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HomeMy WebLinkAbout0534.092, t November 25, 1992 THE HONORABLE Cln COUNCIL Palo Alto, California INVES!!!EIII ACTiVITY REPORT FOR OCTOBER 1992 Members of tne (ouncll: ·-," This is an informational report and no Council action i~ necessary. INTEREST INCOME rntere-st income on iln accruaT basis for the month of O<:tobe'r was S863,338 and tor the f!Tst four ~nths of 19~2-93 totaled $3.4 million, 36 pe~cent of the annual target of .59.65 million. On a cish basis, receipts totalle": S485,500 fot October, and S3.2 million year to date. CURREIII PORTFOLIO The par value of the City's portfolio ;s S1SB million, which consists of Si22 million, or 77 percent, maturing w4Udn two years. Most of the investrnents 1 $116 rr.l1lion, .or 73 percent, ar€ irl United Sta~es Government Securittes. The current market value of the portfolio is ]01.4 percent ~f cost. INTEREST RA rES ~ INVESTMENTS In October, staff invested $3 million in a Ba~kers Acceptance, at a return Qf 3.17 percent. Interest rates increased sl 19hUy by the end of Octob€r, but there is no sign of an immi~ent sharp rise in rates. CMR:534:92 L 7 . . ,. i ,/'"\ r Ie r----~_tI--....l- I / ~ I f "'1--- I ,~ 'C9 i----t----r-----__ ----------7;!~fo , ,I I /'" \ / 1~8 :-~-~-----------)& ~----t I, V I ',! , ~, ~ 1. I rt '", I-----~, ---+--I-L __ _ ",.L-\,/ , I ----'1 I \ i ,--'------- " " ----+-----~~-. --------------T- 1N: The above 9~'aph of Industrial ProductiDn~ a xey economic indicato'!", is one measure of how th€ ecor'lQmy has performed during the 1 ist ccupl t= of years. Jt reflects a -double dip~ that did nnt appear in the Cross Domestic Product (GDP) measure Df total output of goods ana services. While it is still too earlj to tell if the economy is in a cons;ste",t up trend, sevenr:l of the leading indicators aT! moving up. The slight rlse in interest ~ates last month may oean that the financial markets believe the economy is in a sliQht ascent. COMPLIANCE WITH INVESTHENT POLICY As of October 31, 1992. the in'llestment portfolio was in compliance with all elements of the City's investm-ant policy. In November 1992. projections indicate receipts will be U4.7 million; expenditures win be 517.4 miilion and 520.2 million in investments \IIii11 mature. On tile JClsis of the above projec.tion, there are sufficient funds to meet Pa10 Alta's expenditure requirements for the month of November. Based u"on the cash fl oW' projections prepared by Treasury staff for fiscal year 1992-93, there are sufficient funds from the reven~es and maturing investments to meet a1l exper.diture requirements for the remainder of the fiscal year. ully submitted, ---J.,.- , AlOiPEREZ ---11nanciaT Analyst CHR:534:92 .:;-. . . l~~~ 7~~;;; '" . Finance Director ~ r~~r~~£~;~; Man:::r , ",'. , t , @ -7~ \ '-;. Page 1 of 6 REPORT OF INVESTMENTS OCTOBER 31, 1992 Par Amount 10/31/92 1992-93 09/30/92 U!!J. ~il H"n~1 -L~ Target '1>1 BY MA!!IIUTY il1thi. I ,"onth S 20,20 12.79 > $6 9.81 1-3 \Mnths 14.00 B.86 1.1Q 3-6 months i7.S0 11.08 12.58 6-9 months 11.02 6.98 6.45 9-12 months 14.00 B.86 11.63 1-2 years !L.2q ~ ..1L.ll Within 2 years 122.22 77.37 > S50 13.70 2-5 ye.rs 34.50 21.83 25.48 5-10 years .00 .00 .00 10-20 ye.rs .55 .35 . ,6 20-30 years ......Jl ~ _..d2 O~er , years 35.16 22.63 26.3~ TOTAL 157.96 100.0% 10M'. 100.0% @y rm Of !~nTMm loca1 ~enc, l~~e$tment Fund 15,00 9.49 9.68 Mutual Fund .20 .13 < 15% .13 Certificates of Deposit: Co1lator.1 ;zed 19.00 12.03 12.26 Bankers Ac,~ptances 3.00 1.90 < 30% .00 Commercial Piper 5.00 '.16 < 15% 3.23 City of Pal. ~1to Sono, ,02 .01 .01 U.S. Treasury 50.50 ,]. 97 32.58 U.S. Agency 65.26 iWl -.ll....U 10TH 157.98 100.0% 100% 100.0% M.r~.t Value/Cost SJ61.0/1SS.8 101.4% > 91r. 102.1% CMR:S31:92 rag" 2 of 6 AF.PORT OF INVESTMENTS OCTOBER 31, 1992 Purchase Ac(r •• l Int".$t Maturity Par M.rket UnrealIZed Prte. 0 •• 1, ~ Jill-JU.lL. YJlIIg Y.il.Y!l l!llILll&H) 1lillnl:L W:r!.tJ:m llilliJl1i!!.ll ~~.1 A9J!~'r !" •• ~tment Fund 12.49%1 LAlf 4.73 11-01-92 15,ooQ,OO 15,QOO,OOO 15,OOO,OOQ 6Q,O~ Mutu.l Fund (Q,ll%) Fidelity Invest~nts 2.fla 11-01-92 100,COO 100,000 JOO,OOO 249 Franklin Inv€stments 3.10 11-01-92 lQQ...2QQ lQhQ9.Q )~ ....l§a ., _{,t~;,,:. -200,000 200,000 ZOO ,000 517 Certificate, of Deposit (12,Q3~1 Sumltomo a.nk (Can.t.n1) 4.30 12-29-92 3,000,000 3,000,000 3,000,000 11,105 Sumitomo 6an< «(oll.ter.l) 4.30 01-06-93 2,000,000 ~.OUO,OOO 2.000,00Q 1,406 Fidelity federal (Collateral) 4.00 01-I1-93 2,000,000 2,000,000 2,000,000 6,889 { '~"i~;:~-~';i t \,y,~ , .. Fidelity federal (Collateral) 4.00 01-20·93 2,000,000 2,000,000 l,OOO,OOO ii,8S9 ! ':-(I-t.-,' .• ~~~:/:-;; .' ,. fidelity Feder.l (Collater.l) 4.50 03-03-93 3,000,000 3,000,000 3,000,000 11,625 r_<j' ~-:, . -". J Sumltnmo 8.n~ (Collateral) 4.05 04-07-93 2,000, 000 2,000,000 2,nOO,QOO 6,975 0 \, ,';\, , "i( ,''':'{ \ ~idelity Federal (Collateral) 4.45 05·19-93 2,000,000 z,OOO,OOO 2,000,000 1,&64 :' ~ , .. : '.' Fidelity federal «(011atoral) 3.80 07 -30-93 MQQ,QQQ 3.QQQ,QQQ M2Q.QQ2 3..lli :".t>.':"'v:-~·" ., . ,. 19,000,000 19,000,000 19,000,000 68,373 ~~.;t\iaT~;·:· ";~!' .. 1'" ' . . . ' I ~er~l.J. PoPeL!.J O,J~:r;1 Coca-Cola 3.20 11-24·92 3,000,000 I.a>"·· [;"." ..• f" . , 1 2,976,000 2,976,000 8,267 l:if;':'r ~~,~~;"~'r\~\: -, , G~neral £lectric 3.35 02-19·93 Z.QQQ,QQQ l..1§§..m l.2~!i.8lZ ~ 'iil, ~ .. ':',;, • .1' __ 1"'~-.. ., S,OOll.1lOO 4,94<,8n 4,94<,an 14,03& CHR:534:92 • ," '~:'~~',' --- - REPORT OF INVESTMENTS Page J Uf 6 OCTOBER 31. 1992 Purchase Accrual Interest Maturity Par Market Unrealized Price Basis SQIIlli. Rate Oate WlIll ~, Gain (Loss) 6liance farnino. ~ __ A~~~<e Ca) C1,90%) Sanwa Bank. 3,12 03-22-93 3,000,000 2,957,360 2,957,360 5.nO (!!) Wo Alto Improv~.Qn_!!LL_Ol") Series P 10,95 07-02-9) 20,000 20,000 20,000 183 I r~~'\v;;'}:': ';: -:~'; '. U,S. Treasury C~~ ',',.,,"!', ""1"'.1 ••. ~.r ,". .<',-'.:;,';>~ ,),.",.,,~,~, lI,:"~ , '. '~';~:(,ti*J~~\,t'~">-)1 "S·' ..... Treasury Not('ls 8.38 11-\5-92 2,000,000 2,009,315 2,009,375 13,958 ,.'/~:~";;~>T;'·}·.·'·: '.' Treasury Notes 8.7S 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 B.n 06-30-93 3,000,000 3,015,938 3,015,938 20,3lJ Treasury Notes 8.00 08-15-93 1,000,000 6,988,125 6,988,125 46,667 Treasury Notes 0.25 09-30-93 4,000,000 4,035,938 4,035,938 27,500 Treasury Notes 7.75 !l-15-93 8,000,000 8,323,000 241,437 8,081,563 51,667 ) Treasury Notes 7.63 12-31-93 2,000,000 2,085,000 08,125 2,016,875 12,70~. ", ,~:I< \J Treasury Notes 1.00 05-15-94 6,000,000 6,248,000 176,125 6,071,875 35.00 ' -',~ Treasury Notes 6.00 11-15-94 5,000,000 5,147,000 95,437 5,051,563 25,000 " Treasury Notes 5.50 02 .. 15-95 I,OOO.OQ.Q .LllL.Q.Q.Q .fl.ill) 7.126,828 ..&rull 50,500,00C 51,502,751 573,296 50,92!J,455 310,417 ;~~ii~(t{[;~t!/;: ' , ' ' ""l'~'\",il .J.: ;:\" ~~ :;'-' " ,;"l~ij::ll~H>!,\ t: 'o. ' CMR:534:92 REPORT OF INVESTMENTS Page 4 of 6 OCTOBER JI, 1992 Purchase Accrual Intere£t M.t"rl ty Par Market Unrealized Price Basis :&l.Iill Rate D~te WI!ll ~ G~iD (LQssl l!!ilDu... Ear~l!ll1> l!....S. AGENCY (42.illJ F~L6 9.05 12-26-92 3,000,000 3.015,000 3,015,000 22,625 FNMA 7.95 02-10-93 2,000,000 2,000,000 2,000,000 13.25~ SLMA 10.10 04-22-93 1,000,000 1,000,000 1,000,000 6.75 FNMA 10.75 05-10-93 1,000,000 930,937 930,937 8,958 FHLB 10.75 05-25-93 1,000,000 998,125 998,125 8,958 FHL8 7.75 07-26-93 1,000,000 998,750 998,750 6,458 ::-HlB 7.45 08-25-93 2,000,000 2,000,000 2,000,000 12,417 fHIB 7.95 09-27-93 I, ODD, 000 991,875 991,875 6,625 FHLB 12.15 12-27-93 2,500,000 2,732,000 295,500 2,437,500 25,313 FHlB 7.55 01-25-94 2,000,000 2,086,000 82,875 2,003,125 12,583 FHlB 7.50 06-27-94 5,000,000 5,241,000 153,812 5,0.37,188 31,250 fNMA 7.45 07-11·94 3,000,000 ),143,000 106,203 3,036,797 18,625 FHL6 6.70 08-25-94 8,000,000 8,305,000 58,750 8,246,250 44,667 [.\:. :. I, fHlB 6.58 09-26-94 4,000,000 4,150,000 4S,311 4,104,688 21,933 ,. t'-" FHLB 5.94 02-27-95 6.000,000 6,139,000 120,875 6,018,125 29,700 FHLB 6,45 OJ-27-95 8,000,000 8,300,000 235,000 8,065,000 43,000 fHlS 6,04 04·25-95 6,000,000 6,167,000 167,625 5,999,375 30,200 I, •• ,~ < FHIS (b) 7,95 12-26-95 3,000,000 3,100,000 100,000 3,000,000 19,875 () , , FNMA (e) 7.70 02-12-96 2,000,000 2,071,000 73,500 1,997,500 Il,833 t~,;;::\~);*t."h~~"';::'~< ',;, FNMA 7.60 01-10·97 2,000,000 2,126,000 123,187 2,002.813 12,667 FLO 7,35 01-20-97 500,000 527,000 27,000 500,000 l,063 FHIMC (P&I) 10.00 02-01-09 348,689 381,000 46,717 332,283 2,906 ."\"\'''''.1:-''::'\,-. d FHlMC (P&I Se',i-Annually) 12.45 09-15-09 203,000 237,000 15,375 221,625 2,106 GNMA (P&1 ) 9.00 11-15-16 _U'l....2!.1 m, 000 ~l.'l....iQl 741.~93 ......wJ.9. 65,2(,2,363 67,391,687 1,663,138 6~,728,549 404,092 , , ) ::',. "~~",'l!~'tQ;;:;JJ.:-~ \ ' , . , '-,,' CMR:534:92 .... ~;i:::: ... ,. t, ~;~,:-.," •. ;f~'f,~:'\~-' !';',' - iJJ~, iOURC£ Matured ilasi~ili.11!Y!tu.QJgnll Ikme REPORT OF INVESTMENTS OCTOBER )1, 1992 Int.rest Maturity --Rote Date P." ~ Market YllliL Unr •• l1,.d fnRil.H~l Purch ... Prlee ~ Paye 5 of 6 Ace",.] a •• ls £.imjJm lOTAl INV£ST"EHfS(IOO%) $157,982,363 S161,014,670 $2,236,434 $158,778.236 S86J,JlB {P&I) PrinGlpal illld Jnte~'est payments monthly. Investments with maturH1es of leH than (ine y(>ar .H'@, valued at cost. Purchase~ ~~~ce 1~st report are shown in bQld type. {it) Percent figure re-presents thf' dhcollnt rate. (b) fHLe nas • callabl. option, b.ginning on 12-27-93. (el f~MA has. callable optIon, hpglnning on 02-12-94. @ (' ,~ CMR:534;92 , .,' , , , .... ' .' ',," " , " , " ':, · .~-'" INTEREST INtOKE (ACCRUAL BASIS) OCTOBER 31, 199Z To Date increase Work 1991·91 Ta Date (O~crease) li!!i1 (Cas, Bos;" 1992·93 1992·93 Interest Income $ 3,541,437 1,446,287 (9S,IS0) Effective Annual Rate of Retur" On Investments % 7.90 6.81 (1.09) l.!1.U'rest Rates as of Octob~r 31, 1992 Pri ... Rate: l'manth Treasury Bill: 3-month Bankers Acc~ptance: 3-month CommerCial Paper: 3-month Certif~cates of DepQSit: 2-year Treasury Note: Z-jl~ar Agency: Source: Wall Street J\lurnal 11/2/92 CMR:534:92 6.00:1; 2.97% 3.29% 3.45% 2.91% 4.42% ..... ';': ... '/~:;;.};:}. . ..,. Page 6 of 6 :I; Of Target Target JQ.. Date 9,548,000 35.72 6.0 Ill.50