2019-11-19 CC Agenda Packet - ITEM #D12 - PRESENTATION - Investment PortfolioCity of EI Segundo
Investment Portfolio Report
September, 2019
Presented By:
City Treasurer's Office
November 19, 2019
Security Type
Reserve Portfolio
Government
Municipal Bonds
Corp. Bonds
SUPRA's
CD's
Union Bank Trust
Liquidity Portfolio
CAMP - J PAP
LAI F Immediate
LAI F Sr. Housing
LAI F - LAWA
LAI F Subtotal
Total Invested
Trust Acct. Cash
Chase Bank - Cash
Total Portfolio
September Portfolio Summary
Cost
21,089,451.46
5, 388, 771.50
11,012,413.62
3, 731, 360.50
23,167, 267.61
64, 389, 264.69
2, 657, 347.10
12, 214, 906.28
1,140, 358.22
61,766.63
13,417,031.13
80, 463, 642.92
271, 219.77
6, 524, 578.00
87, 259, 440.69
Market value
WAM % Yield
Market
% of Total
21, 211, 632.50
2.87
2.05%
24.14%
5,445,854.30
3.88
2.33%
6.20%
11,150, 824.84
1.96
2.45%
12.69%
3, 757, 240.00
1.15
2.12%
4.28%
23,445,125.05
2.67
2.29%
26.68%
65, 010, 676.69
2.63
2.24%
73.98%
2, 657, 347.10
12, 214, 906.28
1,140, 358.22
61,766.63
13,417,031.13
81, 085, 054.92
271,219.77
6, 524, 578.00
87, 880, 852.69
1.00 2.22%
1.00 2.28%
1.00 2.28%
1.00 2.28%
1.00 2.28%
2.09
1.00
1.00
2.24%
0.00%
0.45%
2.24%
3.02%
13.90%
1.30%
0.07%
15.27%
92.27%
0.31%
7.42%
100.00%
Interest Income
Month
I nvested Cost
Interest Received
% Yield
July
82, 967, 850
1765158.74
2.55%
August
80,371,167
134,480.58
2.01%
September
80, 463, 643
116, 652.62
1.74%
Avg/Total *
8151 267, 554
427, 291.94
2.10%
FY2019 Totals
80, 378, 666.17
1, 787, 606.27
2.22%
* Note: the monthly fluctuation is because interest on most bonds is paid semi-annually, with LAIF paid quarterly, and some investments paid monthly.
Compliance
Partial List of Allowable Investment Instruments for Local Agencies
Ma)amum
City of EI
In
Maximum
Minimum Quality
Investment Type
Specified % of
Segundo
Compliance
Maturity
Requirements
Portfolio
Investments
Y/N
Local Agency
5 years
10%
None
6.20%
Y
Bonds
U. S Treasury
5 years
None
None
o
0.00 /o
Y
Obligations
US Agency
5 years
None
None
o
24.14 /o
Y
Obligations
Negotiable
Certificates of
5 years
30%
None
26.68%
Y
Deposit
Medium Term
5 years
15%
"A" Rating
12.69%
Y
Notes
Collateralized
5 years
None
None
0.00%
Y
Bank Deposits
Local Agency
Investment Fund
N/A
None
None
15.27%
Y
(LAI F)
SUPRA Nationals
5 years
10%
"A A A" Rating
4.28%
Y
Commercial
5 years
10%
"A -1/A" Rating
0.00%
Y
Paper
Joint Powers
N/A
30%
Multiple
3.02%
Y
Authority Pool
Additional Compliance
Investment Type: Medium Term Notes, Supranationals, CD's & Commercial Paper - As of: September 30, 2019
Ma)amum
MinimumS&P
City of EI
In
Investment Type
Issuer
% of
Quality
Rating
Segundo
Compliance
MARKET VALUE
Portfolio
Requirements
Investments
Y/N
Medium Term Notes
TOTAL
15%
"A" Rating
12.69%
Y
11,150,825
Medium Term Notes
AMAZON.COM
3%
"A" Rating
AA-
0.58%
Y
508,690
Medium Term Notes
AMERICAN HONDA FINANCE
3%
"A" Rating
A
0.57%
Y
499,715
Medium Term Notes
APPLE INC
3%
"A" Rating
AA+
0.58%
Y
508,235
Medium Term Notes
BANK OF AMERICA
3%
"A" Rating
A-
0.57%
Y
500,535
Medium Term Notes
BANK OF NEW YORK MELLON
3%
"A" Rating
A
0.57%
Y
503,830
Medium Term Notes
CATERPILLAR FINANCIAL SVCS
3%
"A" Rating
A
0.58%
Y
505,540
Medium Term Notes
CISCO SYSTEMS
3%
"A" Rating
AA-
1.14%
Y
1,003,560
Medium Term Notes
COCA COLA CO.
3%
"A" Rating
A+
0.56%
Y
495,310
Medium Term Notes
DANAHER CORP.
3%
"A" Rating
A
0.57%
Y
500,735
Medium Term Notes
IBM CORPORATION
3%
"A" Rating
A
0.49%
Y
432,169
Medium Term Notes
JOHNS HOPKINS HEALTH SYS
3%
"A" Rating
AA-
0.17%
Y
148,126
Medium Term Notes
NEW YORK LIFE GLOBAL
3%
"A" Rating
AA+
0.57%
Y
502,785
Medium Term Notes
ORACLE CORPORATION
3%
"A" Rating
A+
1.14%
Y
1,005,585
Medium Term Notes
PACCAR FINANCIAL CORP
3%
"A" Rating
A+
0.58%
Y
508,370
Medium Term Notes
TOYOTA
3%
"A" Rating
AA-
0.58%
Y
512,575
Medium Term Notes
TOYOTA MOTOR CREDIT CORP
3%
"A" Rating
AA-
0.57%
Y
499,875
Medium Term Notes
WAL- MART STORES INC
3%
"A" Rating
AA
0.58%
Y
507,050
Medium Term Notes
WALT DISNEY CO
3%
"A" Rating
A
0.57%
Y
499,505
Medium Term Notes
WELLS FARGO & COMPANY
3%
"A" Rating
A+/A-
1.72%
Y
1,508,635
(Supranational Obl.
I TOTAL
I 10%
I "AAA" Rating I
I
4.28%
I Y I
3,757,240
Supranational Obl.
IADB-INTER-AMERICAN DEV
5%
"AAA" Rating
AAA
3.70%
Y
BANK
3,255,860
Supranational Obl.
IBRD -INTERNATIONAL BANK
5%
"AAA" Rating
AAA
0.57%
Y
FOR RECON & DEV
501,380
Municipal Bonds
TOTAL
I 10%
I "A" Rating I
I
6.20%
I Y
5,445,854
Municipal Bonds
CONNECTICUT STATE
3%
"A" Rating
A
0.58%
Y
509,715
Municipal Bonds
GOODRICH MICH
3%
"A" Rating
AA
0.35%
Y
307,584
Municipal Bonds
HOUSTON, TX
3%
"A" Rating
AA
1.14%
Y
997,450
Municipal Bonds
LA QUINTA CA REDEV
3%
"A" Rating
AA-
1.17%
Y
1,024,690
Municipal Bonds
LAS VEGAS, NEV
3%
"A" Rating
AA
0.64%
Y
564,805
Municipal Bonds
NEW YORK, NY
3%
"A" Rating
AA
1.14%
Y
1,005,660
Municipal Bonds
OREGON ST DEPT ADMIN
3%
"A" Rating
AAA
0.59%
Y
519,345
Municipal Bonds
TULSA CNTY, OKLA INDP
3%
"A" Rating
AA
0.59%
Y
516,605
Commercial Paper
TOTAL
10%
"A -1/A" Rating
0.00%
Y
-
�Commercial Paper
3%
"A -1/A" Rating
A-1+
0.00%
Y
-
CD'S
TOTAL
30%
26.68%
Y
23,445,125
Joint Powers Auth.
Pool
TOTAL
30%
3.02%
Y
2,657,347
JJPAP
CAMP
30%
3.02%
Y
2,657,347
City of EI Segundo - Treasury Department
Continuing Education Tracking - As of September 30,2019
Requirement YTD Hours Excess/(Deficit) Notes
Treasurer 5.00 25.60 20.60 GI OA 3/19+CMTA 4/19
Deputy City Treasurer II 5.00 34.60 29.60 GIOA 3/19+CMTA 4/19
Deputy City Treasurer 1 5.00 17.00 12.00 CMTA 1/19 + others
Portfolio Asset Allocation
INVESTMENTS BY SECURITY TYPE
Bonds, $11,150,825
SUPRA's, 3,757,240
Municipal Bonds,
5,445,854
Goat Obligati(
21,211,633
Cash Immediate,
$6,795,798
.IF Immediate,
112,214,906
r LAIF. - Senior Housing,
$1,140,358
LAIF - LAWA, $61,767
—CAMP - JPAP,
$2,657,347
X45,125
$16,000,000.00
I
I
$14,000,000.00
I
I
$12,000,000.00
$10,000,000.00
$ 8,000,000.00
$ 6,000,000.00
$4,000,000.00
$ 2,000,000.00
$ 0.00
Securities by Maturity
Investments by Maturity Date
s
■ Par Value
111
aa p ��a ����a �a o ea o �a
tio
C�ti�
3.00
2.80
2.60
2.40
2.20
m
2.00
as
c
1.80
1.60
1.40
1.20
1.00
US Treasury Yield Curve
U5 Treasury Bonds Yield Curve as of 9/30/19 (+11/5)
2.18
7 77
•
1.91
1
1.56
IMO
f
1.56
19 MAn
2.a9
� g7
1 _75 1.75 1.71
1. 3
1.58 1.62 1.63 .0-
6 My 1Yr
--4lb-6f28f2019 f 9/30/2019
2 Yr 3 Yr
11/5/2019
1.76
1.66
1.55
5 Yr
2.50
1.50
KID]
0.50
:TIN]
DailyTreasury Yield Curare Rates
Imo 3mo 6mo 1 y 2 y Syr Syr
—12/29#2017 —12/31/2018 —3/29/2019 —6/28/2019 —9/30/2019 —11/5/2019
Daily Treasury Yield Curve Rates
Date 12/31/2014 12/31/2015 12/31/2016 12/29/2017 12/31/2018 3/29/2019 6/28/2019 9/30/2019 11/5/2019
1 mo
0.03
0.14
0.44
1.28
2.44
2.43
2.18
1.91
1.56
3 mo
0.04
0.16
0.51
1.39
2.45
2.40
2.12
1.88
1.56
6 mo
0.12
0.49
0.62
1.53
2.56
2.44
2.09
1.83
1.58
1 yr
0.25
0.65
0.85
1.76
2.63
2.40
1.92
1.75
1.62
2 yr
0.67
1.06
1.20
1.89
2.48
2.27
1.75
1.63
1.63
3 yr
1.1
1.31
1.47
1.98
2.46
2.21
1.71
1.56
1.63
5 yr
1.65
1.76
1.93
2.20
2.51
2.23
1.76
1.55
1.66
New Investment Yields vs. Treasury Yield Curve
3.00
,r 2.45
2.50
7.5f1
12.45
2.53 •
2.50
2Z.W.40
2.40 •
2.3Ij
2.30
2.30
• 2.25
• 2.25
• 2.20
•
2.25
• 2.16
2.22
2.0500
1.95
2.00
•
2.05 luk 1)
-O+f-W
6i 1.95
• 1.90
1.92
a 1.79 • 1. • 1.8580
• - -
1.81 • 1.80
•"
• 1.724' 11"
1.75 475
1841.65
1.76
1.71
1.50 1.63
A)
1.56
1.56
1.55
1.00
0.50
0.00
1 2 3 4 5
Duration 19/30/2019 16/28/2019 0 YrM @ Cost
Cash Flow Analysis
Rolling 12 Month Cash Flow Analysis
25,OOO,000
20,000,000
15,000,000
S
10,000,000
5,004,000
4
Oct -19 Nov -18 Dec -18 W-14 Feb -19 Mar -19 Apr -19 May -19 Jun -19
-4-Total Receipts 4 -Total Disbursements
Jul -19 Aug -19 Sep -19
10,000,000
8,000, 000
6,000, 000
4,000, 000
2,000, 000
0
(2,000,000)
(4,000,000)
(6,OOD,000)
(8,000,000)
(10,000,000)
(12,000,000)
Net Change in Cash
Rolling 12 Month Net Change in Cash
+FY -2017/2018
-ii-FY-2018/2019
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
Current Activity
• From July 1— September 30 — Purchased 17 CD's for $4,151,000, 3
Municipal Bonds for $2,500,000, 5 Agency Bonds for $4,000,000, 1
Corporate Bond for $500,000 and 1 SUPRA for $750,000. We had 1
Agency Bond for $900,000, 2 Corporate Bonds for $1,000,000, and 6 CD's
for $1,470,000 mature. We had 2 Corporate Bonds for $1,000,000, 3 CD's
for $735,000, and 3 Agency Bonds for $2,188,000 called.
• Since September 30th, we have not made any purchases. We had 1
Corporate Bond for $500,000, 1 SUPRA for $500,000 and 2 CD's for
$490,000 mature during this time. We also had 1 Corporate Bond for
$500,000 called during this time.
• Net Change in rate on invested vs. matured Securities for FY2019 is +
0.566%. (Purchases yield of 2.353% vs. Matured yield of 1.787%).
• Net Change in investments for FY2019 is $12,518,000.
• We are actively managing bank balances, LAIF, CAMP and short term
investments to maximize interest income.
2.
2.
2.1
4-1
0
L
1.9
1.
1.7
1.6
Economic Indicators
Average GDP Projections
pills llyll]
September projection
PINI
2022 Longer run
—0— June projection
Unemployment
EN
3.
I
I
�4
01118 03118 05118 47/18 09/18 11!18 01/19 03f1 05/19 07/19 09119
Month
3.5
3.0
2.5
2.0
°6
1.5
1.0
0.5
0.0
Inflation Rates by Month
—0---2018--W-2019
Jan Feb Phar Apr May Jun Jul Aug Sep Oct Nov Dec
3.00
2.50
2.00
e° 1.50
1.00
0.50
l
Average Fed Funds Rate Projections
Current Rate 2019 2020
September projection
2021 2022 Longer run
June projection