2 12/09/2016 1,5303.50011/19/2009 3,332,520.00 3.325 3.3723,014,158.39
Federal Home Loan Bank833 1,200,000.003133MJQF0 08/15/2016 1,4145.50011/19/2009 1,421,100.00 3.304 3.3501,288,728.73
Federal Home Loan Bank837 2,000,000.003133XW4W6 12/11/2012 711.50012/11/2009 2,004,660.00 1.479 1.5002,000,000.00
Federal Home Loan Bank847 2,000,000.003133XWX95 03/13/2015 8932.75002/19/2010 2,117,320.00 2.711 2.7492,000,000.00
Federal Home Loan Bank859 1,500,000.003133XEUG2 03/11/2016 1,2574.87504/26/2010 1,721,835.00 3.227 3.2721,574,760.57
Federal Home Loan Bank860 1,500,000.003133XHVS8 12/09/2016 1,5305.00004/26/2010 1,761,465.00 3.430 3.4781,584,727.70
Federal Home Loan Bank875 2,000,000.003133XYVX0 10/29/2012 281.12506/29/2010 2,001,460.00 1.109 1.1252,000,000.00
Federal Home Loan Bank878 3,000,000.003133XVNU1 12/12/2014 8022.75006/23/2010 3,162,300.00 2.052 2.0813,041,895.94
Federal Home Loan Bank879 1,500,000.003133XUMR1 09/12/2014 7113.25006/23/2010 1,586,535.00 1.975 2.0031,534,743.11
Federal Home Loan Bank883 1,500,000.003133XWNB1 06/12/2015 9842.87506/29/2010 1,600,560.00 2.099 2.1281,528,501.00
Federal Home Loan Bank885 2,000,000.003133XBDM4 02/13/2015 8654.75006/29/2010 2,208,080.00 2.022 2.0512,121,266.63
Federal Home Loan Bank887 1,500,000.003133705T1 04/08/2013 1891.08007/08/2010 1,507,005.00 1.065 1.0801,500,000.00
Portfolio CPA
AP
Run Date: 10/15/2012 - 17:46 FI (PRF_FI) 7.1.1
Report Ver. 7.3.3a
September 30, 2012
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 5
CUSIP Investment #Issuer
Purchase
Date Book Value YTM360 YTM365
Federal Agency Issues - Coupon
Federal Home Loan Bank900 2,000,000.00313370TB4 07/29/2013 3010.85008/30/2010 2,010,740.00 0.838 0.8502,000,000.00
Federal Home Loan Bank901 1,000,000.003133717D2 02/27/2014 5141.00009/27/2010 1,010,610.00 0.986 1.0001,000,000.00
Federal Home Loan Bank907 2,000,000.00313371FB7 08/28/2015 1,0611.35010/22/2010 2,055,000.00 1.331 1.3502,000,000.00
Federal Home Loan Bank911 1,500,000.00313371PV2 12/09/2016 1,5301.62511/09/2010 1,559,475.00 1.602 1.6241,500,000.00
Federal Home Loan Bank912 1,500,000.00313371PU4 12/13/2013 4380.50011/09/2010 1,503,105.00 0.589 0.5971,500,000.00
Federal Home Loan Bank913 2,000,000.00313371VF0 12/11/2015 1,1661.62511/19/2010 2,070,820.00 1.602 1.6242,000,000.00
Federal Home Loan Bank914 2,000,000.00313371WB8 07/24/2014 6611.15011/24/2010 2,016,580.00 1.134 1.1502,000,000.00
Federal Home Loan Bank920 1,500,000.00313371PV2 12/09/2016 1,5301.62512/15/2010 1,559,475.00 2.550 2.5851,444,374.12
Federal Home Loan Bank921 1,500,000.00313371NW2 12/11/2015 1,1661.37512/15/2010 1,544,625.00 2.191 2.2211,461,773.39
Federal Home Loan Bank924 1,500,000.003133MJQF0 08/15/2016 1,4145.50001/04/2011 1,776,375.00 2.516 2.5501,658,620.09
Federal Home Loan Bank926 1,500,000.00313371PV2 12/09/2016 1,5301.62501/04/2011 1,559,475.00 2.592 2.6291,441,916.08
Federal Home Loan Bank931 3,000,000.003133XFPR1 06/10/2016 1,3485.37501/14/2011 3,531,420.00 2.363 2.3963,307,671.01
Federal Home Loan Bank938 1,500,000.00313372Q56 02/26/2016 1,2432.65002/18/2011 1,607,340.00 2.613 2.6491,500,000.00
Federal Home Loan Bank940 2,000,000.003133X0PF0 08/15/2018 2,1445.37502/17/2011 2,502,760.00 3.423 3.4702,195,415.72
Federal Home Loan Bank947 1,500,000.00313373GQ9 10/29/2014 7581.75004/29/2011 1,545,285.00 1.726 1.7501,500,000.00
Federal Home Loan Bank982 2,000,000.00313375KP1 03/15/2017 1,6261.50009/15/2011 2,064,260.00 1.479 1.5002,000,000.00
Federal Home Loan Bank985 2,000,000.00313375M87 10/14/2016 1,4741.27009/14/2011 2,044,060.00 1.252 1.2702,000,000.00
Federal Home Loan Bank990 2,000,000.00313370TW8 09/09/2016 1,4392.00009/13/2011 2,110,960.00 1.163 1.1802,062,546.75
Federal Home Loan Bank992 2,000,000.00313371ZX7 12/08/2017 1,8942.62509/13/2011 2,178,760.00 1.526 1.5472,106,082.19
Federal Home Loan Bank - S & P792 2,000,000.003133XTFD3 03/27/2014 5422.85003/27/2009 2,077,240.00 2.810 2.8502,000,000.00
Fed. Home Loan Mortgage Corp.1007 Call 2,000,000.003134G23Y6 11/15/2016 1,5061.57011/15/2011 2,026,360.00 1.548 1.5702,000,000.00
Fed. Home Loan Mortgage Corp.1024 Call 2,000,000.003134G3MD9 11/14/2017 1,8701.50002/14/2012 2,028,020.00 1.479 1.5002,000,000.00
Fed. Home Loan Mortgage Corp.1025 Call 2,000,000.003134G3MF4 02/07/2019 2,3202.00002/07/2012 2,035,360.00 1.972 2.0002,000,000.00
Fed. Home Loan Mortgage Corp.1036 1,500,000.003137EABA6 11/17/2017 1,8735.12503/01/2012 1,822,260.00 1.227 1.2441,787,189.47
Fed. Home Loan Mortgage Corp.1074 Call 2,000,000.003134G3VH0 05/24/2017 1,6961.20005/24/2012 2,006,880.00 1.183 1.2002,000,000.00
Fed. Home Loan Mortgage Corp.1081 Call 2,000,000.003134G3VS6 05/30/2017 1,7021.25005/30/2012 2,006,000.00 1.232 1.2502,000,000.00
Fed. Home Loan Mortgage Corp.1085 Call 2,000,000.003134G3VW7 06/14/2017 1,7171.25006/14/2012 2,009,080.00 1.232 1.2502,000,000.00
Fed. Home Loan Mortgage Corp.1086 Call 2,000,000.003134G3WB2 06/07/2017 1,7101.30006/07/2012 2,009,480.00 1.282 1.3002,000,000.00
Fed. Home Loan Mortgage Corp.1097 Call 1,500,000.003134G3XT2 07/17/2017 1,7501.05007/17/2012 1,509,840.00 1.035 1.0501,500,000.00
Fed. Home Loan Mortgage Corp.1103 Call 3,000,000.003134G3A26 08/06/2020 2,8663.00008/06/2012 3,063,630.00 2.602 2.6383,076,275.00
Fed. Home Loan Mortgage Corp.1106 Call 1,500,000.003134G3A91 08/22/2019 2,5161.40008/22/2012 1,497,930.00 1.380 1.4001,500,000.00
Fed. Home Loan Mortgage Corp.1113 Call 1,500,000.003134G3L73 12/26/2019 2,6421.50009/26/2012 1,511,520.00 1.479 1.5001,500,000.00
Portfolio CPA
AP
Run Date: 10/15/2012 - 17:46 FI (PRF_FI) 7.1.1
Report Ver. 7.3.3a
September 30, 2012
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 6
CUSIP Investment #Issuer
Purchase
Date Book Value YTM360 YTM365
Federal Agency Issues - Coupon
Fed. Home Loan Mortgage Corp.679 1,500,000.003128X1KG1 06/12/2013 2544.00002/07/2007 1,539,585.00 5.010 5.0801,490,438.38
Fed. Home Loan Mortgage Corp.682 2,000,000.003128X1KG1 06/12/2013 2544.00002/15/2007 2,052,780.00 4.970 5.0401,987,700.23
Fed. Home Loan Mortgage Corp.714 2,000,000.003134A4UM4 01/15/2014 4714.50008/20/2007 2,109,040.00 5.033 5.1031,986,863.06
Fed. Home Loan Mortgage Corp.734 Callable 1,500,000.003128X6N85 01/31/2015 8524.30001/31/2008 1,637,010.00 4.241 4.3001,500,000.00
Fed. Home Loan Mortgage Corp.828 2,000,000.003128X33E1 01/26/2015 8475.05010/21/2009 2,216,480.00 2.713 2.7512,098,618.82
Fed. Home Loan Mortgage Corp.884 4,000,000.003128X2RA5 12/01/2015 1,1565.30006/29/2010 4,592,720.00 2.327 2.3604,347,591.13
Fed. Home Loan Mortgage Corp.890 4,000,000.003134A4VG6 11/17/2015 1,1424.75007/07/2010 4,535,680.00 2.135 2.1654,303,728.29
Fed. Home Loan Mortgage Corp.927 1,500,000.003134A4ZT4 01/19/2016 1,2054.75001/04/2011 1,711,275.00 2.215 2.2451,616,561.45
Fed. Home Loan Mortgage Corp.970 Callable 1,500,000.003134G2TE2 07/28/2017 1,7612.35007/28/2011 1,509,135.00 2.317 2.3501,500,000.00
Fed. Home Loan Mortgage Corp.993 2,000,000.003137EAAY5 08/23/2017 1,7875.50009/13/2011 2,453,720.00 1.415 1.4352,380,097.98
Federal National Mortgage Asso1009 Call 2,000,000.003136FTME6 11/16/2016 1,5071.55011/16/2011 2,003,040.00 1.528 1.5502,000,000.00
Federal National Mortgage Asso1016 Call 1,500,000.003136FTZY8 02/08/2017 1,5911.25002/08/2012 1,506,345.00 1.232 1.2501,500,000.00
Federal National Mortgage Asso1019 Call 1,500,000.003136FTD55 08/01/2017 1,7651.40002/01/2012 1,505,115.00 1.380 1.4001,500,000.00
Federal National Mortgage Asso1022 2,000,000.0031398ADM1 06/12/2017 1,7155.37501/25/2012 2,424,900.00 1.317 1.3362,364,913.78
Federal National Mortgage Asso1023 2,590,000.003136FPXN2 11/24/2017 1,8802.30001/25/2012 2,777,645.50 1.406 1.4262,701,396.11
Federal National Mortgage Asso1026 Call 1,500,000.003133EABR8 02/01/2019 2,3142.00002/01/2012 1,508,205.00 1.972 2.0001,500,000.00
Federal National Mortgage Asso1033 3,000,000.003135G0JA2 04/27/2017 1,6691.12503/01/2012 3,055,530.00 1.134 1.1502,996,674.30
Federal National Mortgage Asso1034 1,500,000.003135G0AL7 03/15/2016 1,2612.25003/01/2012 1,588,635.00 0.856 0.8681,570,238.09
Federal National Mortgage Asso1035 2,000,000.0031398ALG5 01/23/2018 1,9404.37703/01/2012 2,361,260.00 1.388 1.4082,301,577.00
Federal National Mortgage Asso1047 Call 3,000,000.003136G0AX9 04/17/2019 2,3892.00004/17/2012 3,024,420.00 1.972 2.0003,000,000.00
Federal National Mortgage Asso1048 Call 2,000,000.003136G0AW1 10/16/2020 2,9372.35004/16/2012 2,047,280.00 2.317 2.3502,000,000.00
Federal National Mortgage Asso1050 Call 1,500,000.003136FT7B9 03/28/2022 3,4652.12503/29/2012 1,509,990.00 2.880 2.9201,500,000.00
Federal National Mortgage Asso1051 Call 2,000,000.003136G0CG4 04/26/2017 1,6681.40004/26/2012 2,013,080.00 1.380 1.4002,000,000.00
Federal National Mortgage Asso1054 Call 2,000,000.003136G0CY5 04/30/2019 2,4022.05004/30/2012 2,041,100.00 2.021 2.0502,000,000.00
Federal National Mortgage Asso1056 Call 1,500,000.003136G0CL3 07/26/2017 1,7591.50004/26/2012 1,508,190.00 1.479 1.5001,500,000.00
Federal National Mortgage Asso1059 Call 2,000,000.003136G0DU2 04/30/2020 2,7682.00004/30/2012 2,030,160.00 1.972 2.0002,000,000.00
Federal National Mortgage Asso1061 Call 1,500,000.003136G0EC1 04/30/2020 2,7682.05004/30/2012 1,522,230.00 2.021 2.0501,500,000.00
Federal National Mortgage Asso1062 Call 2,000,000.003136G0DL2 10/30/2019 2,5852.00004/30/2012 2,014,540.00 1.972 2.0002,000,000.00
Federal National Mortgage Asso1063 Call 1,500,000.003136G0DQ1 07/26/2016 1,3941.00004/26/2012 1,505,280.00 0.986 1.0001,500,000.00
Federal National Mortgage Asso1064 Call 1,500,000.003136G0GA3 05/16/2017 1,6881.20005/16/2012 1,517,475.00 1.183 1.2001,500,000.00
Federal National Mortgage Asso1066 Call 2,000,000.003136G0FJ5 10/30/2020 2,9512.00004/30/2012 2,016,100.00 1.972 2.0002,000,000.00
Federal National Mortgage Asso1071 Call 2,000,000.003136G0DL2 10/30/2019 2,5852.00004/30/2012 2,014,540.00 1.972 2.0002,000,000.00
Portfolio CPA
AP
Run Date: 10/15/2012 - 17:46 FI (PRF_FI) 7.1.1
Report Ver. 7.3.3a
September 30, 2012
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 7
CUSIP Investment #Issuer
Purchase
Date Book Value YTM360 YTM365
Federal Agency Issues - Coupon
Federal National Mortgage Asso1072 Call 1,180,000.003136G0FG1 11/14/2016 1,5051.12505/14/2012 1,185,723.00 1.109 1.1251,180,000.00
Federal National Mortgage Asso1077 Call 1,000,000.003136G0FV8 11/15/2019 2,6012.00005/15/2012 1,005,730.00 1.972 2.0001,000,000.00
Federal National Mortgage Asso1080 Call 2,000,000.003136G0JB8 05/30/2017 1,7021.20005/30/2012 2,008,140.00 1.183 1.2002,000,000.00
Federal National Mortgage Asso1082 450,000.003136FPYB7 05/23/2017 1,6952.05005/11/2012 476,667.00 1.070 1.085469,574.03
Federal National Mortgage Asso1084 Call 2,000,000.003136G0KE0 06/05/2017 1,7081.50006/05/2012 2,004,080.00 1.397 1.4172,007,447.02
Federal National Mortgage Asso1094 Call 2,000,000.003136G0PB1 06/28/2017 1,7311.16006/28/2012 2,009,860.00 1.144 1.1602,000,000.00
Federal National Mortgage Asso1099 Call 1,500,000.003136G0UB5 02/15/2018 1,9631.15008/15/2012 1,503,555.00 1.134 1.1501,500,000.00
Federal National Mortgage Asso1110 Call 475,000.003136G0YX3 09/13/2022 3,6342.50009/13/2012 477,474.75 2.465 2.500475,000.00
Federal National Mortgage Asso1111 Call 2,000,000.003136G0YT2 09/06/2022 3,6272.35009/06/2012 2,015,560.00 2.317 2.3502,000,000.00
Federal National Mortgage Asso743 3,000,000.00313586UB3 12/10/2015 1,16510.35001/30/2008 3,940,110.00 3.987 4.0433,512,786.93
Federal National Mortgage Asso761 Callable 1,000,000.0031398APN6 04/08/2013 1894.00004/08/2008 1,019,770.00 3.945 4.0001,000,000.00
Federal National Mortgage Asso763 Callable 1,000,000.003136F9ES8 04/02/2013 1834.00004/02/2008 1,019,170.00 3.945 4.0001,000,000.00
Federal National Mortgage Asso776 3,000,000.0031398ANT5 02/25/2013 1474.25001/16/2009 3,049,050.00 2.298 2.3303,021,844.46
Federal National Mortgage Asso829 2,000,000.0031359MXX6 03/02/2015 8825.00010/21/2009 2,223,380.00 2.736 2.7742,099,413.98
Federal National Mortgage Asso891 2,000,000.0031359MZC0 10/15/2015 1,1094.37507/07/2010 2,239,320.00 2.100 2.1292,128,386.49
Federal National Mortgage Asso928 1,500,000.0031359MS61 07/15/2016 1,3835.37501/04/2011 1,770,195.00 2.422 2.4551,654,236.13
Federal National Mortgage Asso988 2,000,000.003135G0AL7 03/15/2016 1,2612.25009/13/2011 2,118,180.00 1.029 1.0442,081,205.13
Federal National Mortgage Asso991 2,000,000.0031359M4D2 02/13/2017 1,5965.00009/13/2011 2,375,180.00 1.272 1.2902,311,949.29
Federal National Mortgage Asso995 Callable 2,000,000.003136FR4R1 03/21/2019 2,3622.00009/21/2011 2,014,280.00 1.972 2.0002,000,000.00
Tennessee Valley Authority656 1,500,000.00880591CW0 03/15/2013 1656.00010/16/2006 1,539,285.00 5.054 5.1251,505,035.70
Tennessee Valley Authority661 3,000,000.00880591CW0 03/15/2013 1656.00011/16/2006 3,078,570.00 4.825 4.8923,012,864.83
Tennessee Valley Authority716 3,000,000.00880591DY5 06/15/2015 9874.37508/20/2007 3,323,520.00 5.163 5.2352,943,241.58
Tennessee Valley Authority861 2,000,000.00880591EA6 07/18/2017 1,7515.50004/26/2010 2,441,840.00 3.602 3.6522,154,434.42
Tennessee Valley Authority954 2,000,000.00880591CU4 12/15/2017 1,9016.25005/23/2011 2,549,140.00 2.624 2.6612,340,747.47
Subtotal and Average 402,725,592.18 397,084,000.00 420,560,204.18 2.598 2.634 1,478
Treasury Securities - Coupon
U.S. Treasury769 2,000,000.00912828HK9 11/30/2012 603.37508/06/2008 2,010,700.00 3.078 3.1202,000,772.83
U.S. Treasury939 2,000,000.00912828JW1 12/31/2013 4561.50002/17/2011 2,032,180.00 1.292 1.3102,004,623.09
Subtotal and Average 4,005,395.92 4,000,000.00 4,042,880.00 2.184 2.215 258
Total Investments and Average 423,421,544.86 417,774,556.76 441,311,687.42 2.503 2.538 1,408
Portfolio CPA
AP
Run Date: 10/15/2012 - 17:46 FI (PRF_FI) 7.1.1
Report Ver. 7.3.3a
1 General Investment Guidelines:
a) The max. stated final maturity of individual securities in the portfolio should be 10 years.Full Compliance
b) A max. of 30 percent of the par value of the portfolio shall be invested in securities with maturities
beyond 5 years.27.2%
c) The City shall maintain a minimum of one month's cash needs in short term investments.Full Compliance
d) At least $50 million shall be maintained in securities maturing in less than 2 years.
Plus two managed pool accounts which provide instant liquidity:
- Local Agency Investment Fund (LAIF) - maximum investment limit is$50 million
- Fidelity Investments
e) Should market value of the portfolio fall below 95 percent of the book value, report this fact within a
reasonable time to the City Council and evaluate if there are risk of holding securities to maturity.104.2%
d) Commitments to purchase securities newly introduced on the market shall be made no more than three (3)
working days before pricing.Full Compliance
f) Whenever possible, the City will obtain three or more quotations on the purchase or sale of
comparable securities (excludes new issues, LAIF, City of Palo Alto bonds, money market
accounts, and mutual funds).Full Compliance
2 U.S. Government Securities:Full Compliance
a) There is no limit on purchase of these securities.
b) Securities will not exceed 10 years maturity.
3 U.S. Government Agency Securities:Full Compliance
a) There is no limit on purchase of these securities except for:
Callable and Multi-step-up securities provided that:
- The potential call dates are known at the time of purchase;Full Compliance
- the interest rates at which they "step-up" are known at the time of purchase; and Full Compliance
- the entire face value of the security is redeemed at the call date.Full Compliance
- No more than 25 percent of the par value of portfolio.24.0%
b) Securities will not exceed 10 years maturity.
4 Bonds of the State of California Municipal Agencies None Held
a)Having at time of investment a minimum Double A (AA/AA2) rating as provided by a nationally
recognized rating service (e.g., Moody’s and/or Standard and Poor’s).
b)May not exceed 10 percent of the par value of the portfolio.
5 Certificates of Deposit:Full Compliance
a) May not exceed 20 percent of the par value of the portfolio;None Held
b) No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution.
c) Purchase collateralized deposits only from federally insured large banks that are rated by
a nationally recognized rating agency (e.g. Moody's, Standard & Poor's, etc.).
d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC)
e) Rollovers are not permitted without specific instruction from authorized City staff.
6 Banker's Acceptance Notes:None Held
a) No more than 30 percent of the par value of the portfolio.
b) Not to exceed 180 days maturity.
c) No more than $5 million with any one institution.
7 Commercial Paper:None Held
a) No more than 15 percent of the par value of the portfolio.
$102.5 million
$13.7 million
$3 million
Attachment C
Investment Policy Compliance
As of September 30, 2012
Investment Policy Requirements
Compliance
Check
Attachment C
Investment Policy Compliance
As of September 30, 2012
Investment Policy Requirements
Compliance
Check
b) Having highest letter or numerical rating from a nationally recognized rating service.
c) Not to exceed 270 days maturity.
d) No more than $3 million or 10 percent of the outstanding commercial paper of any one institution,
whichever is lesser.
8 Short-Term Repurchase Agreement (REPO):None Held
a) Not to exceed 1 year.
b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or
greater of the funds borrowed against those securities.
9 Money Market Deposit Accounts Full Compliance
a) Liquid bank accounts which seek to maintain a net asset value of $1.00.
10 Mutual Funds:None Held
a) No more than 20 percent of the par value of the portfolio.
b) No more than 10 percent of the par value with any one institution.
11 Negotiable Certificates of Deposit (NCD):None Held
a) No more than 10 percent of the par value of the portfolio.
b) No more than $5 million in any one institution.
12 Medium-Term Corporate Notes:None Held
a) No more than 10 percent of the par value of the portfolio.
b) Not to exceed 5 years maturity.
c) Securities eligible for investment shall have a minimum rating of AA from a nationally recognized
rating service.
d) No more than $5 million of the par value may be invested in securities of any single issuer, other
than the U.S. Government, its agencies and instrumentality.
e) If securities owned by the City are downgraded by either rating agencies to a level below AA it
shall be the City's policy to review the credit situation and make a determination as to whether
to sell or retain such securities.
13 Prohibited Investments:
a) Reverse Repurchase Agreements
b) Derivatives as defined in Appendix B of the Investment Policy
14 All securities shall be delivered to the City's safekeeping custodian, and held in the name of the
City, with the exception of :
- Certificates of Deposit, Mutual Funds, and LAIF
Full Compliance
None Held
Full Compliance