File #: 2018-2394    Name:
Type: Presentation Status: Agenda Ready
File created: 10/26/2018 In control: Finance and Budget Committee
On agenda: 11/5/2018 Final action:
Title: Investment Portfolio Report for the quarter ending September 30, 2018
Attachments: 1. Investment quarterly report September 2018.pdf, 2. Investment Portfolio September 2018.pdf

Title

Investment Portfolio Report for the quarter ending September 30, 2018

 

Body

Issue/Request:

[Enter text here]

 

Key Issues:

This report is prepared to provide a summary of the status of the investment portfolio by noting transactions over the previous quarter.  This report lists maturities as well as new purchases.

 

As of September 30, 2018, the largest portion of the portfolio was invested in US Treasuries (60%); followed by US Government Agencies (23%) and cash.  Cash balances are invested in an overnight repurchase agreeement and are collateralized.  The repo rate is based on the previous week's auction of the 91 day Treasury Bill yield, adjusted every Wednesday.  The repo rate in September was 2.192%.

 

Proposed City Council Motion:

[Enter text here]

 

Background:

A "Mark to Market" adjustment is required at each quarter end to recognize any change in value of the portfolio in the event that securities would need to be liquidated.  Fair values are determined by our custodial bank.

 

At September 30, 2018, the market adjustment was a unrealized loss of $1,661,498.45.  This loss is a paper loss only, resulting from shifts in interest rates.  Since the City typically holds securities until maturity, loss of principal does not occur.

 

Impact/Analysis:

As of September 30, 2018 the average yield on the portfolio was 1.6348%

 

Timeline:

Start: ___

Finish: ___

 

Other Information/Unique Characteristics:

[Enter text here]

 

Presenter

Sherri Staub, Cash Management Officer

 

Recommendation

Recommendation: [Enter Recommendation Here]

 

Committee Recommendation

Committee Recommendation: [Enter Committee Recommendation text Here]