2020-06-02 CC Agenda Packet - ITEM #D10 - PRESENTATION - Investment Portfoliof� SfGUNDilD
-rN CGRP 9 NAii■ 1. I?.
City of EI Segundo
Investment Portfolio Report
March, 2020
Presented By:
City Treasurer's Office
June 21 2020
Security Type
Reserve Portfolio
Government
Municipal Bonds
Corp. Bonds
SUPRA's
CD's
Union Bank Trust
Liquidity Portfolio
CAMP - J PAP
LAIF Immediate
LAIF Sr. Housing
LAI F - LAWA
LAI F Subtotal
Total Invested
Trust Acct. Cash
Chase Bank - Cash
Total Portfolio
March Portfolio Summary
Cost
18, 341,175.17
6, 453, 621.50
11, 033, 004.17
3, 231, 005.50
24, 637, 267.61
63, 696, 073.95
2, 681, 304.31
27, 576, 552.60
1, 765, 644.82
62, 504.81
29, 404, 702.23
95, 782, 080.49
811.52
8, 592, 606.70
104, 375,498.71
Market value
WAM % Yield
Market
% of Tota
18, 772, 592.50
2.78
2.09%
17.79%
6, 516, 257.00
3.49
2.17%
6.17%
11,210,069.28
2.02
2.44%
10.62%
3, 285, 935.00
0.82
2.19%
3.11%
25,084,976.40
2.45
2.22%
23.77%
64, 869, 830.18
2.50
2.22%
61.46%
2, 681, 304.31
27, 576, 552.60
1, 765, 644.82
62, 504.81
29, 404, 702.23
96, 955, 836.72
811.52
8, 592, 606.70
105, 549, 254.94
1.00 1.50%
1.00 1.79%
1.00 1.79%
1.00 1.79%
1.00 1.79%
1.66
1.00
1.00
2.06%
0.00%
0.45%
2.06%
2.54%
26.13%
1.67%
0.06%
27.86%
91.86%
0.00%
8.14%
100.00%
Interest Income
Month
I nvested Cost
Interest Received
% Yield
January
81, 960, 788
173, 602.22
2.54%
February
90, 964, 488
90, 332.77
1.19%
March
95, 782, 080
117, 746.26
1.48%
Avg/Total *
89, 569,119
381, 681.25
1.70%
* Note: the monthly fluctuation
is because interest on most bonds
is paid semi-annually, with
LAIF paid
quarterly, and some investments paid monthly.
n
Com liace
p
Partial List of Allowable Investment Instruments for Local Agencies
Local Agency
Maximum
City of EI
In
Investment Type
Maximum
Specified % of
Minimum Quality
Segundo
Compliance
Maturity
Portfolio
Requirements
Investments
Y/N
Local Agency
5 years
10%
None
6.17% Y
Bonds
U. S Treasury
5 years
None
None
o
0.00 /o Y
Obligations
US Agency
5 years
None
None
o
17.79 /o Y
Obligations
Negotiable
Certificates of
5 years
30%
None
23.77% Y
Deposit
Medium Term
5 years
15%
"A" Rating
10.62% Y
Notes
Collateralized
5 years
None
None
0.00% Y
Bank Deposits
Local Agency
Investment Fund
N/A
None
None
27.86% Y
(LAI F)
SUPRA Nationals
5 years
10%
"A A A" Rating
3.11% Y
Commercial
5 years
10%
"A -1/A" Rating
0.00% Y
Paper
Joint Powers
N/A
30%
Multiple
2.54% Y
Authority Pool
Additional Compliance
Investment Type: Medium Term Notes, Su ranationals, CD's & Commercial Paper - As of: March 31, 2020
Maiamum
Minimum
S&P
City of EI
In
In
Investment Type
Issuer
% of
Quality
Rating
Segundo
MARKET VALUE
Portfolio
Requirements
Investments
Y/N
Medium Term Notes
TOTAL
15%
"A" Rating
10.62%
Y
11,210,069
Medium Term Notes
AMAZON.COM
3%
"A" Rating
AA-
0.49%
Y
515,230
Medium Term Notes
AMERICAN HONDA FINANCE
3%
"A" Rating
A
0.47%
Y
497,935
Medium Term Notes
APPLE INC
3%
"A" Rating
AA+
0.49%
Y
521,275
Medium Term Notes
BANK OF AMERICA
3%
"A" Rating
A-
0.47%
Y
499,920
Medium Term Notes
BANK OF NEW YORK MELLON
3%
"A" Rating
A
0.47%
Y
499,705
Medium Term Notes
BERKSHIRE HATHAWAY
3%
"A" Rating
AA
0.49%
Y
517,350
Medium Term Notes
CATERPILLAR FINANCIAL SVCS
3%
"A" Rating
A
0.48%
Y
503,710
Medium Term Notes
CISCO SYSTEMS
3%
"A" Rating
AA-
0.95%
Y
1,001,790
Medium Term Notes
COCA COLA CO.
3%
"A" Rating
A+
0.50%
Y
522,515
Medium Term Notes
ESTEE LAUDER CO INC
3%
"A" Rating
A+
0.47%
Y
497,970
Medium Term Notes
IBM CORPORATION
3%
"A" Rating
A
0.41%
Y
432,745
Medium Term Notes
JOHNS HOPKINS HEALTH SYS
3%
"A" Rating
AA-
0.14%
Y
149,720
Medium Term Notes
NEW YORK LIFE GLOBAL
3%
"A" Rating
AA+
0.48%
Y
503,375
Medium Term Notes
ORACLE CORPORATION
3%
"A" Rating
A+
0.96%
Y
1,013,460
Medium Term Notes
PACCAR FINANCIAL CORP
3%
"A" Rating
A+
0.48%
Y
502,450
Medium Term Notes
TOYOTA MOTOR CREDIT CORP
3%
"A" Rating
A+
0.48%
Y
503,755
Medium Term Notes
UNITED PARCEL SERVICE
3%
"A" Rating
A-
0.48%
Y
510,890
Medium Term Notes
WAL-MART STORES INC
3%
"A" Rating
AA
0.49%
Y
512,945
Medium Term Notes
WALT DISNEY CO
3%
"A" Rating
A-
0.47%
Y
499,705
Medium Term Notes
WELLS FARGO & COMPANY
3%
"A" Rating
A-
0.95%
Y
1,003,625
Supranational Obl.
TOTAL
109%
"AAA" Rating
3.11%
Y
3,285,935
Supranational Obl.
IADB-INTER-AMERICAN DEV
5%
"AAA" Rating
AAA
2.64%
Y
BANK
2,782,010
Supranational Obl.
IBRD -INTERNATIONAL BANK
FOR RECON & DEV
5%
"AAA" Rating
AAA
0.48%
Y
503,925
Municipal Bonds
TOTAL
I 10%
"A" Rating
I
I 6.17%
Y
I 6,516,257
Municipal Bonds
CONNECTICUT STATE
3%
"A" Rating
A
1.46%
Y
1,544,740
Municipal Bonds
GOODRICH MICH
3%
"A" Rating
AA
0.30%
Y
312,711
Municipal Bonds
HOUSTON, TX
3%
"A" Rating
AA
0.95%
Y
1,007,900
Municipal Bonds
LA QUINTA CA REDEV
3%
"A" Rating
AA-
0.98%
Y
1,037,600
Municipal Bonds
LAS VEGAS, NEV
3%
"A" Rating
AA
0.54%
Y
568,326
Municipal Bonds
NEW YORK, NY
3%
"A" Rating
AA
0.94%
Y
997,250
Municipal Bonds
OREGON ST DEPT ADMIN
3%
"A" Rating
AAA
0.50%
Y
523,330
Municipal Bonds
TULSA CNTY, OKLA INDP
3%
"A" Rating
AA
0.50%
Y
524,400
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%
23.77%
Y
25,084,976
Joint Powers Auth.
Pool
TOTAL
30%
2.54%
Y
2,681,304
JPAP
CAMP
30%
2.54%
Y
2,681,304
City of EI Segundo - Treasury Department
Continuing Education Tracking - As of March 31, 2020
Requirement YTD Hours Excess/(Deficit) Notes
Treasurer 5.00 - (5.00)
Deputy City Treasurer II 5.00 3.00 (2.00) CMTA/GIOA/GFOA Webinars
Deputy City Treasurer 1 5.00 15.00 10.00 CMTA/GIOA/GFOA + Webinars
Portfolio Asset Allocation
SLIPRA's, 3,285,!
Municipal Bands,
6,516,257
GoVt Obligations,
18,772,593
INVESTMENTS BY SECURITY TYPE
Corporate Bands, Cash Immediate,
$11,210,069 _ $8,593,418
LAIF Immediate,
$27,576,553
LAIF. - Senior Housing,
$1,765,645
AWA, $62,505
CAM P - JPAP,
CD's, $25,084,976 $2,681,304
SecuritiesbyMaturity
Investments by Maturity Date ■Par Value
$ 30,000,000.00
I
$25,000,000.00
$ 20,000,000.00
$15,000,000.00
$10,000,000.00
$ 5,000,000.00
$ 0.00
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LAIF/PMIA Particulars
$51,59€
50%
PMIA Portfolio Composition - 4/30/2020
Total: $103.6 Billion
(chart dollars in millions)
521.284
■A4encies
■ Ce rtficates of
De paslt/Bank N at es
$14,7DG ■ Ccrn mercia I Paper
14
■ Loans
Repurchases
--me Deposts
- _ re asu re s
o�
LAIF/PMIA Particulars
Average Monthly Yield Comparison - 412015 through 41 020
3.00%
PMIA MARKET VALUATION
143.5
143A .I -----L-- ..--��..
142.6. PMIIA . ..... .....
102.0 Marlwt 11alus
141.5 I-
141 A
140.5 .......
146.11
99.6
99.0
99.6 • �1II)0�
98.0 I
97.5
W18 WIS IMB 3019 8119 9119 12119 3120
— PIN IA
-40°Ia
S&P GIP
1-50°
-Fed Funds
-I�414f4
4-00
•
PRAIA i."B%
Ln
�7
u� so
tp
so so r
r
n rti
no 0o M
M
Cn
G7
� �'
y cy
S&P GIP 1. 40%
iv
Fed Funds 0.0 "%
f
PMIA MARKET VALUATION
143.5
143A .I -----L-- ..--��..
142.6. PMIIA . ..... .....
102.0 Marlwt 11alus
141.5 I-
141 A
140.5 .......
146.11
99.6
99.0
99.6 • �1II)0�
98.0 I
97.5
W18 WIS IMB 3019 8119 9119 12119 3120
3.00
2.50
2.00
m
m
m
m 1.50
m
c
IR
1.00
0.50
US Treasury Yield Curve
US Treasury Bonds Yield Curve as of 3/31/20 (+5/27)
1.55 1.60 1.59 1.58
1.48 j
0.11
0.15 0.17 4.18 Q.23
L r
0.00 0.05 0.11 J 945 0.17 0.19
IMO 3 Mo 6 Mo 1 Yr 2 Yr
t12f3V2019 f3f31f2020 —*--5f27f2020
1.62
1.69
927
0.29
0.34
0.22
3 Yr 5 Yr
Quarter -End Treasury Yields
Date
1 Mc, 1 Yr, 2 Vo, 2 Yr, 3 Mo, 3 Yr_ 5 Yr and 6 Ifo broken down by Date Year, Date Quarter
Date Months and Date Day.
2018
2019
2020
04
01
CL2
03
04
01
CL2
December
Marc h
June
Sep[emb..
Decembef
Marc h
may
31
29
28
K
al
31
27
1 Mo
2.445
2.430
2.130
1.915
1.430
0. D50
0.110
2 Mo
2.450
2.440
2.150
1.870
1.510
0.120
0.140
3 Mo
2.45D
2. DO
2.120
1.830
1.550
0.110
0.150
6 Mo
2.560
2.440
2. D90
1.830
1.6DD
0.150
0.170
1 Yr
2.630
2. DO
1.920
1.750
1.590
0.170
0.130
2 Yr
2.480
2.270
1.750
1.630
1.53D
0.23D
0.190
3 Yr
2.460
2.210
1.710
1.560
1.62D
0.290
0.225
5 Yr
2.51 D
2.230
1.750
1.550
1.690
0.370
1.340
1 Mc, 1 Yr, 2 Vo, 2 Yr, 3 Mo, 3 Yr_ 5 Yr and 6 Ifo broken down by Date Year, Date Quarter
Date Months and Date Day.
Historic Treasury Yield Spread
FREDj — 10 -Year Treasury Constant Maturity Minus 3 -Month Treasury Constant Maturity
5
4
3
1985 1994 1995 2000 20% 2010 2015 2020
Shaded areas indicate U_S_ recessions Source- Federal Reserve Bank of St Louis fred_stlouisfed_org
• Fed Chairman Jerome Powell
— "We're not going to run out of ammunition"
— "There're plenty of people who think negative interest rates are a
good policy. But we don't really think so at the Federal Reserve"
2.00 .
1.80
New Investment Yields vs. Treasury Yield Curve
1.75 •
1.60
1.59-9 --------
1.62
1.40
1.20
0
d1.00 -----------------------
0.80
0.75 •
0.60
0.40
0.20 0.23 _
0.17 a
0.00
0.90
0.29
- t
1 2
3
Duration
0.90
1.69
1.66 1.650
1.40
0.33 9 6.37 •
4 5
-'0-3/31/202012/31/2019 • vrnn a cast
18,000,000
16,000,000
14,OOO,000
12,000,000
4.1
c
0 10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
O
Cash Flow Analysis
Rolling 13 Month Cash Flow Analysis
-+-Total Receipts
AFTotal Disbursements
Mar -19 Apr -19 May -19 Jun -19 Jul -19 Aug -19 Sep -19 Oct -19 Nov -19 Dec -19 Jan -20 Feb -20 Mar -20
15,000,000
( 15,00D,000)
Net Change in Cash
Rolling 13 Month Net Change in Cash +FY -2018/2019
-A-FY-2019/2020
MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
Current Activity
• From January 1— March 31— Purchased 5 CD's for $1,225,000, 1
Municipal Bond for $1,000,000, and 1 Corporate Bond for $500,000.
We had 1 Agency Bond for $500,000 mature. We had 2 CD's for
$490,000, and 1 Agency Bond for $1,000,000 called.
• Since March 31St, we have not made any purchases. We have
transferred $11,600,000 to LAIF during this time. We had 2
Corporate Bonds for $933,000, 1 SUPRA for $1,000,000, 1 Agency
Bond for $500,000 and 1 CD for $245,000 mature. We had 1
Agency Bond for $1,000,000 called during this time.
• Net Change in rate on invested vs. matured Securities for FY2020 is
+ 0.021%. (Purchases yield of 1.932% vs. Matured yield of 1.911%).
• Net Change in investments for FY2020 is ($4,458,000).
• We are actively managing bank balances, LAIF, CAMP and short
term investments to maximize interest income.
Economic Indicators
Real GDP: Percent change from preceding quarter
4
Z�� 1� u
a
-z
-4
_6
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 7017 2618 2019 2020
U.S. Bureau of Economic Analysis Seasonally adjusted at annual rates
https://www.bea.gov/system/files/gdplq20_2nd_chart.png
Unemployment
15
10
01/19 03/19 05/19 07119 09/19 11/19
Month
01120 03/20
3.0
2.5
2.0
% 1.5
1.0
0.5
0.0
Jan Feb Mar
Inflation Rates by Month --+--2019--W-2020
}fpr May Jun Jul Aug Sep Oct Nov Dec
3.00
2.50
2.00
"1 1.50
1.00
0.50
0.00
Fed Funds Rate Changes
N N N N N N N N N N m m m m as as m m m as m m m m m m m m m m m m m m 0 0 0
c -c" L > C M a *' ] V C-0" L > M Q *' >1-1 c -c"
U 0 fC �- fC 3 U 0 Q) m v M a m 3-1 = v U 0 ro