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Home My WebLink About4.07 CTInvestRpt2-94 L e city Of Dublin e city Treasurer's Listing of Investments As of Feb. 28, 1994 This listing excludes Dublin Boulevard Extension Assessment District and cOP reserve fund balances, which are held by third party Trustees and invested in accordance with the financing legal documents. ... TYPE OF INVESTMENT POOLED INVESTMENTS MATURITY ~ Value 38.4% of Total portfolio State of California LAIF MUTUAL FUND 9.2% of Total Portfolio Dean witter Reynolds U.S. Govt Securities (2) RM.e. $7,075,000.00 (2) CERTIFICATES OF DEPOSIT 2.7% of Total Portfolio $95,000.00 5.250 $99,000.00 5.560 $98,000.00 5.250 $99,000.00 5.200 S100.000.00 6.010 $491,000.00 GVRNT IAGEHCY SRCURITIES (4) 49.7% of Total Portfolio rtrst Republic T & L Investors Thrift & Loan southern Calif FS&L standard Pacific Svgs World savings 9/14/98 7/30/98 9/14/98 7/30/98 1/29/98 Bank of California(Safekeeping) FHLB 8/26/96 FNMA 6/10/97 FNMA(Callable 5/13/96) 5/13/98 FHLMC(Callable 9/09/94) 9/09/98 FNMA(Callable 10/15/96)10/15/98 U S Treasury Note 10/31/98 FHLB{Callable 11/03/94)11/03/98 FHLB(Callable 1/12/95) 1/12/99 FNMA{Callable 2/12/96) 2/12/99 FNMA(Callable 12/10/96)12/10/98 Total Investments - per books $490,000.00 $1,205,000.00 $500,000.00 $500,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 $2,000,000.00 $400,000.00 Sl. 000.000.00 $9,095,000.00 7.700 9.200 5.250 4.950 4.875 4.750 5.110 5.460 5.550 5.310 INVESTMENT QQat Yield $7,075,000.00 (I) 4.270% $1,699,995.50 (3) 5.948% $95,000.00 $99,000.00 $98,000.00 $99,000.00 S100.000.00 $491,000.00 $490,000.00 $1,281,000.00 $495,000.00 $498,359.38 $999,375.00 $984,687.50 $1,000,000.00 $2,000,000.00 $399,750.00 S999.531.25 $9,147,703.13 $18,413,698.63 -------------- ------------ 5.250% 5.560% 5.250% 5.200% 6.010% 5.457% 7.700% 7.066% 5.482% 5.020% 4.889% 5.101% 5.110% 5.460% 5.564% 5.311% 5.631% 5.133% ------- ------- Footnotes (1) Interest rate shown is quarterly average as of February 28, 1994. (2) As a mutual fund investment this can be liquidated at any given time, however, the asset value will fluctuate based upon the current market rate. The investment strategy assumes that $1 million will be held through July 8, 1999, and $700,001 through September 10, 1999 without a deferred sales charge. Value is calculated at original cost. (3) The yield on a mutual fund fluctuates with the share price of shares currently held. The yield presented is an annualized amount based upon the eight months of dividends at the share price as of 2/24/94. (4) Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corp (FHLMC) are lawful investments for local governmental agencies. ~. e e CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: March 14, 1994 MlLCity Treasurer's Investment Report:February 28, 1994 llO-(prepared by: Paul S. Rankin, Assistant City Mgr) EXHIBITS ArrrACHED: (iisting of Investments as of February 28, 1994 RECOMMENDATION: ~;ceive Report SUBJECT : DESCRIPTION: The attached listing details the City'S investments as of February 28, 1994. The total amount invested is approximately $44,800 more than shown at for the end of the previous month. This minimal increase will be more than offset by disbursements approved in the month of February, but not processed for release until the first week of March. overall, the total yield on the City'S portfolio for the month of February has decreased slightly from the rate shown for the month of January ( 5.133% vs. 5.172% respectively). This is primarily the impact of declining yields for LAIF and the Dean witter Mutual Fund Investment. As noted in previous reports the market value of the Dean Witter investment will fluctuate. As a public agency, the audi tors have the City record all investments in the city's financial records, based upon the purchase cost. Typically a government is buying the investment and holding it until maturity. Therefore, fluctuations in market value from JlQnth to month are not a significant issue. On an annual basis the Notes prepared to accompany the Annual Financial Audi t, disclose the market value as of June 30th. However, no adjustment is made to the City Financial records, unless the investment is actually sold. This is true for Mutual Funds as well as individual Agency Notes. With the recent fluctuations in the interest rates on Federal and Agency Bonds, the nMarket Value n of the Mutual Fund investment has also fluctuated. The city originally purchased this investment at an average share price of $9.48. The share price as of the date of the February Dividend was $9.16. In the event that the recent rise in interest rates is only temporary, the fund should have an increase in share price. In the month of February one new $ 400,000 investment transaction was completed. The City replaced a $400,000 Federal Farm Credit Bank (FFCB) Note, which was called prior to its final maturity. The FFCB Investment had a maturity date of February 1998 and was callable February 1994. The investment had a yield of 5.80%. As a replacement, the City purchased an original issue Federal National Mortga9'e Association (FNMA), five year note. The investment has provis1ons for an early call in February of 1996. The instrument was purchased at a discount and will yield 5.564% to maturi ty . This investment exceeds by approximately two weeks, the targeted use of invested assets to pay all outstanding Civic Center COP's in 1999. Given the small increment, it did not appear that this would create any problem with the cash flow needs of this goal. This transaction allowed the City to continue to retain approximately half of the total invested portfolio invested in Federal Securities and Agency Notes. LAIF is a pooled investment account managed by the State Treasurer. The fund continues to provide an important investment option for public agencies. The fund allows cities to move monies in and out similar to a money market fund. The quarterly average was 4.270% as of February 28, 1994. This is down slightly from the 4.332% rate reported last month. LAIF comprised approximately the same percentage of the total portfolio as the previous month (38.4%). Th~ schedule of investment maturities i~ anticipated to allow the city to meet anticipated expenditures in the upcoming month. ---------------------------------------------------------------------- COPIES TO: 4.7 CITY CLERK FILE ~ --