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06. Treasurer's reportADMINISTRATIVE SEF2VIGES DEPARTMENT CITY HALL 10300 TORRE AVENUI= • CUPERTINO, CA 95014-3255 C O P E RT I N O (408) 777-3220 • FAX 0108) 777-3109 SUMM~~RY Agenda Item No. ~ Meeting Date: October 6, 2009 SUBJECT AND ISSUE Accept the Treasurer's Investment Report for A~zgust 2009. BACKGROUND The market value of the City's portfolio totaled $53.1 million, with a book value of $S3 million at August 31, 2009. The $0.1 million unrealized gain reflects the higher value placed on securities bought in 2008 and early 2009 at higher interest rates. The portfolio's August yield of O.S3% was down from 0.61% irl the previous month and 2.72% a year ago due to the decision to take the portfolio to a sa:Fe and liquid mix of investments given the risk and volatility of the current market. The LAIF benchmark was at 0.93% for August, down from 1.04% the previous month and 2.78'% a year ago, reflective of their move to a higher percentage of investments backed by the full faith and credit of the federal government. The City's portfolio decreased $O.S million from the previous month due to large capital project payments. A total of $3 million in mabared Treasury and Agency notes and a $1 million called Agency note were used to pay operating expenses and purchase $4 million of new short-term Treasuries. Investments are in fi.~ll compliance with City investment policy and State law and are tiered to provide sufficient cash flows to pay City obligations over the next six months. RECOMMENDATION Accept the Treasurer's Investment Report for August 2009. Submitted by: ~~ ~!~ Carol A. Atwood City Treasurer Attachment A: Investment Portfolio Apl~roved for submission: ~~"1L_. David W. Knapp Cit}~ Manager 6-1 City of Cupertino Investment Portfolio August 31, 2009 Attachment A - - (ON~-~ o Maturi - --VALtI~ -'VAL-Orr ...._ . SECURITIES MATURED ~- - --_'--`_ ___ 01/22/08 08/03/09 FFCB 5,25% 2.55% 1,000,000 _ 1,000,000 _-__1,000,000 0 11!26/08 08/31/09 US Treasury Note 4.00% 0.73% 2,000,000 2,000,000 2,000,000 0 SECURITIES CALLED _..__...------__. _.-..--.._.....-- ------.._.-......._.... --------.. _ .. - ----- ---------------------- 02/11/09 02/11/l 1 FHLMC callable step up 1.38% 1.76% 1,000,000 1,000,000 1,000,000 0 __. SECURITIES PURCHASED 08/28/09 12/03/09 US Treasury Bi11 0,10% 0.10% 999,739 1 000,000 999,630 (109) 08/25/09 12/10/09 US Treasury Bill 0.13% 0.13% 999,622 1,000,000 999,610 {12) 08/28/09 08/25/09 02/04/10 02/28/10 US Treasury Bill US Treasury Note 0.17% 2.00% 0.17% 0 18% 999,259 1 004,091 I l 000,000 1 000 ODU 999 130 1,008,550 {129) (541) ~ -- , CTCY PORTFOLIO CASH 08/31/09 Wells Fargo -Workers Comp Checking _ -_ f_ 15,193 15,193 15,193 0 08/31/09 Wells Fargo -Regular Checking 193,632 193,632 193,632 0 08/31/09 _~ Wells Fargo - Repwchase Agreements 0.10% 0.10% 865,867 865,867 865,867 0 -----. . 1,074,692 1,074,642 1,074,692 0 LA1F 08/31/09 LAIF -State Pool 0.93% 0.93% 590,169 ' 590,169 590,169 0 G ! - - - -- --- I - - - _ CERTIFICATES OF DEPOSIT _... __ ___-- ..----- - -____.._....-- -.......g _ _ _-- Wi~kenbw AZ 12/30/05 12/30/09 Mendian Bank NA ~- _-- _.- --- - ~ 4.80% - .. _ ._. _ 4.80% ` -.-- ... --- 99,000 L -.._ __ _ _ __ _ 99,000 --- -- r - ~ 100,446 i ---- ---- ,. ~ 1,446 i2/28/OS 12/28/10 , Natl Bnk of New York City, Flushing N 4.90% 4.90% 97,000 _ ___ 97,000 , 102,165 5 ] 65 196,000 196,000 202,611 6,611 MONEY MARKET FUNDS 08/31/09 Wells Fargo Government 0.04% 0.04% 875,625 875,625 875,625 0 08/31/09 Wel]sFargo100%Treasury __ y _ 0.01% 0;01% 8,290,758 8,290,758 _8,290,758 0 _ 9,166,383 9,166,383 9,166,383 0 AGENCY NOTES _._..._. _._.__ 09/23/08 06/25/08 09/23109 ~ 05/07/10 FFCB FFCB 2.70% 4 75% 2.57% 3.38% 1,000,079 1 008,973 1,000,000 1000,000 1,001,560 1 029 380 1,481 20,407 05/07/08 01/30/09 _ ' 06/11/l0 09/10!10 - FHLB FHLB --- - --- ..... ._-_.. 3.00% 5.13% .... ----- 2.98% 1.33% _. _. I 1 000,156 1,038,438 -- 1 000 000 1 000,000 -- - --- 1 019 690 ; l 049,380 --- _ 19 534 -- -- - 10,943 t ~ --- -- - - . _ ._ ... _ .__ __. _ ~ 1 ... -- --___ ; ._ _.... _ - ....... ..... ... ... ..- -- _...--- ---- ___._ . . _ 4,047,645 4,000,000 i 4,100,010 ! 52,365 6-2 City of Cupertino Investment Portfolio August 31, 2009 _ _. ~--- -------- ---TtA'I`E_._ o Matunt -~~S'Y'__ -- -~/{LUE__ _ . ......... U5 TREASUR Y SECURITIES 12/18/08 09/15/09 US Treasury Note 3.:t8% 0.29% , 1,001,263 1 000,000 ` 1,001,090 ~ (173) t (/26/08 09/30/09 US Treasury Note 4.00% 0.69% 1,002,709 1 000 000 ' 1 002 970 261 12/18/08 10/15/09 US Treasury Note 3.:t8% 0.30% 1,003,784 1 000,000 1003 790 _ 6 07/28/49 10/22/09 US Treasury Bill 0.1 b% 0.16% 999,769 1,000,000 ~ 999,840 71 12/15/08 10/31/09 US Treasury Note 3.fi3% 0.40% 1,005,361 1,000,000 1,005,510 149 07/28/09 11/27/09 US Treasury Bili 0.17% 0.17% 999,585 _ 1,000,000 _ 999,670 85 12/18/08 11/30/09 US Treasury Note 3.13% 0.32% 2,013,932 2,000,000 2,014,300 368 O8/28/09 12/03!09 US Treasury Bill 0.10% 0.10% 999,739 1,004,000 999,630 {109) 08/25/09 12/10/09 US Treasury Bill -^ 0.13% 0,13% 999,622 1,000,000 999,610 (12) 12/19/08 12/15/09 US Treasury Note 3.'~0% 0.24% 1,009,451 1,000,000 1,009,450 (1) _ _ _ 01/12/09 12/15/09 US Treas_ury3Vote 3._~0% 0.36% 1,009,092 1,000,000 1,009,450 358 07/31/09 ______------- 12/17/09 ----------- US Treasury Bill -- ---- 0.19% 0.19'/0 999,430 1,000,000 999,520 ____ 90 01/12/09 01/15/10 US Treasury Note 3.f~3% 0.30% 2,024,896 - --....__. 2,000,000 2,025,080 .___.------------- 184 07/31/09 01/31/10 US Treasury Note 2.13% 0.22% 1,007,925 1,000,000 1,007,770 (155 08/28/09 02/04/10 US Treasury Bill 0.17% 0.17% 999,259 1,000,000 999,130 (129) 01/12/09 02/15/10 US Treasury Note 6.`.~0% 0.44% 2,055,526 2,000,000 2,056,320 794 08/25/09 02/28/10 _ US Treasury Note 2.00% 0.18% 1,004,091 ---------- _. . -------- 1,000,000 _ - _ ... -._ _ 1,008,550 _ _.. (541) 01/12/09 03/31/10 US'I'reasuryNote 1.75% 0.36% 2,016,151 2,000,000 2,016,720 569 03/30/09 04/15/10 US Treasury Note 4.Ci0% 0,60% 3,063,118 3,000,000 3,069,150 6,032 06/24/09 05/31/10 US Treasury Note 2.f3% 0,40% 1,016,573 1,000,000 l,Olb,910 337 06/29/09 05/31/10 US Treasury Note 2,E~3% 0.38% 1,016,724 ],000,OOp 1,016,910 186 04/30/09 06/30/10 US Treasury Note 2,E,8% 0.50% 2,549,(77 2,500,000 2,551,475 2,298 05/14/09 07/3I/10 US Treasury Note _2.75% 0.50% 3,061,444 3,000,000 3,063,990 2,496 05/21/09 08!31/10 US Treasury Note 2.38% 0.50% 3,055,944 3,000,000 3,057,420 1,476 05/29/09 09/30/10 US Treasury Note 2.[~0% 0.62% 2,029,593 2,000,000 2,032,960 3,367 -- - -- ------- 37,949,210 37,500,000 37,967,215 18,005 Total Mana ed Portfolio 53 024 099 52 527 44 53101 080 7G 981 Average Yield 0.53% ~ Average Length to Maturity ( in years) 0.44 ~ r _ __ __.... . TRUST PORTFOLIO (KESTER TRUST) --- ---- _ -.-.. _ _.....- - I ' ....... .. .... - - --- CASH - _ --_ --- - ------___._.-.. __._ _.___..._--- 08/31/09 Wells Institutional Money Mkt Acci 0.13% 0,13% 48,311 48,311 48,31 ! 0 Total Trust Portfolio 48 I1 48,311 48 311 0 BOND RESERVE PORTFOLIO ---- ------._.__. .._ ._. Bond Reserve Acct Ambac Assurance Security Bond __ _ _ _ _ ------ 1 1 --- 1 ----___....._.__._r.- Total Bond Reserve Portfolio 0 0 0 0 6-3 Rate of Return Comparison 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 6-4 COMPLIANCE WITH INVESTMENT POLICY City o#' Cupertino _ _- Aulgust 31, 2009 i Category ---. i Standard ~ Comment Treasury Issues No limit ~ Complies US Agencies !No limit :Complies Medium Term Corporate Bonds 30% with A rating ~ Complies LAIF $40 million __ Complies _ .. Money Market Funds ~20% ':Complies Maximum Maturities ;Up to 5 year, Complies Per Issuer Max ~ ~ 10% (except for Treasuries and US Agencies) Complies Bankers Acceptances 1180 days & ~EO% Complies Commercial Paper i270 days & <''S% Complies . _ - - Negotiable Certificates of Deposit --r-- -------- -__ ._ _ . - __ _.__..__ j 30% _. :Complies Repurchase Agreements ;365 days Com lies Reverse Repurchase agreements Prohibited ;Complies 6-5