HomeMy WebLinkAbout0415.092I
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September iO, 1992
THE HONORABLE CITY COUNCIL
PaTo Alto, Californh
INVESTMENT ACTIVITY REPORI FOR JULY 1992
Members of the Council:
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This is in infonmationaT report and nc Council action ;s necessary.
INTEREST IHCOItE
Ii1tErest income on an accr~al basis f{lT the month of July was $867, J 85. g percent
of the annyal target [}f $9.65 JIIill ion. On iI cash bas;s~ receipts totalled
$758,594 for July,
CURREN! PQRTFOLIO
The par value of the Cit'yIS portf<llio is approximately $153 million, w.~h:t1
consists of $104 million, cr 68 percent, maturing .. it"-in two years. !"lost of the
investments. $1l6 million. or 76 percent, are in United States Government
Securities. The current market value of the portfoliQ is 102.1 percent of cost.
INTEREST BATES AND INYEsnMENTS
In July. staff invested $3 million in aU. S. Treasury Note, at return of 4.B2
percent. Interest rates have continued to decl ine due to the continuing
recession and the drop in Federal Furrds, Discount Rate and the Prime RatE during
t~e month of July_
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:--;!KE! i~DE.X HiSTOfi'(
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JApANESE FIIWICIAL MARKET
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The Japanese Finante Minister Tsutomu Hata, declared that Japa,n's fjnilnc;al
institutions face the most severe condHio~s since the war. Reflecting the
slowdown jn the Japanese economy. Tokyor s Nikkei stock index has dropped 63
percent --from 38,674 in December of 1989 to 14,309 in the middle of August of
this year, the Towest level since March 1986.
At the time staff first ment10ned the Japanese economy in the March Investment
Report, t~e City's portfolio contained S13 rnilllor. or 9.3 percent in Japanese
bank subsidiary commercial paper and bankers acceptance issues. As of July, the
Portfolio containeG $12 mil'lon or 7.B percent with $5 million maturing August
28. Staff will continue to monitor tne situation and make sure the banks
contin~e to meet the City's strict criteria for ;~vestments.
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COI!PLIN«:E I!llli INYESIJlE!!T POLICY
As of July 3.i, 1992 , the investment portfolio was in compliance witt'! all elements
of t~e City"s investment policy. In August 1992, .projecti~ns ~ndicated receipts
and investrBents whicb mature would exceed expenditures. On the basis of the
above projection~ there were sufficient funds to meet Palo Alto's e~penditure
requirements for tne month of August. Staff is in t~e process of comp1eting a
new cash forecast based on the 1992-94 two-year budget.
~ Asst. City ~anlger
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REPORT r. INVESTI!ENTS
JOlY 31, 1992
Par Amount 07/3l/92 1991-93 06/30/92
(In i Mill i~DSI 1%) Target_ (%1
BY IlAIlJRITV
WH~in I ""'nth S 14.20 IS.BI > $6 11.31
1-3 months I. 00 . &5 6.,B
3-6 months 16.00 10.46 5.26
6-9 ""nths 12.50 8.11 11. 51
9-12 months 8.02 5.24 6.58
1-2 Yi!ars .!Z..M '1.L11 ....z.M§.
Within 2 years 104.22 68.10 > 550 67.90
2-5 years 47.50 31.04 31.24
5-10 years .00 .00 .00
10-20 years .60 .39 .40
20-30 years ~ -.£ ~
Over 2 years 48.BI 31. 90 36.35
TOTAL 153.03 100.0% 100% 100.0%
BY TYPE OF INVESTMENT
local Agency Invi!stment Fund 15.00 9.BO 9.B6
Mutual F"nd .20 .13 < IS'; . 13
Certificates of Deposit:
Collateralized 16.00 10.46 10.52
Bankers Accepta~es 5.00 3.27 < 30% :'.29
Cooner,lal Paper 1.00 .65 < l~% .66
City of Pal. Alto Bor.ds .02 .01 .03
U.S_ Treasury 49.50 32.35 30.58
U.S. Agency ~ H ... U ..M.,.ll
TOTAL 153.03 100.0% 100% 100.0%
Market Value/Cost Sl56.9/1S3.B 102.1% > 95% 101.7%
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REPORT Qf IHVESTIIOOS
Page 2 of 6
JULY 31, 1992
Purcha$e Accrual
Interest Maturity Plr "arket Unreal1zed Prh:e Basis
~ E~$:~ Di~ Will ron GilD (Lus) a']ilDtl Eilrni-nos
JNVESTHENTS
~g.D~~ In~.~!~n\ [~O~ (t,I~1
~Alf 5,24 08"01-92 15,000,00 15,000,000 15,000,000 63,00.
!MIL>.Lf\Ind (0,13'1.)
Fidelity Investments 3.28 08-01-92 100,000 100,000 100,COO 288
Franklin Investments 3.37 OB-OI-92 ll!1MQl! l.QO....QQQ 1JI~ --ill
200,000 200,000 200,000 582
Cert1flcallL2.f Depos'~.~
Sumitomo aank (Collateral) 4.30 12-29-91 3,000,000 3,000,000 3,000,000 11,108
Sumitomo Bank (Collateral) 4.30 01-06-93 1,000,000 2,000,000 2,000,000 7,406
Fidel ity federal (Collateral) 4.00 01-11·93 2,000,000 1,000,000 2,000,000 6,889
Fidelity federal (Collateral) •. 00 01-20-93 2,000,000 2,000,000 1,000,000 6,889 () Fidelity federal (Collateral) 4.50 03-03-93 3,000,000 3,000,000 3,000,000 ll,625 "." ','j'l:OC"~J ... ~'l:tf-,,[!:,·:,-~';~,!,~ SumitQmo B.n~ (Coll.teral) 4,05 04-07-93 2,000,000 2,000,000 2,000,000 6,975
Fidelity federal (Collateral) 4,45 05·19-93 .1., QQQ. QQQ Z.QQO,Q22 Z,QQQ,QQQ ...I..M! 1·"li'!{":lli'!~I'\'_"I.~_ ~~ -.: ". ':,'"
16,000,000 16,000,000 16,000,000 58,556
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Bankers A".~c. (3,Z7J[l ,-'~. <J'
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Sfl,m~a Bank 3.89 08-28·92 5,000,000 4,96B,3£9 4,968,369 16,619 , \,:".
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REPORT OF IHYESTM~S
JULY 31. 1992
Purchase Accrual
Jnterest Maturity Par Market Unrealized Price Bash
~ Rate Pate ~ '1.U.l!L Gain (Loss) Bahnce illnlnq,
~r~l., r!~[ (2,6~~)
G@neral Electric 4.~S 09-25-92 1,000,000 978,986 978,986 3,660.
Pa' 0 Alto Imurovement_Bon4s {,lJUl
Series P 10.95 07··02-93 20,000 20,000 20,000 193
U,S, Ir~.sur~ {~2.35~1
Treasury Not,es 8.25 08-15-92 3,000,000 2,977,C31 2,977,031 20,625
Treasury Notes 8.38 1]-15-92 1,000,000 1,009,375 2.009,375 13.950
Treasury Notes 8.75 01·IS·93 2,000,000 2,010,000 ~,OIO,OOO 14,583
Treasury Notes 8.25 02-15-93 4,500,000 4,509,375 4,509,37S 30,938
Tr@ilsury Notes 8.13 06-30-93 3,000,000 3,015,938 3,015,938 20,313
Treasury Notl=!s 8.00 08-15'93 7,000,000 7,300,000 3I1,875 6,988,125 46,667
Trea~ury Notes 8.25 09-30-93 4,000,000 4.199,000 163 ,06~ 4,035,938 27,500
Trea~ury Notes 7.75 I1-J5-93 8,000,000 8,378,000 296,437 8,081,563 51,667\,69
Treasury Notes 7.63 11-31·93 2,000,000 2,097,000 80,115 2,016,875 12,70S'
Treasury Notes 7.00 05-15-94 6,000,000 6,118,000 206,125 6,071,875 35,000
TreilS'.lry Notes 6.00 11-15-94 5,000,000 5,152,000 100,437 5,051,563 25,000 lEi~"i"'V'" '" .'., ..... ,
Treasury Notes 5.50 02-15·95 ~Q..llQll M~MQQ ~....m .h.Q4.J...lli ~ ... ','vN, \!\' .'.:' . "
49,500,000 50,978,719 1,161,608 49,817,1)1 308,126
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REPORT OF IH¥ESTMEMTS
rage 4 of 6
JULY 31. 1992
Purchase Accrual
Interest Maturity Par Harkot Unrealized Price 8as1s
~ Rat!! Qn~ ~ :ul.I!L Wn.Jiutl ~L Ucn1Jw.
~EHCY (43.33%1
FHLB &.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 22,62
FNMA 7.95 02-10-93 2,OOe,Ooo 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
fHMA 10.75 05-10-93 1,000,000 930,937 930,937 8,958
FHLB 10.75 05-25-93 1,000,000 998,i25 998,125 8,958
FHLB 7 75 0/-26·93 1,000,000 998,750 998,750 6,458
FHLH 7.45 08-25-93 2.000,000 2,069,000 69,000 l,OQO,QOO 12,417
FHLB 7.95 09-27-93 1,000,000 1,043,000 51,125 991.875 6,625
FHLB 12.15 12-27-93 2,500,000 2,767,000 329,500 2.437,500 25,313
FHLB 7.55 01-l5-94 2,000.000 2,097,000 93,875 2,003,125 12,583
,\ ,~ FHLB 7.50 06-27-94 5,0<10,000 5,266,000 178,812 S,087,IB8 31,250
FNHA 7.45 07-11·94 3,000,000 3,157,000 120,203 3,036,797 18,625 • FHLB 6.70 08-25-94 8,000,000 8,320,000 73,750 8,246,250 44,667
FHLB 6 S8 09·Z6-94 4,000,000 4,136,000 31,312 4,104,688 21,933
FHLB 5.94 Q2-27·95 6,000,000 6,158,000 139,875 6,016,125 29,700
FHLB 6.45 02·27·95 8,000,000 8,l95,OOO 230,000 8.065,000 43,000
',;' FHl8 6.04 04·25-95 6.000,000 6,174,000 174,625 5,999,375 30,200 () FHlB (a) 7.95 12-Z6-95 3,OGO,OOO 3,150,000 150,000 3,000,000 19,875
FNMA (b) 7. 10 02-1Z-96 2,000,000 2,098,000 100,500 1,997,500 12,833
FNMA 7.60 01·10·97 2,000,000 Z,138,OOO 135,187 2,002,813 IZ,667 ('; .. .I .... ~,'.,.v., .. ' FIB 7.35 01-20·97 500,000 529,000 29,000 500.000 3,063
FHlMC (P11) 10.00 02·01·09 369,110 400,000 47.296 352,704 3,126
FHI.IIt (rU Semi -Annually) 12.45 09-15-09 227,000 264,000 18,375 245,625 2,355
GNHA (P&I) 9.00 11·15·16 113,424 759.000 ---.1!Ml 744,343 ~ Sl\,Y~~!!X,'i{, j
66,309.534 68,762,612 1,987,092 66,77S,72Q ~ll, 755
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SWill
Hatured and Sold Investments
REPORT OF INVESTMENTS
JULY 31, U9Z
Into rest Maturity
~1ll __ ..Jlill Par
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Market
.'i.il!a.
Unrealized
~in !lossl
Purchas~
Pr1c~
»ilinll
40
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Accrual
8asis
Earnings
FNHA 8.45 07-10-92 4,694 .,
TOTAL [NVESTMENTS(IOO%) $153,029,534 $[56,908,886 $3,148,700 SI53,7bO,I86 $867,185
(P&I) Principal and Inter@st paymen!s monthly. Investments wHh matur1ties of less than one year ar@ valued ~t cost.
Purchases since last report are shown in bold type.
(a) FHL8 has a callabl. option, beginning on 12-27-93.
(b) FNHA has a callable option, beginning on 02-12-94.
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INTEREST INCOME (ACCRUAL BASIS)
JULY 31, 1992
To Date
\fork lS91-92
Unit (CasM Basii)
Interest Income S 1,406,842
Effective Annual
Rate of Return
On Investments " 7.93
Interest Rates as of Ju1y 31, 1992
Prime Rate!
3-month Treasury Bill:
3-mont~ Bankers Acceptance:
3-month ,.,tifie.tos of Deposit:
2~year Treasury Note:
2-year Agency:
Source: '11.11 Street Journal 8/3/92
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To Oate
1991-93
867,185
6.92
6.0~
3. Is,;
3.27"
2.97\
4.42"
4.53"
lnC'i"ease
(Oecreas.)
1~92-91
(539,657)
( 1. 01)
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" Of Target
Iir._t To Pate
9,648,000 e 99
6.0 !l5.33