HomeMy WebLinkAbout0564.091---.~-.----"-'-----
December i2, 1991
THE HONORABLE CITY COUNCIL
Palo Alto, California
INVESIMHH ACTIVITY REPORT FOR NOVEMBER 1991
Members of the Council:
This is an information.al report anlj no Council actiDn is necessary.
I~TEREST I NCOHE.
Interest income (cash basis) for the month of November was 5664,837 and for the
first five mOr'1ths of 1991·92 tatall't'!d $4.2 milTion, 43 percent of tne a!1nua1
target of $9.8 rnillio~.
CURRENT PORTFOLIO
The par value of the City's portfolio is apprcximately 5135 million, which
consists of $104.0 million, or 77 percent, maturing within two years. Most of
the investments, 5104.2 million, alsc 77 percent, are in United States Goverr.m€nt
Secur\ties. The current market \,larue of the portfo1io is 102.2 percerlt of cost.
Staff is operating under an investment strategy far 1991-92 which rEco~mends
taking a slightly higher credit rlsk by purd,asing high quollty Sankers
Acceptances and high quality commercial paper wflen they provide a yield of at
least five basis points above Treasuries. Staff has compiled research on Bankers
Acceptances 2nd commercial paper and ide~tified the higher quality issuers. On
November 21, 1991 staff purchased the first Bankers Acceptance which was a $2.75
million Sumitoma Bankers Acceptan~e with a February 10, 1~92 maturity and a 4.99
percent interest rate.
COMFLIANCE WITH INVESTMENT POLICY
As of November 30, 19'91, the investment portfolio was in compliance with all
elements of the City's irwestment policy. In December 1991, pfojections indicate
receipts will be 518.2 million; expenditures will be $17.5 million; arid $21.2
million in investments win mature. On the b~'3is of the above projection, there
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win be sufficient funds to m<;;et Palo Alto's e;..pel'1ditlJre reqwirer;lents for the
month of December. Based upon the cash flow projections prepared by Treasury
staff for fisca1 year 1991-92, U1~re .... ;11 be sufficient funds from re\renues and
IUturii19 invest~ent5 to mp·.:t all exp€-nditure requirements for the remainder of
the fi seal year.
Respectfully submitted,
LALO PEREZ
Financial An,lyst
t. I --,~ t" . '-1.::._' ".l-lA '_~
tl4IlV HARRISON "~
Finance Director
Manager
CMR:S64:91
CY MATURITY
Within 1 month
1-3 months
3-5 mont~s
5-9 I!'1onths
9·11 months
)-2 years
Within 2 years
1·5 years
5-10 years
10-20 years
10·30 years
Over, years
TOTAL
BY UPE OF INVE$TMENI
local Agency fm'e:;tment Fund
Mutual Fund
Certificates of Oeposit:
Collat€ral ized
Bunker5 Acceptances
City of ra10 Alto Bond:>
U,S. Treisury
U.S. Agency
Mark.et Value/Cost
CMR,S64:9!
TOTAL
REPORT OF !NITSTMENTS
NOVEMBER 30, 1991
Page 1 of 6
Par Amount 11/30/91 1991·91 10/31/91
(In S Millionli -.l1~ LanfL ('Xl
S 21.10
15./5
12.00
13.00
1.00
!L5~
103.99
25.58
3.30
1. :i6
~
30 .I~
134.73
14 .00
.20
13.50
1.75
.04
61.50
!l.H
134.73
1137.8/134.9
IS.7
11.3
8.9
9.7
1.5
30.J
i7.2
18.9
1.4
.9
. .",Q
11.8
100.0%
10.4
.1
10.0
1.0
. I
46.4
.l..LQ
100.0%
> 56
> 135
100%
100';
ID2.2% > 95%
1S.3
1l.7
7.5
8.3
3.0
....1..2d
71.1
23.9
1.5
.9
~
17.9
100.0%
1l.4
.1
11.0
. 1
45.8
..l.l....2
100.0%
101.0%
:.n.. ' .,,,,,
iF I /
REPORT OF INVESTMENTS
NOVEMBER 30, 1991
Interest Maturity Par Market ~ ---.!iill_ Q!I1g 'l!J.JI! ~ !!JYfSIMENTS
l&~al AgentY Inv@stment Ful!!LUQ,~l
LAIF 6,64 IZ·01-91 14,000,00 14,000,000
Mutual Fun~ (O,15~
Fidelity Investm@nts 12-01-91 100,000 100,000 4,72
Franklin Investm€nts 5,05 12·01-91 lQQ.QQQ l!lQ..QQlI
200,000 200,000
~t1filli.s of peposj~p2-hl
San FranCisco Fed. (Callateral) 5,65 12·20-91 3,000,000 3,000,000 Sumitomo Bank (Collateral) 5,95 12-26-91 2,000,000 2,000,000 Sumitomo Bank (Collat~ral) 5.60 01-27 -92 4,500.000 4,500,000 Fidel1ty Fed, (Cullateral) 5,)5 04T27-92 2,000,000 2,000,000 City National Bank (Collateral) 4.75 05-19-92 _£..Q.I2Q.JlQQ ~Q'2Q
13,500,000 13,500,000
~J\m:.~ntes (2.~
Sumltomo Bank 4.99 02-10-92 2,750,000 2,719,496
Palo AltQ !"~r2vem.nt BQ"d, (,~
Series P 10.95 07-02-93 36,000 36,000
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PtJl"c:hiSe
Unr"@a11zed Pl"'ice Period
~~jn (LQu) ~~] iI!'U;~ L\rnJnos
14,000,000 0
100,000 218
liJ.Q.J)QQ ill
200,000 648
3,000,000 14,1 ZS
2,000,000 i "'.
4,500,000
2,000,000 1),500
~.QQ..Q.12Q
13,500.000 2S,mO
2,719,496
36,000
,
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REPORT OF INVESTMENTS
raye 3 of 6
NOVEMBER 30, 1991
Purchase
Int~rest Maturity Par Market Unrea l1z_ed Pf'1ce Period
SOURtf. Bate
U,S, Treasury /46,39%)
Q~t~ ~_lY.e. .'liliJL ~lJ.Qlll !!il.<n£-"-. EornlnQ,
Treasury Notes (e) 7.75 11-30 -91 2,000,000 2,005,625 2,005 ,625
Treasury Notes B.13 01-31-92 6,000,000 5,947,734 5,947,734
Treasury Notes 8.50 02-29-92 2,000,000 2,002,813 2,002,813 U Treasury Notes 8.50 03-31-92 4,000,000 3,98B,906 3,988,906
Treasury Notes a.38 06-30-92 7,000,000 7,014,453 7,014,453
Trui!.sury Notes 8.25 08-15-92 3,000,000 2,977,031 2,977,031
/ I Treasury Notfls B.38 11-15-92 2,000,000 2,009,375 2,009,375 83,750
Treasury Notes 8.75 01-15-93 2,000,000 2,083,000 73,000 2,010,000
Treasury Notes 3.25 02-15-93 4,500,000 4,669,000 159,625 4,509,375
Treasury Notes 8.]3 06-30-93 3,000,000 3,130,000 114,062 3,015,938
Treasury Notes 8,00 08-15-93 7,000,000 7,301,000 313 ,875 6,988,125
Treasury Notes a.15 09-30-93 4,000,000 4,200,00n 164,062 4,035,938
Treasury Notes 7.75 11-15-93 8,000,000 B,345,OOO 263,437 8,OBI,563 256,930
Treasury Notes 7.63 12-31-93 2,000,000 2,084,000 67,115 2,016,875
Treasury Notes 7,00 05-15-94 .Ji ... 21ll1...Q(LQ -~QQ W_Lill .J!...QI1.§n 70,000
62,500,000 63,944,937
y~ AG~~9'. (30. 98lU
1,269,311 62,675,626 410,680
fHLH 8.B5 03-25·n 1,000,000 2,000,000 2,000,000 ) FNMA 8.45 OS-ll-92 2,000,000 2,000,000 2,000,000 84,500
FNMA 8.45 07 -10-92 2,000,000 1,000,000 2,000,000
fHlB B.60 08-15-92 1,000,000 1,000,000 1,000,000
rHLB 9.05 12-28-92 3,000,000 3,121,000 106,000 3,015,000
FNMA 7.95 01-10-93 2,000,000 2,063,000 63,000 2,000,000
SlMA 10.50 04-22-93 1,000,000 1,068,000 68,000 1,000,000
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REPORT CF INVESTMEHts
NOVEMBER 30, 1991
Purct,~se
lot.r.st Maturity Par Market Unrealized PrIce PerIod
~ Rate Qat§ Yilltt !!ill... ~.QIl...fuID Balance hmI"Q'
U,S, AGENCY (ContInued)
FNMA 10,75 05-10-93 1,000,000 1,076,000 145,063 930,937 53,7S0
FHLB 10,75 05-25-93 1,000,000 1,073,000 74,875 998,12~ 53,750
FHlB 7.75 07-26-93 1,000,000 1,037,000 36,250 998,750
FHLB 7,45 08-25-93 2,000,000 2,064,000 64,000 2,000,000
FHLB 1.95 09-17-93 1,000,000 1,039,000 47,125 991,875
FHlB 12. 15 12-17-93 2,500,000 2,812,000 374,500 2,437,500 0 fHlB 7.55 01-25-94 2,000,000 2,078,000 74,875 2,003,125
/ -FHLB 7.50 06-27-94 5,000,000 5,I97,OOC 109,812 5,087,188
fNMA 7.45 07-11-94 3,000,000 3,114,000 77 ,203 3,036,797
! , HIlB (a) 7.95 12-26-95 3,000,000 3,140,000 140,000 3,000,000 I f fNMA (b) 7.70 02-1,~96 2,000,000 2,068,000 70,500 1,997,500
FNM 7.60 01-10-97 2,000,000 2,077,000 74,187 2,002,813 l , '
FLB 7.35 01-20-97 500,000 514,000 14,000 500,000
FNMA (c) 7.40 10-01-97 400)000 402,000 40,125 361,875
TVA 7.35 04-01·90 400,000 402.000 2,000 400,000
FNMA (d) 8.20 07-10-02 500,000 S02,000 2,000 500,GOO
fHLMC (P&I) 10.00 02-01-09 433,912 ~66,OOO 50,434 411,566 3,645
FHlMC (P&I Semi Annuillly) 12,4S 09-15-09 227,000 266,000 7.0,375 245,6Z5
GNMA (P& f) 9.00 11-15-16 ----.lM.d'!Z _illhQ1IQ _<.....1.ll2 815,5)1 ~
41,745,564 43,399,000 1,656,613 41,740,187 201,537
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Matured and Sold Investrn~~
fidelity reder.l (Collater.l) (f)
Westamerica (Collateral)
TOTAL INVESTMENTS
REPORT OF INVESTMENTS
NOVEMBER 30, 1991
l~t.r.st Maturity
Rate ...Qill
7.00 10-29-91
5.30 11-14-91
Par
V.lu~
Market
.I'iJJd.L
Unr •• lized
Wn..llilll
Page 5 of 6
Purchase
Pricf:!
DaJance
(100%) $134,733.564 $137.801,433 $2,928,124 $134,873,309
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Period
Earnings
10.999
15,458
o
$664,837
(P&J) Principal and Interest payments monthly. Investnlents with maturities of less than one year are valued at cost.
Purchases Slnce last report are shown in bold type.
(a) FHlB has a callable option, beginning on 12R27 R93.
(b) rNMA has a callable option. beginning on 02Rll~94.
(c) FNMA has a callable opt ion .every int(>rest payment dU(l date (Apr .• Oct.).
(d) FNMA ha~ a callable option every intere<;;t payment due date (Jan., Jul.).
(e) US T~Note dlJ~ November 30, 1991 mrlttJred on d weekend, the monies were received on OecE'mber 2. 1991.
(f) Fidelity Fpderal CD paid interest 011 11-1-91.
\
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Work
Unit
Interest Inc.ome $
Effect!v. Annual
Rat! of Return
On Investments %
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INTEREST INCOME (CASH BASIS)
NOVEMBE~ 3D, 1991
Increase
To Date To Date (Decrease)
1990·91 .J..2.2l2L ...l2.H:S-'--
3,991,544 4,206,274 213,730
8.68 7.92 (.76)
P,g.6of6
,; Of
Target
-.~ Jtllli
9, BOO, 000 42.92
8.20 96. ~g