HomeMy WebLinkAbout0120.092-
January 16, 1992
THE HONORAolE CITY COUNCil
Paio Alto, California
INVESTMENT ACTIVITY REPORT FOR DECEMBER 1991
Members of the Council:
Th15 is an informational report and no Counci1 action is necessary.
INTEREST INCOME
Interest income (cash baSH) for the month of December was Sl,203,462 anc for the
fl r st six months of 1991-92 totalled $5.4 million, S5 percent of the annual
target of $9.8 million.
CURRENT PORTfOLIO
The par value of the CityT s portfo110 is a.pproximately $133 million t which
consists of $106.5 million, or 80 percent, matljring within two years. Most of
the investments, 5102.2 million, or 77 percent, are in United Statei GO\lel"nment
Securities. The current market value of the portfo-lie is 102.7 percent of cost.
Interest rates dropped quickly in Tate December in response to UIE feder-al
Reserves cut of i percent in the dlscount rate. Sin~e mutual funds do not react
as quickly as oth,=,r investments, the FideTity Mutual Fund retL.;rn of 4.74 percent
was competitive with the on1y other lfiliestment for the month (a 4.75 percent
Certificate of Deposit ~ith Sumitomo Bank), and staff put 52 million in the
mutuai fund.
COMPLI,l,NCE WITH INVESTMENT POLICY
As of December 31, 1991, the investment portfolio was in compliance with all
elements of the City's investment policy. In January 1992, projections indicate
receipts will be 516.9 million; expenditures will be 516.7 million; and $29.7
million in investments will mature. On the basis of the abOIiE projection, there
will be sufficient funds to meet Palo Alto's expenditure requirements for tne
CMR:120:92
t r
l
,~",L Ll st.ttl
ItOnth of January. Based upon th~ cash flow ptojections prepan:d by Treasury
shff for fiscal yur 1991-92, tnere 'Will be sufficient funds from re\ienues and
maturing investments to meet all expenditure requirements for the rema;nde~ of
the fiscal year.
R~.~SIle<:tjJ.H"Y-'~mit ted,
LO ,R,Z
Financ;a' An&1yst
I /).lI~ <..-'-,-.... C
EKF/1 HARRiSON
F1fQ.I~ce Dire"flto
/fLL ~1J-/ __ ~-..-... I
'JU , FLE.~ING ~jstant City Manage
CIIl!: 120:92
,
I
~
I ,
BY MATURITY
With i n I month
1-3 ""nths
3-6 months
6-9' months
9-12 months
1-2 years
Within 2 years
2-5 years
5-10 years
10-20 years
20-30 years
Over 2 years
TOTAL
8) TYPE OF I"VES~EMT
local Agency rnvestm~nt Fund
Mutual Fund
Certificate. of Oeposit:
Coll atera' ized
Bankers Acc~ptances
City of ralo Alto Bonds
U.S. Tr-easury
U. S. Agency
REPORT OF I~VEST"EMTS
DEC~BER 31, 1991
Par Amount 12/31/91
(In $ M1ll ions) r~)
I 29.70
10.7S
Il.OO
5.00
5.0e
42.04
106.<9
11.00
3.l0
1.16
~
16.24
Ill.73
15.00
2.10
10.50
,,75
.04
60.50
41~
22.4
B.I
9.8
4.5
3.8
!L.§
BO.2
IS.8
2.5
.9
__ .6
19. B
100.0%
11.3
1.7
7.9
1.1
.1
45.6
l1.4
TOTAL 132, 73 100.0%
PagelofS
1991-92 II/lO/91
Target r~)
> 16
> S35
100%
100%
15.7
11.3
8.9
9.7
I.S
..1QJ
77 .2
IB.9
1.4
.9
-..!
11.S
100.0%
10.4
.2
10.0
2.0
.1
46.4
...1LJ1
100.0%
Market V.lue/Cost 5136. 4/ll2.9 102.7" > 95% 102.2%
----------'-_ ... ".· .. f· ...... _ ......
n";' ........ P"'fJf' ~.~""If...-.. ~;,.-.~ f, i < 1fW,_ Q f
rage 2 of 6
REPORT OF INVESTMENTS
DECE"B£R 31, 1991
Purchase ,'. '";. t-1p.'i-!"{:~_'.'f2-1.';' "";-",:'
Interest Maturity Par ~ark.et Vnrealized Price PeriQd
SOURCE -'l&~ [lite ffillll ffil!ll Gain (LQ~s) nS1]imt;;~ E~l:!liDg:i
INVESTMENTS f' I ... Il '" I ',' "" ,', , .,
~I A.ency Inve~~und (11,30%)
LAIF 6.53 01-01-92 15.000,00 15.000.000 15,000.000
~ut".1 fund (I~ I
I
Fidelity Investments 4.74 01-01-92 2,100.000 2,100.000 2.100,000 5.038 I Franklin Investments 4.54 01-01·92 lQQJ!Q2 li!Q..2QQ lQQ,.QQ2 ill
2,200,GOO 2,200,000 2,200,000 5,483 ! ,
C&rtlflcat •• of DeR.slt (7,91!!
Sumltomo Bank (Coll.ter.l) 5.60 01-27 ·92 4,500.000 4,500,000 4,500,000
Sumltomo Bank (Collateral) 4.75 01-28-9Z 2.000,000 2.000.000 2.000,000
fidelity Fed. (Coll.ter.l) $.75 04·27-92 2,000.000 2,000.000 2,000.000 19.486
Ctty Natlon.l Bank (Coll.teral) 4,75 05·19·92 2,QQQ.QQQ Z.22Q.QQQ .J.JlQQ...QQQ ..LJJl
10,500,000 10.500,000 10,500,000 27,403
Ban~ers ~~~e~t.n~.s (Z,2Z~1
Sumitomo Bank 4.99 02·10-92 2,750,000 2.719,496 2.719,496
~Jto I_~yement BondL(,03~
Series P 10.95 07-02-93 38,000 38,000 30,000
,
A
CMR:J20:92
.. : . . 4 4" ;
';.-.-
, .
('
..:.
--"'------.-.-~--~~---.--
I
.' ' , ""i'C',
REPORT OF INVESTMENTS
DECEMBER 31, 1991
P\Jrchas~
Inter'est Matur; ty Pllr Hark.t Unrealized Price
~ -'!lie Qili..... 'ahl~ YA1YL ldJo (L2H) ~Ailn{L U.S, Treasury (45.58%)
Treasury Notes 8,13 01-31-92 6,000,000 5,947,734 5,947,734
Tr'easury Notes 8.50 02-29-92 2,000,000 2,002,813 2,g02,813
Treasury Notes 8,50 03-31-92 4,000,000 3,988,906 3,986,906
Tr'ea,sury Notes 8,38 06-30-92 7,000,000 7,014,453 7,014,453
Treasury Notes 8,25 08·15-92 3,000,000 2,977,031 2,977,031
Treasury Notes 8,38 11-15-92 2,000,000 2,009,375 2,009,375
Treasury Notes 6,75 01-15·93 2,000,000 2,089,000 79,000 2,010,000
Treasury Notes 8.25 02-15-93 4,500,000 4,690,000 160,625 4,509,375
Treasury Notes 6, j3 06·30-93 3,000,000 3,155,000 139,062 3,015,938
Treasury Notes 8.00 06-15-93 7,000,000 7,363,000 374,875 6,988,125
Treasury Notes 8.25 09-30-93 4,000,000 4,238,000 202,062 4,035,938
Treasury Notes 7.75 II-I~-93 8,000,000 8,423,000 341,437 8,081,563
Treasury Notes 7.63 12-31-93 2,000,000 2,106,000 89,125 2,016,675
Treasllry Notes 7.00 05-15-94 ..§..QQ.I)...QQll 6,264.0]2 ill..lZ.~ ..hQ7J...m
60,500,000
~, AGENCY (31.45%)
62,268,312 1,598,311 60,670,001
FHlB 8.85 03-25-92 2,000,000 2,000,000 2,000,000
FNMA 8.45 05-11-92 2,000,000 2,000,000 2,000,000
FNMA 8.45 07-10-92 2,000,000 2,000,000 2,000,000
FHl8 8.60 08-25·92 I. 000,000 1,000,000 1,000,000
FHlB 9.05 12-28·92 3,000,000 3,115,000 3,015,000
FNMA 7.35 02-10-93 2,000,000 2,071,000 71 ,000 2,000,000
SlMA 10,50 04-22-93 1,000,000 1,073,GOO 73 ,000 1,000,000
CHR:120:92
-~<,.----------,,~-------.""'!
Page 3 of 6
Per;od
Ean'lj!l!U
293,125
121,875
75,007
490,007
m,750
r",w e
-j-, :-:·')'S'.~ . 'LI;q~". ~ " .,' . '\ ~
' , .' \. :::,,~.
' <'
~ ,
!
i
I • , ,
,1
i
I
-'
, ,
~!i-P,~.:~,,_r.,~;~~,;~':.:~ ,.-.
,
,"
"
REPORT OF INVESTMENTS
Page ~ of 6
. " ..... , """t""'1 DECEMBER 31. 1991 '., '~,~ _ " ... __ ) '. ;'C'If\' ,:,-",,;,~~t\r . :_;.'k'#.:;<. ,-'. ',,-J;~"~'
Purchase
_'-.'_"'(' I Interest Maturity Par Market Unr@a.111ed Pric@ Period , ,,,' ~Ql!ill Bd~ Qi!~ :nill ~-Wn..1l&lll H~]i!1t~ ~a[llj[lg:i
U,S. AGENCY (Continued) f-:
, ,
. ')-, FNMA 10.75 05-10·93 1,000.000 1,080,000 149,063 930,937 "
,,',
FHLB 10.75 05-25-S3 1,000,000 1,081,000 82,B75 998,125 53,750 I
I . I FHLB 7.75 07-26-93 I,OOO,COO 1,045,000 46,250 998,750
fHLB 7.45 08-25-93 2,000,000 2,080,000 80,000 2,000,000
FHLO 7.95 09-27-93 1,000,000 1,048,000 56,125 991,875
FHLB 11.15 12-27-93 2,500,000 2,830,000 391,500 2,437,500 151,875
FHLB 1.55 01-25-94 2,000,000 2,099,000 95,B75 2,003,125 f . ,HL8 7.50 06-27-94 5,000,000 5,273,000 185,812 5,087,188 123,542
FNMA 7.45 07 -1l·94 3,000,000 3,159,000 122,203 3,036,797
FHLB (.) 7.95 12-26-95 3,000,000 3,165,000 165,000 3,000,000 119.250
FNHA (b) 7.10 02-12-96 2,000,000 2,090,000 98,500 1, 997 ,500
FNMA 7.60 01-10-97 2,000,000 2,122,000 lI9,I87 2,002,813
FLB 7.35 01-20-97 500,000 526,000 26,000 500,000
FNMA (c) 7.40 10-01-91 400,000 412,000 50,125 361,815
TVA (d) 7.35 04-01-98 400,000 421,000 21,000 400,000
FNHA (e) 8.20 07 -10·02 500,000 500,000 500,000
FHLMC (P&I) 10.00 02-01-09 429,9n 467,000 53,816 413,184 3,616
FHLMC (P&I Semi-Annu.lly) 12.45 09-15-09 227 ,000 264,000 18,375 245,625
GNMA (P&1 ) 9.00 11·15-16 ~~ ~3~,QQQ ...2.l...39l! ._8lL§91 ~
41,740,272 43,663,000 1,928,105 41,134,895 539,911
,
I
~ ~;. '
CMR:IlO:92
\', '"
• ____ ~_~__ -, "'r;'SlJ!2i
Sllliill
Matur~d ~nd Sold Investments
Treasury Notes (f)
San Francisco Federal (Coll.teral)
Sumltomo Bank (Collateral)
REPORT OF INVESTMENTS
DECEnBER 31, 1991
Interest Maturity
___ ~ Date
7.75 11-30-91
5.65 12-20-91
5.95 12-26-91
Par
~
Market
yalu.lL
Unrealized
~.in (loss)
Page 5 of 6
Purchase
Price
JW.~
Period
Earnir'IQs
11,875
8,946
59,B31
TOTAL INVESTMENTS (101l%) $l.JZ,728,272 $136,388,808 $3,526,416 $132,862,392 $1,203,462
(P&I) Pl"incipal and Interest. payments monthly. Investments with maturities of less than one year are vi\lued at cost.
Purc.hases s1nte last report are shown in bold type.
(a) FHLB has a callable option. beginning on 12·27-93,
(b) FNMA has a callable option. beginning on 02-12·94.
(c) FNMA has a c.llable option every interest payment due date (Apr .• Oct.).
(d) TVA has a ca 11 ab 1 e opU on every I nterest payment due date (Apr .• Oct.).
(0) FNMA has a ca 11 ab', e opt I on every 1 nterest payment due date (Jan .• Ju 1. ) ,
(f) us T·Noto due November 30. 19~J, paid 577,500 in intere,t less $5,625 in purchase premium.
CMR:J20:92
".,':" I .:.'
i i ~ .
~ ;i' ,/
•
•
~ork
Unit
Ifl.tl!re:st Income $
Effect;v~ Annual
Rate of Return
On lnvestments !\;
CHR: 120:92
"
INTEREST IHCO"E [CASH 5ASIS)
DeCEMBER 31. 1991
InCrf!iSe
To Date To Oat. (Oeceease)
1990-91 1991-9l 1991-92
4,901,981 5,409,736 507,755
B.78 8.00 (.76)
Pag. 6 of 6
\ Of
T,rget
-.l!rML To D.tt
9,800,000 55.20
8.20 97.55