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HomeMy WebLinkAbout2012-02-14; City Council; 20805; REPORT ON CITY INVESTMENTS AS OF DECEBMER 31, 20118 CITY OF CARLSBAD - AGENDA BILL AB# 20.805 REPORT ON CITY INVESTMENTS DEPT. HEAd"-^ MTG. 2/14/12 AS OF DECEMBER 31, 2011 CITY ATTY. DEPT. TRS CITY MGR. iM— RECOMMENDED ACTION: Accept and file report. ITEM EXPLANATION: 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 December 31, 2011 is summarized below. Pooled Investment Portfolio (Cash and Securities) Current Month Prior Month Par Value 588,981,396 574,755,151 Cost of Investments 595,583,995 581,530,296 Amortized Cost(1) 592,111,103 577,988,469 Market Value (2) 596,957,841 582,367,873 (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 12/31/11. The equity portion of the various funds in the total portfolio is summarized in the graph on the next page. Fund balances are restricted for various purposes. See Exhibit 8 for a more detailed breakdown. The $14 million increase between the November and December reports is due mainly to the receipt of property taxes at $15 million. FOR CITY CLERKS USE om^Y COUNCIL ACTION: APPROVED ^ CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER - SEE MINUTES • AMENDED • DEPARTMENT CONTACT: Nancy Sullivan (760) 602-2473 Nancv.Sullivan(a)carlsbadca.qov PAGE 2 OF AB REPORT ON CITY INVESTMENTS AS OF DECEMBER 31 2011 FUND EQUITY IN POOLED INVESTMENTS (Dollar Amounts in MUlions) General Special Revenue $66^ $53 Internal Service ^ $31 Agency/Other $g Enterprise $141.5 Capital Projects $ 2P4.5 Total Treasurer's Investment Portfolio at Amortized Cost December 31,2011 $592 million Pooled Investment Interest Income Current Month FYTD Prior Month FYTD Current Month Income Cash Income Fiscal Year-to-Date * 6,711,025 5,565,865 1,145,160 *The cash income received is adjusted for any accrued interest purchased. Pooled Investment Performance/Measurement Average Life (Years) Average Yield To Maturity Modified Duration October 2011 2.33 180% 2.229 November 2011 2.38 1.73% 2.272 December 2011 2.16 1.66% 2.074 All pooled investments have been made in accordance with the City's Investment Policy adopted January 2, 1985 and last revised June 21, 2011. 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 9 for details. The pooled investment portfolio has the ability to meet the City's cash flow demands for the next six (6) months. Investment Portfolio for Bond Proceeds Current Quarter Prior Quarter Par Value 17,651,093 17,735,893 Cost 17,651,093 17,735,893 EXHIBITS FOR POOLED INVESTMENTS: 1. Investment Portfolio Breakdown By Amortized Cost, Market Value, Cash Income, and Average Yield 2. Investment Portfolio Breakdown Of Maturities 3. Yield Comparison Graph 4. Market Yield Curve 5. Cumulative Cash Income Graph 6. Second Quarter Transactions 7. Detailed Investment Report 8. Fund Equity in Pooled Investments 9. Corporate Note and Commercial Paper Ratings 10. Percentage Weightings By Corporate Note Issuer EXHIBIT FOR INVESTMENTS OF BOND PROCEEDS HELD SEPARATELY: 11. Detailed Investment Report - Quarterly Report EXHIBIT FOR SUMMARY OF OUTSTANDING HOUSING LOANS: 12. Detail Of Outstanding Housing Loans - Quarterly Report 3 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF DECEMBER 31, 2011 BREAKDOWN BY AMORTIZED COST, MARKET VALUE, CASH INCOME, AND AVERAGE YIELD BY CLASS Class CD FN CP TR FA CN LAIF CUSTODY SWEEP BANK ACCT AMORTIZED COST MARKET VALUE Current Month Prior Month Current Month Prior Month 3,972,000 4,209,970 4,221,000 20,924,094 0 2,021,868 324,454,901 110,014,846 126,828,000 3,256,106 390,290 20,893,926 0 2,022,956 345,716,296 107,786,141 92,963,000 499 3,941,451 692,201 21,084,590 0 2,097,540 327,856,168 111,235,178 126,828,000 0 3,256,106 390,290 3,964,131 21,062,521 0 2,102,700 349,086,351 108,555,020 92,963,000 499 3,941,451 692,201 Cash Income Year to Date 2,072 0 0 111,250 4,635,114 1,732,507 229,304 9 769 0 AVERAGE YIELD Current Month Prior Month 1.08 1.58 0.00 2.44 1.84 2.65 0.39 0.00 0.05 0.05 1.07 1.58 0.00 2.44 1.84 2.65 0.39 0.00 0.05 0.05 TOTALS $592,111,103 $577,988,469 $596,957,841 CD - Certificate of Deposit FN - Federal Discount Notes CP - Corporate Paper TR - US Treasury FA - Federal Agency CN - Corporate Notes $582,367,874 6,711,025 1.66% LAIF - Local Agency Investment Fund Custody - Investment Cash account SWEEP - General Fund Ovemight Cash acccount Bank Account - General Fund Cash account 1.73% M X ffi H C3d CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF DECEMBER 31,2011 BREAKDO WN OF MA TURITIES B Y CLASSIFICA TION AND LENGTH OF TIME CLASS CD FN CP TR FA CN LAIF CUSTODY SWEEP BANK ACCT _ TOTALS % TOTALS Total within One Year WITHIN 6 MONTHS 7 MONTHS TO 1 YEAR 0 4,561,674 0 0 26,912,204 21,280,471 126,828,000 0 3,256,106 390,290 $183,228,745 (1) 30.8% 0 1,793,820 0 0 50,326,055 9,162,219 0 0 0 0 $61,282,093 (I) 10.3% $244,510,838 (I) 41.1% 1 TO 5 YEARS 4,221,000 13,862,925 0 2,062,109 250,067,180 80,859,943 0 0 0 0_ $351,073,157 59.0% TOTAL % TOTAL 4,221,000 20,218,418 0 2,062,109 327,305,438 111,302,633 126,828,000 0 3,256,106 390,290 $595,583,995 100.0% POLICY: (1) Not less than $ 129,000,000 to mature within one year. (2/3rds of current year operating budget of $ 193,817,000.00) (2) Policy states that not more than 30% of portfolio is to be invested in corporate notes. 0.7% 3.4% 0.0% 0.4% 55.0% 18.7% (2) 21.3% 0.0% 0.6% 0.1% 100.0% W X ffi H w H 6. 6 6. 6 5. 5. 5 5. 4. 4. 4. 4 3 3. 3 3 2 2. 2. 2. 1. 1. 1. 1. 0. 0. 0. 75 50 25 00 75 50 25 00 75 50 25 00 75 50 25 00 75 50 25 00 75 50 25 00 75 50 25 YIELD COMPARISON PORTFOLIO EX-LAIF VS. LAIF JULY 1998 - DECEMBER 2011 —EX-LAIF ^LAIF I I I I 11 M I I I I M M M I I I I I n I I I M M I I I I I I I I I I M I I I I M I I I I I I M I M I I I M I I I I I I M I I I M I I I I I I I I I I I I I I I I I I I I I I I I I I I U I I M I I I I I M I I I I I M I I I M I I I I M I M M X ffi H Dd H 1-3 MARKET YIELD CURVE 6/30/10,6/30/11,12/31/11 Market Rates 10 Yr 3 Mth 2Yr 5 Yr 10 Yr *06/30/2010 .17 .60 1.77 2.93 06/30/2011 .01 .46 1.76 3.16 o 12/31/2011 .01 .24 .83 1.88 M X ffi H W H 1-3 Cumulative Millions $ Cumulative Cash Income FYll-12 (December 2011) Monthly Interest Income Millions $ 14 12 10 8 4 2 1.238^ ^^^^ 1 078 ^iio 1.214 1 145 n.u^o ^ 1-143 — 0 893 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 1 Interest Income Budget Actual 8 7 6 5 4 3 2 1 w X ffi H dd H 1-3 Ul City of Carlsbad TRANSACTIONS FOR PERIOD: 10/01/11 TO 12/31/11 2ND QUARTER 2011-2012 Trans Date BUYS OCTOBER 10/03/2011 10/04/2011 10/04/2011 10/05/2011 10/06/2011 10/06/2011 10/07/2011 10/07/2011 10/11/2011 10/11/2011 10/12/2011 10/18/2011 10/19/2011 10/19/2011 10/24/2011 10/26/2011 10/26/2011 10/27/2011 10/27/2011 10/28/2011 10/31/2011 NOVEMBER Investment Call Par Amount Return Investment Date Type Securitv Date Value Coupon (Cost) Rate Interest Return 10/03/2016 FA FFCB 04/03/2012 5,000,000.00 1.480% 5,000,000.00 1.480% 370,000.00 5,370,000.00 11/01/2013 FN TENNESSEE VALLEY AUTHORIT N/A 4,143,000.00 0.000% 4,099,415.64 0.510% 87,168.72 4,186,584.36 06/30/2015 CN MERCK & CO N/A 5,000,000.00 4.000% 5,498,750.00 1.260% 249,027.78 5,747,777.78 10/01/2014 CN PROVIDENCE HEALTH N/A 2,000,000.00 5.050% 2,237,929.50 1.000% 63,948.28 2,301,877.78 10/06/2016 FA FFCB N/A 5,000,000.00 1.300% 5,000,000.00 1.300% 325,000.00 5,325,000.00 10/25/2015 CN WAL-MART N/A 3,000,000.00 1.500% 3,049,826.34 1.080% 132,548.66 3,182,375.00 10/07/2013 CD DORALBANK N/A 248,000.00 1.000% 248,000.00 1.000% 4,966.80 252,966.80 06/10/2014 CN MET LIFE GLOBAL FUNDING N/A 1,500,000.00 5.125% 1,625,547.72 1.900% 80,092.90 1,705,640.62 08/15/2016 CN BERKSHIRE HATHAWAY N/A 5,000,000.00 2.200% 5,022,855.25 2.100% 510,033.64 5,532,888.89 10/11/2016 FA FFCB 10/11/2012 5,000,000.00 1.370% 5,000,000.00 1.370% 342,500.00 5,342,500.00 10/12/2016 FA FNMA 04/12/2012 4,000,000.00 1.250% 3,990,400.00 1.300% 259,600.00 4,250,000.00 10/18/2013 CD MEDALLION BANK NA 249,000.00 0.750% 249,000.00 0.750% 3,740.11 252,740.11 10/19/2016 FA FHLMC 04/19/2012 5,000,000.00 0.5% STEP 5,000,000.00 2.585% 659,375.00 5,659,375.00 10/08/2013 FA FNMA NA 5,000,000.00 1.125% 5,061,150.00 0.500% 49,631.25 5,110,781.25 10/24/2016 FA FNMA 10/24/2012 5,000,000.00 1.700% 5,000,000.00 1.700% 425,000.00 5,425,000.00 10/25/2016 FA FNMA 10/26/2016 5,000,000.00 1.25% STEP 5,000,000.00 1.810% 462,500.00 5,462,500.00 10/26/2016 FA FHLMC 01/26/2016 5,000,000.00 1.600% 5,000,000.00 1.600% 400,000.00 5,400,000.00 10/27/2016 FA FHLB 04/27/2012 5,000,000.00 0.5% STEP 4,996,250.00 1.870% 472,500.00 5,468,750.00 08/15/2016 CN PROCTER & GAMBLE NA 5,000,000.00 1.450% 5,011,536.25 1.400% 336,463.75 5,348,000.00 01/10/2014 CN MET LIFE GLOBAL FUNDING NA 1,475,000.00 2.000% 1,490,888.40 1.500% 49,011.60 1,539,900.00 01/11/2016 CN MET LIFE GLOBAL FUNDING NA 1,635,000.00 3.125% 1,695,247.73 2.200% 154,062.17 1,849,309.90 11/04/2011 11/07/2011 FA FNMA 10/24/2012 3,000,000.00 0.800% 3,000,937.50 0.789% 70,195.83 3,071,133.33 11/07/2011 11/10/2011 CN NEW YORK LIFE N/A 3,550,000.00 2.450% 3,669,194.08 1.700% 287,655.64 3,956,849.72 10/28/2011 11/16/2011 FA FNMA 05/16/2012 5,000,000.00 1.350% 4,962,500.00 1.506% 375,000.00 5,337,500.00 10/21/2011 11/16/2011 FA FNMA 05/16/2012 5,000,000.00 1.800% 5,000,000.00 1.800% 450,000.00 5,450,000.00 11/02/2011 11/23/2011 FA FNMA 11/23/2012 5,000,000.00 1.25% STEP 5,000,000.00 1.688% 425,000.00 5,425,000.00 DECEMBER 11/14/2011 12/23/2011 12/27/2011 12/28/2011 12/02/2011 CD MIDLAND STATES BANK N/A 09/15/2014 CN GENERAL ELECTRIC N/A 04/21/2014 CN MASS MUTUAL GLOBAL N/A 01/11/2016 CN MET LIFE GLOBAL FUNDING N/A 249,000.00 1.250% 249,000.00 1.250% 12,450.00 2,000,000.00 0.696% FLOAT 1,914,520.00 2.250% 123,464.31 2,500,000.00 2.875% 2,583,739.37 1.400% 82,771.05 2,000,000.00 3.125% 2,063,239.83 2.300% 189,017.11 261,450.00 2,037,984.31 X 2,666,510.42 ^ 2,252,256.94 td H !-3 TOTAL SECOND QUARTER 2011-2012 106,549,000.00 107,719,927.61 1.526% 7,452,724.60 115,172,652.21 City of Carlsbad TRANSACTIONS FOR PERIOD: 10/01/11 TO 12/31/11 2ND QUARTER 2011-2012 Trans Investment Call Par Amount Return Investment Date Date Type Securitv Date Value Coupon (Cost) Rate Interest Return MATURITIES OCTOBER 12/08/2009 FA FFCB NA 3,000,000.00 1.128% 3,014,854.10 0.850% 46,552.13 3,061,406.23 03/15/2007 FA FHLB NA 3,000,000.00 4.875% 3,018,777.00 4.720% 647,473.00 3,666,250.00 03/24/2010 TR US TREASURY NA 8,000,000.00 1.000% 8,025,312.50 0.801% 102,864.30 8,128,176.80 NOVEMBER 12/07/2009 FA FHLB NA 1,000,000.00 4.250% 1,061,850.00 1.020% 20,552.78 1,082,402.78 12/08/2009 FA FHLB NA 2,000,000.00 4.250% 2,126,060.00 0.956% 38,509.44 2,164,569.44 03/19/2007 FA FHLB NA 3,000,000.00 4.875% 3,009,690.00 4.795% 672,403.75 3,682,093.75 12/30/2009 FA FNMA NA 3,000,000.00 1.000% 2,994,090.00 1.105% 62,826.67 3,056,916.67 05/12/2009 CN MET LIFE GLOBAL FUNDING NA 1,000,000.00 5.125% 1,002,480.00 4.250% 125,217.92 1,127,697.92 05/29/2007 CN GENERAL ELECTRIC NA 1,850,000.00 5.500% 1,850,000.00 5.500% 453,918.06 2,303,918.06 08/14/2009 CN SUNTRUST BANK NA 2,000,000.00 3.000% 2,066,260.00 1.500% 69,073.33 2,135,333.33 DECEMBER 12/09/2009 FA FFCB NA 1,000,000.00 0.875% 997,136.00 1.020% 20,364.00 1,017,500.00 04/28/2009 CN CITIGROUP NA 2,000,000.00 2.875% 2,060,840.00 1.680% 89,458.61 2,150,298.61 08/17/2009 CN TOYOTA NA 2,250,000.00 5.250% 2,427,570.00 1.800% 99,695.62 2,527,265.62 TOTAL SECOND QUARTER 2011-2012 33,100,000.00 33,654,919.60 2.094% 2,448,909.61 36,103,829.21 CALLS _ OCTOBER 04/18/2011 04/14/2014 FA FHLMC 10/14/2011 2,000,000.00 1.500% 2,000,000.00 1.500% 89,666.67 2,089,666.67 07/12/2011 10/14/2015 FA FHLB 10/14/2015 2,000,000.00 1.550% 1,997,500.00 1.580% 134,422.22 2,131,922.22 10/15/2010 10/15/2015 FA FNMA 10/15/2011 2,600,000.00 1.500% 2,600,000.00 2.034% 266,500.00 2,866,500.00 10/15/2010 10/15/2015 FA FNMA 10/15/2011 2,000,000.00 1.500% 2,000,000.00 2.034% 205,000.00 2,205,000.00 10/21/2010 10/21/2014 FA FHLB 10/21/2011 2,000,000.00 1.350% 2,000,000.00 1.350% 108,000.00 2,108,000.00 08/11/2011 07/12/2016 FA FHLB 10/21/2011 5,000,000.00 2.150% 5,014,050.00 2.090% 517,477.78 5,531,527.78 11/24/2011 04/25/2014 FA FNMA 10/25/2011 2,000,000.00 1.000% 1,998,000.00 1.030% 70,388.89 2,068,388.89 10/25/2010 10/25/2013 FA FFCB 10/25/2011 2,000,000.00 0.840% 2,000,000.00 0.840% 50,400.00 2,050,400.00 04/26/2011 12/26/2014 FA FNMA 10/26/2011 2,000,000.00 2.000% 2,000,000.00 2.000% 146,666.67 2,146,666.67 07/26/2011 07/26/2016 FA FHLMC 10/26/2011 2,000,000.00 2% STEP 2,000,000.00 2.310% 232,500.00 2,232,500.00 07/26/2011 07/26/2016 FA FHLMC 10/26/2011 2,000,000.00 2% STEP 2,000,000.00 2.311% 232,500.00 2,232,500.00 10/27/2010 10/27/2015 FA FNMA 10/27/2011 2,000,000.00 1.550% 1,998,000.00 1.579% 157,000.00 2,155,000.00 04/24/2011 10/27/2014 FA FHLMC 10/27/2011 2,000,000.00 2.000% 2,000,000.00 2.000% 140,000.00 2,140,000.00 06/08/2011 10/28/2015 FA FNMA 10/28/2011 2,000,000.00 1.000% 1,995,000.00 2.129% 189,027.78 2,184,027.78 02/12/2010 04/28/2014 FA FNMA 10/28/2011 1,000,000.00 2.125% STEP 1,014,759.55 3.167% 121,601.56 1,136,361.11 04/22/2010 10/28/2014 FA FHLB 10/28/2011 2,000,000.00 2% STEP 2,015,640.00 2.950% 270,026.67 2,285,666.67 10/29/2010 10/29/2015 FA FNMA 10/29/2011 2,155,000.00 1.25% STEP 2,115,000.00 1.932% 250,112.50 2,365,112.50 07/28/2011 07/28/2014 FA FHLMC 10/28/2011 2,000,000.00 0.75% STEP 2,000,000.00 1.260% 76,250.00 2,076,250.00 10/29/2010 10/29/2014 FA FHLMC 10/29/2011 1,000,000.00 1.125% STEP 1,000,000.00 1.553% 62,500.00 1,062,500.00 City of Carlsbad TRANSACTIONS FOR PERIOD: 10/01/11 TO 12/31/11 2ND QUARTER 2011-2012 Trans Investment Call Par Amount Return Investment Date Date Tvpe Securitv Date Value Coupon (Cost) Rate Interest Return CALLS NOVEMBER 10/15/2010 11/05/2010 FA FNMA 11/05/2011 2,000,000.00 1.25% STEP 2,000,000.00 1.789% 180,000.00 2,180,000.00 05/18/2011 05/19/2011 FA FNMA 11/09/2011 2,000,000.00 1%STEP 2,000,000.00 2.147% 186,944.44 2,186,944.44 10/26/2010 11/10/2010 FA FNMA 11/10/2011 2,000,000.00 1.375% STEP 1,998,740.00 1.728% 173,760.00 2,172,500.00 05/16/2011 05/17/2011 FA FHLB 11/18/2011 2,000,000.00 1.550% 1,976,000.00 1.829% 163,586.11 2,139,586.11 03/01/2011 03/02/2011 FA FHLMC 05/23/2011 2,000,000.00 0.625% 1,983,520.00 1.000% 44,292.50 2,027,812.50 DECEMBER 12/30/2010 12/30/2015 FA FAMCA 12/30/2011 2,000,000.00 2.570% 1,999,000.00 2.581% 258,000.00 2,257,000.00 03/30/2011 12/30/2011 FA FHLB 12/30/2011 2,000,000.00 1.750% 2,000,000.00 1.750% 131,250.00 2,131,250.00 06/30/2011 06/30/2016 FA FNMA 12/30/2011 2,000,000.00 1.2% STEP 2,000,000.00 2.545% 258,000.00 2,258,000.00 12/28/2010 12/28/2015 FA FHLMC 12/28/2011 2,000,000.00 2.050% 2,000,000.00 2.050% 205,000.00 2,205,000.00 09/27/2011 09/27/2016 FA FHLMC 12/27/2011 4,000,000.00 1.550% 4,000,000.00 1.550% 310,000.00 4,310,000.00 12/20/2010 12/20/2013 FA FFCB 12/20/2011 1,150,000.00 1.375% 1,150,000.00 1.375% 47,437.50 1,197,437.50 06/15/2011 12/15/2014 FA FHLB 12/15/2011 2,000,000.00 1%STEP 2,000,000.00 1.634% 115,000.00 2,115,000.00 06/15/2011 12/15/2014 FA FFCB 12/15/2011 2,000,000.00 1.370% 2,000,000.00 1.370% 95,900.00 2,095,900.00 12/14/2009 12/14/2012 FA FHLB 12/14/2011 1,000,000.00 1%STEP 999,500.00 1.673% 50,500.00 1,050,000.00 06/10/2011 06/09/2015 FA FFCB 12/09/2011 2,000,000.00 1.690% 2,000,000.00 1.690% 135,106.11 2,135,106.11 TOTAL SECOND QUARTER 2011-2012 69,905,000.00 69,854,709.55 1.832% 5,674,817.40 75,529,526.95 INVESTMENT REPORT AS OF DECEMBER 31, 2011 INVESTMENT PAR INVESTED RETURN INVESTMENT TERM DATE TYPE SECURITY VALUE AMOUNT RATE INTEREST RETURN (Davs) 06/29/2009 FA FFCB 2.0% NON-CALL 4,000,000.00 4,036,800.00 1.630% 167,200.00 4,204,000.00 932 05/21/2007 FA FFCB 4.875% NON-CALL 2,000,000.00 1,987,880.00 5.015% 489,057.50 2,476,937.50 1,788 07/25/2007 FA TVA 6.790% NON-CALL 2,000,000.00 2,130,980.00 5.235% 524,632.22 2,655,612.22 1,764 10/19/2009 FA TVA 6.790% NON-CALL 3,000,000.00 3,399,498.48 1.534% 128,989.85 3,528,488.33 947 07/25/2007 FA FHLB 5.375% NON-CALL 1,000,000.00 1,005,040.00 5.255% 256,692.64 1,261,732.64 1,780 07/25/2007 FA FHLB 5.375% NON-CALL 1,000,000.00 1,005,254.43 5.250% 256,478.21 1,261,732.64 1,780 07/15/2008 FA FHLB 4.375% NON-CALL 3,000,000.00 3,050,958.11 3.900% 460,552.31 3,511,510.42 1,424 05/20/2010 FA FHLB 1.375% NON-CALL 5,000,000.00 5,036,422.30 1.015% 104,515.20 5,140,937.50 750 10/20/2009 FA FFCB 2.125% NON-CALL 3,000,000.00 3,049,023.21 1.496% 120,622.62 3,169,645.83 972 11/25/2009 FA FFCB 5.45% NON-CALL 2,000,000.00 2,210,347.28 1.280% 70,024.94 2,280,372.22 939 01/20/2010 FA FHLMC 5.125% NON-CALL 1,000,000.00 1,092,760.00 1,320% 34,653.19 1,127,413.19 907 08/05/2008 FA FFCB 3.950% NON-CALL 2,000,000.00 2,002,900.00 3.910% 310,466.67 2,313,366.67 1,448 03/24/2010 FA FHLB 1.25% NON-CALL 2,000,000.00 2,000,352.89 1.243% 58,188.78 2,058,541.67 856 06/04/2010 FA FHLMC 1.125% NON-CALL 5,000,000.00 5,004,198.09 1.085% 116,583.16 5,120,781.25 784 12/24/2009 FA FNMA 5.00% NON-CALL 1,037,000.00 1,127,519.73 1.567% 44,578.33 1,172,098.06 952 01/25/2010 FA FAMCA 2.1% NON-CALL 1,000,000.00 1,015,908.69 1.460% 37,466.31 1,053,375.00 928 01/20/2010 FA FNMA 1.75% NON-CALL 1,000,000.00 1,009,004.81 1.390% 35,717.41 1,044,722.22 933 03/16/2010 FA FNMA 1.75% NON-CALL 3,000,000:00 3,034,050.00 1.268% 91,950.00 3,126,000.00 878 01/29/2009 FA FHLB 4.625% NON-CALL 2,000,000.00 2,150,960.00 2.391% 176,901.11 2,327,861.11 1,294 12/24/2009 FA FHLB 4.625% NON-CALL 1,000,000.00 1,078,810.00 1.567% 43.367.08 1,122,177.08 965 06/04/2010 FA FHLB 2.4% NON-CALL 1,000,000.00 1,027,049.96 1.150% 25,683.37 1,052,733.33 803 06/04/2010 FA FHLB 1.1 % NON-CALL 4,000,000.00 4,000,013.10 1.100% 98,253.57 4,098,266.67 816 05/05/2008 FA FHLB 5.00% NON-CALL 1,175,000.00 1,238,814.19 3.640% 192,237.89 1,431,052.08 1,593 08/22/2008 FA FHLB 4.5% NON-CALL 1,000,000.00 1,022,730.00 3.889% 160,020.00 1,182,750.00 1,484 06/04/2010 FA FHLB 2.00% NON-CALL 5,000,000.00 5,091,850.00 1.180% 135,927.78 5,227,777.78 833 03/08/2010 FA FHLMC 2.125% NON-CALL 3,000,000.00 3,058,800.00 1.336% 102,877.08 3,161,677.08 928 10/01/2009 FA FFCB 1.80% NON-CALL 1,000,000.00 1,003,470.00 1.680% 50,180.00 1,053,650.00 1,089 11/25/2009 FA FFCB 1.80% NON-CALL 3,000,000.00 3,032,750.01 1.405% 120,099.99 3,152,850.00 1,034 05/11/2009 FA FHLMC 3.875% NON-CALL 1,000,000.00 1,063,510.00 1.928% 67,701.81 1,131,211.81 1,238 12/10/2007 FA FFCB 4.5% NON-CALL 2,000,000.00 2,034,780.00 4.100% 401,970.00 2,436,750.00 1,773 06/04/2010 FA FHLB 1.375% NON-CALL 3,000,000.00 3,012,394.24 1.200% 86,720.34 3,099,114.58 878 06/03/2008 FA FNMA 6.41% NON-CALL 1,807,000.00 1,990,388.82 3.890% 331,405.40 2,321,794.22 1,624 • 07/01/2010 FA FHLMC 4.125% NON-CALL 3,000,000.00 3,233,040.00 0.939% 72,897.50 3,305,937.50 904 01/14/2008 FA FHLB 4.25% CALL 10/14/08 3,000,000.00 3,000,000.00 4.250% 637,500.00 3,637,500.00 1,827 10/20/2009 FA FFCB 5.15% NON-CALL 1,000,000.00 1,102,490.00 1.926% 67,316.94 1,169,806.94 1,206 M X ffi H Cd H 1-3 INVESTMENT REPORT AS OF DECEMBER 31, 2011 VP INVESTMENT DATE 10/07/2010 03/10/2008 10/20/2009 10/20/2009 11/10/2008 08/13/2009 05/25/2010 12/28/2009 08/27/2008 08/19/2009 11/12/2008 12/17/2008 03/24/2010 02/23/2010 10/19/2011 04/15/2010 10/19/2009 01/20/2009 02/12/2010 08/26/2011 09/17/2010 03/24/2010 10/20/2009 08/01/2011 03/24/2010 08/25/2011 09/08/2010 03/24/2010 03/24/2010 11/07/2011 08/25/2011 06/29/2011 03/29/2011 02/02/2011 07/20/2011 05/10/2011 PAR INVESTED RETURN INVESTMENT TERM TYPE SECURITY VALUE AMOUNT RATE INTEREST RETURN (Davs) FA FFCB 3.4% NON-CALL 1,065,000.00 1,133,986.44 0.600% 15,503.56 1,149,490.00 854 FA FHLB 3.50% NON-CALL 3,000,000.00 2,963,940.00 3.765% 560,476.67 3,524,416.67 1,824 FA FHLMC 4.25% NON-CALL 500,000.00 536,967.86 2.100% 39,296.03 576,263.89 1,310 FA FHLMC 4.0% NON-CALL 500,000.00 532,794.50 2.120% 40,094.39 572,888.89 1,331 FA FHLB 5.375% NON-CALL 1,000,000.00 1,065,788.37 3.800% 181,163.02 1,246,951.39 1,677 FA FHLB 4.25% NON-CALL 2,000,000.00 2,130,988.03 2.450% 195,081.41 2,326,069.44 1,401 FA FFCB 1.375% NON-CALL 2,000,000.00 1,993,760.00 1.479% 91,031.67 2,084,791.67 1,127 FA FHLB 1.85% NON-CALL 2,000,000.00 1,987,226.45 2.040% 142,273.55 2,129,500.00 1,278 FA FNMA 4.375% NON-CALL 2,000,000.00 2,035,600.00 3.970% 392,177.78 2,427,777.78 1,785 FA FFCB 2.7% NON-CALL 1,000,000.00 1,005,669.88 2.550% 102,330.12 1,108,000.00 1,461 FA FHLB 4.0% NON-CALL 1,000,000.00 1,007,890.00 3.818% 184,776.67 1,192,666.67 1,759 FA FHLB 4.375% NON-CALL 2,000,000.00 2,154,940.00 2.625% 259,712.78 2,414,652.78 1,731 FA FHLMC 4.125% NON-CALL 3,000,000.00 3,222,330.00 1.930% 211,826.25 3,434,156.25 1,283 FA FFCB 3.875% NON-CALL 1,000,000.00 1,065,180.00 2.000% 75,181.11 1,140,361.11 1,322 FA FNMA 1.125% NON-CALL 5,000,000.00 5,061,150.00 0.500% 49,631.25 5,110,781.25 720 FA FHLB 2.00% NON-CALL 2,000,000.00 2,000,000.00 2.000% 140,000.00 2,140,000.00 1,279 FA FFCB 5.350% NON-CALL 2,000,000.00 2,235,072.36 2.264% 193,522.08 2,428,594.44 1,463 FA FHLB 3.125% NON-CALL 2,000,000.00 2,047,941.08 2.600% 258,135.31 2,306,076.39 1,788 FA FFCB 3.00% NON-CALL 1,000,000.00 1,028,536.49 2.250% 91,463.51 1,120,000.00 1,461 FA FNMA .75% CALL 2/14/12 QRTLY STEP 3,000,000.00 3,003,480.00 1.670% 119,520.00 3,123,000.00 903 FA FNMA 1.3% CALL 3/17/11 2,000,000.00 2,000,000.00 1.300% 91,000.00 2,091,000.00 1,277 FA FHLB 2.5% NON-CALL 3,000,000.00 3,016,423.52 2.363% 300,034.82 3,316,458.34 1,542 FA FFCB 4.375% NON-CALL 3,000,000.00 3,234,480.00 2.595% 381,665.83 3,616,145.83 1,714 FA FFCB 1.0% CALL 8/1/12 CONT 5,000,000.00 5,000,000.00 1.000% 150,000.00 5,150,000.00 1,096 FA FHLB 5.5% NON-CALL 3,000,000.00 3,395,255.41 2.323% 328,452.92 3,723,708.33 1,603 FA FFCB .75% CALL 11/25/11 CONT 3,000,000.00 3,000,000.00 0.750% 67,500.00 3,067,500.00 1,096 FA FNMA 1.50% CALL 3/8/11 2,000,000.00 2,000,000.00 1.500% 120,000.00 2,120,000.00 1,461 FA FHLB 5.25% NON-CALL 2,000,000.00 2,231,960.00 2.490% 237,040.00 2,469,000.00 1,633 FA FFCB 3.0% NON-CALL 2,000,000.00 2,047,400.80 2.440% 222,265.87 2,269,666.67 1,643 FA FNMA .80% CALL 10/24/12 3,000,000.00 3,000,937.50 0.789% 70,195.83 3,071,133.33 1,082 FA FFCB .85% CALL 11/25/11 CONT 5,000,000.00 5,000,000.00 0.850% 138,125.00 5,138,125.00 1,188 FA FHLMC 1.25% CALL 6/29/12 2,000,000.00 2,000,000.00 1.250% 87,500.00 2,087,500.00 1,279 FA FFCB 2.1% CALL 1/5/12 CONT 2,000,000.00 2,000,000.00 2.100% 158,200.00 2,158,200.00 1,378 FA FFCB 2.0% CALL 2/2/12 CONT 2,000,000.00 2,000,000.00 2.000% 160,000.00 2,160,000.00 1,461 FA FNMA 2.0% CALL 4/13/12 ONE TIME 2,000,000.00 2,019,620.00 1.730% 129,602.22 2,149,222.22 1,363 FA FHLB 2.0% CALL ONE TIME 2,000,000.00 2,011,380.00 1.850% 146,397.78 2,157,777.78 1,441 INVESTMENT REPORT AS OF DECEMBER 31, 2011 NVESTMENT PAR INVESTED RETURN INVESTMENT TERM DATE TYPE SECURITY VALUE AMOUNT RATE INTEREST RETURN (Davs) 06/04/2010 FA FNMA 2.00% CALL 10/29/12 STEP 2,000,000.00 2,018,771.34 2,780% 277,339.77 2,296,111.11 1,790 02/28/2011 FA FHLB 2.0% CALL 5/29/12 CONT 2,235,000.00 2,235.000.00 2,000% 190,099.17 2,425,099.17 1,551 06/29/2011 FA FFCB 1.6% CALL CONT 2,000,000.00 2,000.000.00 1,600% 128,000.00 2,128,000.00 1,461 07/27/2011 FA FNMA 1.70% CALL 1/27/12 2,000,000.00 2.000,000.00 1,700% 136,000.00 2,136,000.00 1,461 07/27/2011 FA FFCB 1.550% CALL 7/2712 CONT 3,500,000.00 3,500,000.00 1,550% 217,000.00 3,717,000.00 1,461 07/27/2011 FA FNMA 1.55% CALL 1/27/12 2,000,000.00 2,000,000.00 1,550% 124,000.00 2,124,000.00 1,461 03/30/2011 FA FHLB 2.0% NON-CALL 2,000,000.00 1,999,000.00 2,012% 174,333.33 2,173,333.33 1,583 04/04/2011 FA FHLB 2.0% NON-CALL 2,000,000.00 2,000,000.00 2,000% 176,000.00 2,176,000.00 1,607 09/14/2010 FA FHLB 1.74% CALL 9/14/12 2,000,000.00 2.000.000.00 1,740% 174,000.00 2,174,000.00 1,826 09/21/2010 FA FNMA 2.0% CALL 3/21/11 2,000,000.00 2.000.000.00 2,000% 200,000.00 2,200,000.00 1,826 10/28/2010 FA FNMA 1.50% CALL 4/28/11 2,000,000.00 1,999,000.00 1,510% 151,000.00 2,150,000.00 1,826 08/18/2011 FA FFCB 1.37% CALL 11/18/11 CONT 2,000,000.00 2,000,000.00 1.370% 116,450.00 2,116,450.00 1,553 11/23/2010 FA FFCB 2.0% CALL 5/23/12 CONT 2,000,000.00 2,000,000.00 2.000% 200,000.00 2,200,000.00 1,826 08/10/2011 FA FNMA 2.0% CALL 5/23/12 5,000,000.00 5,039,000.00 1.809% 389,611.11 5,428,611.11 1,566 08/25/2011 FA FFCB 1.37% CALL 11/25/11 CONT 3,000,000.00 3,000,000.00 1.370% 185,625.00 3,185,625.00 1,645 04/08/2011 FA FHLB 2.7% QRTLY CALLS 2,000,000.00 2,000,000.00 2.700% 270.000.00 2,270,000.00 1,837 04/25/2011 FA FNMA 2.65% CALL 4/25/12 ONE TIME 2,000,000.00 1.999.000.00 2.661% 266.000.00 2,265,000.00 1.827 04/27/2011 FA FHLB 2.5% NON-CALL 2,000,000.00 2.000.000.00 2.500% 250.000.00 2,250,000.00 1,827 05/03/2011 FA FAMCA 2.55% CALL 2,000,000.00 2,000,000.00 2.550% 254,858.33 2,254,858.33 1,826 06/29/2011 FA FHLMC 2.10% CALL 2,000,000.00 2,000,000.00 2.100% 210,000.00 2,210,000.00 1,827 06/29/2011 FA FNMA 1.50% CALL STEP 4,000,000.00 4,000,000.00 2.250% 450,000.00 4,450,000.00 1,827 07/27/2011 FA FNMA 2.0% CALL ONE TIME 2,000,000.00 1,999,800.00 2.002% 197,755.56 2,197,555.56 1,805 07/11/2011 FA FNMA 1.75% CALL QRTLY STEP 2,000.000.00 2,000,000.00 2.138% 215.000.00 2,215,000.00 1,827 07/18/2011 FA FNMA 2.10% CALL QRTLY 2,000.000.00 1,991,000.00 2.196% 219.000.00 2,210,000.00 1,827 08/04/2011 FA FNMA 2.375% CALL 1/27/12 QRTLY 4,000,000.00 4,031,120.00 2.209% 442,032.78 4,473,152.78 1,819 08/17/2011 FA FHLMC 1.75% CALL 1/27/12 STEP 3,000,000.00 3,011,250.00 2.115% 315,833.33 3,327,083.33 1,806 08/15/2011 FA FFCB 1.75% CALL 8/15/12 CONT 2,000,000.00 2,000,000.00 1.750% 175,000.00 2,175,000.00 1,827 08/22/2011 FA FFCB 1.5% CALL 8/22/12 CONT 2,000,000.00 2,000,000.00 1.500% 150,000.00 2,150,000.00 1,827 08/24/2011 FA FHLB 1.55% CALL 2/24/12 CONT 4,000,000.00 4.000.000.00 1.550% 310,000.00 4,310,000.00 1,827 08/29/2011 FA FHLB 1.0% CALL 8/24/12 QRTLY STEP 3,000,000.00 3.000.000.00 1.735% 262,083.33 3,262,083.33 1,822 09/09/2011 FA FHLB .625% CALL 3/9/12 QRTLY STEP 5,000,000.00 4.990,000.00 1.988% 503,750.00 5,493,750.00 1,827 09/15/2011 FA FNMA 2.0% CALL 3/15/12 5,000,000,00 5.034,900.00 1.853% 465,100.00 5,500,000.00 1,827 09/16/2011 FA FNMA 1.45% CALL 3/16/12 QRTLY 5,000,000.00 5,000,000.00 1.450% 362,500.00 5,362,500.00 1,735 09/16/2011 FA FHLB 1.510% CALL 12/16/11 CONT 3.000,000,00 2,998,500.00 1.520% 228,000.00 3.226.500.00 1,827 r 09/20/2011 FA FHLMC 1.0% CALL 12/20/11 QRTLY 3.000,000.00 2,998,500,00 1.839% 279,000.00 3,277.500.00 1.827 09/28/2011 FA FHLMC 1.35% CALL 3/28/12 QRTLY STEP 5,000,000.00 5,000,000.00 1.505% 377,500.00 5,377,500.00 1,827 INVESTMENT REPORT AS OF DECEMBER 31, 2011 MVESTMENT DATE 09/29/2011 10/03/2011 10/06/2011 10/11/2011 10/12/2011 10/19/2011 10/24/2011 10/26/2011 10/26/2011 10/27/2011 11/16/2011 11/16/2011 11/23/2011 TYPE SECURITY FA FNMA 1.25% CALL 3/28/12 STEP FA FFCB 1.48% CALL 4/3/12 CONT FA FFCB 1.30% NON-CALL FA FFCB 1.370% CALL 10/11/12 CONT FA FNMA 1.25% CALL 4/12/12 QRTLY FA FHLMC .50% CALL 4/19/12 QRTLY STEP FA FNMA 1.70% CALL 10/24/12 QRTLY FA FNMA 1.125% CALL 10/26/12 QRTLY STEP FA FHLMC 1.6% CALL 1/26/12 FA FHLB .50% CALL 4/27/12 QRTLY STEP FA FNMA 1.80% QRTLY CALLS FA FNMA 1.35% QRTLY CALLS FA FNMA 1.25% STEP QRTLY CALLS PAR INVESTED RETURN INVESTMENT TERM VALUE AMOUNT RATE INTEREST RETURN (Days) 5.000.000.00 5,000,000.00 1.445% 362,326.39 5,362,326.39 1,826 5.000.000.00 5,000,000.00 1.480% 370,000.00 5,370,000.00 1,827 5.000.000.00 5,000.000.00 1.300% 325,000.00 5,325,000.00 1,827 5.000.000.00 5,000,000.00 1.370% 342,500.00 5,342,500.00 1,827 4.000,000.00 3,990,400.00 1.250% 259,600.00 4,250.000.00 1,827 5,000,000.00 5,000,000.00 1.125% 659,375.00 5,659.375.00 1,827 5,000,000.00 5,000,000.00 1.700% 425,000.00 5,425,000.00 1,827 5,000.000.00 5,000,000.00 1.810% 462,500.00 5,462,500.00 1,827 5,000.000.00 5,000,000.00 1.600% 400,000.00 5,400,000.00 1,827 5.000.000.00 4,996,250.00 1.870% 472,500.00 5,468,750.00 1,827 5.000.000.00 5.000.000.00 1.800% 450,000.00 5,450,000.00 1,827 5,000,000.00 4,962,500.00 1.506% 375,000.00 5,337,500.00 1,827 5,000,000.00 5,000,000.00 1.688% 425,000.00 5,425,000.00 1,827 SUB-TOTAL 322,819,000.00 327.305,438.37 1.840% 26,582,279,73 353,887,718.10 02/18/2009 FN FICO STRIP 0.00% NON-CALL 1,000,000.00 916,713.56 2.710% 83,286,44 1,000,000.00 1.178 02/25/2009 FN FICO STRIP 0.00% NON-CALL 2,000,000.00 1,826,280.00 2.850% 173,720.00 2,000,000.00 1,171 03/02/2009 FN FICO 0.0% NON-CALL 2,000,000.00 1,818,680.00 3.000% 181,320.00 2.000.000.00 1,166 03/02/2009 FN FICO 0.0% NON-CALL 2,000,000.00 1,793,820.00 3.050% 206,180.00 2,000.000.00 1.314 03/09/2010 FN FICO 0.0% NON-CALL 2,000.000.00 1,882,080.00 1.850% 117,920.00 2,000.000.00 1.206 10/04/2011 FN TENNESSEE VALLEY AUTHORITY 0.00% NON-CALL 4.143,000.00 4,099,415.64 0.510% 87,168.72 4,186,584.36 759 01/18/2011 FN FICO 0.00% NON-CALL 1,076,000.00 1,027,655.32 1.370% 96.689.36 1,124,344.68 1.228 11/24/2010 FN FNMAO% NON-CALL 2,000,000.00 1,922,260.00 1.100% 155,480.00 2.077.740.00 1.319 03/09/2011 FN FNMA .00% NON-CALL 2,657,000.00 2,511,688.67 1.700% 290,622.66 2.802.311.33 1.214 07/25/2011 FN FNMA 00% NON-CALL 2,500,000.00 2,419.825.00 1.020% 80,175.00 2.500.000.00 1.171 SUB-TOTAL 21,376,000.00 20,218.418.19 1.582% 1,472,562.18 21.690.980.37 1.173 Federal Investments Total 344,195,000.00 347,523,856.56 28,054,841.91 375,578,698.47 1,173 11/10/2008 TR US TREASURY 3.125% 1,000,000.00 1,031,328.00 2,430% 118,792.86 1.150.120.86 1.755 11/12/2008 TR US TREASURY 4.0% 1,000,000.00 1,030,781.25 2,452% 121,777.13 1,152.558.38 1.783 SUB-TOTAL 2,000,000.00 2,062,109.25 2,441% 240,569.99 2.302.679.24 1,769 INVESTMENT REPORT AS OF DECEMBER 31, 2011 INVESTMENT PAR INVESTED RETURN INVESTMENT TERM DATE TYPE SECURITY VALUE AMOUNT RATE INTEREST RETURN (Daysl 03/20/2007 CN GENERAL ELECTRIC 5.875% NON-CALL 5,956,000.00 6,187,688.40 4.970% 1.483.867.09 7,671.555.49 1.793 10/11/2007 CN GENERAL ELETRIC 5.875% NON-CALL 3,000,000.00 3,089.347.40 5.100% 676.360.93 3,765.708.33 1.588 11/15/2007 CN GENERAL ELETRIC 5.875% NON-CALL 2,000,000,00 2.089,414.35 4.700% 409.960.65 2,499,375.00 1.553 05/05/2009 CN BARCLAYS BANK 2.7% NON-CALL 1,575.000.00 1,590,861.34 2.330% 104.626.16 1,695,487.50 1.035 04/21/2009 CN BERKSHIRHATWY 4.00% NON-CALL 1.000.000.00 1,022,563.95 3.200% 96.769.38 1,119,333.33 1,090 04/23/2009 CN BERKSHIRHATWY 4.00% NON-CALL 2,000,000.00 2,039,340.00 3.300% 198.882.22 2.238.222.22 1,088 04/30/2008 CN PRINCIPAL LIFE INC 4.5% NON-CALL 1,000,000.00 1,000.000.00 4.500% 178.375.00 1.178.375.00 1,447 08/31/2007 CN GENERAL ELECTRIC 6.00% NON-CALL 1,000,000.00 1.033,437.31 5.200% 253.896.02 1,287.333.33 1.750 05/30/2008 CN GENERAL ELECTRIC 6.00% NON-CALL 1,000,000.00 1,052,958.51 4.550% 189,541.49 1.242,500.00 1.477 02/08/2010 CN GENERAL ELECTRIC 6.00% NON-CALL 2,000,000.00 2,174,860.00 2.167% 107,473.33 2.282,333.33 858 07/17/2008 CN PROTECTIVE LIFE 5.050% NON-CALL 3,000,000.00 3,000.000.00 5.050% 605,158.33 3,605,158.33 1.459 08/31/2007 CN JOHNSON & JOHNSON 5.15% NON-CALL 1,000,000.00 1.017,457.28 4.750% 237,753.83 1,255,211.11 1.811 10/31/2007 CN GENERAL ELECTRIC 5.250% NON-CALL 2,000,000.00 2,036,663.70 4.830% 484,836.30 2,521,500.00 1,815 11/23/2007 CN GENERAL ELECTRIC 5.250% NON-CALL 2,000,000.00 2,065,283.50 4.500% 449,799.83 2,515,083.33 1,792 01/30/2008 CN WELLS FARGO 5.250% NON-CALL 1,000,000.00 1,042,814.41 4.240% 205,539.76 1,248,354.17 1,728 03/18/2011 CN MET LIFE OF CONNECTICUT 5.01% NON-CALL 2,000,000.00 2.121.360.00 1.561% 58,165.00 2,179,525.00 657 12/28/2010 CN ROYAL BANK OF CANADA 2.25% NON-CALL 2,000,000.00 2.047,930.00 1.150% 51,695.00 2,099,625.00 808 04/24/2008 CN MET LIFE GLOBAL FUNDING 5.125% NON-CALL 1,000,000.00 1,003,232.48 5.050% 251,024.46 1,254,256.94 1.812 05/07/2008 CN MET LIFE GLOBAL FUNDING 5.125% NON-CALL 2,000,000.00 2,019,402.04 4.900% 485,410.46 2,504,812.50 1,799 05/12/2009 CN WAL-MART 4.250% NON-CALL 1.000.000.00 1,047,829.91 2.950% 118,982.59 1,166,812.50 1,434 05/30/2008 CN ALLSTATE LIFE 5.375% NON-CALL 2,000,000.00 2.023.559.81 5.100% 504,981.86 2.528.541.67 1,796 05/09/2008 CN NEW YORK LIFE 4.650% NON-CALL 1,000,000.00 1,006,649.66 4.500% 225,850.34 1,232.500.00 1,826 02/11/2011 CN NEW YORK LIFE 4.650% NON-CALL 2,000,000.00 2,150,000.00 1.250% 23,766.67 2,173,766.67 818 12/23/2008 CN BERKSHIRHATWY 4.60% NON-CALL 1,000,000.00 1,023,835.68 4.000% 177,542.10 1,201,377.78 1,604 05/12/2009 CN 3M 4.375% NON-CALL 2,000.000.00 2,121,417.76 2.850% 251,186.41 2,372,604.17 1,556 07/18/2011 CN GENERAL ELECTRIC 2.10% NON-CALL 2,000,000.00 2,037,760.00 1.320% 65,956.67 2,103,716.67 904 10/28/2011 CN METLIFE GLOBAL 2.00% NON-CALL 1,475,000.00 1,490,888.40 1.500% 49,011.60 1,539,900.00 1,078 12/27/2011 CN MASS MUTUAL GLOB 2.875% NON-CALL 2,500,000.00 2,583,739.37 1.400% 82,771.05 2,666.510.42 846 05/27/2011 CN WAL-MART 3.20% NON-CALL 2,500,000.00 2,645,275.00 1.200% 92,058.33 2.737.333.33 1,084 05/29/2009 CN WAL-MART 3.20% NON-CALL 1.000.000.00 1,003,190.00 3.130% 155,565.56 1.158,755.56 1,812 05/20/2010 CN MICROSOFT 2.95% NON-CALL 2,000,000.00 2.072.820.00 2.005% 164,982.78 2,237,802.78 1,473 10/07/2011 CN METLIFE GLOBAL 5.125% NON-CALL 1,500,000.00 1,625.547.72 1.900% 80,092.90 1,705,640.62 977 12/23/2011 CN GENERAL ELECTRIC CAPITAL .696% FLOATING 2,000,000.00 1.914.520.00 2.250% 123,464.31 2,037,984.31 997 >^ 10/05/2011 CN PROVEDENCE HEALTH 5.05% CALL @ MAKEWHOLE 2.000.000.00 2,237,929.50 1.000% 63.948.28 2,301.877.78 1.092 ^ 09/16/2011 CN BERKSHIRE HATHAWAY 3.20% NON-CALL 3.000.000.00 3,175,710.00 1.430% 150.956.67 3,326,666.67 1,244 10/04/2011 CN MERCK & CO 4.0% NON-CALL 5,000,000.00 5.498.750.00 1.260% 249.027.78 5.747.777.78 1,365 INVESTMENT REPORT AS OF DECEMBER 31, 2011 INVESTMENT DATE TYPE SECURITY 02/09/2011 CN MET LIFE GLOBAL FUNDING 2.5% NON-CALL 05/06/2011 CN MET LIFE GLOBAL FUNDING 2.5% NON-CALL 10/06/2011 CN WAL-MART 1.50% NON-CALL 12/15/2010 CN BARCLAYS BANK 3.10% NON-CALL 12/15/2010 CN ROYAL BANK OF CANADA 2.625% NON-CALL 10/31/2011 CN MET LIFE GLOBAL FUNDING 3.125% NON-CALL 12/28/2011 CN MET LIFE GLOBAL FUNDING 3.125% NON-CALL 05/06/2011 CN MASS MUTUAL GLOB 3.125% NON-CALL 05/16/2011 CN GENERAL ELECTRIC 2.95% NON-CALL 06/17/2011 CN GENERAL ELECTRIC 2.95% NON-CALL 09/12/2011 CN GENERAL ELECTRIC 2.95% NON-CALL 10/27/2011 CN PROCTER & GAMBLE 1.45% NON-CALL 10/11/2011 CN BERKSHIRE HATHAWAY 2.20% NON-CALL 09/22/2011 CN TOYOTA 2.0% NON-CALL 11/10/2011 CN NEW YORK LIFE 2.45% NON-CALL PAR VALUE 1,000,000.00 1,000,000.00 3,000,000.00 2,000,000.00 2,000,000.00 1,635,000.00 2,000,000.00 1,000,000.00 2,000,000.00 2,000,000.00 1,400,000.00 5,000,000.00 5,000,000.00 5,000,000.00 3,550,000.00 INVESTED AMOUNT 978,478.42 993,799.11 3,049,826.34 2,000.000.00 2,038,220.00 1,695,247.73 2,063,239.83 1,024,175.57 2,000,912.32 2,009,952.38 1,427,513.33 5,011,536.25 5,022,855.25 5,023,645.00 3,669,194.08 RETURN RATE 3.000% 2.650% 1.080% 3.100% 2.220% 2.200% 2.300% 3.125% 2.940% 2.840% 2.500% 1.400% 2.100% 1.900% 1.700% INTEREST 137,493.80 116,131.45 132,548.66 310,000.00 225,009.16 15,611.98 189,017.11 130,164.71 292,940.46 278,819.84 164,875.84 336.463.75 510,033.64 474,410.56 287,655.64 INVESTMENT RETURN 1,115,972.22 1,109,930.56 3,182.375.00 2,310,000.00 2,263,229.16 1,710,859.71 2,252,256.94 1,154,340.28 2,293,852.78 2.288.772.22 1,592,389.17 5,348,000.00 5,532,888.89 5,498,055.56 3,956,849.72 TERM (Days) 1,693 1,607 1,480 1,826 1,826 1,533 1.475 1,805 1,820 1,788 1,701 1,754 1,770 1,820 1,708 SUB-TOTAL 108,091,000,00 111,302,633.09 2,648% 12,710,457.74 124.013,090.83 1,552 09/16/2011 CD SAFRA NATIONAL BANK .80% 248,000,00 248,000.00 0,800% 3,973.43 251,973.43 731 09/16/2011 CD MERRICK BANK .70% 249,000,00 249,000.00 0.700% 3,490.83 252,490.83 731 09/30/2011 CD COMPASS BANK 1.0% 248,000,00 248,000.00 1.000% 4,966.80 252,966.80 731 10/07/2011 CD DORAL ANK 1.0% 248,000,00 248,000.00 1.000% 4,966.80 252,966.80 731 10/18/2011 CD MEDALLION BANK .75% 249,000,00 249,000.00 0.750% 3,740.11 252,740.11 731 08/17/2011 CD AMERICAN EXPRES CENTURION BANK 1.20% 248,000,00 248,000.00 1.200% 8,887.23 256,887.23 1,090 08/17/2011 CD CIT BANK 1.10% 248,000,00 248,000.00 1.100% 8,198.94 256,198.94 1,097 08/17/2011 CD DISCOVER BANK 1.15% 248,000,00 248,000.00 1.150% 8,571.62 256,571.62 1,097 08/17/2011 CD ALLY BANK 1.15% 248,000,00 248,000.00 1.150% 8,579.43 256,579.43 1,097 08/17/2011 CD GE MONEY BANK 1.15% 248,000,00 248,000.00 1.150% 8,563.81 256,563.81 1,098 08/19/2011 CD GE CAPITAL FINANCIAL INC 1.15% 248,000,00 248,000.00 1.150% 8,563.81 256,563.81 1,096 08/24/2011 CD GOLDMAN SACHS BANK 1.15% 248,000,00 248,000.00 1.150% 8,571.62 256,571.62 1.097 09/21/2011 CD TRANSPORTATION ALLIANCE BANK INC .75% 249,000,00 249,000.00 0.750% 5,612.71 254,612.71 1,097 09/23/2011 CD STATE BANK OF INDIA 1.30% 248,000,00 248,000.00 1.300% 9,680.83 257,680.83 1,096 09/23/2011 CD BMW BANK OF NORTH AMERICA 1.35% 248,000,00 248,000.00 1.350% 10,053.17 258,053.17 1,096 09/15/2011 CD BANK OF THE WEST 1.4% 249,000,00 249,000.00 1.400% 13,943.96 262,943.96 1,460 12/02/2011 CD MIDLAND STATES BANK 1.25% 249,000.00 249,000.00 1.250% 12,450.00 261,450.00 1,461 INVESTMENT REPORT INVESTMENT DATE AS OF DECEMBER 31, 2011 PAR INVESTED RETURN INVESTMENT TERM TYPE SECURITY VALUE AMOUNT RATE INTEREST RETURN (Days) SUB-TOTAL 4,221,000.00 4,221,000.00 1.079% 132,815.10 4,353,815.10 1,061 O WELLS FARGO BANK 389,217.00 389,217.00 0.050% 0.53 389,217.53 0 CORPORATE CASH MANAGEMENT ACCOUNT 3,256,105.96 3,256,105.96 0.050% 4.46 3,256,110.42 0 LIBRARY ACCOUNT 1,073.12 1,073.12 0.000% -1,073.12 o UNION TRUST --0.000% -- 0 LAIF WATER DISTRICT 40,248,000.00 40,248,000.00 0.390% 436.02 40,248,436.02 o LAIF PUBLIC IMPROVEMENT CORPORATION 29,771,000.00 29,771,000.00 0.390% 322.52 29,771,322.52 0 LAIF PUBLIC FINANCING CORPORATION 12,950,000.00 12,950,000.00 0.390% 140.29 12,950,140.29 o LAIF CITY OF CARLSBAD 43,859,000.00 43,859.000.00 0.390% 475.14 43,859,475.14 SUB-TOTAL 130,474,396.08 130,474,396.08 0.380% 1,378.96 130.475,775.04 GRAND TOTAL 588,981,396.08 595,583,994.98 1.659% 41,140,063.70 636,724,058.68 CITY OF CARLSBAD Fund Equity in Pooled Investments AS OF DECEMBER 31, 2011 EXHIBIT 8 Total Cash Balance by Fund: General Special Revenue Debt Service Capital Projects: General Capital Construction Traffic Impact Fees Public Facilities Fees Parl< Development Transnet Taxes Drainage Fees Special Districts Infrastructure Replacement Redevelopment Other Capital Construction Enterprise: Carlsbad Municipal Water District Sewer Fund Solid Waste Storm Water Golf Course Internal Service Agency Funds Misc. Special Funds Total General Ledger Balance ** Reconciling Adjustments (1) Total Treasurer's Investment Portfolio at Amortized Cost Total 55,220,052 18,836,900 47,583,740 3,426,281 7,074,410 8,080,105 76,899,952 69,287,934 6,889,851 1,223,713 80,185,506 51,228,921 7,223,255 2,489,554 353,380 65,788,105 53,236,735 0 294,522,938 141,480,617 31,094,706 5,989,443 0 592,112,544 (1,441) 592,111,103 (1) 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 checl<s 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 1/10/12 EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO As of December 31, 2011 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 S&P) Moodv's S&P BERKSHIRE HATHAWAY AA2 AA+ GENERAL ELECTRIC AA2 AA+ JOHNSON & JOHNSON AAA AAA MASS MUTUAL GLOBAL AA2 AA+ MERCK AAS AA MET LIFE GLOBAL AA3 AA- MET LIFE OF CONNECTICUT AAS AA- MICROSOFT AAA AAA NEW YORK LIFE AAA AA+ PROCTER & GAMBLE AAS AA- PROVIDENCE HEALTH AA2 AA ROYAL BANK OF CANADA AA1 AA- 3M AA2 AA- TOYOTA AA2 AA- WAL-MART AA2 AA Commercial Paper Investments Meeting the Current Investment Policy: (Ratings must be A1/P1 or better by both Moody's and S&P) (Ratings of other debt must be AA or better by Moody's and S&P) NONE Investments with Subsequent Changes in Credit Rating * Moodv's S&P Latest Maturity Date Carrying Value Market Value Al A+ 04/30/201S 2,006,376 2,111,860 AAS A+ 12/15/2015 3,575,995 3,483,083 AAS A+ 04/16/2012 1,000,000 1,001,500 A2 AA-07/15/2012 3,000,000 3,019,320 A2 A+ 10/23/2012 1,007,341 1,035,080 ALL STATE LIFE BARCLAYS BANK PRINCIPAL LIFE PROTECTIVE LIFE WELLS FARGO * 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 10 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF DECEMBER 31, 2011 WEIGHTINGS FOR CORPORATE AND FEDERAL AGENCY ISSUERS PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* ALL STATE LIFE 2,023,559.81 0,34% BARCLAYS BANK 3,590,861.34 0.60% BERKSHIRE HATHAWAY 12,284,304.88 2,06% GENERAL ELECTRIC CAP 29,120,311.22 4.89% JOHNSON & JOHNSON 1,017,457.28 0,17% MASS MUTUAL 3,607,914.95 0,61% MERCK & CO 5,498,750.00 0.92% MET LIFE GLOBAL FUND 11,869,835.73 1,99% MET LIFE OF CONNECTICUT 2,121,360.00 0,36% MICROSOFT 2,072,820.00 0,35% NEW YORK LIFE 6,825,843.74 1.15% PRINCIPAL LIFE 1.000.000.00 0.17% PROTECTIVE LIFE 3,000,000.00 0.50% PROTER & GAMBLE 5,011,536.25 0,84% PROVIDENCE HEALTH 2,237,929.50 0,38% ROYAL BANK OF CANADA 4,086,150.00 0.69% 3M 2,121,417.76 0.36% TOYOTA 5,023,645.00 0.84% WAL-MART 7,746,121.25 1.30% WELLS FARGO 1,042,814.41 0,18% PERCENTAGE WEIGHTINGS BY FEDERAL AGENCY ISSUER Investment Cost Percent of Portfoli FAMCA 3,015,908.69 0.51% FICO 9,265,228.88 1.56% FEDERAL FARM CREDIT BANK 82,704,526.47 13,89% FEDERAL HOME LOAN BANK 91,953,132.08 15,44% FEDERAL HOME LOAN MORTGAGE CORP 42,754,150.45 7,18% FEDERAL NATIONAL MORTGAGE ASSOC 108,201,015.86 18.17% TVA 9,629,894.12 1.62% U.S.TREASURY 2,062,109.25 0,35% Total Portfolio $595,583,994.98 * No more than 5% may be invested with a single corporate issuer, **There are no percentage limits on federal agency issuers. J?l City of Carlsbad Bond Proceeds investment Report December 31, 2011 Fund Type Investments Stated Int. Rate Maturity Date Par Value Cost Source Assessment District 03-01 (College/Cannon) Fiscal Agent: BNY Mellon Project Fund LAIF 0.39% N/A $ 925,842 $ 925,842 LAIF Redemption Fund LAIF 0.39% N/A $ 1,199,270 $ 1.199,270 LAIF Re-Assessment District 97-01 (Alga Road & College Blvd) Fiscal Agent: us Bank Imprvmnt Fund - Alga Invesco Prime-Cash Money Market N/A N/A $ 277,998 $ 277,998 Invesco Assessment District 95-01 (Carlsbad Ranch) Fiscal Agent: BNY Mellon Reserve Fund Repub Natl Bank Repo Agreement: HSBC (GIG) 5.83% N/A $ 1,004,294 $ 1,004,294 HSBC Bank of New York Assessment District 96-01 (Rancho Carrillo) Fiscal Agent: BNY Mellon Reserve Fund Repub Natl Bank Repo Agreement: HSBC (GIG) 6.03% 09/02/28 $ 1,292,770 $ 1,292,770 HSBC Bank of New York Assessment District 02-01 (Poinsettia Lane) Fiscal Agent: BNY Mellon Improvement Fund Invesco Prime-Cash Money Market N/A N/A $ 4,446,191 $ 4,446,191 Invesco Redemption Fund LAIF 0.39% N/A $ 2,495,997 $ 2,495,997 LAIF EFJPA Fiscal Agent: BNY Mellon Reserve Fund AIG Investment Agreement (GIG) 5.36% 08/01/14 $ 953,706 $ 953,706 GIC Communities Facilities District #3 Improvement Area 1 Fiscal Agent: BNY Mellon Project Fund Invesco Prime-Cash Money Market N/A N/A $ 1,837,901 $ 1,837,901 Invesco Reserve Fund BNY Dreyfus Money Market various 09/01/36 $ 777,965 $ 777,965 BNY Mellon Other BNY Dreyfus Money Market various N/A $ -$ -BNY Mellon Communities Facilities District #3 Improvement Area 2 Fiscal Agent: BNY Mellon Project Fund LAIF 0.39% N/A $ 12,922 $ 12,922 LAIF Reserve Fund BNY Dreyfus Money Market various 09/01/38 $ 1,068,180 $ 1,068,180 BNY Mellon Other LAIF/BNY Dreyfus Money Market various N/A $ 86,558 $ 86,558 LAIF/BNY Mellon CPFA Golf Course Bonds Fiscal Agent: BNY Mellon ^ Reserve Fund BNY Mellon (GIG) various N/A $ 1,271,499 $ 1,271,499 BNY Mellon | Other BNY Dreyfus Money Market various N/A $ -$ BNY Mellon i 1 1 $ 17,651,093 $ 17,651,093 1 1 H:\Long Term Debt\Quarterly Investment Reports\Qtr Inv Rpt.xisx City of Carlsbad Summary of Outstanding Housing Loans As of December 31, 2011 Updated on: 01/09/2012 Loans Issued by City Loans Issued by Loan amount Developer loan due to City amount due to First date # of loans to developers/ Developer to # of loans City loan repaid Developer loan (recorded as City (not on Borrower Development Purpose Issued issued homeowners homeowners outstanding to City repaid to City AR) City's booiis) Type of Loan Individual homebuyers City-wide (CHAP) Sale 06/28/99 133 $1,680,000 $ -34 ($1,444,324) $ $235,675,86 $ 235.676 Payment defen-ed 15 years. No interest is due unless t>ome is sold before 16th year Individual homebuyers Calavera Hills Sale 10/15/99 5 75,000 150,000 1 (60,000) (120,000) 15,000 30,000 45.000 Payment deferred 30 years. No interest is due unless home is sold before 31th year Individual homebuyers Chenv Tree Walk Sale 06/28/99 42 453,600 452,600 14 (313.200) (283,250) 140,400 169,350 309,750 Payment deferred 30 years. No interest is due unless home is sold Ijefore 31th year Individual homebuyers Serrano Sale 05/25/01 90 1,350.000 4,050,000 33 (885,133) (2,610,000) 464,867 1,440,000 1,904.867 Payment defen-ed 30 years. No interest is due unless home is sold before 31th year Individual homebuyers Rancho Carlsbad Sale 05/20/99 22 752.533 -10 (404,370) -348,163 -348,163 Principal is due when home is sold Individual homebuyers Solamar Sale 09/26/88 9 147,726 -1 (135,065) -12,661 -12,661 Priffcipal is due when home is sold Catholic Chanties Homeless shelter Shelter 09/19/97 1 200,000 -1 --200,000 -200.000 Principal is due when property is sold CB Laurel Tree Apartments Laurel Tree Rentals 12/24/98 2 1,134,000 -2 (634,000) -500.000 -500.000 Principal arxi 3% interest each year for 30 years when surplus cash is available CB Housing Partnership Rancho Carrillo Rentals 03/05/01 1 1,157.584 -1 --1,157,584 -1.157,584 Prindpal and 3% interest eac^ year for 55 years when surplus cash is available Pacific Vista Las Floras Vista Las Flores Rentals 02/27/01 1 363,948 -1 --363,948 -363,948 Principal and 3% interest each year for 55 years when surplus cash is available Poinsettia Housing Assoc Poinsettia Station Rentals 10/21/99 1 920,000 -1 (21,837) -898,163 -898,163 Principal arxJ 3% interest each year for 55 years when surplus cash is available Bridge Housing Corp Villa Loma Rentals 11/04/94 2 2,212,000 -0 (2.212.000) ----Principal and 3% interest eac^ year for 15 years when surplus cash is available Dove Family Housing La Costa Paloma Rentals 07/15/03 1 2,070,000 -1 (1,220,188) -849,812 -849,812 Principal and 3% interest each year for 55 years wtien surplus cash is available CIC Calavera LP Mariposa Apts Rentals 09/15/04 1 1,060.000 -1 --1,060,000 -1.060,000 Principal and 3% interest each year tor 55 years when surplus cash is available Individual homebuyers Mulberry at Bressi Ranch Sale 04/29/05 100 1,840,000 19,660,200 100 --1,840,000 19,660,200 21.500,200 Payment deferred 30 years. No interest is due unless home Is sold before 31th year individual homebuyers Viiiage by the Sea Sale 10/28/05 11 220,000 4,087,200 7 --220,000 4,087,200 4,307.200 Payment defenBd 30 years. No interest ts due unless home is sold before 311h year El Camino Family Housing Cassia Heights Rentals 03/07/06 1 1,454,276 -1 --1,454,276 -1,454,276 Principal and 3% interest each year for 55 years when surplus cash is available Individual homebuyers Laguna Point Sale 07/06/06 3 210,000 3 -210,000 -210,000 Payment deferred 45 years. No interest is due unless home is sold before 46th year Individual homebuyers The Bluffs Sale 06/14/07 8 200,000 8 200,000 -200,000 Payment deferred 30 years. No interest is due unless home is sold before 31th year Individual homebuyers Roosevelt Gardens Sale 08/30/07 11 797,539 11 797,539 -797.539 Refer to Agenda Bill 18,569 / Resolution 2006-131 & AB 19,183/R2007-255 CIC La Costa Down Payment & Closing Cost Assistance Hunter's Point Various Rentals Assistance 08/19/08 06/25/09 1 12 1,932,000 154,700 -1 12 1,932,000 154,700 1,932.000 154.700 Refer to AB18.251 / Resolution 2005-264 Refer to Agenda Bill 19,415 / Resolution 2008-121 EXH CIC Glen Ridge, LP Glen Ridge Rentals 10/05/09 1 1,014,000 -1 1,014,000 -1,014,000 Refer to y^enda Bill 397 / Resolution 435 IB Meta Housing Corp, Tavarua Rentals 12/14/11 1 1,588,800 -1,588,800 -1.588,800 Refer to Agenda Bill 418 / Resolution 475 IT, 460 J 22,987,706 $ 28,400,000 245 $ (7,330,117) $ (3,013,250) $ 15,657,589 $ 25,386,750 $ 41.044.339 1—1 During the 2nd quarter of FY2011-12, approximatley $31,000 in CHAP loan payments were received inclusive of two pay-offs; one for $5,300 and another for $10,166; one $11,100 DPCCA loan was issued; received a $10,800 pay-off related to the Cherry Tree development; received a $15,000 loan pay-off related to the Serrano development; received a $319,618 principal payment related to the Laurel Tree development; and issued a $1,588,800 low-mod loan to Meta Housing Corp. for the Tavarua development.