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Staff Report
PREPARED BY: STEVE CONWAY Finance Director/Town Treasurer Reviewed by: Assistant Town Manager Town Attorney Finance S:\COUNCIL REPORTS\2016\06-21-16\Investment Report 3rd Qtr\Staff Report - Investment Report FINAL.doc MEETING DATE: 06/21/16 ITEM NO: 3 COUNCIL AGENDA REPORT DATE: JUNE 8, 2016 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: APPROVE THIRD QUARTER INVESTMENT REPORT (JANUARY THROUGH MARCH 2016) FOR FISCAL YEAR 2015/16 RECOMMENDATION: Approve the attached Third Quarter Investment Report (January through March 2016) for Fiscal Year 2015/16. DISCUSSION: Attached for Council consideration and approval is the Third Quarter Investment Report for FY 2015/16, for the period January through March 2016. The Town’s weighted portfolio yield of 0.76% is still outperforming the Local Agency Investment Fund (LAIF) yield of 0.40% (difference of 36 basis points). Therefore, staff continues to replace matured or called investments with similar investments with respect to maturity and credit quality. For the quarter, the Town’s weighted average rate of return did not change from the rate earned in the second quarter. In mid-December 2015, for the first time since before the financial crisis in 2008, the Federal Open Markets Committee (FOMC) raised the Fed funds target rate. The Committee increased its benchmark rate 0.25% to a range of 0.25% to 0.50%. Despite this action, interest rates fell across most of the maturity spectrums over the first quarter of 2016. Employment growth remained strong, and the unemployment rate of 4.9% has decreased by 50% since its high in October, 2009. Global commodity prices remain low but crude oil prices began to bounce back in the first quarter, rising 3.4% from lows experienced in December. Market expectations anticipate another Federal Reserve interest rate increase sometime in late calendar year 2016 but that expectation is tempered by low inflation and a slowdown in new job growth which may moderate any increases in interest rates in 2016. Staff is concentrating on short-term (two years or less in maturity) for its new investments with a potential shift from treasuries as they mature to high quality corporate medium term notes (higher yield while preserving safety of principal) as the rewards for longer term investments in the three to five year maturity do not have adequate spreads to justify the risk of holding longer term maturities. PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: APPROVE THIRD QUARTER INVESTMENT REPORT (JANUARY THROUGH MARCH 2016) FOR FISCAL YEAR 2015/16 JUNE 8, 2016 Attachment: 1. Third Quarter Investment Report for FY 2015/16 (January through March 2016) Weighted Average Portfolio Yield: Town of Los Gatos Summary Investment Information January 31, 2016 0.76% Weighted Average Maturity (days) 534 This Month Last Month One vear ago Portfolio Balance $70,618,927 $68,016,721 $66,746,401 Benchmarks/ References: Town's Average Yield LAIF Yield for month 3 mo. Treasury 6 mo. Treasury 2 yr. Treasury 5 yr. Treasury (most recent) Prime rate 2-3years 25% 0.76% 0.45% 0.31 % 0.43% 0.78% 1.33% 3.25% 3 - 5 years 0.00% 0.40% 0.16% 0.49% 1.06% 1.76% 3.25% Portfolio Maturity Profile 0.75% 0.27% 0.02% 0.08% 0.59% 1.26% 3.25% 1 - 2 years 30% Compliance: The Town's investments are in compliance with the Town's investment policy dated May 1, 2008 and also in compliance with the requirements of Section 53601 of the. California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months. Page 1 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances January 31, 2016 Month YTD Fund Balances - Beginning of Month/Period $68,016,721.31 $70,832,337.72 Receipts 6,029,913.48 23,666,550.03 Disbursements (3,427,707.94) (23.879,960.90) Fund Balances - End ofMonth/Period $70.618,926.85 $70.618,926.85 Portfolio Allocation: BNY MM US Govt Agencies & Corp. Bonds Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances $1,021,283.72 47,165,568.07 4,181,786.38 52,368,638.17 18,250,288.68 Total Treasurer's Fund $70,618,926.85 74.000000 72.000,000 70.000.000 68.000,000 66,000.000 64,000.000 62,000.000 60,000,000 58.000,000 56.000,000 ti P 4L Local Agency Investment Fund 7.99% Portfolio Investment Allocation BNY MM 1.95% US Govt Agencies & Corp. Bonds 90.06% Treasurer's Fund Balances 6. V 0 z page 2 Town of Los Gatos Non -Treasury Restricted Fund Balances January 31, 2016 Previous 13a1 nee Non -Treasury Funds: Deposits Ending Interest Withdrawals Balance Cart. of Participation 2002 Series A Reserve Fund $ 686.251.00 $ - $ 5.85 $ - $ 686,256.85 Not 1 Cert. Of Participation 2002 Ser A lease Pymt Fund 76.01 181.092.74 0.00 0.00 181.168.75 Note 1 Cert. of Participation 2002 Series A Cnnst, Fund 12.84 0.07 0.00 12.01 Note 1 COP 2010 Library Reserve Fend 1,277,064.46 0.00 6.34 0.00 1,277,070.80 Note2 Total Restricted Funds: 51.963.404.31 $181,092,74 $12.26 S0.00 $2,144.509.31 These accounts are not part of the Treasurers fund balances reported elsewhere in this report. as they are for separate and distinct entities. Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next ti9w years. reserve funds which will guarantee the payment of lease payments. and a third fund for the disbursement of lease payments and initial delivery costs. Note 2: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010. Page 3 Town of Los Gatos Statement of Interest Earned January 31, 2016 Interest by Month July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 $37,891,24 39,641.24 39, 340.87 37,799.14 36,192.77 31,046.35 43,394.68 $265,106.29 Page 4 Town of Los Gatos Investment Schedule January 31, 2016 Mahrrity Yield to Interest Interest Days Par Original Markel Date or M1iaturity Received Earned [o Institution Se j_ Value Cost Value Calf Rate or Can to Date Current FY Malulits PFIZER Corporate Note 750.000.011 753,1137,50 751,717.50 315/2017 0,91% 5 5,477.08 $ 4,033,97 470 IBM Coupon Note 750,000.00 782,505.00 754,267.50 722,2016 0.7650 3 46,678.12 5 4.426.47 173 Treasury Note 1.000,00000 1,025,390.03 1004,890.00 7/312016 0.970'. $ 39.347,83 5 5,821.27 162 FNMA Callable Nate 1,000,000.00 1,014,600.00 1,004,240.00 9/28/2016 0.66°A 5 16,750.00 $ 3,932.41 241 Toyota Motor Credit Coupon Note 500,000.00 502,240.00 498,380,00 10/52017 1,05'35 S 1.475,69 5 2,958.93 6 i 3 FNMA Callable Note 1.500.000.00 1,500,000.00 1,498,185,00 11/142016 0,55% 5 20.625.00 $ 4,85959 288 Treasury Note 1,000,000.00 1,000,000.00 1,006,120.00 11/15/2016 0.6340 5 8.933.42 $ 3,681.51 289 Treasury Note 1,000,000.00 1.004,062.5U l,002,i50.00 1/3!l20i7 0.72% $ 9,982.73 $ 4.244.93 366 FNMA Callable Note 4.000.000.00 4,004,800.00 3,996,040,00 3/14/2017 0.72% $ 73.333.33 $ 16,954.57 408 Treasury Note 2,000,000.00 2,015,156.25 2,007,340.00 3/3122017 0730° $ 26.885.25 5 8,644.54 425 Treasury Note 500.000.00 499,804.64 501,115.00 4/30,2017 0.89% S 5.9_20.52 S 2,617.35 455 Berk Hath Coupon Note 500.1)00.00 509,280.00 504.065,00 5/152017 1.6154 5 22,755,56 $ 3,453.53 470 FNMA Callable Note 1,500,000.00 1,504,050.00 1.504.350,00 9/20/2017 0.94°:° $ 43,791,67 5 8.351.06 598 FNMA Callable Note 1,000,000.00 1,003,200.00 1,002,900..00 9'20/2017 0.9354 $ 28,055.56 $ 5.498.39 598 FNMA Callable Note 1,000,000.00 1,002,750.00 1,002,900.00 9/20.2017 0.94% 5 27,916,67 5 5,552.55 598 FFCB Coupon Note 2,000,000,00 1,996,960.00 2,001,460.00 9,21,2017 0,8654 $ 48,555,00 $ 10,141.40 599 FHLB Coupon Note 2,000,000.00 1,998,720.00 1.996,520,00 118/2017 0.760a 5 43.533.33 $ 8,995,66 677 FNMA Callable Note l.000.000.00 1,004,400.00 1,004,230.00 3/52018 1.03% S 26.812,50 5 6,096.15 764 AAPL Corporate Note 1,000,000.00 991.680,01 995,020.00 53,2018 1.17% 5 2,1,638.89 $ 6.677,06 623 FHLMC Callable Note 1,500000.00 1,500,945.00 1,501,575.00 4,272016 0.81?b S 6,562,50 5 7,177.04 67 FMB Callable Note 500,000.00 500,000.00 499,455,00 4'2921116 1.22% 5 3,050.00 9 3.593.15 89 FHLB Coupon Note 1,000,000.00 097,710.00 1,004,240.00 8 �2_7 2018 1.22°�° 5 2,491.66 $ 7,192.99 939 Treasury Note 1,000,060.00 1,000,468.75 1,000,35000 6 30'2017 0.7340 $ 4.185.06 5 4283.79 516 Treasury Nate I,000,003,00 1,004,14063 1,003,71(1.00 915;2017 0.82'�; $ 2o663.U4 S 4.816.54 593 Treasuy Note 1,000,000.00 990,468.75 997.660,00 4+15,2018 1.09% 5 2,581.97 S 6.390.11 805 FHLB Coupon Note 2,000,000.00 1.991.820.00 1,999,200.00 5/252018 Ll9r 5 l0,03},33 5 13,999..80 845 Treasury' Note 1,000.000,00 1,010,625.00 1,012,070.00 6/302018 1.0054 5 5,716.71 S 5,095.63 881 FFCB Coupon Note 2,500,000.00 2,509,525.00 2,511,725.00 12+18,2017 0,96% 5 10,781.25 5 12.234,35 687 FHLB Coupon Note 1,250,000.00 1,247,075.00 1252,048.66 7252018 },13°.6 $ 5,651,05 $ 6,34558 906 FHLB Coupon Note 1.000,000,00 999,500.00 1,003,526.34 7/252018 1.0754 $ 4 375.00 5 4,646.62 906 FFCB Coupon Note 1,000,000.00 1,002.060,00 1.000.600.00 4,'24/2017 0,63% $ 3,687.50 $ 2,642.33 444 Walloon Corporate Note 1,000,000.00 998,960.00 I.001960.00 4'11%2016 1.1754 5 500.00 8 2,08850 801 Disney Corporate Note 995,000.00 995,298.5G 494,492.,55 1211 2017 1.0996 8 2,00658 $ 3.790 37 670 FFCB Coupon Nate 1,000,1)00.00 1,048,230.00 1,040,930.010 61'2018 0.86% S 2,597.22 5 2,348,$3 852 FHLB Coupon Note 1.040A00.00 1.005.030.00 1.003.3709 pp 1421116 D.95°% $ (2,5170A0) 5 2,500 33 957 FFCB Coupon Note 1,500.000 00 1,494,840.00 1,497,105.00 10.,9/2018 0,99% $ 1729.17) $ 3,$30.92 982 Chevron Corporate Note 1.250.000.00 1,252,262.50 1,246,925.00 11 `9/2017 L25°% $ (1.306.67) S 2,003,85 648 Treasury Note 1,500,000.00 1,494,902.34 1,497,720.00 228/2018 0.91% 5 (4,374,184 $ 187,47 759 Subtotal BNY MM Purchased Interest LAIF N+A S 47,156,458.05 $ 47,100,692.55 S 601.291.02 5 213,356.72 1.02128372 1,021,283.72 9,110.02 9,110.02 4,181,786.38 4,181,786.38 8,837.05 552,368,638.17 $$2,312.872.67 5 601,29102 $ 222.193.78 Bank oldie West Matured Asset SO (Mississippi Power) Coupon Note 500,000.00 526,020.00 7/ 10,2015 0.96% 5 35.968.06 $ 5,719.63 Treasury Note 1,000,000.00 1,042,812.50 7/31.2015 0,65% 5 69.239 13 $ 567.83 FHLMC Callable Note 2,500000.00 2,500,000.00 7/302015 0.75% 5 29,687,50 S 1,541,10 FHLB Callab1eNote 1,250,000.00 1,248,750.00 8/202015 0.70% S 3,125.00 $ 1225.50 FHLB Callable Nate 1,000,000.00 1,000,500.00 8/262015 0,5290 5 2,850.00 S 812.05 FHLB Callable Note 1.000.000.00 1,000.,500,00 825/2015 0,94% 5 4.98750 5 1,450.04 GE Corporate Note 2,000,000.00 2.133.600.00 921/2015 1.0154 $ 175,972.22 5 4,759.90 FHLMC' Callable Note 2,000,000.00 1,995,000.00 9/25/2015 1.37?'° $ 27,950.00 5 7.642,44 FHLB Callable Note 2,000,000.00 2,001,880.00 10/27/2015 0.8954 $ 10,800,00 5 5.819.68 FHLMC Callable Note 1,500,000,00 1,499,250.00 1029,2015 1.5054 5 9,750.00 $ 6,960,29 Berk Hatb Coupon Note 1,250,000.00 1.315,13750 12,152015 1.0640 $ 119,012.15 5 6,384.05 Total Investments "Matured" 516.263.450,00 $ 1,090,632.58 5 265.106.29 Maturity Profile Amount 0-1 year p 512,535,620.75 1-2 years $24,557,776.32 2-3 years 515,275,241.10 3-5 years 50.00 552.368.638.17 Market to Cost Position Report Amortized Ili ion Con BNY Assets $47,156.458.05 BNY MM 1,021,283.72 Purchased Interest 9,110.02 LAIF 4,181,786..38 Totals: 552,368,638.17 Page 5 Weighted Average Portfolio Yield: Town of Los Gatos Summary Investment Information February 29,2016 0.76%n Weighted Average Maturity (days) 521 This Month Last Month Portfolio Balance $68,998,248 $70,618,927 Benchmarks/ References: Town's Average Yield LAIF Yield for month 3 mo. Treasury 6 mo. Treasury 2 yr. Treasury 5 yr. Treasury (most recent) Prime rate 0.76% 0.45 % 0.32% 0,47% 0.78% 1.21% 3.25% 0.00% 0.45% 0.3 1 % 0.43% 0.78% 1.33% 3.25% One year ago $66,335,077 0.79% 0.27% 0.02% 0.07% 0.58% 1.44% 3.25% 3 - 5 years 2 - 3 years 2 5°l0 Portfolio Maturity Profile - 2 years 30% 0 - 1 year Compliance: The Town's investments are in compliance with the Town's investment policy dated May 1, 2008 and also in compliance with the requirements of Section 53601 of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months. Page 1 74,000,000 72,000,000 70.000,000 68.000.000 66,000,000 64,000.000 62,000.000 60.000,000 58.000,000 56,000,000 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances February 29, 2016 Month YTD Fund Balances - Beginning of Month/Period $70,618,926.85 S70,832,337.72 Receipts 1,215,053.18 24,881,603.21 Disbursements (2,835,731.84) (26,715,692.74) Fund Balances End of Month/Period $68,998.248.19 $68,998,248.19 Portfolio Allocation: BNY MM US Govt Agencies & Corp. Bonds Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances Total Treasurer's Fund $42,913.19 48,167,385.57 4,181,786.38 52,392,085.14 16,606,163.05 $68,998,248.19 Portfolio Investment Allocation SNY MM Local Agency Investment Fund 0.08% 7.98% 0. US Govt Agencies & Corp. Bonds 91.94% Treasurer's Fund Balances 0 O w > z A page 2 Town of Los Gatos Non -Treasury Restricted Fund Balances February 29,2016 Previous Balance Non -Treasury Funds: D-_ osiits Ending Interest Withdrawals Balance Cert. of Participation 2002 Series A Reserve Fund 5 686.256.85 $ - 5 5.84 $ - 5 686,262,69 Nair 1 Cert. Of Participation 2002 Ser A Lease Pymt Fund 181,168.75 0.35 0,00 181,168.75 0.35 mail Cert. of Participation 2002 Series A Const, Fund 12.91 0,01 0.00 12.92 Note 1 COP 2010Library Reserve Fund 1277.070.80 0.00 30,59 0.00 1,277,101.39 Notes Total Restricted Funds: $2.144,509.31 $0.35 536.44 S181,168.75 51,963,377.35 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities. Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years, reserve funds which will guarantee the payment of lease payments. and a third fund for the disbursement of lease payments and initial delivery costs. Note 2: The 2010 COP Funds are all for the Library construction. reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010, Page 3 Town of Los Gatos Statement of Interest Earned February 29, 2016 Interest by Month July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 .tune 2016 $37,891.24 39,641.24 39,140.87 37,799.14 36,192, 77 31,046.35 43,394.68 36.795.40 $301,901.69 Page 4 Town of Los Gatos Investment Schedule February 29, 20I6 Institution Maturity Yield to Interest Interim Days Deposit Par Original Market Date nr Maturity Received Earned to Security Date Value Cosl Value Call Date or Call to Date Current FY Maturity PFIZER Corporate Note 0311 15 750,000.00 753,037.50 752,030.25 3 152017 0,9170 $ 5,477,08 $ 4,578,09 441 IBM Coupon Note 14 I512 750,000.00 782,505.00 753,566.50 7122/2016 0.76% 5 46,678.12 $ 3.688,65 144 Treasurg Note 08- 16 11 1,000,000,00 1,025,390.63 1.004.198.00 7/31/2016 0.97% 5 66,847,63 S 6.606.46 153 FNMA Callable Note 032314 1.000,000.00 1,014,600.00 1.003,660.00 9/28.,2016 0.6670 8 18,750.00 S 4.462.83 212 Toyota Motor Credit Coupon Note 01 00.00 500,000.00 502.200.00 500,265.00 1015/2017 1.05% S 1A75.69 $ 3,377.51 584 FNMA Callable Note 1.15 Fa 13 1,500,000.00 1,500,000,00 1.497,360.00 11/142016 0.5570 $ 20,625.00 $ 5,515,07 259 Treasury Note 06,1 o 14 1,000,000,00 1,006,000.00 999.961.00 11.15/2016 0.63% $ 8,933.42 $ 4,178.08 260 Treasury Note 05 i0 14 1.000,000A0 1.004,462.50 (,001,641.00 1/31•'2017 0.72% $ l4,357,73 $ 4,823.18 337 FNMA Callable Note 04.04 13 4,000,000.00 4,004,800.011 4,000,040.00 3.+14/2017 0.72% $ 73,333.33 S 19,241.46 379 Treasury Note 05'2714 2,000,000.00 2,015,156.25 2.065,938.00 3/31+2017 0,73% 5 26,885.25 5 9,810,55 396 Treasury Note O6'2314 500,000.00 499,804.69 500,859.50 4'a02017 0.89°.6 5 5,9_20.52. $ 2.470.39 426 Berk Bath Coupon Note 01 1 1 13 500,000.00 509 280.00 503,891.00 5+15/2017 1.61 % $ 22,75556 5 441 FNMA Callable Note 10 19 1: 1,500,000.00 1,504.050.00 1502,907.00 9,202017 0.9470 8 43.791.67 S 3,919,35,477.46 569 FNMA Callable Nele 11.30 i 2 1.000.000,00 1003 00,00 1,001,938,00 9/20/2017 0.9370 $ 28,055.56 $ 5,240.05 569 FNMA CallableNole 12,04 (2 1,000,000.00 1,002,750.00 1,001,938.00 9/20/2017 0.9470 S 27,916,67 $ 6,30150 569 ITCH Coupon Note 10 16 122 2,000,000.00 1.996,960.00 1.992,826.00 9/21.2017 0.86% S 48,555.00 S 11,509.30 570 FHLB Coupon Note 12 12 12 2,000.000.00 1.996.720.00 1,995,700.00 /2/82017 0.76% S 43,583.33 5 10,198,61 648 FNMA Callable Note 041713 1,000,000.00 1,004,400.00 1,003,990,00 3/52018 1,03% S 26,812.50 5 6,918.42 735 AAPL Corporate Note 05 16 13 1,000,000.00 991.680.01 997,373.00 5/32018 1.17% 5 24.638,89 S 7,804.67 794 FHLMC Collet* Note 04!27.15 1.500.000,00 1,500.945.00 1.501,020,00 4+272016 0.81 % $ 6,562.50 $ 8.143.97 58 FHLB Callable Note 0429'15 500,000.00 500.030,00 500,025.00 4/29/2016 1.2270 S 3,050.00 8 4,077.81 60 FHLB Coupon Note 6,92015 1,000,000.0a 997,710.00 1.005,970.00 6272018 12270 $ 6,241,66 $ 6,163.21 910 Treasury Nolte 69/2015 1,000,000.00 1,0110.46875 1.000,078.00 6/30,2017 0.7370 5 4,185.08 $ 4,861,60 467 Treasury Note 6+9.`2015 1.000,000.00 1.004,140.63 1,003,398.00 9,115/2017 0.827 3 2,663.04 $ 5.466.22 564 Treasury Note 6+61+2015 1.000,000.00 990,468.75 998.555.00 4/15.2018 1.09% S 2,581,97 $ 7252.03 776 FHLB Coupon Note 6.112015 2,000.000.00 1,991,820.00 1.909.060.00 5/25+2018 1.1970 $ 10.033..33 S 15,888.14 816 Treasury Note 7'31'2015 1,000,000.00 1,010,625.00 1,012,773.00 6,30+2018 1.00% 5 5.716.71 S 5,698.97 852 FFCB Coupon Note 7'30'22015 2,500,000,00 2.509,525,09 2.510,425.00 12/182017 0.96% $ 10,781.25 $ 14,152.17 658 FHLB Coupon Note 8^_0 2015 1.250,000,00 1,247,075.00 1.252,748.13 7.25/2018 1.1370 5 5,979 17 S 7,4b7.66 877 FHLB Coupon Note 0212015 1.000,000.00 999,500.00 1,004,046.67 7+252018 1.0770 S 4,637.50 $ 5,496.48 877 FFCB Coupon Note S.272015 1,000.000.00 1,002,060.00 1,000.520.00 4.%24'2017 0.63% $ 3,657.50 3 3.189,64 420 Wa1man Corporate Note 9.25 2015 1.000,000,00 998,960,00 1.001.687.00 4+11/2012 1.1770 5 SDU_00 5 5.014;80 772 Disney Corporate Note 9'25'2015 995,000.00 995,298,50 995,666.65 12/1+2017 1,09% 6 2,066.56 9 4,649.12 641 FFCB Coupon Note 10.27%_015 1,000,000.00 1,048 230.00 1.039.400.00 6/I/2016 0.8670 5 _2,597.22 $ 3.058.37 823 FHLB Coupon Note 10/272/115 1,000,000.00 1,005,030.00 1,004,140,00 9:14/2018 0,95% 5 (2,50000) 8 3255.64 926 FTCB Coupon Note 102912015 1,500.000.00 1,494,840,00 1.500,165,00 10/92018 0.99% 8 i729.171 5 5.0212.. 04 953 Chevron CorpotateNote 12.'152015 1,250,000.00 1,252.262.SU 1.247,140.00 I1/912017 1.25% $ (1.306.67) 5 3240.26 619 Treasury Note 1.26,2016 1.500,000.00 1A94.902 34 1.498,711,50 2r28/2018 0.91% 5 I,050.52 5 1,274.20 730 Wells Fargo Corporate Note 2i2'2016 1.000,000.00 1.001.680.00 0.00 1/22/2018 1.56% $ (137,501 5 1,157.55 693 Subtotal 5 42.156,136.05 5 47.101,633.40 S 624.994,.15 S 248,543.09 BNY NM 42913,19 42,913.19 Purchased Interest 9,247.52 9.247.52 LAIF 1450 12:31'14 4.181.786.38 4,181,766.32 10.446.09 552.392,085,14 S51,335,580.49 S 624,994.15 S 258,969.18 Bank of the West Matured Assets SO (Mississippi Power) Coupon Note 12 15 12 500,000.00 526,020.00 7/102015 0.96 % $ 35,968.06 5 5,719.63 Treasury Note 081611 1,000,000.00 1,042,812,50 7/31/2015 0.65% 5 69239.13 5 567.83 FHLMC Callable Note 10 30 14 2,500,000.00 2,500,000.00 7:30'2015 0.75% S 29,667.50 $ 1,541.10 FHLB Callable Note 02.'20+15 1,250,000,00 1.248,750.00 8/20+2015 0,70% 5 6,250.00 $ 1,325.50 FHLB Callable Note 8.26/2014 1,000.000.00 1,000,500.00 8/26/2015 0.52% $ 5,700.00 5 812.05 FMB Callable Nnte 3+4'2015 1.000,000.00 1,000,50000 6/25/2015 094% $ 10.237,50 5 1,450.04 GO Corporate Note 9/17/2013 2,000,000.00 2,133,600,00 9/212015 1,0170 S 175,972.22 $ 4,789.90 FHLMC Callable Note 11128+2014 2.000,000,00 1,995,000.00 9/25/2015 1.3770 5 27,950.60 5 7,642.44 FHLB Callable Note 4272015 2,000,000,00 2,001,880.00 10/27/2015 0.89% $ 10,800.00 5 5.819,68 FHLMC Callable Note 4+29+2015 1.500,000.00 1,499.250.00 10/29/2015 1.50% $ 9,750,00 $ 6,96029 Berk Bath Coupon Nate 01.2642 1,250.000;00 1.315,(3750 12115/2015 1.08"•0 5 I. 19,012.15 $ 6,384.05 0 Total Investments "Matured" Maturity Profile 0-1 year 1-2 years 3t years 3-5 years Market to Cost Position Report p 51663,450.00 5 1.125 500,71 8 301,901.69 Amount $12.561.450.22 $24,555,393.82 $15,275.241.10 50.00 5522.392.085.14 Amortized Institution Cos1 BNY Assets 542,158,138.05 BNY MM 42,913.19 Purchased Interest 9,247.52 LAIF 4.181.786.38 Totals: _ S52.392,065.14 Page 5 Weighted Average Portfolio Yield: Town of Los Gatos Summary Investment Information March 31, 2016 0.76% Weighted Average Maturity (days) 492 This Month Last Month One year ago Portfolio Balance $67,944,456 $68,998,248 $65,756,907 Benchmarks/ References: Town's Average Yield LAIF Yield for month 3 mo. Treasury 6 mo. Treasury 2 yr. Treasury 5 yr. Treasury (most recent) Prime rate 0.76% 0.45% 0.20% 0.38% 0.72% 1.21% 3.25% 0.76%© 0.45% 0.32% 0.47% 0.78% 1.21% 3.25% 0.78% 0.23% 0.03% 0.14% 0.56% 1.37% 3.25% 3 - 5 years 2-3years 25% Portfolio Maturity Profile 1 - 2 years 30% 0 - 1 year 30% Compliance: The Town's investments are in compliance with the Town's investment policy dated May 1, 2008 and also in compliance with the requirements of Section 53601 of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months. Page 1 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances March 31, 2016 Month YID Fund Balances - Beginning of Month/Period $68,998,248.19 $70.832,337.72 Receipts 1,569,849.86 26,451,453.07 Disbursements (2,623,642.07) (29,339,334.81) Fund Balances - End of MontivPeriod 567,944,455.98 S67,944,455.98 Portfolio Allocation: BNY MM US Govt Agencies & Corp. Bonds Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances Total Treasurer's Fund $117,378,95 48,164,885.57 4,181,786.38 52,464,050.90 15,480.405,08 S67.944,455.98 Portfolio Investment Allocation BNY MM Local Agency Investment Fund 0.22% 7.97%u US Govt Agencies & Corp. Bonds 91.81% 74,000,000 72.000,000 70,000,00C 68,000.000 66,000.000 64.000.000 - 62,000,000 60,000.000 58.000.000 56,000.000 Treasurer's Fund Balances 4,5 O z V s w 7 page 2 Town of Los Gatos Non -Treasure Restricted Fund Balances March 31, 2016 Non -Treasury Funds: C.en. ofParticipation '002 Series A Reserve Fund Ceti. Of Participation 2002 Ser A Lease Pytnt Fund Cell, of Participation 2002 Series A Const. Fund COP 2010 Library Reserve Fund Total Restricted Funds: Previous Balance Defosils Ending Interest Withdrawals Balance 686.262.69 S - $ 5.47 $ - S 0,35 0.00 0.00 0.00 12.92 1,277J01.39 0.00 75.27 0.00 686.268.16 0.35 12.92 1.277.176,66 SI.963,377.35 S0.00 $80.74 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities. S0.00 $1.963,458.09 Note is The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years. reserve funds which will guarantee the payment of lease payments. and a third fund for the disbursement of lease payments and initial delivery costs. Note 2: The 2010 COP Funds are all for the Library construction. reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010. Note 1 Nate 1 Nate 1 Nate 2 Page 3 Town of Los Gatos Statement of Interest Earned March 31, 2016 Interest by Month July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 .April 2016 May 2016 June 2016 S37,891.24 39,641.24 39,140.87 37,799.14 36,192.77 31,046.35 43,394.68 36,795.40 40,922.73 $342,824.42 Page 4 Town of Los Gatos Investment Schedule March 31, 2016 Par Institution Security Value Maturity Yield to Interest Interest Clays Original Market Date or Maturity Received Earned to Ens Value Call Dale or Cali fo Date Current FY Maturity PFIZER CatporateNote 750,000.00 753,037.50 752,711.63 5,152017 0.91% $ 5.477.08 $ 5,159.73 4 } 0 IBM Coupon Note 750,000.00 782.505.00 753.247.50 722'2010 0.76% $ 46,678.12 $ 4,382.70 113 Treasury Note 1.000.000.00 L025,390.63 1,003,749.00 7731,2016 097% 5 66,847.83 $ 7.445,81 122 FNMA Callable Note 1,000000.00 1.014,600,00 1,003,564,00 9/28,2016 0,66% S 25,000.00 5 5,029.83 181 Toyota Motor Credit Coupon Note 500,000.00 502,200.00 500,865.00 10/572017 1.05% 5 1,475.69 $ 3.824.96 553 FNMA CallahleNote 1.500.000.00 1500.000.00 1,499,115.00 11'1412016 0.5500 5 20,625,00 5 6,215.75 228 Treasury Note 1,000,000,00 1.000,00000 1,000,781.00 11r15/2016 0.6300 $ 8,933,42 5 4.708.90 229 Treasury Note 1,000,000.00 1,004,062.50 1,002,227.00 1731/2017 0.72% 5 14 357.73 $ 5.435,96 306 FNMA Callable Note 4,000,000.00 4,004,800.00 4,002.,0130.00 3,14,2017 0.72% $ 88,333,33 8 21,686.07 348 Treasury Note 2,000,000.00 2,015,156,25 2,007,344.00 3,3112017 0.73% $ 26,885.25 $ 11,056,97 365 Treasury Note 500,000.00 499,804.69 501,191,50 4/30,2017 0.89% 5 5,920.52 $ 3,347,78 395 Berk Huth Coupon Note 500,000,00 509,280.00 504,/87,00 5'152017 1,61% 5 22,755.56 $ 4,417.30 410 FNMA Callable Note 1,500,000,00 1,504,050.00 1.504,660,50 92012017 0.94% $ 51 291,67 5 10,661.59 538 FNMA Callable Note 1,000,000.00 1,003,200.00 1,003,107.00 9/20'2017 093% 0 33,055.56 $ 703292 538 FNMA Callable Note 1,000,000.00 1,002,750.00 1,003,107.00 9.20'2017 0.94% 5 32.916.67 $ 7,102.10 538 FFCB Coupon Note 2,000,000.00 1,906,960.00 2,000,650.00 9:-212017 0.86% $ 56,855,00 5 12,971.55 539 FHLB Coupon Note 2,000,0(30,00 1,998,720,00 1,998,160.00 12 8.'2017 0.76°0 5 43,583.33 $ 11,494,56 017 FNMA Callable Note 1,000.000,00 1.004,400,00 1,004,990,00 3 52018 1,0300 5 32.437.50 $ 7.797,40 704 AAPL Corporate Nate 1,000,000.00 991,680.01 1,002,061:00 532018 1,1700 1 24.638,89 5 8,796.24 763 FHLMC Callable Note 1,500,000.00 1,500.945,00 1,500,555.00 4,27.2016 0.81% $ 6,562.50 $ 9,178.06 27 FHLB Callable Note 500,000,00 500,000.00 500,040.00 4/29/2016 122% 5 3,050.00 $ 4,595.89 29 FHLB Coupon Note 1,000,000.00 997,710.00 1,005,800,00 8/27.2018 1.22% S 8.241.66 $ 9,200.34 879 Treasury Note 1,000.000,00 1,000,468.75 1,000,938.00 6,30/2017 0.73% $ 4,185 08 5 5,479.27 456 Treasury Note 1,000,000,00 1,004,14063 1,004,297.00 9,15/2017 0.821,0 5 7,663.04 5 6,160.70 533 Treasury Note 1,000,000.00 990,468,75 999,648.00 4+15/2018 1,09% 5 2,581,97 5 8,173.39 745 FHLB Coupon Note 2,000,000.00 1.991.820.00 2,001,680.00 5125/2018 1.19% $ 10.03333 5 17,906,72 785 Treasury Note 1,000,000,00 L010625.00 1,013,281.00 6,30,2018 1.00% $ 5,716.71 $ 6,757.51 821 FFCB Coupon Note 2,500,000.00 2,509,525.00 2.514,750,00 12/11,2017 0.96 e . 10,781.25 $ 16,202.25 627 FHLB Coupon Note 1,250,000.00 1,247,075.00 1,253,300.13 7,2512018 1-13% 5 5.979,17 $ 8,667.13 846 FHLB Coupon Note 1,000,000.00 999.500.00 1,004,537.37 7/25/2018 1.07% $ 4,637.50 1 6.462_82 846 FFCB Coupon Note 1,000,000.00 1,002,060.00 1000.800.00 4'24/2017 0.63% $ 3,687.50 $ 3,721.25 389 Waltman Corporate Note 1.000.000,00 998.960,00 1,007,516,00 4111,2018 1.17% 5 500,00 1, 6.004,98 741 Disney Corporate Note 995.000.00 995298,50 991.747.17 1211 /2017 1.0900 5 2,006.58 5 5.507,10 610 FFCB Coupon Note 1,000,000.00 1,048,230,00 1.039,330,00 611/2018 0,8600 $ 2,597.22 $ 3.816.84 792 FHLB Coupon Note 1,000,000.00 1,005.030,00 1,005,000.00 9/14/20/8 0.95% 5 4,281.25 5 4,063.03 897 FFCB Coupon Note 1,500,000.00 1,494.840,00 1.502.850.00 10/972018 0,99% $ (729.17) 5 6.276.18 922 Chevron Corporate Note 1,250,000.00 1,252262.50 1.257.128.75 11/9/2017 1.25°0 $ (1306.67) $ 4.561.95 518 Treasury Note 1,500,000,00 1,494,902.34 1,500,351.00 2/28/2018 0,9100 5 1,050.82 $ 2,43713 699 Wells Fargo Corporate Note 1,000,000.00 1,001,680.00 1,007.520,00 1212018 1.56% $ (137,50) $ 2,486.58 662 Subtotal BNY MM Purchased Interest LAI F N/A $ 48,158,138.05 0 48.166.627.55 5 689,450.40 5 286.247.76 117,378,95 6,747.52 4,181,786.38 117,378.95 6,747.52 4,181,716.38 Bank of the West Matured Assets SO (Mississippi Power) Coupon Note Treasury FHLMC FHLB FHLB FHLB GE FHLMC FHLB FHLMC Berk Rath 13,664.15 552,464,050.90 552,472,540.40 $ 689.450.40 $ 299,911.91 500,000,00 526.020.00 7/10/2015 0,96% 5 35,96806 $ 5,719.63 Note 1.000000,00 1,042,812,5{1 7131/2015 0,65% $ 69,239.13 $ 567.83 Callable Note 2,500,000,00 2,500,000.00 710/2015 0.75% $ 29,687.50 $ 1,541 10 Callable Note 1,250,000,00 1,248,750.00 8/20/2015 0.70% $ 6,250.00 $ 1,225.50 Callable Note 1,000,000.00 1,000,500.00 8,26,2015 0.52% 5 5,700,00 0 812.05 CalableNote 1,000,060.00 1,000,500.00 8/25/2015 094% $ 10,237,50 5 1,450.04 Corporate Note 2.000.000.00 2.,133,600,00 9121/2015 1.01% 5. 175,972.22 $ 4,789.90 Callable Note 2.000.000.00 1,995,000.00 9725,2015 1,37% 1 27,950.00 5 7.642,44 Callable Note 2,000,000.00 2..001.880.00 10/27/2015 0.89% 5 10,800,00 5 5,819.68 Callable Note 1„500,000,00 1,499,250.00 10129/2015 1.50% 5 9,750.00 5 6,960.29 Coupon Note 1,250000.00 1,315,137.50 12/1572015 1.08% 5 119,012.15 5 6,384.05 Total Investments "'Matured" Maturity Prolile 0-1 year I-2 years 2-3 years 3-5 years Market 1a Cost Position Report P S16.263,459,00 $ 1.190.016.96 $ 342,824.4: Amount 518,653,37223 $21.034,739.91 512,775,938.76 $0.00 1522.464.050,90 Amortized Institution Cos} BNY Assets 148,158,138.05 BNY MM 117,378.95 Purchased Interest 6,747.52 LA1F 4,181,786.38 Totals: 552,464,050.90 Page 5