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Home My WebLink About0214.093-" ~:.' < .. ' " • ~ < .... ~:. J;" March 18, 1993 THE HOtWRA6LE (In caU/ien. Palo Alto. California Members of the Council: This is i!;n informatior1.al report and no (ouncil action is necessary. INTEREST INtG~~ fnterest income on an accrua1 basi s for the month of Feb:u2ry 1';'35 $355,190 and for the first eight months of 1992 93 totaled 56,9 million, 66 percent of the revised annual target of 510.4 million. On a cash basis, receipts total1e::f 51.229,030 fot February, and $1.0 million yea'r to <:late. fne effective annual r~te of return On an accrual b~S~5 is 6.62 percent fer the current fiscal year. The portfolio has grown from $142 miilion in Febn.!3ry }99Z to $167 mil1il)o currently. This 18 percent growth during the last year has allowed staff to increase the earnings targets. CUP,RENT PGRTFG110 Tne pa.l'" valuE' of n~ CHy"s pl~,:'tfalic, is $:57 '1'111iCln, ~r,ich consists of $11'9 millio!l, 01" 71 percent, maturing '/II'ithin tlll'O y<;:ars. Most of t~e investmr:nts. 5130 million, or 78 perce~t, are in United St~tes Go~ernment Securities. The current ma.rk:et .... ahle of the portfolio is 101.4 percent of cost. The average life of the portfolio is 2.1 years. In February, staff invested 513.5 mill ion in medium,terrll U. S. Treas(.Ir,)' Notes, at a return of appra:.dmately 4.36 perc!:nt. Staff has p~aced funds in the State of California's Lac:.] ~.gency lnvestment Fund (lAIF) for the past seller-al years. C~rrently. the City's investment in lATF totals SI5 milli'Jl'I. the maximum investrnerlt allor;ed by the fund. The attraction to the fund has been its 1 iqljidity and better-lhar:-average rate of return compared to other one-day funds. LAff is widely ~5ed as a bench8irk by agencies throughout the State far rate of ret LJrr,. CMR;IH;9l i • I [ ' I I i __________ .. c .. _____ ----------"". _ j. -' • f: .; '-., .. ...... ".......,.,.,.......,..'-"---_. --------.~- J r"' '~ Page I of 6 REPORT Of !NVESTMENTS FEERUARY 28, 1993 Par AmIJLi~t 2/18/93 1992-9l J/ll/93 ( JruJ:1il.1. ___ U2t.U l~1 H.r.g_~ (~o 1 BV HATUR!T! ~ithi " month 25 , 1 Q 15,04 > $6 15c 62 J -3 Plonths 12. DO 7.19 9c 77 3·0 months i5.02 9.6{) 7.95 6-9 montos Il . DC, L79 BcS4 S-H months 6.50 3,90 a,B5 1·2 j€ars .l.Q.dQ 27.87 .JL~ Within 2 years 119.12 71.39 > 550 69.65 2-5 years 4\.;0 17.87 Z9,60 5-10 :teal'S .00 .co .ao 10-20 years .51 _ 31 .32 20-30 Y€ar's ___ .11 --..d.< -& Over 2 years 4L71 28,50 lOc35 TOT~l 16\,64 IO;J.D% 100% 100 .0% BY TYPE QF !HYEST~ENI Local Agency rilvestment Funj 15.00 8,99 9,15 Mutual Fund . 1 C ,06 < 15% .05 tert ificates of Deposit: Cell atera1 ized lS.OC Bc9S 10c38 Sankers Acceptances 6". DCI ).60 < 30% 3c66 Commercial Paper 1. 00 .60 < 15% 1. 83 City of Palo Alto !jones .02 .01 .01 U.S. Treasury 64.50 38.6£ 33.81 U,Sc Agency §.UZ JS c09 _.1J·03 TOTAl 156 ' 84 !OO,O~,~ 100% 100, or. Mark~t Value/Cost $l70.2jt67.9 101.1\%,) 95% lOLl% CMR:214:93 ----. , , I I , ~JlI,Iru l!illiIMENTS LQ£aLI\!i~~l'.Y.J nYes ~!J!!!l1LIMI1<L~_m LAIF 1!ll'"U.lL~~-'1lLl9,J!.~%l Fidelity Investments ~_~t.tricat"Ii'.~~tJ]~QQ..slL1!tTl!9~. Fidelity Fedf'r"iil (Collateral) Sumitomo Bank (Collateral) SlJmitolllo Bank (Collateral) StJrllltotno l'ank (Colhter.ll) I idellty Federal (Collateral) Fidelity Federal (Collateral) tQlI!lIl!r'C i aJ..J'Qlt'l!:-t;>1,,,46Dr, 1 General Electric CMR:214:93 -' _____ ~, __ ' ~~~' ... N_.'._._~_"_'__ ~i_"i:!:'f,'~', -:-,(',"'tW~'?~: -~7'r:,,~~ -.-.. ,,, .. -"~.-. " ';1M i, IJi i4 REPORT OF INVESTMENTS FEBRUARY 28. 1993 Interest Maturity -.R.~te_ --'.ill'L Par Y~lup Mnket Va.~ 4,0& 03-01-9] 15,000,00 15,000,000 l' 77 0] -ill .. 9] 100,000 }OO,OOO 4,50 03·03 -93 3,000,000 3,000.000 4.01 04-07-93 1,000,000 2,000,000 ],40 04-26·93 3,000,000 3,000,000 3,], 0506·93 l,OOO,OOO 2,000;000 4,45 05-19-93 2,000,000 2,000,000 3,BO 07-30-0] . ..MQQ...QQ.Q .--'-,.000, ®.Q 15,000,000 15,000,000 3,60 03-01-93 1,000,000 989,800 Uflrei) 1 i ze1 ~.llL1Loss) Porchase Price liEl~~ 15,000,000 100,000 3,000,000 7,000,000 3,000,000 2,000,000 2,000,000 "l&Iill.JlQQ l~,OOO.OOO 989,800 Pag. 2 of 6 Accrual Brtsis .E~"i!'l.92 51,OOO() 24~) 10,5QO 6,300 7,9' l,881 6,922 _.?-L~l 43,407 <) 2,800 , \ • 1 i 1 SOURJ;_E B-"nk._t,~=t.nc~_!.e1.(J,_@:a SUl1lltomo 8ank Sanwd Bd.nk ~~.l(L~ 1 t_Q .l.!!!ru:9_vJ~!I~_n_t~_Q-'Jd_s -----'-".Q.1~J SQries P !L~~_rJ:.~;t5V!:.LL3~.!Mi~) TreaslIry Notf'~ Treasury No~ «s Treasury ~ote,> Tl"[Iasury Notes Tn'ilsury Not(l<; Treasury Notes Treasury Notes Treasury Notes T."easury Notes Treasury Notes (*) Treasul"Y Notes CHR:214:93 REPORT OF INVEST"ENTS fEBRUARY 28, 1993 Interf'st Hat.urity rar Market --'!ilj;-,,_~.t~ 'LiLht~ Y.)ue 03-01-93 3.73 3,000,000 2,968,606 3.12 03-22-93 M.9.!LQQQ Z_~9..2L.l!i.Q 6,000,000 5.925,966 10.95 07·0293 70.000 20.000 8. JJ 06-30·93 3.000,000 3,015,938 B.OO 08·15-93 7,000,000 6,988.175 8 ." 09·30-93 4,000,000 4,031.938 .U 7,75 11·15· 93 8,000,000 8,081,563 7.63 12-31-93 2,000,000 2,016,875 5,38 04-30-94 2,500,000 2,553,000 7.00 05-15-94 6,000,000 6,244,000 6.00 11-15-94 5,000,000 5,180,000 5.50 02-15-~5 7,000,000 7,Z06,000 5.13 11-15-95 14,000,000 14,306,000 4.63 02-15-96 .,hOO0..,QQQ "'§~Q~5.....QQQ 64,500,000 65,672,439 .,~O~':~'._"!"~"'::' . ...:r~. ",' "vljJ \"n-'·ft·~~~"", , Poge 3 of 6 Purchase Accrual Unrealized rr~ce BaSis Gai~~5} .Ita 1 d!!~JL illn.im , t , 2,968,606 8.703. . I _Z_J2]~ L._@\..) i 5,925.966 15,983 ! ", 20.000 133 3,015,933 20,313 6.988, I" 46,667 4,03S,lJ38 17. \00 8,081,56] 51,661 1,016,875 12,708() (1,2J7) 2,554,297 1,120 17i\125 6,071,875 35,000 J28,437 5,051,56) 25,000 67,172 7,138,818 31,083 200,842 14,105.158 52,675 ~9j "'§~QQh'\Q.~ _hl]§. 605,873 65,066,566 313,469 .'.-/' " ,.,,.~ -~-------~~'--'--'. ';~--:'-~-------,-::".-• ..::~...:...-..!: ,-"=pa: L iS;a 2) .: p. Page 4 of 6 REPORT OF INVESTMENTS FEBRUARY 28, 1993 Purcnase Accrual InterE'st Maturity Par Market Unreal ized Price Basis .lliIill ~le DiUL .I'tlllil VallJiL ~~i~_Li.JI.lll ~~ I-!!"...!Ling~ '."-"";""'1 !!'.s.,_~,~HCY ill...Q9"1 " ., , SlMA 10.50 04·22-93 1,000,000 1,000,000 1,000,000 0,750 I' .-,. FNMA 10. 7~~ 05· 10-93 1,000,000 930,937 930,937 B,95~) " fHlB 10.75 05-25-93 1,000,000 99B,I25 998,125 B,9S ffllB 7.75 07-26-93 1,000,000 998,750 998,750 6,"~.q FIlLB ),45 08,25-93 2,000,000 2,OOO,O'JO 2,000,000 11,4 , , , FHlB 7,95 09-2/-93 1.000,000 991,875 991,875 6,6! fHl B 12.15 12-27-93 2,500,000 2,437,500 2,437,500 25,313 fillS 7,55 01-25-94 2,000,000 2,003,125 2,003,125 !2,583 FHlB 7,50 06-27-94 5,000,000 5,236,000 148,8!1 5,087,lS8 31,250 FNMA 7.45 07-11-94 3,000,000 3,1213,000 91,203 3,036,797 l8,fi7S flllB 6.70 OB-/5-94 8,000,000 8,335,000 88,750 8,246,250 44.66: FH,.B 6,58 09-26-94 4,OOO,OOG 4,165,00U 60,311 4,I04,iiB8 11,933 FlllB 5,94 01·?i-95 6,000,000 6,195,000 ]"16,815 6,018,125 29,700 FHlB 6.4\ 0327-95 8,000,000 8,375,!;OD 310,000 8,06~,.OOO 43,000 FHlB 6,04 04-25'95 6,000,000 6,112,000 Zl2,625 5,999,171 JV.1OO IHlB (b) 7.9\ 12-26-95 3,000,000 3,lJ6,OOO 136,000 3,000,000 19 ,87S fNMA (c) 7,70 02-12-96 1,000,000 2,091,000 93,SOC 1,997,500 17.033 FNMA 7,60 01-10-97 i,OOO,OOO 1,168,000 ]['\,187 2,OO1,BJ3 1;' ,fJ67 FlR 7,35 01-20-97 500,000 540,000 40,000 500,000 3,06:l:() FNMA 6.05 01-12-98 5,000,000 1,/47,000 149,341 4. 997 .6~J5 25,208 FHlMC (P&I) 10,00 02-01-09 )08,191 340,000 48.1l~ 191,88\ 1,\57 FHlMC (P&l Semi Annually) 12,45 09·15-09 103,000 23B,OOO 16,375 211,625 2.106 GNMA (P&I) 9,00 11-15-16 _[Q§.Jl.Q~ ___ .J.H .. \Jj)J! _V~.Eli __ DJ~L4 ~"':>..]02 65,nS,196 67,427,312 1,760,275 65,657,037 393,048 CMH:214,9) SQl1BU, t:'J!.Ll!!"cd a(l~3_g14-llil/estmill)j~- fNMA REPORT Of IHVES1~TS fEBRUARV 28. 1993 Interest Maturity gate _~<-- 02-10-93 0,-15,93 02-19-93 02-25-93 par ~ Market Wl!!'- U'I1realit ed ~~ul Purchase Price li~J.~I'KL r.g" 5 of 6 Accrual Ba:d:; llilLIll!U 4,417 . ../ l~,iIt~9 3,S36 S. (.33 Tre.l.s.ury Motes C~oeral Ele~tri~ SumitQIOO Bnnk (CQl late'l"a1) 7.% 8.25 3.35 1.90 1166,838,196 1170,135.517 11,366,148 1167,169,369 ~8~~.lqQ TOTAL INVf.STMENTS(lOO%) (o~ O\lB h"~ a o,11ablt' option. neqinrdn(] on 12-27-93, tc) HlM'" has" n1"\ahle option, heg i f1(11nq on 02--12-94, (*) Of UW 114 mill10n in U.S. Tr<"'.tlr.v Not", m.turing 0" 11-1',9,. ""Iy 15 ~11lion ."P· \lu<""""" ,n \,·"''' ... ·:1. th,> renlu-jl'linq 509 Iflll"\':'Ol1 were purc\1ased in J.WlJilry 1993. CMR:114:93 I .. >"" ...... ., : , \ i I" .. j,'." , , . \ , I l , f ! 1 o o IH1EREST INCOME (ACCRUAL BAS!S) r,SRUARY 28, j993 Intet·es.t Income Effective Annual Rate of Return On In'Jestments 'I To Date 1991-92 6,833,93; 7.95 To Dat€! 19 q 1 93 6,893,408 6.62 Interest Rates as of Fe~r{1ar"Y 28. 1993 Prime Rate: 3-month Treasury Bill: 3-month Bankers Acc~ptance: 3-4Ionth Commercial Paper: 3-month Ce;tificates of Depos~t: 2-ye-ar TreasL:ry Note; Z-year Ag-ency: Source: Wail Strocet Jourl'1a1 3/1/93 CMR; 214: 93 2 . 96~. 3. 04~~ 3.16% 3 . l:?j~ 4.00;, 4.13% -----..., ... -,.....-~." Increase {De-crease) 1~_~.2 -93 __ 59~476 (1.33 ) Page 6 of €- lO,400,COO 6.S .,. Of Target To Oat,= .' .