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Home My WebLink About0112.093- December 31, 1992 THE HONORABLE CITY COUNCIL Palo Alto. California INVESTNEHT ACTIYITY REPQRT fOR NQYEMBER 1112 Members ~f the tounc11: Thls is an informationa? report and no Council action is necessary. I!!TERE5T IHC!!!4E lnterest income on a~ accrual basis for the month ~f November was $865,894 and for the first fi",e I!l()nt~s of 1992·93 tot.led 54.3 million, 4S percent of the annual target of $9.65 million. On a cash basis, receipts totalled 5912,737 for N~~ember~ a~d $4.1 mi;lion y~ar to date. The effective annual rate of return on accrual basis is 6.81 percent for the current fiscal year. CURREKI PORIfOLIO The par va1ue of the City's pcn'tfolio is $157 mil1iofl" which consists of SI21 million, or 77 percent~ maturing within two years. Most of the investments, $114- million, or 12 perc.ent, are in Un~ted States Government Securities. The currel"\t market value of the portfoTio is 100.9 percent of cost. The a",erage life of the portfolio is 1.9 years. I!!TEREST RATES AH!LINVESTHE!!TS In November, $taff invested $3 million in a B~n~ers Acceptance, at a return of 3.77 percent and $1 m;lli~n in Commercial Paper~ at a return of 3.66 percent. Interest rate~ continued to increase slightly duri~g the month, as the f,nanc;al markets ha .... e reacted posit1vely to the upward movemEnt of the tGp leading economic indlcators. CMR.1I2;13 \ wb_;b Financial marhts ha-.:e reacted to the rece:nt slight increases in the overall economic indicators. This Mas been the case espec11l1y for ~hort·term interest rates. AftEr several months of decreases, the 3'month U. S. Treasur.y bill rate has rise" from 2.73 percent at tne end of September t~ 3.31 perece~t at the end of N~veffiber --i net increase of almost 60 basiC paints (one basis point equals 1/100 of one percent). By cor.trast. tne yield on 30'year Treasury bMds has risen only 8 basis points o'.'p.r the same time period, from 7.42 percent in September to 7.50 percent in No~ember. CD!!FLI A!IC E II ITH IHIESTHEMT lliill As of November 30, 1992, the investment portfo1io was in compliance with all elements of' the City's investment pol icy. In Dec€mber 1952. projections indicated receipts would be $19.4 mll1ion; expenditures would be S17.6 million and $21.2 million in investments would mature. On the baSis of the above projection, there are sufficient funds to m&et Palo Alto's expenditure reqUirements for tMe month of December. Based upon th~ casM flow projections prepared by Treasury staff fGr fiscal year 1992-93, there are sufficient funds from tMe revenues and maturing il1vestment.'i to meet ail e.xpenditure requirements for the remainder of the fiscal year. submitted, ~({;) ("~'---"~ Resp ctfully LAL P n ndal Analyst CHR:1I2:93 EMIL V HARRISON Finance Director ~, .. ~ Pag. I of 6 REPORT OF lNVEST"EHTS HOV~8E' 30, 1992 Par Amount 1l/30/9l 19S1-93 10/1l/9l BY ~TIJI\ITY (In I Milljons) ---ID.-__ Tirget !1' Within I month $ 11.20 13.51 > 56 12.79 1-3 ""nths 16.50 10.51 8.B6 3-5 mooth, 17.00 10.53 !I.oe 6-9 months 16.02 10.21 6.96 9·12 mo.th, 13.00 8.28 B.86 1-2 years 1L.2Q ll&2 2e.80 Within 2 yu.rs. 121. 22 77.22 > SSC 77 .37 2-5 years 34.50 21.98 21. 63 5-10 year, .00 .00 .00 10-20 years .54 _34 .35 20-30 year, ---..ill ~ ~ Over 2 years 35.75 22.78 22.63 TOTAL 156.97 100.0% IO'll: 100.0% II m~ QE I~EST!!OO local Agency Investment Fund 15.00 9.55 9.49 Mutual Fund .20 .Il ( 15~ .13 Certificates of Deposit: Col1ater.lized 19.00 12.10 12.03 Bankers Acceptances 6.00 3.82 ( 30% I. 90 Cu~rc1al Paper 3.00 1. 91 < 15% 3. 16 City of Palo Alto Sonds .02 .01 .01 U.S. Treasury 46.50 30.90 31. 97 U.S. Agencji 55.2; !L.ll ...n.)~ TOTAL 156.97 100.0% 100% 100.0% Market Valu'/~ost SI59.1/157.7 100.9% > 95% 102.2% CMR:112:93 REPORT OF INVESTMENTS Page 2 of 6 NOVEMBER 3D, 1992 PlJrch.-se A£:cfual Interest Maturity Par Mark@t Unrealized Price Oasis $WIKE Bdf: ---.l1i.tL_ '<'!ill lln'illIIEIill Yl.l.!w. GilD !~QH) ~J.jntL Earnlnqs L2~a1 ~gen~~ Inv.~t~nt Fun~ (~,~6~ LAIF 4,66 12-01-92 15,000,00 15,000,000 15,000,000 67,676 Mutual Fund {O.13~1 ,I , Fidelity Investments 2.88 12·01-92 100,000 100,000 100,000 237 Franklin Ir.vestments 3.05 12-01-92 J.OO.Jl22 .I.QM2Q lQQ.QQ2 _~l 200,000 200,000 200,000 489 I • Certificates o~lt (12.10%1 I: . -. Sumitomo Sank (Col10tera1) 4.30 12-29-92 3,000,000 3,000,000 3,000,000 10,750 Sumitomo Bo.k (Co11aterol) 4.30 01-06-93 2,000,000 2,000,000 2,000,000 7,167 fidelity Federal (Collateral) 4.00 01-11-93 2,000,000 2,000,000 2,000,000 6,667 L .' " Fidelity Federal (Colla~cral) 4.00 01-20·93 2,000,000 2,000,000 2,000,000 6,657 Fidel ity Federal (Co llatero1 ) 4.50 03·03·93 3,000,000 3,000,000 3,000,000 1l.250 Sumitomo Bank (Col'~teral) 4.05 04·07·93 2,000,000 2,000,000 2,COO,000 6,750 Fidelity Federal (Col1aterol) 4.45 05·19-93 2,000,000 2,000,000 2,000,000 7,417 fid,lity federal (Collateral) 1.80 07-10-?1 3,00Q,QOO --1...~ .J..Q.Qll&Q9. _M.22 '" 19,000,000 19,000,000 19,000,000 66,168 C"; I " ~ J ~rc1a1 'aper (aLU..ml . \'" Gen@ral Electric 3,60 03·01-93 1,000,000 989,800 989,800 1,100 Genl!'ral Electric 3,15 02·19·93 Z.QQQ,GGQ LJ6(;,1llZ ~J.Z ~ ~:,/,:;:,}i i,' 3,000,000 2,956,672 2,956,672 6 ,68~ CMR:1I2:93 ,~:;f_~~',,'~ -:'<r"\' __ , _/' . 'f!~;. ", -:',;;". ( ~'.' , ", . ',," ..... ~<.wr,.~:" -, • t.'" )' , ,', '. , . :~:' " __ '~" ,'" ,." REPORT Of INVESTMENTS Page 3 of 6 MOVERBER 3D, 1992 Purchase Accrua 1 loterest Maturlty Par Market Unrealized Price Basis llilli R.te JlliL WJm .I'ill!L Galn ILOUl Balance w.D..!.n9.i Bankers Accejltance I.) 13,82~ Sumlto"", Bank 3.13 03-01-93 3,000,000 2,968,606 2,968,606 3,108 Sanwa Bank. 3.12 03-U-93 MQM.Q.Q ZS~.W&l! l,m,J6Q IJlQQ / I 6,000,000 5,925,966 5,925,966 10.908 1 • .-f ~~lQ Alto ImR[Qvemeot 82n~~ (,91~l Series P 10.95 07-02-93 ~O.OOO 20,000 20.000 183 U,S, Tre~v (JQ.90%) Treasury Notes 8.75 01-15-93 2,000,000 2,010,000 2,010,000 14,583 Treasury Note~ 8.25 02-IS-93 4,500,000 4,509,315 4,509,315 30,938 Treasury Notes 8,13 06-30-93 3,000,000 3,015,938 3,015,938 20,313 Treasury Notes B.OO 08-15-93 7,000,000 6,988,125 6,988,125 46,661 Treasu:--y Notes 8.25 09-30-93 4,000,000 4,035,938 4,035,938 27,500 Treasury Notes 1.75 11-15-93 8,000,000 8,081,563 8,081,563 51,667 Treasury Notes 7.63 12-31-93 2,000.000 2,015,OGO 58,125 2,016,875 12,708 Tl"e~sur.Y Notes 7.00 05-15-94 6,000,000 6,210,000 138,125 6,071,875 35.000 Treasury Notes 6.00 11-15-94 5,000.000 5,111,000 59.431 5.051,563 25,000 Treasury Notes 5.50 02-15-95 z. 000 ,QQ2 -L.2l.!...QQQ (ll..82ll) .J,138,828 ~ 48.500,000 49,110,939 190.859 48,920,080 296,459 , I ' , CMR: 112:93 , I I'" , ", ,j",~. .',' '., '"'>.;./f :\_;"~}~:\ ~'-u-,~~{, " ~ • ~;tr~~:~e;,i'?~~~ , "." .. ,,~ .' . -.~ • Page 4 of 6 REPORT OF INVESTMENTS NOVEMBER 3D, 199Z Purc:has~ Accl'"lIa 1 Interest Matur1ty Par Market Unr.alized Pr1ce B.,15 ~ Jot. pate YJllL~ lllYL GalD (Loss) ~-[arnJnos ~.~. ~~~y !~l,~l~l FHLB 9.05 12·28·92 3.000,000 3,015,000 ],0]5,000 lZ,~2S FNMA 7.95 02·]0·93 2,000,000 2,000,000 2,000,000 13,250 SLMA 10.50 04·22·93 1,000,000 1,000,000 1,000,000 8,750 FNMA 10.75 05·10·93 1,000.000 930,937 930,937 8,958 FHLB 10.75 05·25·93 ],000,000 99B,125 996,115 8,958 , FHLB 7.7S 07·26·93 1,000,000 998,750 998,7~ ~,4S6 I '.'. ", i , , ! fHLB 7.45 08·25·93 2,000,000 2,000,000 2,000,000 12,417 ~ : '~ , . ' FHLB 7,95 09·27·93 1,000,000 99; ,875 991,875 &,625 ~ " .' .'. ,HLB ]2.1S It·V ·93 2,500,000 2,709,000 2II,500 2,437,500 25,313 " .. fHLB 7.55 01·25·94 2,000,000 2,O74,O{){) 70,815 2,003,125 12,5B3 FHL8 7.50 06·2]·94 5,000,000 5,198,000 lID,Sll 5,087,188 ]1,250 fNMA 7.45 07·11·94 3,000,000 3,112,000 B5,20] 3,036,797 18,625 FHLB 6.70 08·25·94 8,000,000 8,240,000 (6,250) 8,246,250 44,6~7 "-FHLB 6.S8 09·2~·94 4,000,000 4,120,000 15.312 4,I04,6B8 21.933 fHL8 5.94 02·27·95 6,000.000 6,08],000 64,875 6,018,125 29,nO I ' FHlB 6.45 03·27·95 8,000,000 8,ZlB,OOO 153,000 8,065,000 43,000 FHLB 6.04 04·25·95 ~,OOO.OOO 6,1l4,OOO 114,625 5,999,375 30,200 FHlB (1)) 7.95 12·26·95 3,000,000 J.06S ,OOQ 68,000 3,000,000 19,875 flmA (e) 7.70 02·12·96 2,000,000 2,051,000 53,500 1,997,500 12,833 FNMA 7.60 01·10·91 2,000,000 Z,085,OOO 82,187 l,OOl,813 12,6b7 FLB 7.35 01·10·97 500,000 519,000 19,000 SOC,OOO 3,06] FHLHC (P&I) 10.00 02·01·09 332,359 364,000 48,047 315,953 2,770 FHlMC (P&J Semi·Annually) 12.45 09·15·09 203,000 237,000 15,375 221, EZ5 2,106 GNMA (P&I) 9.00 11·)5·16 709,743 709,m !I.338 740,662 ---.hlll 65,245,102 66,888,687 1,177,399 65,711,l68 403,949 CMR:1l2:93 I.It:) .. ,~:~l,." '!~ .' ·;l,:"~,·,,t·· ~.~,-<I"-• 1',' ' . ,~ ~ " ;'-\" ; '0_ ,,-' y I ! ~' " ~ Matyr~g and SQld Investments Treasury Ntltes toca-Cola REPORT Of INVESTIlENTS NOY£IIIEl 30. 1992 Interest Maturity Rat. OBt. 8,18 II-]S-n 1,20 ]) -14-92 P~r filllg Market lilJIL U~r •• lI,.d Gain lLoml Purchase Price 1WiDa.. Page S of 6 ACC1"UaI Sasls L~ 6,~]9 6,40:0: TOTAL iNV(STMEHTS(IOO%) $156,965,102 $159,102,264 $1,368,258 $151,73~,006 $865,894 (P&l) Princlp.l.nd Intere,t payment, monthly, Inv.stments with maturities of l.ss than on. Y"r are valued at (O't. P.rch.,es sfnce la,t "epart or. sno,", in hold type. {it) Perceht t'1gure represents the <tlSCQUl'lt rate. (b) FHlS has. call.hl. optIon, beginning on 12-27-93. (t) fNMA h .. a «n.bl. optl.n, beginning nn 02-,2-94. (!lR:112:'ll ~,' !, ',,( : j. ", • " '\" INTEREST IHCOME (ACCRUAL BASIS) NOVEMBER 30, lig2 To Oat. Wer. 1991-92 To Oat. Unit (Cash Sa; is) 1992-93 Interest Income $ Effective Annual 4,206.274 4,312,181 Rate of RetlJrI"I On Invest~nts ,; 7.92 6.81 rnt~r€3t Rates as of NQwember 30. l~Sl Priae Rate: 3~mont" Treasury Bill: 3-month Bankers Acceptance: 3~month ~ommerc;il Paper: 3-month Certificates of Deposit: 2-Y!ir Treasury Note: I-year Agency: Source: Wall Street Journal 11/1/91 CMR: 111 :93 6.00% 3.11~ 3.68:\; 1.B8:t J,4)" 4.83% 1.91:t rntrease (Decrease) 1992-93 (95,150) (I.ll) .. Page 6 of 6 :t Of Target Target JJLDate 9,548,000 44.70 6.0 lI6.30