The URL can be used to link to this page

Home My WebLink About2004-07-06; City Council; 17691; Investment report46# 17,691 TITLE: rllTG. 7-6-04 AS OF MAY 31,2004 IEPT. TRS REPORT ON CITY INVESTMENTS RECOMMENDED ACTION: \- Accept and file report. Par Value Cost of Investments Amortized Cost (1 ) Market Value (2) ITEM EXPLANATION: Current Month Prior Month 463,677,737 453,938,302 466,593,632 456,859,198 465,016,259 455,337,739 466,427,544 458,653,716 The City’s Investment Policy requires the City Treasurer to report to the City Council on a monthly basis the status of the City’s pooled investment portfolio. A quarterly report is also required for the investments of bond proceeds held separately. The City’s pooled investment portfolio as of the month ended May 31 , 2004 is summarized below. II Pooled Investment Portfolio (Cash and Securities) II (1) The cost of investments adjusted for amortized premiums and discounts. (2) The amount at which the investments could be sold. Source of market values is Union Bank of California’s custodial report as of 5/31/04. The equity portion of the various funds in the total portfolio is summarized in the graph below. Fund balances are restricted for various purposes. See Exhibit 7 for a more detailed breakc 3wn FUND EQUITY IN POOLED INVESTMENTS (Dollar Amounts in Millions) Total Treasurer’s Investment Portfolio at Amortized Cost $465.0 Million PAGE TWO OF AGENDA BILL NO. 17,691 Average Life (Years) Average Yield March 2004 1.98 3.28% Current Prior Current Month Month FYTD Month FYTD Income Cash Income Fiscal Year-to-Date * 14,O 13,727 13,185,856 827,871 Mod if ied Duration 1.855 *The cash income received is adjusted for any accrued interest purchased. April 2004 2.1 1 3.32% 1.943 May 2004 2.20 3.40% 2.017 I I I I All pooled investments have been made in accordance with the City’s Investment Policy adopted January 2, 1985 and last revised January 20, 2004. All investments were initially made in accordance with the City’s Investment Policy. Events subsequent to the purchase might have resulted in some investments not being in compliance with the current policy. These events are typically a change in the City’s Investment Policy, a change in the credit rating subsequent to a purchase, or a temporary reduction in total portfolio assets. See Exhibit 8 for details. The City’s Investment Policy requires that no more than 5% of the City’s portfolio be placed with any single issuer with the exception of U.S. Treasury/Federal agency securities and authorized pools. Exhibit 9 shows General Electric Corp exceeding this limitation as a result of the purchase of corporate paper in April 2004. This situation will self-correct in June 2004 when the General Electric Corporation issue matures. The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six (6) months. EXHIBITS FOR POOLED INVESTMENTS: 1. 2. 3. Yield Comparison Graph 4. Cumulative Cash Income Graph 5. Fourth Quarter Transactions 6. Detailed Investment Report 7. 8. 9. Investment Portfolio Breakdown By Amortized Cost, Market Value, Cash Income, and Average Yield Investment Portfolio Breakdown Of Maturities Fund Equity in Pooled Investments Corporate Note and Commercial Paper Ratings Percentage Weightings By Corporate Note Issuer Department Contact: Nancy Sullivan (760) 602-2473 nsull@ci.carlsbad.ca.us EXHIBIT 1 W 3 a 2 > I- W Y a t- 8 n Y 0 W k s 5 r: 0 I .- b h 5 a 5 t c c a 0 5 E .- b h 5 5 a E a 0 c E L s Z s Z 0 0 0 0 0 L3 0 0 8 0 0 9 0 0 0 0 0 2 0 8 (v 9 r 0 0 0 (v 0, d a- 0 0 Q, d 2 m m (4 Q,? 2 d In (v cn d 2 Q,* Q 0 0 8 0 8 0 0 0 0 0 IY I- 3 EXHIBIT 2 s 8 s 3 s 8 s 8 0 s 8 8 3 3 hc 8 a, Y f3 3 0 c! 0 0 0 0 0 '"* 0 m .m m 2 W m 3 2 m m F m 3 3 3 hl m 3 2 m W d 69 W m 0 F mn El z k 0 a d m d .s 3 3 3 B 0 ci dS 0 0 0 W d 3 3 hl 0 s m m 0 0 0 00 z 0 .. 00" d 0 m 69 2 m m- m hl m" W 8 V h + v 0 0 0 m 10 + hl 2 W m W 10- 2 r- m 2 3 3 00 2 0" a d d 8 E V 3 - d M nn 3hl vv n u 4 m EXHIBIT 3 0 i m f I Y LI d ik I- - xa WJ t c 0 H J EXHIBIT 4 0 0 \ \ b- EXHIBIT 5 0 W -1 d Y n ww 00 00 8 $2 0 $!$! 2 00 0 0 hl EXHIBIT 6 aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa uuuuuuuuuuuuuuuuuuuuuuuuuu~uuuuuuuuuuu~uuuu aD 2 03 N x M ~~""""ooo""""uuoooooo"""""""" nzzzzzzzzzzzzzzzzzzzzzzzzzzz a 6 zl 3 v) I- z 3 s 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF MAY 31,2004 Cash Balance by Fund: General Special Revenue Debt Service Capital Projects: General Capital Construction Traffic Impact Fees Public Facilities Fees Park Development Transnet Taxes Drainage Fees Special Districts Infrastructure Replacement Other Capital Construction Total Enterprise: Carlsbad Municipal Water District Sewer Fund Solid Waste Storm Water Golf Course Total Internal Service Agency Funds Redevelopment Funds (1 ) Misc. Special Funds Total General Ledger Balance ** Reconciling Adjustments (2) Total Treasurer's Investment Portfolio at Amortized Cost 71,169,928 31,901,334 3,994,365 48,862,444 8,646,3 14 36,511,046 4,131,070 10,967,755 9,228,498 67,038,824 14,729,756 622,692 200,738,399 49,511,762 65,514,252 5,466,934 1,002,623 2,157,635 123,653,206 16,684,595 16,981,983 0 0 465,123,809 (1 07,550) 465,016,259 (1) Redevelopment Fund Balances are interspersed throughout all funds. (2) The Reconciling Adjustments consist of differences between the General Ledger which is prepared on an accrual basis and the Treasurer's report which is prepared on the cash basis. Accrued Interest, amortized premium or discounts and outstanding checks and deposits in transit are not included in the Treasurer's summary. Differences between the time journal entries are posted and the time this report is produced may also be a component of the adjustment. Figures based on best estimate at the time report run on 6/11/04. ** EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF MAY 31,2004 CORPORATE NOTE AND COMMERCIAL PAPER RATINGS Corporate Note Investments Meeting the Current Investment Policy: (Ratings must be AA or better by both Moody's and S8P) Moodv's - S&P ALLSTATE FINANCIAL ASSOCIATES CORP ClTlGROUP COMMERCIAL CREDIT CO GENERAL ELECTRIC PITNEY BOWES INC SUN AMERICA INC SECURITY CAPITAL - GE AA2 AA1 AA1 AA1 AAA AA3 AAA AAA AA AA- AA- AA- AAA AA AAA AAA Commercial Paper Investments Meeting the Current Investment Policy: (Ratings must be AllPl or better by both Moody's and S&P) (Ratings of other debt must be AA or better by Moody's or S&P) NONE Investments with Subsequent Changes in Credit Rating * ABN AMRO BANK CREDIT SUISSE DEAN WITTER DISCV MERRILL LYNCH MORGAN STANLEY DEAN WITTER PACIFIC BELL SBC COMMUNICATIONS SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL WACHOVIA CORP Moodv's AI AA3 AA3 AA3 AA3 AI AI AI AI AA3 - S&P A+ A+ A+ A+ A+ A+ A+ A+ A+ A Latest Maturitv Date Purchased 05l31105 0411 8/07 11l01l05 0911 5/04 0411 5106 oaii 5106 05l02106 0811 5/05 05/12/05 0711 5/05 AA3lAA- AA3lAA- AA3IAA- AA3lAA- AA3lAA- AA3lAA- AA3lAA- AA3lAA- AA2lAA- AA3lAA- Carrying Value 4,110,322 4,171,310 2,985,704 3,001,103 I 5,658,622 7,323,668 4,007,238 1 ,I 13,958 2,023,916 4,00a,230 Market Value 4,271,904 4,235,200 3,i 77,870 3,047,880 16,499,952 7,505,760 4,187,660 1,174,290 2,092,680 4,114,160 The City's Investment Policy allows the City Treasurer to determine the course of action that would correct exceptions to the policy. All of these investments are paying interest at the required times. The principal of all investments are considered secure. It is the intent of the City Treasurer to hold these assets in the portfolio until maturity unless events indicate they should be sold. EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF MAY 31,2004 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Percent of Portfolio* 0.91 % 1.72% 3.49% Investment Cost 4,228,884.98 ABN AMRO BANK 8,020,253.1 9 ALLSTATE FINANCIAL 1,591,525.00 7,196,309.90 7,474,695.94 ClTlGROUP ASSOCIATES CORP COMM CREDIT CREDIT SUISSE 4,270,881.12 0.92% 5.54% GENERAL ELECTRIC CAP GENERAL ELECTRIC CAP (CP) SECURITY CAPITAL 17,489,469.62 4,991,500.00 3,380,298.92 MERRILL LYNCH 3,015,095.67 0.65% 4.02% MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV 15,789,131.03 2,950,553.97 PITNEY BOWES INC 1,919,298.74 0.41 Yo 3.19% SBC COMMUNICATIONS PACIFIC BELL SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL 4,058,275.56 7,593,579.83 1,113,832.90 2,097,205.1 8 0.24% 0.86% SUN AMERICA INC 1,117,700.00 WACHOVIA CORP 4,023,404.94 $466,593,632.39 Total Portfolio * No more than 5% may be invested with a single issuer.