HomeMy WebLinkAbout0619.093I December 9, 1993
THE HONORABLE CITY COUNCIL
Palo Alto, California
C."' • /"
INVESTMENT ACTIVITY REpoRT FOR OCTOBER '$9~
Members of the Council:
This is an informational report and no Cou!"}cil action is necessary.
INTEREST INCQME
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Interest iJ:Come on an accrual basis for the month of October was $841,600 and for
the first four months of 1993-94 rota fed $3.4 miliion, Of 35 percent of the annual
target of $9.7 million. The effective annual rate of return on an accrual basis is 5.76
percent for the fiscal year.
CURRENT PORTFOLIO
The par value of the City's pantario is $182 million, which consists of .$149 million~
or 82 percent. maturIng within two years. Most of the investments, $140 million. or
77 percent. are in United States Government securities. The current market va rue of
the portfolio is 100.8 percent of cost. The average life of the portfolio !S 1-2 years.
INTEREST RATES AND INVEST!!IIENU!
In October. staff invested $2 million in Bankers Acceptances for five months at a
r6turn of 3.24 percent.
The fol!owing graph shows that the curreilt yield CUNe on U. S. Treasury Bills ranges
from 3 percent to 4.3 percent for investments between three months and three years.
This \s much Jower than the yields on December 31, , 991. The City portfolio has a
yield of 5.76 percent for the first four months of fiscal year" 1993-94. This higher
yield is due to !ong-term high yield investme~us in U. S. Securities made prior to 1992.
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Over the nex! several months, staff anticipates investing a high percentage of the
portfoITo ~n shan-term maturiti.es. New investments will reflect continued lower yHildS
due to low interest rates. As a result, the ponfofia ratum on investment will continue
to decnne, approaching its target of 5.S percent.
COMPIJANC!: WITH INVESTMENT poLICY
As of Octooor 31, 1993, the investment portfolio was in compliance with a!1 elements
of the City's investment policy. In November 1993, projections indicated receipts
wourd be .13.6 million. expenditures would be $11.8 million, and $23.1 miliion in
investments would mature. On the basis of the above plOjection, ttlere were sufftcient
fLJnds to meet Palo Alto's expend1ture requirements for the month of Novembe/.
Based upon the cash flow projections prepared by Treasur; staff for fiscal year 1993-
94, there are sufficient funds from the revenues and maturing investments to meet at!
expenditure requi/ements for t"'..e remainder of the fi5caf year.
ResJ)eCtfuny submitted.
/' .~. / c-:., ((,.
GORDON FORD
Treasury Manager
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BERNARD M, STROJNY
Assistant City Manager
CMA,619:93
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IL Y HARRISON
Finance Director
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Pa~e , o~ e
REPORT OF INVESTMENTS I
OCTOBER 31. 1993
Par Amount 10/31/93 1993-94 9/30/93
!.In $ Millions) i..">L ..I.i<lW. ~
BY MATURITY
Within 1 month S 23.10 12.68 > $6 11.10
1-3 months 1250 6.86 8.35
3-6 monm& 31.00 17.02 8.61
6--9 I'nIY.Im!; 14.00 7.69 15.61
9-~2 months 14.00 7.69 9.10 '-2 years :'-u1l1 ...2U!l. .1.l!M
Within 2 y~ars 148.60 81.59 > $50 81.92
2·5 years 32.50 17.84 , 7.51
5-10 ye.ar.s .00 .00 .00
10--20 year .. .43 .24 .2'
20-30 """'" .....&l -ll ....JJ
Over 2 years 33.54 't8Al 18.0B
TOTAL 182.14 100.0% '00% 100.0%
I): rlef: DE lNVE~~NT
Local Agency jn\'esrment Fund 15.00 8.25 8.08
1M utual Fund .10 .05 < 15% 1.40
Certif.cates of Deposit:
Co41atera~zed 19.00 10.43 10.23
Bankers Acceptances 2.00 1.10 < 30% 1.61
Commerciaf Paper 6.00 3.29 < 15% 3.23
U.S. Treasury 67.00 36.78 36.07
U.S. Agency Ll.Q! ~ ~
TOT"L 182.1' 100.0% 100% 100.0%
Mark.t Vaiue!Cosr $184.7'183.3 100.8% > 95% 100.9%
CMR:819:93
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AEPORT OF INVESTMElHS
OCTOBER 31, 1993
Purch .. ,. AC(:tU8!
Intareat Maturitv Par Market UnrfJoliad Pric;e S&aia
i~ JlliL. -.JlIlL l1IllIl ~ ~H' l!l!JilliL EI!!lilllll
~1:Mftru
Loefl Agency Ioyntm.!!flt Jund IS.24%J
lAIF 4.36 "·01·93 15,000,000 15,000,000 15,000,000 54,150
MIIlual F~nd (0,05%1
Fidelity Investments 2,11 1'·01·93 100,000 100,000 100,000 226
Certi1i~~li& m O'Q2:rtill'Q,13~}
Suf'flitomo B6nk (CoUatAr""l) 3.20 02·'8·94 3,000,000 3,000,000 3,000,000 6,261
Sacramento Blink (Coilete~illl 3.20 02·22'94 3,000,000 3,000,000 3,000,000 8,267
Sactiunento Bank (Collatttfal! 3.20 03·10·94 3,000,000 3,000,000 3,000,000 8,267
$ullIitomo Sank IConlliterall 3.40 03·28·94 2,000,000 2,000,000 2,000,000 5,856
Sacramento Bank ICo"ateral) 3.30 OH18-94 3,000.000 3,000,000 3,000,000 8,525
Sumitomo B.nk (Colltttewl) 3.3~ 04·26·94 3,000,000 3,000,000 3,000,000 8,525
Sl.lmitclY'tO Bank ICo\Iaterill) 340 09·29·94 --Z.QlLQ.QQQ &llQQ.Q.Ql1 2,000000 ~
19,000,000 19,000,000 19,000,000 53,563
Co.mm.rclal e'per (3~
ASflociatea of America 3.18 12·01·93 3,000,000 2,968,200 2,968,200 B,215
General Electric 3.29 01·31-94 3,000 000 2.95.0.650 2,950.li50 ..J!.m
6,000,000 5,918,850 5,918,850 16,714
CMR619:93
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REPORT OF INVESTMENTS
OCTOII£R 3" ,993
PutchaS8 Acc~jJal
Intersst Maturity Par Market Unrealized Pries Beais
.sl1~ ..lWL ...ll.IlL. lI.l!JIi 'lJ1lIl! ~I ~ ~iW.
Banktf5 A«e't)tilmce t, .10%)
Su",ltomo aank 3,20 03-'6,94 2,000,000 1,912,622 ',972,622 3,200
U.S. TreawfY (3_~
Treasurv Notss '/.15 11·15-93 8,000,000 8,081,563 8,081,563 51,667
Treasury Notes 7.63 12-31,93 2,000,000 2,016,875 2,016,675 12,108
T rfl.llflury Notes 5,38 04·30·90 12,000,000 12,252,071 12,252,071 b3,l50
Treasury Notsa 1,00 05·15·94 6,000,000 6,071,875 6,071,675 35,000
Tr8f1Suty Notes 6.00 11-16-94 5,000,000 5,123,000 11,431 5,051,563 25,000
Trealtury Notes 5.50 02·15-95 7,000,000 ./, I 58,000 19.172 1,138,928 32,083
Treasury NDtes 3.88 09-30-95 7,000,000 6,991,000 (2,984 6,993,960 22,604
Tf68&ur~ Nottl& 5.13 11·15·95 ",OOO,ilOO 14,311,000 205,842 14,105,158 59,702
Tre88uty Notes 4.63 02·15 .. 96 ~QQQ.l).QQ -.6..~ ..u..ili 6 QQ~,4Q§ ..n.J.l2
67,000,000 68,084,384 366,061 67,716,323 315,729
CMA:619:~3
PIOO 4 ale
REPORT OF INVESTMENTS
OCTOBER 31. 1983
Purchll~ Accrutl
jnterest Maturity Par Market Unt.alized ,..,... e •• i,
S9~ ...1!I!L ,JaIL !iJ!liI !iJ!liI G,In flosl' JlilInu.. Wnilll1I
U.S, AGENCY 140,lQ%1
FHLB 12,15 12·2]·93 2.500.000 2.437,500 2,437,500 25,313
FHLB 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
FNMA 7,45 07·11·94 3.000.000 3.036.797 3/JJ6.?9? 18.625
FHlB 6,70 08·25·94 8,000,000 8.246.250 8.246.250 44.667
FHLB 6,56 09,26·94 4,000,000 4,104,688 4.1D4.68S 21,93J
fHlB 5,9' 02·27·95 6.000.000 6, HJ1.000 142.875 6.016.125 29,700
FHLB 6.45 03·27·95 8.000.000 8,218.000 21J,000 8.065.000 43,000
'HlB 6,04 04·25·95 6.000.000 6.180.000 180.625 5.999.375 30.200
FNMA 3,84 05·02·9S 2.000,000 1,991,000 (250) 1,991.250 6,400
tHLB 3,79 05·26·95 J,OOO.OOO 2,978.000 15,594) 2.983.594 9,475
FNMA 4,32 06·0e·95 3.000.000 3.004.000 {9.593) J.013.593 10,800
TVA 4,1 J 08,15·95 7.000.000 7.000.000 2,187 6,9~7.013 24,063
'HlB {a) 7,95 12·26·95 3.000.000 3.015.000 15,000 3.000.000 19.875
FNMAlb) 7,70 02·12·96 2.000.000 2.020,000 22.500 1.997,SOO 12.833
FNMA 7.BO 01·10·91 2.000.000 2.171.000 16S.187 2.002.813 12.667
FLB 7,35 01·20·97 500,000 538.000 38.000 500,000 J.083
FNMA 6,05 01·12·98 5.000.000 5.223,000 225.345 4,997.G55 25.108
FHLMe {PBoll 10,00 02-01·09 249.729 214.000 40.678 233,321 2,018
FHlMC (P&I Semi-Annually) 1,2.45 09·",09 lB2,OOO 213,000 12,375 200,625 1,670
GNMA {PBoll 9,00 "·15·16 ~~ Jll _MLlIQQ -...l1.Il& _ aJ~ '~Q ~~ l:~ t~ jV· ;;"t\k_~, 111},:~:~<;:p'~.~-~.?/~· ';"
73.040.059 74.612,548 1.057.065 73.555.463 389.912
CMA:619:93
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REPORT OF INVESTMENTS
OCTOBER 31. 1993
Interest Maturity Par
SQJ./BCf Jlm.. JWt.. 'iiIJIlI
M81Ul11d artd Sold \nve:otmerJ!1
Sanwa Bank 3.08% 10·29·93
TOTAL INVESTMENTS $182,140,059
1f'&1) Principal and il11.teat payment. monthly.
InVl:1stmElnt6 wlth maturi.aes of Ie's thttn Ol1e year 8r~ valued s1 C08t.
Purchases since last r(l~ort are shown in bold tV?~,
(a) FHLB has B ceUable option, be:ginnlno on 12-27-93.
(b) FNMA hilS jJ callable option, beginning on 02-12w94,
CMR:819:93
Mark8t
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$184,688.4Q4
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Putch, •• Accrual
Unroallted Price Bat.ia
GIin..ll.lIul BIliW Wo!lgJ
7.443
$1,423,1.6 $IB3,265,25~ $841,600
INTERfSl INCOME iACCRUAL IlASIS I
OCTOBER 31,1993
Work
l1!li1
Interest lr--ccme • Erteetr.-e AnrlUal
Rata of Flet\lm
On inYltStmems %
In!!:tnt RiMl U 9f Oct?ber 31
Prime Kate;
3-month Trusury 8m;
3-month BankBfs AcC9pTanCe'
:knomh CommerciDi Piper;
3-monm Certificatu of Deposit:
2-yelf Trea.svry Note:
2·year Aqency:
To Date
~
3,446,287
6.81
Source: WaJl Street Journal 1 ! 10 1193
CMR;619,93
To Date
illU!
3,436,775
6.00%
3.08%
3.22%
3.30%
2.71%
3.95%
402%
5.76
Increase
lDecreasef
,993-94
{9.S 12i
11.051
,
%Of
T-ve<
!mw IQ.l1a
9,700,000 35.43
5.S 104.73