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HomeMy WebLinkAbout0301.092• - June 18, 1992 THE HONORABLE CITY COUNCIL Palo Alto, C~lifcrnia INYESTIMEHI ACTIVITY REPD@T FOR KAY 1992 Members of t~e Council: This is an informational report and no Council action is necessary. INTEREST INCOME Interest income on an accrual basis for the month <If May was $873,112 and for the first ~leyen months of 1991-92 totalled 59.4 ~i'lion, 91 percent of the annual target of S10.35 million. On a ca,h basis, receipts totalled $940,201 for May 3nd $9.5 million year to date, ~9RTFOL!O TnI!' par value of the City's portfolio is approximately $148 mnlion~ which consists of S94 minion, or 64 percent, matLiring witnin two years. Most of the investments, $J22 million, or 82 percent~ are ir. United States G{lverr:~nt Securities. n"e ClJrr~nt market value of the portfolio is 101.4 percent of cast. lHIEREST RATES AND INVESTMENTS In May, staff invested $10 million in, three-year U. S. Agency Notes, at an average return of 5.91 percent. Staff also invested $2 million in a Certificate of Deposit at a rate of 4.45 percent. Short-term inter~st ri!tes have been declirdr.g, while the two-t<l-ten-year rates have remained baSically unchanged. The fallowing graph shows that for the last s;x months, investments in the two-to-three-years range optimize the rate of return. Staff has invested in two and three-year U. S. GoYernment Agent) securities, which general1y ha'lle paid .OS to .10 percent abo·.,.e Treasury Not'.:!s of similar maturity. CHR :301: 91 o ~ 0-:>: ~-------~----------------------- ! '''1 '''~-----------------# ! I ~ . :):; '-----L. __________ ----'--_ _ , ""':'r,te; 6 ~I()~·t~,> COIIPLIAllCE KITH IIIYESTlIM POLICY As Df May 31, 1952, the investment portfolio was in compliance with a11 elements of the City's investment policy. In June 1992, projections i~dicate receipts will be S14.9 .illion; expenditures will be S14.J million; and S22.2 mill;on in inllll':stments will mature. On the basis of the above projection, there-are sufficient funds to Meet Palo Alto's expenditure r!quirements for the month of June. Based upon the c:as.h flow projections prepared by Treasury staff for fiscal year 1991-'9" there are sufficient funds from rh'emH!S and matuf'ing investments to meet arl expenditure requirements for the remainder of tne fiscal year. !1l>I .... \lfuJ lly submitted, CMR:.301 : 92 \ \ o ~fPO/(i Of Il<Vt STIIEIi1'S Pi1,ge 1 or 6 ~y 31, 1992 ~ Par A."unt 05/31/9> (J!U.}t~ -JlC 1991'92 04/30/92 r..r~ ~ lifthin I mOnth $ 2Z,2Q 1'3 months 14.99 > S6 15.50 3'6 ""nths 6.00 4.05 6-9 IIIonth. 3.00 6.28 9'12I1onth. 15.50 2.03 11.14 3.49 1-2 Y"'s 8.0C S.40 8.38 "'Ithin l Ye'rs ~ ~ 7.33 94.24 ..l!Ji 2·S Years 63.55 > $35 65,2{J 5')0 Y&i1,r. 52.50 35.45 10'20 Yei,..s .00 33.86 20-30 Years ,61 .00 ··1 ·00 o,.~r Z Ye ... ---..JJ. ~ .44 53,83 36.35 --4Q rOTAL 34.80 ~~ 148.01 Jao.~ 10~ IGO.~ 1.0e'I/ Age ~t"'1 Fu:JY InV&st~nt Funa 15.00 10.13 Certlf!edte: Of DepOSit. .<0 10.4/ /I k c.Uater.liZed . .14 10.Co ·If c;::":rs. AeCfpt'~'es 6.15 . "("{la7 Paper ·00 6.98 5'}1 ~f Pil. Alta Bo nas 1.00 • ~O .6a 2.Zl) '. 't'ei$lJry ·04 ·70 U.S, Agency $3.50 ,03 ~ 36.]3 ·03 !~ 31.3$ TOT4( liB. a; ~ 100.0% lOa,; 100.~ H"ket v.7ue/C05( S150. 911M.~ 101.4: > 95% 101.3% t. R[PORr Of IJlVESl1IENTS IlAT 31, 1992 Interesl Maturity Pa. Market ~QYR!;t B;!!~ Ditt Y.i.l.n WlIl: lliillJ.lillIIS 1.o~1.A.enc.Y_lnvttlIlent furnUIO,l»l LAIr 5.38 06·01·92 15,000,00 15,000,000 Nutq.l fYD~ 'Q.l~~J Fidelity In,estmonts 3.18 06-01-92 100,000 100,000 Franklin Inv@stments 3.73 06-01-92 li!\!...2QQ J.2MQ2 200,000 200,000 ~leates~.!t.11.illl Sumltumo Bank (Collate'al) 4.30 12-29-92 3,000,000 3,000,000 Sumitomo Sank (Coll.teral) 4.30 01-06-92 2,000,000 2,000,000 Fidelity F~erol (Colloter.l) 4.50 03-03-93 3,000,000 3,000,000 Fidelity Feder.l (Collateral) 4_45 05-19-93 2,000,000 . .l.QQl!....QQQ 10,000,000 10,000,000 COITIIII'rc101 r.Me.L{Q.6m General Electric 4.25 09-25-92 1,000,000 978,986 CMR:301:92 ---------.~.~-.~-'-.--..,--.-.-.. -.-~-- Unrealized W!l.ll.2ll) Purchas.e Price JhlmL 1:;,000,000 100,000 lQMQ.q Page 2 of 6 ftccriJal 8 .. i, Earninos 65,000.() 323 .-lll. 200,000 635 3,000,000 2,000,000 3,000,000 2.000,000 10,000,000 1J,108 7 .. 406 11,625 _LLUO 32,858 978,980 3,660 . ~ l t '! '\ ~ \< • '.'. '," ' ___ ~_.~~ ________ ~;~~TI-'"..!.i!'.~,~ .. Pag. 3 of 6 REPORT OF INVESTMENTS MAY 31. 1992 Purchase Accrua1 Interest M.tur1ty Par Market Un,"ea11zed Price Bash ~ Rate Date ~ I'llI!.t.. Gi.!n Il!l~') Will.L htnjnos fll2 al~2 Im~rQ~ement ft20~~ (.Q~~I Sertes P IO.9S 07-02-93 38,000 38,000 38,000 347() ~,~. Ir.I~~r~ (a§.l~ Tr@asury Notes 8.38 06-30-92 7,000,000 7,014,453 7,014,4~J 48,854 T reasury Nob~s. B.l5 08-15-92 3,000,000 2,977,031 2,977,031 20,625 Treasury Notes 8.38 1J-15-92 2,000,000 2,009,375 2,009,375 J3,958 Treasury Notes 8.75 01-IS-93 2,000,000 2,010,000 2,010,000 14,583 Treasury Notes 8.25 02·15-93 4,500,000 4,509,375 4,509,375 30,938 Treasury Notes 8.13 06-30-93 3,000,000 l,ll7,DOO 101,062 3,015,936 20,313 , Treilsury Notes 8.00 08-15·93 7,000,000 7,282,000 293,815 6,988,125 46,667 I Treasury Notl!S 8.25 09-30-93 4,000,000 4,186,000 150.062 4,035,938 27,500 i Tre,'lSury Notes 7.75 !l-15-93 8,000,000 8,335,000 253,437 8,OBl,563 51,667 Treasul"'Y Notes 7.63 12·31-93 2,000,000 2,084,000 67,125 2,016,875 12,708 Treasury Notes 7.00 05-15-94 6,000,000 6,201,000 129,125 6,071,875 35,000 Treasury Notes 6.00 11-15-94 ~.Il...Q9,(J _5,051,000 J...ill ...2.~ ...ll....9,W ) 53,500,000 54,786,234 1,004,123 53.782,111 347,813 1 1 CMR:301 :92 . r , ... ,._,~,~'". . '.,...... . -,..~ t REPORT OF INVESTllfHTS Pag" 4 of 6 HAY 31. 1992 . "';J:' Purchase Accrual t ~,,~,: "', Inter!=!:l.t Maturity Par Nark.t Unrealized PJ'h:e Basts it:): '.\ ~ J11~ Dtt~ lIl.'It Y.Jl.lI!... Glin 'L2~~l ~!L Urn.\1lll1 .. , .. llili ... lli!IU..J46.15%) FIlMA 8.45 07-10·92 2.000,000 2,000,000 2,000,000 H,08n 1 ' FHlB 8.60 08'25-92 1,000,000 1,000,000 1,000,000 7,16 FHLB 9.05 12·28-92 3,000,000 3,015,000 3,015,000 lZ,625 i , FNMA 7.95 02-10·93 2,000,000 2,000,000 2,000,000 13,250 I SlHA 10.SQ 04·22·93 1,000,000 1,000,000 1,000,000 8,750 FNIIA 10,75 05·10·93 1,000,000 930,937 930,937 8,958 I FHlB 10.75 05·25·93 1,000,000 998,125 998,125 8,958 FHlB 7,75 07·26·93 1,000,000 1,034,000 35,250 998,750 6,458 ! FHL8 7.45 08-25·93 2,000,000 2,065,000 65,000 2,000,000 12,417 FHLB 7.95 09-27-93 1,000,000 1,040,000 48,125 991,875 6,625 FHlB IUS 12-27-93 2,500,000 2,763,000 3Z5,500 2,437,500 25,313 FHLB LSS 01-25-94 2,000,000 2,075,000 71 ,875 2,003,125 12,583 FHLB 7.50 06-27-94 5,000,000 5,209,000 121,812 5,087,188 31,250 FNMA 7.45 07-11·94 3,000,000 3,120,000 83,203 3,036,797 18,625 F~lB 6.70 08'25-94 8,000,000 8,183,000 (63,l50) 8,246,250 44,667 FHLB 6.58 09-26-94 4,000,000 4,076,000 (28,686) 4,104,688 21,933 , fHLB 5.94 Ot-Z7-95 6.000,000 6,038.000 19,875 6,018,125 8,Z~0 1 FHlB 6.45 03·27-95 a,ooo,OOO 8,128,000 63,000 8,065,000 43,00~) • fHL8 6.04 04-25-95 6,000,000 6,043,000 43,625 5.999.375 2i1.52 ! FHlB (.) 7.95 12'26-95 3,000,000 3,122,000 122,000 3,000,000 19,875 '~, FIlMA (b) 1.10 02·12-96 2,000,000 2,006,000 68,500 1,997,500 12,233 FNHA 7,60 01-10·97 2,000,000 2,071,000 68,187 2.002,813 12,667 t FLB 7.35 01-20·97 500,000 512,000 12,000 500,000 3,063 FHLHC (P&l) 10.0Q 02·01·09 385,037 418,000 49,369 368,631 3,210 FHlHC (~&I S~mi-Annually) 12.45 09·15·09 221,000 266,000 20,375 245,625 2,355 GNHA (P&l ) 9.00 11-15-16 _...lli...ZZ.! m,Q02 §.m ~Wll ----W..5.2 l 68,327,261 69,976,062 1,132,615 68,793,447 403,794 • • J CHR:301:92 .- -----.-"'-, .. '"~--~ ---_. ~"~ -,.---- , I ~ Mllurgd and Sold J~.ilJOOlll HIllA City "atlonal eonk (Collatera') sUII\lt_ 80nk Sum! tomo Bank TOTAL IH~ES1MEHT5(lO~) Inten~st Rate ~ __ ~. 8.45 •• 75 3.93 3.93 " REPORT OF INVESTMENTS Pogo ~ of 6 MAl 31, IS92 Purcftno Acrrual Maturity Par MarKet Unro.lll"" Price a .. ,. Date _ 'L~ .'IillIL ~lln-!.iJtul ltiliruJL ElrnjDll~ I 05-11-92 5.16'.0 05-19·92 S,OI • 05-26-92 5.604 05-16-92 3,223 SI43.065,261 SISO.929,Z82 $2,135,738 $148,792,544 SS37,llt 1 I i (P&I) Principal and [nterest payments monthly. Inv.stm.~ts with maturities of 1.ss than one y.or are ,.1u.d at cost. \ Purthl~es Slhte last report are show" in bold type. \a) fHlB ha •• c.ll.~l. option, beginning on 12-1.7·93. (b) fNMA h" • callable optlQn, beg,nRlng on 02-12-94. CHR:301 :92 \. INTEREST INCOME (4CCRUAL BAS!S) IlAY 31. un To Date Work 1990-91 To Date lln11 ('"h SUi,) 199H2 lotere,t Inc .... S S.86Z,75! 9.4]],003 Effective Annual tl:ate of R.eturn On !nyestow.lts S 8.60 7.83 Interest Bite' Ii Of Hay 31, J992 Prj .. Rat.: 6.5~ 3-oonth Tr •• sury Bill: 3-oonth Bankers Acceptan,e: 3-oont" Certificates of DepoSit: 2-year Treasury Not.: 2-year Agency: 00:301:92 3.75~ 3.81% 3.SOS S.25:1; 5.3S); Increase (Oecre ... ) 1991-91 (248,396) (.77) • P.~e 6 of ~ % Of Target li.r.9tl Ie pate 10,350,000 90.93 8.20 95.49