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Home My WebLink About0405.093, • July IS, 1993 THE HONORABLE CITY COUNCIL Pi~' Alto, California IKVtsTNENI ACTIVITY REPORT FOR JUNE 1993 Melbers of the Council: This ;s an 1nformatlonai report and no Council action is necessary. INTrusT 1!ICQl!f; Interest income on an accrual basis for the month of June was 5883,440 and for the fiscal ye.r of 1992-93 totaled $10.4 .11l1on, 100 percent of the revhed annual target of S10.4 &i!lion. On a casn basis, receipts totalled S684,849 for June, an4 $10.2 lli1lion for the fist.l year. The effective aMu.l rate of ret"rn OIl an accrual basis is 6.47 pertent for tne fiscal year. These figures are subject to audit lnd rna)' c'hilnge sH9htly for "vJ,blica.tion in the to!Apr~flensi'¥e Annual Financial Report. QJRJ!EI!T fOITFOLIO The par •• lue of the City's portfolio is Sial millior. which conSists of SI4B .illfon, or 81 pel"'cent t aatur1ng wit:-'in two years. Most of the investments, SUI .;llion, or 7B percent. are Tn Unit~d States Government securities. The current market v,lI.JE-of H.e portrol io 1 s 101.0 pertent of cost. The average 1; fe of th~ portfolio is 1.3 years. INIER£ST AATES AN!) IIWESTliEHTS In June, staff invested $2 mi11ion in a nine-month Certificate of Deposit. at I return of 3_40 percent; $3 m1l1icn i~ two-yea~ Government a9~ncy se~urities, at a return of approximately 4~07 percent; and Sl.S million for one day in a money ~ •• k.t outua1 fund at a return of approxiaat.ly z.a percent. During fisca.l y~a.r 199Z-93, interest ra.tes r~a.ined on the low side. The etonomy c.ontinued its stagnant position .1t;, very little signs of improvement. The following chal-t shows fiscal year 1992·93 rates of return for The Merri 11 lynch Rudy Asset Fund (whith is a recognized short-t ..... lOOney fund). Local Agency lnvestaont Fund (State of California Pool), two·year U. S. Tre.,ury Not. and tne CNR:405:93 • City's portfolio. Tile return on the City's portfol io is considerably higher til an the other instrument5 Dr fun~$. The fi~orib'e return is primarily due to hightr yield Inv.stlleot$ placed prior to 1993. The yield on the City portfolio "ill continue to dec'i"e as t~~se ~irlier investments ~ature. COMPLIANCE WITH IN~ESTMENT POLICY As of June 10, 1993, the investment portfQlio was in compl iance with all elements of the City's investment policy. In July 1993, projections indicate receipts and the 121.62 .11110n In aatu:rin9 investments will excel!d expertditure.s. On the b4sh of the above pr<ljection. there ;are sufficient f1.lnds to Bleet .Pilo Alto's expenditure requ1re.ents for the-DlOnt~' of JUly. Staff;s in t:.he process of 'o.;>l.tI09 I ne. cosh forecast for fiscal year 1992-.~ based on t. he newly approved budget. , i /'" Re5pe~tf"llY subloitte<!, ~ //IJ ~E:;=::, . -~/~1kh1i2. 1~~~1:' ~ financial Analyst FinaTH::e Director .I ~~ Manager I l/ CMR:405:93 • . ".' . [ , .~ 4" .,: . • Page I of 0 REPORT OF INVESTMENTS JUNE 30. 19n Par Amount 6/30/93 1992-,3 5/31/93 (I, ~ ~;]liQDil (I.I Tug!!:! 11.1 II MTII!!TY With!" I ""nth S 21,62 11.89 > $6 10.21 1-3 .. nths 20.00 II.M 9.03 3-6 lIIOr.ths 15.50 8.52 10.72 6-9 months 7.00 3.85 5.36 9-12 months 29.00 15.95 16.35 1-2 years iLQ.Q ~ .n..n Within 2 years 148.12 81.46 > S50 81.00 2-5 years 32.50 17.8< 18.32 5-10 years ,00 .00 .00 10-20 years .49 .27 .28 20-30 y.ars ~ _.39 ---.U Over 2 1ears 33.69 18.54 19.00 TOTAL 181.81 100.0lI. 100ll. 100,0lI. BY un OF INYillM!!! Local Agency In.esu.ent fund 15.00 8_25 8.46 Mutual Fund 2.60 1.43 < lSI. .06 Certificates of Deposit: Collateral ized 14.00 7.70 6.77 Bankers Acceptances 6.00 3.30 < 30l1. 3.38 C~rcial Paper 3.00 1.65 < 15\;; 1.69 City of Pal. Alto Bonds .02 .01 .01 U.S. Treasury 71.00 39.05 41.73 U.S. Agency ZQ...ll ~ ..1U.Q TOTAL 181.81 100.0lI. lOOt; 100.0lI. Market Value/Cost $184.7/182.9 101.0lI. > 95'; 100.5!S 00:405:93 reo: .. -· rig" 2 of 6 REPORT OF INVESTMENTS JUII£ 30, 1993 Purchau Accrual Interest Maturity Par Markot Unrealllod Price 8asls SI!Kt ___ lIdt Dm WJIl: WJIl: WlJ...i.Lw) UWn!aL Earninas INVESU!ENTS l.2g] -~~ l!rlut"'n~ E!III~ II.ISS) LAIF 4.53 07·01·93 I5,OOO,JOO 15,000,000 15,000,000 55,000. lIutYil [Y~ II .§~) fld.l\ty lnoo.tIOOnt$ 2.75 07·01·93 2,600,000 2,600,000 2,600,000 426 'lctltl~ltll ~! D!2gS1t 'Z.l~) Fidelity Federal (Collatoral) 3.80 07·)0·93 3,000,000 3,000,000 3,000,000 9,SOO S.cramento Sank (Collaterol) 3.20 02·22·94 3,000,000 3,OOO,OO~ 3,000,000 8,000 '\ .. Sumlt ... Bank (Coll.toral) 3,40 03-28·9. 2,000,000 2.GOO.OOO 2,000,000 567 • , Sacromonto Sank (Collateral) 3.30 0~·08·94 3,000,000 3,000,000 3,000,000 8,250 Sumltomo Sank (Coll.teral) 3.30 04·26-94 3,OOO,Q2J! 3,02J!,OOO 3.000.000 ..Llli .,c., 14,000,000 14,000,000 14,000,000 34,567 'I C""",,,rclal Paper (al (USS!. (a) 0 I General Electrfc 3.13 08-02-93 3,000,000 2.960,614 2,960,614 7,825 ! Bankors AoceDt.nc.~ (0) ·'···':'A~~,.:.'·%~;;I SumltOilOo Bank 3.10 09·30·93 1,000,000 2,961,508 2,961,508 7,750 .,-. ',.;':.1 Sanwa Bank J.08 10·29·93 3.QOO,OOO 2,954,57.11 2,954,570 l..1..I!.I! 6,000,000 5,916.078 5,916,078 15,450 CMR:405:93 . '- REPORT OF IflYESlIIDfTS Pig. 3 of 6 dUNE 30, 1893 PurchlSe Acer •• 1 Interest Maturity Plr Harkat Unrealized Price 8asi.,. ~ -kte Date .YilIIl! .I'JJJ!l... Gatn (loss) Balance Earnings fl12 A1tg IlRt2!lIInt IgD~1 '.21~1 Ser1e:s P 10.95 07·02·g] 20,000 20,000 20,000 IB3eW U,~. ItIIJY[~ (~2,~~1 Treasury Not@s 8.00 08-15-93 7,000,00(1 6,988,125 6,968,125 46,667 lrea!;ury Notes 8.25 09-30·93 4,000,000 4,035,938 4,035,938 27,500 Trea"ury Notes 7,7S 1).15-93. 8,000,000 8,081,553 8,OBI,563 51,667 .. . Treasury Notes 7.63 12-31-93 2,000,000 2,016,875 2,OlS,875 12,708 Treasury Notes 5.38 04-30-94 12,000,000 12,252,071 12,252,071 53,750 ','", Treasury Nobs 7.00 05-15-94 6,000,000 6,071,875 6,071,875 35,000 Treasury Notes 6.00 11-15-94 5,000,000 5,148,UOO 96,431 5,051,563 25,000 Treasury Hotes 5.50 02-15-95 7,OOU,OOO 7,115,000 36,112 7,138,828 32,083 Treasury Notes 5.13 11-15-95 14,000,000 14,293,000 181,842 14,105,158 59,792 Treasury Notes ~.63 02-15-96 .M~ 6,015,000 ...!!..ill ..M~ ..ll.lli I.~:,i¥"¥; . >~\. 71,000,000 72,113,447 365,045 71,148,402 367,292. d," CHR:405:93 ~ '"0/<>1. ,~""'. T~' _ ... 'I/ft--=- Pogo 4 of 6 REPORT OF INVESTIIENTS JUNE 30, 1993 Purchuo-Accrual Interest Haturity Par Harket Unreal1zed Price Bui. ~1 Rite Dlt~ ru.ut nlJIL GilD (L2U' hilna. £MlltnGS U,~, Ai~~! (~g,II~1 FHLB 7.75 07-26-93 1.000,000 998.750 998,750 6,458 FHLB 7.45 08-25-93 2,000,000 2.000,000 2.000.000 12,417 (:j fHIE 7.95 09-27-93 1.000.000 991.875 991.875 6.625 FHLB IUS 12·27-93 2.500,000 2.437.~00 2,437.500 25.313 FHL8 7.55 01-25-94 2,000.000 2.003,125 2.003.125 12.583 fHL8 7.50 06-27-94 5.000.000 5,087.188 5.087.188 31.250 FNI>III 7.45 C7-11-94 3.000,000 3.113,000 76,203 3,036,797 18.625 FHLB 6.70 08-25-94 8.000.000 8.263.000 16,750 8.246.250 44.667 fHL8 6.58 09-26-94 4.000,000 4.135.000 30.31Z 4,104.688 21.933 J fHlB 5.94 02-27-95 6,000,000 6.193,000 174.815 6,018.125 29.700 ! FHL8 6.45 03-27-95 8.000.000 &,333,000 268,000 8.065,000 43.000 FHlB 6.04 04-25-95 . 6.000.000 6.204.000 204,625 5,999.315 30,200 '. fNMA 3.8~ 05-02-95 2.000,000 1.990.000 (1.250) 1,991,250 6.400 i":-,4;':" "," ,,' fHl8 3.19 05-26-95 3.000,000 2.98,,000 406 2.983.594 9.475 FNMA 4.32 06-06-95 3,000.000 3,011,000 (2,593) 3,013,593 360 ! }t\~, "i:' fHLB (b) 7.95 12-26-95 3.000,000 3.067.000 67.000 3,000.000 19.875 \ '~':-: " fNMA (c) 7.70 02-12-96 2,000,000 2.057,000 59.500 1.991.500 12.833 I ". , .. "': . _~\"'~'-"-'. 'I , .,' FNMA 7.60 01·10-97 2.000,000 2,180.000 177.187 2.002.813 12,667 0 • ':' .• ' --' 1\ flB 7.35 01-20-97 500,000 540.000 40.000 500.000 3.063 FNMA 6.05 01-12-98 5,000.000 5.168,000 190.345 4.997,655 25,208 I FHLMC (PlI) 10.00 02-01-09 282,363 313.000 47.043 265.957 2.353 ,1\,1" " " j fHlMC (PlI Seml·Annually) 12.45 09-15-09 203,000 239,000 17.375 221.625 2,106 GNHA (PlI) 9.00 11-15-16 70M!! Z§O.O~~ Z§,~§Z m.m --LID l:i\~;'J:\.'t~i.c""'\ ,', . , ·1 70.188.377 72.088.438 1.391.845 70.696.593 382.384 ~ ...... ' '''''''' ~r'" -' ','n,"'-'. }.'~';:i~~/~:~· d!. ' CHR:405:93 " . t;,' .,1- P\;J, • ,"t, ','; Swac.E M.tured and Sold Inyestmtn11 Treasury Notes REPORT OF INVESTMENTS JUNE 30, 1 V93 Interest Maturity Rate Oat. 8.13 Par ~1lIil 06·30·93 Market WlL Unrellized G.'n CLgss) Purchase Price Bll.nc, ."'-'"".-~,",.--~~" ... Plge 5 of 6 Accrual Bash E.rntngs 20,313 (13 TOTAL INV[STM[NTS(IO~) $181,808,377 $184,698,577 $1,756,890 $182,941,681 $883,440 (P&I) ( a) (b) (c) Pr1ncipil ind interest piyments monthly. Investments with maturities of less thin one year are vilued at cost . Purchises since last report are show" in bold type. ft~ure represents the discount rate. FHlB has a call.ble option, beginning on 12.27.93. FNMA has. callable option, beginning on 02.12.94. CHR:405:93 1;,:,:1\ , t''- .';,." " INTEREST IHCOIIE (ACCRUAL BASIS) JUNE 3D, 1993 Wark I1!!.it To Date lID..:R To Oate 1992-93 Jnterest Income Effect;Ye Aonual Rat. of Return On Investments $ 10,295,115 10,389,278 7.86 6.47 Interast Rates as of J~ne 30. 1993 Pri .. Rate: 3-.ontn Treasury Bill: 3-.anth Banters Acceptance: 3 -.onth C_rc ia I Paper: 3-BOntn Certiflcttes of Deposit: 2-y.ar Treasury Note: 2-y.ar Agency: SOUt~.: Wall Street Journal 7/01/93 CMR:405:93 6.0Dl: 3.05% 3_1l!> 3.271> 2.73% 4.00J; 4.09% Increilse (Decrea •• ) 1922-93 94,163 (1.39) Page 6 of 6 10,400,000 6.5 :1\ Of Tarqet To Date 99.90 99.54