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1997 05 14 IABT a 4,4f 4�Q�rw 78-495 CALLE TAMPICO — LA QUINTA, CALIFORNIA 92253 - (619) 777-7000 AGENDA FAX (619) 777-7101 INVESTMENT ADVISORY BOARD Study Session Room 78-495 Calle Tampico- La Quinta, CA 92253 May 14, 1997 - 5:30 P.M. I CALL TO ORDER a. Pledge of Allegiance b. Roll Call II CONFIRMATION OF AGENDA III PUBLIC COMMENT - (This is the time set aside for public comment on any matter not scheduled on the agenda.) IV CONSENT CALENDAR A. Approval of Minutes of Meeting on April 9, 1997 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for March 31, 1997 B. Fiscal Year 97/98 Investment Policies C. FY 97/98 Work Plan VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - April 1997 B. Pooled Money Investment Board Reports - January & February 1997 VII BOARD MEMBER ITEMS Vill ADJOURNMENT MAILING ADDRESS - P.O. BOX 1504 - LA QUINTA, CALIFORNIA 92253 �� INVESTMENT ADVISORY BOARD Business Session Item No. A Meeting Date: May 14, 1997 TITLE: Transmittal of Treasury Report for March 31, 1997 3I�i t ;lei II ki19 Attached please find the Treasury Report for March, 1997. RECOMMENDATION: Review, Receive and File the Treasury Report of March 31,1997. J hn M. Falconer, Finance Director TO: FROM: SUBJECT: DATE: T a 0 -1itT 4 4 Q" MEMORANDUM La Quinta City Council John Falconer, Finance Director/Treasurer Treasurer's Report for March 31, 1997 May 6, 1997 Attached is the Treasurer's Report for the month ending March 31, 1997. This report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Department. Cash and Investments: Increase of $499,816. due to the net effect of revenues in excess of expenditures. State Pool: ICMA: Decrease of $650,000. due to transfers to and from the cash and investment accounts. Increase of $7,509. due to employee contributions and interest earned. U.S. Treasury Bills, Notes and Securities: Decrease of $14,584 due to the net effect of the sale of 1 T-Bill and the purchase of 1 Government Security (FNMA). Mutual Funds: Decrease of $1,200,545. due to the net effect of transfers from investments to cash, debt service payments and interest earned. Total decrease in cash balances $1,357,804. certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Wall Street Journal, First Trust of California Monthly Statement and Wells Fargo Monthly Custodian Report to determine the fair market value of investments at month end. 0 - J M rn . Falconer Date finance Director/Treasurer y C O «. 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Um 0m CITY OF LA QUINTA CITY CITY RDA RDA FA BALANCE SHEET 03131/97 FIXED LONG TERM FIXED LONG TERM FINANCING LONG TERM GRAND CITY ASSETS DEBT RDA ASSETS DEBT AUTHORITY DEBT TOTAL ASSETS: POOLED CASH 493,481.67 6,403,952.70 6,897,434.37 LQRP INVESTMENT IN POOLED CASH 290,000.00 290,000.00 INVESTMENT T-BILUNOTES & OTHER 12,925,766.67 12,925,766.67 LQRP CASH 56,991.74 56,991.74 BOND REDEMPTION CASH 643.97 171,881.68 172,525.65 BOND RESERVE CASH 517,126.00 517,126.00 BOND PROJECT CASH 12,395,935.67 730,845.14 13,126,780.81 BOND ESCROW CASH 2,546.90 2,546.90 PETTY CASH 1,000.00 1,000.00 ICMA DEFERRED COMPENSATION 679,068.82 679,068.82 CASH & INVESTMENT TOTAL 14,099,317.16 19,667,196.98 902,726.82 34,669,240.96 INVESTMENT IN LAND HELD FOR RESALE 86,319.85 86,319.85 ACCOUNTS RECEIVABLE 8,608.75 65,100.23 73,708.98 PREMIUM/DISCOUNT ON INVESTMENT 13,348.96 13,348.96 LQRP-ACCOUNTS RECEIVABLE 11,618.76 11,618.76 INTEREST RECEIVABLE LOAN/NOTES RECEIVABLE 2,531,312.25 2,531,312.25 DUE FROM OTHER AGENCIES DUE FROM OTHER GOVERNMENTS DUE FROM OTHER FUNDS 551,038.04 551,038.04 DUE FROM RDA 6,048,957.20 6,048,957.20 INTEREST ADVANCE -DUE FROM RDA 1,058,567.58 1,058,567.58 NSF CHECKS RECEIVABLE 545.31 545.31 ACCRUED REVENUE TRAVEL ADVANCES 3,083.00 3,083.00 EMPLOYEE ADVANCES PREPAID EXPENSES RECEIVABLE TOTAL 7,119,761.84 3,172,418.24 10,292,180.08 WORKER COMPENSATION DEPOSIT RENT DEPOSITS UTILITY DEPOSITS 75.00 75.00 MISC. DEPOSITS 2,100.00 2,100.00 DEPOSITS TOTAL 2,175.00 2,175.00 GENERAL FIXED ASSETS 628,720.00 14,868,456.00 11,438,745.05 26,935,921.05 ACCUMULATED DEPRECIATION (6,259.83) (6,259.83) AMOUNT AVAILABLE TO RETIRE LIT DEBT 2,340,653.00 2,340,653.00 AMOUNT TO BE PROVIDED FOR L/T DEBT 298,816.00 90,666,475.74 8,790,000.00 99,755,291.74 TOTAL OTHER ASSETS 622,460.17 14,868,456.00 298,816.00 11,438,745.05 93,007,128.74 8,790,000.00 129,025,605.96 TOTAL ASSETS 21,843,714.17 14,868,456.00 298,816.00 22 925 935.07 11 438 745.05 93,007,128.74 902,726.82 8,790,000.00 174,075,521.85 LIABILITY ACCOUNTS PAYABLE DUE TO OTHER AGENCIES DUE TO OTHER FUNDS INTEREST ADVANCE -DUE TO CITY ACCRUED EXPENSES PAYROLL LIABILITIES STRONG MOTION INSTRUMENTS FRINGE TOED LIZARD FEES SUSPENSE DUE TO THE CITY OF LA QUINTA PAYABLES TOTAL 291.64 29,707.69 29,999.33 794.00 794.00 551,038.04 551,038.04 54,676.86 54,676.86 1,352.04 1,352.04 78.40 78.40 (2,706.47) (2,706.47) 54,486.47 ENGINEERING TRUST DEPOSITS 80,559.02 SO. COAST AIR QUALITY DEPOSITS ARTS IN PUBLIC PLACES DEPOSITS 143,516.50 LQRP DEPOSITS DEVELOPER DEPOSITS 251,193.82 MISC. DEPOSITS 87,762.94 AGENCY FUND DEPOSITS 1,024,949.08 ICMA-DEFERRED COMP DEPOSITS 679,068.82 TOTAL DEPOSITS 2,267,050.18 580,745.73 13,665.00 13,665.00 b 35,1:31.1U 80,559.02 143,516.50 13,665.00 251,193.82 87,762.94 1,024,949.08 679,068.82 2,280,715.18 DEFERRED REVENUE OTHER LIABILITIES TOTAL COMPENSATED ABSENCES PAYABLE 298,816.00 298,816.00 DUE TO THE CITY OF LA QUINTA 7,107,525.99 7,107,525.99 DUE TO COUNTY OF RIVERSIDE 11,925,575.00 11,925,575.00 DUE TO C.V. UNIFIED SCHOOL DIST. 11,797,367.75 11,797,367.75 DUE TO DESERT SANDS SCHOOL DIST. 1,276,660.00 1,276,660.00 BONDS PAYABLE 60,900,000.00 8,790,000.00 69,690,000.00 TOTAL LONG TERM DEBT 298,816.00 93,007,128.74 8,790,000.00 102,095,944.74 TOTAL LIABILITY 2,321,536.65 298,816.00 594,410.73 93,007,128.74 8,790,000.00 105,011,892.12 EQUITY -FUND BALANCE 19,522,177.52 14,868,456.00 22,331,524.34 11,438,745.05 902,726.82 69,063,629.73 TOTAL LIABILITY & EQUITY 21 843 714.17 14 868 456.00 298 816.00 22 925 935.07 11 438 745.05 93 007 128.74 902 726.82 8,790,000.00 174 075 521.85 IA INVESTMENT ADVISORY BOARD Meeting Date: TITLE: May 14, 1997 Fiscal Year 1997/98 Investment Policies GIIRWA Business Session No. B Attached please find staff's proposed investment policies for FY 97/98. Staff intends to present the Investment Policy at the June 24, 1997 City Council meeting for adoption. The proposed changes include lowering the LAIF investment percentage from 40% to 35% and further defining the State and City Investment limitations on surplus funds. Proposed changes have been redlined. In addition, at the June 1 1 th meeting and in accordance with Section XX of the Investment Policies, a joint meeting will be held with the City Manager and City Attorney. RECOMMENDATION: Commence review of the Investment policies for approval by City Council in June 1997. A n Falconer, Finance Director CITY OF LA QUINTA Investment Policy Table of Contents Section Tom Paae Executive Summary 2 1 General Purpose 4 II Investment Policy 4 III Scope 4 IV Objectives 5 ► Safety No. Liquidity ► Yield V Prudence 6 VI Delegation of Authority 6 VII Conflict of Interest 7 Vill Authorized Financial Dealers and Institutions 7 ► Broker/Dealers ► Financial Institutions IX Authorized Investments and Diversification 8 X Investment Pools 11 XI Collateral ization 12 XII Safekeeping and Custody 12 XIII Interest Earning Distribution Policy 12 XIV Maximum Maturities 13 XV Internal Controls 13 XVI Benchmark 15 XVil Reporting Standards 15 XVlll Investment of Bond Proceeds 15 XIX Investment Advisory Board - City of La Quinta 16 XX Investment Policy Adoption 16 Appendices Authorized Investments and Diversification 17 Municipal Code Ordinance 2.70 - Investment Advisory Board 18 Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 19 Listing of Approved Financial Institutions 21 Broker/Dealer Questionnaire and Certification 22 Investment Pool Questionnaire 26 Segregation of Major Investment Responsibilities 30 Glossary 31 1 City of La Quinta Investment Policy Executive Summary The general purpose of this Investment Policy is to provide the rules and standards users must follow in investing funds of the City of La Quinta. It is the policy of the City of La Quinta to invest all public funds in a manner which will provide a diversified portfolio with maximum security while meeting daily cash flow demands and the highest investment return in conformity to all state and local statutes. This Policy applies to all cash and investments of the City of La Quinta, La Quinta Redevelopment Agency and the La Quinta Financing Authority, hereafter referred in this document as the "City". The primary objectives, in order of priority, of the City of La Quinta's investment activity shall be: Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return or yield throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Authority to manage the City of La Quinta's investment portfolio is derived from the City Ordinance. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The Treasurer shall establish and implement a system of internal controls to maintain the safety of the portfolio. In addition, the internal control system will also insure the timely preparation and accurate reporting of the portfolio financial information. The adequacy of these controls will be reviewed and reported on annually by an independent auditor. K Investment responsibilities carry added duties of insuring that investments are made without improper influence or the appearance to a reasonable person of questionable or improper influence. The City of La Quinta maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions selected by the Treasurer to provide investment services will be approved by the City Manager subject to City Council approval. The Treasurer will be permitted to invest only in City approved investments up to the maximum allowable percentages and, where applicable, through the bid process requirements. Authorized investment vehicles and related maximum portfolio positions are listed in Appendix - Authorized Investments and Diversification At least two bids will be required of investments in government securities. Collateralization will be required for Certificates of Deposit in excess of $100,000. Collateral will always be held by an independent third party with whom the City of La Quinta has a current custodial agreement. Evidence of ownership must be supplied to the City and retained by the City Treasurer. The City of La Quinta shall require that each individual investment have a maximum maturity of two years unless specific approval is authorized by the City Council. In addition, the City's investment in the State Local Agency Investment Fund (LAIF) is allowable as long as the average maturity does not exceed two years, unless specific approval is authorized by the City Council. The City's investment in Money Market Mutual funds is allowable as long as the average maturity does not exceed 60 days. The City of La Quinta will use the six month U.S. Treasury Bill as a benchmark when measuring the performance of the investment portfolio. The Investment Policies shall be adopted by resolution of the La Quinta City Council on an annual basis, The Investment Policies will be adopted before the end of June of each year. This Executive Summary is an overall review of the City of La Quinta Investment Policies. Reading this summary does not constitute a complete review which can only be accomplished by reviewing all the pages. 3 T a f ihf 4 4a Qum ra(V 78-495 CALLE TAMPICO — LA QUINTA, CALIFORNIA 92253 - (619) 777-7000 FAX (619) 777-7101 City of La Quinta Statement of Investment Policy July 1, 1997 through June 30, 19987 Adopted by the City Council on June 24, 1997. I GENERAL PURPOSE The general purpose of this document is to provide the rules and standards users must follow in administering the City of La Quinta cash investments. II INVESTMENT POLICY It is the policy of the City of La Quinta to invest public funds in a manner which will provide a diversified portfolio with safety of principal while meeting daily cash flow demands with the highest investment return . In addition, the Investment Policy will conform to all State and local statutes governing the investment of public funds. This Investment Policy applies to all cash and investments of the City of La Quinta, City of La Quinta Redevelopment Agency and the City of La Quinta Financing Authority, hereafter referred in this document as the "City' . These funds are reported in the City of La Quinta Comprehensive Annual financial Report (CAFR) and include: All funds within the following fund types: ► General ► Special Revenue ► Capital Project ► Debt Service ► Internal Service ► Trust and Agency ► Any new fund types and fund(s) that may be created. 4 MAILING ADDRESS - P.O. BOX 1504 - LA QUINTA, CALIFORNIA 92253 V� IV OBJECTIVES The primary objective, in order of priority, of the City of La Quinta's investment activity shall be: 1. Safety Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio in accordance with the permitted investments. The objective will be to mitigate credit risk and interest rate risk. A. Credit Risk Credit Risk - is the risk of loss due to the failure of the security issuer or backer. Credit risk may be mitigated by: ► Limiting investments to the safest types of securities; ► Pre -qualifying the financial institutions, and broker/dealers, which the City of La Quinta will do business; and ► Diversifying the investment portfolio so that potential losses on individual securities will be minimized. B. Interest Rate Risk Interest Rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Interest rate risk may be mitigated by: ► Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and ► By investing operating funds primarily in shorter -term securities. 2. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. Furthermore since all possible cash demands cannot be anticipated the portfolio should consist of securities with active secondary or resale markets. A 3. Yield The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: ► A declining credit security could be sold early to minimize loss of principal; ► Liquidity needs of the portfolio require that the security be sold. V PRUDENCE The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in Probate Code Sections 16045 through 16054.. Section 16053 sets forth the terms of a prudent person which are as follows: Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion, and intelligence excerise in the professional management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. VI DELEGATION OF AUTHORITY Authority to manage the City of La Quinta's investment portfolio is derived from the City Ordinance. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The City Manager or Assistant City Manager shall approve in writing all purchases and sales of investments prior to their execution by the City Treasurer. 0 VII CONFLICT OF INTEREST Investment responsibilities carry added duties of insuring that investments are made without improper influence or the appearance of improper influence. Therefore, the City Manager, Assistant City Manager, and the City Treasurer shall adhere to the State of California Code of Economic Interest and to the following: ► The City Manager, Assistant City Manager, and the City Treasurer shall not personally or through a close relative maintain any accounts, interest, or private dealings with any firm with which the City places investments, with the exception of regular savings, checking and money market accounts, or other similar transactions that are offered on a non-negotiable basis to the general public. Such accounts shall be disclosed annually to the City Clerk in conjunction with annual disclosure statements of economic interest. ► All persons authorized to place or approve investments shall report to the City Clerk kinship relations with principal employees of firms with which the City places investments. Vlll AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City of La Quinta maintains a listing of financial institutions which are approved for investment purposes. In addition a list will also be maintained of approved broker/dealers selected by credit worthiness, who maintain an office in the State of California. 1 . Broker/Dealers who desire to become bidders for investment transactions must supply the City of La Quinta with the following: ► Current audited financial statements ► Proof of National Association of Security Dealers Certification ► Trading resolution ► Proof of California registration ► Resume of Financial broker ► Completion of the City of La Quinta Broker/Dealer questionnaire which contains a certification of having read the City of La Quinta Investment Policy The City Treasurer shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and individual conducting investment related business. 7 The City Treasurer will also contact the following agencies during the verification process: ► National Association of Security Dealer's Public Disclosure Report File - 1-800-289-9999 ► State of California Department of Corporations 1-916-445-3062 All Broker/Dealers selected by the City Treasurer to provide investment services will be approved by the City Manager subject to City Council approval. The City Attorney will perform a legal review of the trading resolution/investment contract submitted by each Broker/Dealer. Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S. Treasury Department regulations. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for investment: A. Insurance - Public Funds shall be deposited only in financial institutions insured by the Federal Deposit Insurance Corporation B. Collateral - The amount of City of La Quinta deposits or investments not insured by agency of the federal government shall be 1 10% collateralized by securities' or 150% mortgages' market values of that amount of invested funds plus unpaid interest earnings. C. Size - The amount of City of La Quinta deposits or investments must be collateralized or insured . by an agency of the federal government. D. Disclosure - Each financial institution maintaining invested funds in excess of $100,000 shall furnish corporate authorities a copy of all statements of resources and liabilities which it is required to furnish to the State banking or savings and loan commissioners as required by the California Financial Code. The City shall not invest in excess of $100,000 in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. IX AUTHORIZED INVESTMENTS AND DIVERSIFICATION The City Treasurer will be permitted to invest in the investments listed in the Appendix entitled - Authorized Investments and Diversification. ��..`Y�Y`�./�("Y XX T4n�. TTTTTT ■y� ¢� . L _. .. ': .. � s �, £ ♦ _ �°^` SL �.jj,,. -sus � 9Nx ` r ��.... ,. ,F a��y a @ .. .. ...... ■Ii'%X iM .M.. .�q`$ ykXf' 'C'.hR�. ..� > .i.✓,! 4�j.. .2 ,... 4hR �� x 3 f h4'"H H' 4 .14 ♦y' }� & /s 7 b F 5... .. b �. .H�«w g r z9 > g r� Y f .. H it hw'.� ..... .: .. ...... ..:. :... t:.' .>...... w a d' ..., i ivitv,. ... .w MOYt „ ... . . i<. fl� n 9 ... � « .. r = y...:: �s y - � � �5 s ; k r ,� ^£r` s r r r ,g• � �, $ r s } -- i/ .✓kv - t 3' xO �ri' G ' � n 2 'G 6 ` _. yy,1.... H'H�sf 6 >: rr9 ...................................... . RIP...' n<..M . ...t. x s, v i%n,k .k 1. :..:..T. w1i ..., Rr 10 Thee y�� � �f�l� ��e�►�,�ccc�u�� �����b�ar�'�`y��er �.f �,�t���i���� x �t=� ` g a V X INVESTMENT POOLS There are three (3) types of investment pools: 1) state -run pools, 2) pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee i.e. County Pool; and 3) pools that are operated for profit by third parties. The City of La Quinta has an investment with the State of California's Treasurers Office Local Agency Investment Fund commonly referred to as LAIF. LAIF was organized in 1977 through State Legislation Section 16429.1, 2 and 3. Each LAIF account is restricted to a maximum investable limit of $20 million. In addition, LAIF 11 will provide quarterly market value information to the City of La Quinta. On an annual basis the City Treasurer will submit the Investment Pool Questionnaire to LAIF. Also, prior to opening any new Investment Pool account, which would require City Council approval, the City Treasurer will require the completion of the Investment Pool Questionnaire. The City does not have an investment with any other Investment Pool - County Pools or Third Party Pools. • • Collateralization will be required for Certificates of Deposits. The type of collateral is limited to City authorized investments. 1. Certificates of Deposits under $100.000, The City Treasurer may waive collateralization of a deposit that is federally insured. 2. Certificates of Deposit over $100.000. The amount not federally insured shall be 1 10% collateralized by securities or 150% mortgages market value of that amount of invested funds plus unpaid interest earnings. Collateral will always be held by an independent third party with whom. the City of La Quinta has a current custodial agreement. Evidence of ownership must be supplied to the City of La Quinta and retained by the City Treasurer. XII SAFEKEEPING AND CUSTODY All security transactions of the City of La Quinta shall be conducted on a delivery - versus - payment (DVP) basis. Securities will be held by a third party custodian designated by the City Treasurer and evidenced by safekeeping receipts. Deposits and withdrawals of money market mutual funds and LAIF shall be made directly to the entity and not to an investment advisor. Money market mutual funds and LAIF shall also operate on a DVP basis to be considered for investment. XIII INTEREST EARNING DISTRIBUTION POLICY Interest earnings is generated from pooled investments and specific investments. 1. fooled Investments - It is the general policy of the City to pool all available operating cash of the City of La Quinta, La Quinta Redevelopment Agency 12 and La Quinta Financing Authority and allocate interest earnings, in the following order, as follows: A. Payment to the General Fund of an amount equal to the total annual bank service charges as incurred by the general fund for all operating funds as included in the annual operating budget. B. Payment to the General Fund of a management fee equal to 5% of the annual pooled cash fund investment earnings. C. Payment to each fund of an amount based on the average computerized daily cash balance included in the common portfolio for the earning period. 2. Specific Investments - Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIV MAXIMUM MATURITIES The City of La Quinta shall require that each individual investment have a maximum maturity of two years unless specific approval is authorized by the City Council. In addition, the City's investment in the State Local Agency Investment Fund (LAIF) is allowable as long as the average maturity does not exceed two years, unless specific approval is authorized by the City Council. The City's investment in Money Market Mutual funds is allowable as long as the average maturity does not exceed 60 days. XV INTERNAL CONTROLS The City Treasurer shall establish a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► The orderly and efficient conduct of its business, including adherence to management policies; ► Prevention or detection of errors and fraud; ► The accuracy and completeness of accounting records; and, ► Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: 13 a. Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. b. Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. C. Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. d. Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. e. Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities appendices. f. Written confirmation or telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow-up. g. Development of a wire transfer agreement with the City's bank and third party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. In addition to the System of Internal Controls developed by the City, the Internal Controls shall be reviewed annually by the independent auditor. The independent auditors management letter comments pertaining to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditors letter. This response will also be directed to the City's Investment Advisory Board for their action. XVI BENCHMARK The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles commensurate with the investment risk constraints and the cash flow needs of the City. Return on investment is of least importance compared to safety and liquidity objectives. The City of La Quinta will use the six month U.S. Treasury Bill as a benchmark when measuring the performance of the investment portfolio. XVII REPORTING STANDARDS SB564 section 3 requires a quarterly report to the Legislative Body of Investment activities. The City of La Quinta has elected to report the investment activities to the City Council on a monthly basis through the Treasurers Report. The City Treasurer shall submit a monthly Treasurers Report to the City Council and the Investment Advisory Board that includes all investments under the authority of the Treasurer. The Treasurers Report shall consist of a narrative of significant changes in cash balances and the following: ► Changes in investments from the previous month; ► A certification statement from the City Treasurer; ► Purchases and sales of investments; ► Cost to market value comparisons of all investments by authorized investment category, except for LAIF which will be provided quarterly; ► Comparison of actual holdings to Investment Policy maximums; ► Twenty four (24) months history of cash and investments for trend analysis; ► Balance Sheet. XV111 INVESTMENT OF BOND PROCEEDS The City's investment policy shall govern bond proceeds and bond reserve fund investments. California Code Section 5922 (d) governs the investment of bond 15 proceeds and reserve funds in accordance with bond indenture provisions which shall be structured in accordance with the City's investment policy. The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as required and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. This arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the new arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It is the City's position to continue maximization of yield and to rebate excess earnings, if necessary. XIX INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA The Investment Advisory Board (IAB) consists of seven members of the community that have been appointed by and report to the City Council. The IAB meets on a monthly basis to 1) review account statements and verifications to ensure accurate reporting as they relate to an investment activity, 2) monitor compliance with existing Investment Policy and Procedures, and 3) review and make recommendations concerning investment policy and procedures£ -=investment contracts and investment consultants. The appendices include City of La Quinta Ordinance 2.70 entitled Investment Advisory Board Provisions. XX INVESTMENT POLICY ADOPTION On an annual basis, the Investment policies will be initially reviewed by the Investment Advisory Board and the City Treasurer. The Investment Advisory Board will forward the Investment policies, with any revisions, to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City Treasurer to review the Investment policies and comments, prior to submission to the City Council for their consideration. The Investment Policies shall be adopted by resolution of the City of La Quinta City Council on an annual basis. The Investment Policies will be adopted before the end of June of each year. 16 Chapter 2.70 INVESTMENT ADVISORY BOARD PROVISIONS Sections: 2.70.010 General Rules Regarding Appointment and Terms. 2.70.020 Board meetings and compensation. 2.70.030 Board functions. 2.70.010 General rules regarding appointment and terms. Except as set out below, see Chapter 2.06 for General Provisions. The Investment Advisory Board (the "board") is a standing board composed of seven (7) members from the public that are appointed by city council. La Quinta residency is preferred, but not a requirement for board members. Recruitment for members may be advertised outside of the city". Background in the investment field and/or related experience is preferred. Background information will be required and potential candidates must agree to a background check and verification. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each board member will provide the City Council with a disclosure statement which identifies any matters on the board. Such matters may include, but are not limited to, changes in employment, changes in residence, or changes in clients. The Board members will serve for two year staggered terms beginning on July 1 of every other year, commencing July 1, 1993. Initially, two members will be appointed for two year terms and three members will be appointed for one year terms. These initial appointments will start their yearly calculations from July 1, 1993. 2.70.020 Board meetings and compensation. Board members will be reimbursed for meeting and related expenses at an amount of fifty dollars ($50) per meeting. Initially, the Board should meet once a month, but this schedule may be extended to quarterly meetings upon the concurrence of the Board and the City Council. The specific meeting dates -will be determined by the Board members and meetings may be called for on an as needed basis. 2.70.030 Board functions. The Board will annually elect a Chairperson and Vice -chairperson at the first meeting held after each June 30. The following are functions of the Board that are to be addressed at each meeting: (1) review account statements and verifications to ensure accurate reporting as they relate to an investment activity; (ii) monitor compliance with existing Investment policy and procedures; and (iii) review and make recommendations concerning investment policy and procedures, investment contracts, and investment consultants. The Board will report to City council after each meeting either in person or through correspondence at a regular City Council meeting. Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS Sections: 3.08.010 Investment of city moneys and deposit of securities. 3.08.020 Authorized investments. 3.08.030 Sales of securities. 3.08.040 City bonds. 3.08.050 Reports. 3.08.060 Deposits of securities. 3.08.070 Trust fund administration. 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by, Sections 53607 and 53608 of the Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under any provision of state law relating to the investing of general city funds, including but not limited to Sections 53601 and 53635 of the Government Code, as said sections now read or may hereafter be amended, from moneys in his custody which are not required for the immediate necessities of the city and as he may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part), 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord. 2 § I (part), 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be canceled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 19 3.08.050 Reports. The city treasurer shall make a monthly report to the city council of all investments made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982) 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the terms of any state law, including but not limited to Section 53608 of the Government Code as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 2 § 1 (part), 1982 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 26524 of the Government code and any other applicable provisions of law. (Ord. 2 § 1 (part), 1982) 20 LISTING OF APPROVED FINANCIAL INSTITUTIONS 1. Banking Services - Wells Fargo Bank 2. Custodian Services - Wells Fargo Bank Institutional Trust 3. Deferred Compensation - International City/County Management Association Retirement Corporation 4. Broker/Dealer Services - Merrill Lynch, Indian Wells, CA Dean Witter, Newport Beach, CA. Smith Barney, Newport Beach, CA 5. Government Pool - State of California Local Agency Investment Fund City of La Quinta Account La Quinta Redevelopment Agency 6. Bond Trustees - 1991 City Hall Revenue Bonds - First Trust 1991 RDA Project Area 1 - First Trust 1992 RDA Project Area 2 - First Trust 1994 RDA Project Area 1 - First Trust 1995 RDA Project Area 1 & 2 - First Trust No Changes to this listing may be made without City Council approval. 21 BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1. Name of Firm: 2. Address: 3. Telephone: ( 4. Broker's Representative to the City (attach resume): Name: Title: Telephone: ( ) 5. Manager/Partner-in-charge (attach resume): Name: Title: Telephone: 6. List all personnel who will be trading with or quoting securities to City employees (attach resume) Name: Title: Telephone: ( ) ( ) 7. Which of the above personnel have read the City's investment policy? 8. Which instruments are offered regularly by your local office? (Must equal 100%) % U.S. Treasuries % BA's % Commercial Paper % C D's % Mutual Funds % Agencies (specify): % Repos % Reverse Repos % CMO's % Derivatives % Stocks/Equities % Other (specify) : 22 9. References -- Please identify your most directly comparable public sector clients in our geographical area. Entity Contact Telephone ( ) Client Since Entity Contact Telephone ( ) Client Since 10. Have any of your clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, explain. 11. Has your firm or your local office ever been subject to a regulatory or state/ federal agency investigation for alleged improper,. fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so, explain. 12. Has a client ever claimed in writing that ygu were responsible for an investment loss? Yes No If yes, please provide action taken Has a client ever claimed in writing that your firm was responsible for an investment loss? Yes No If yes, please provide action taken Do M have any current, or pending complaints that are unreported to the NASD? Yes No If yes, please provide action taken 23 Does your firm have any current, or pending complaints that are unreported to the NASD? Yes No If yes, please provide action taken 13. Explain your clearing and safekeeping procedures, custody and delivery process. Who audits these fiduciary responsibilities? Latest Audit Report Date 14. How many and what percentage of your transactions failed. Last month? % $ Last year? % $ 15. Describe the method your firm would use to establish capital trading limits for the City of La Quinta. 16. Is your firm a member in the S.I.P.C. insurance program. Yes If yes, explain primary and excess coverage and carriers. [Me 17. What portfolio information, if any, do you require from your clients? 18. What reports and transaction confirmations or any other research publications will the City receive? 19. Does your firm offer investment training to your clients? Yes No 24 20. Does your firm have professional liability insurance. Yes No If yes, please provide the insurance carrier, limits and expiration date. 21. Please list your NASD Registration Number 0�� Do you have any relatives who work at the City of La Quinta? Yes No If yes, Name and Department 23. Do you maintain an office in California. Yes No 24. Do you maintain an office in La Quinta or Riverside County? Yes No 25. Please enclose the following: • Latest audited financial statements. • Samples of reports, transaction confirmations and any other research/publications the City will receive. • Samples of research reports and/or publications that your firm regularly provides to clients. • Complete schedule of fees and charges for various transactions. * *CERTIFICATION I hereby certify that I have personally read the Statement of Investment Policy of the City of La Quinta, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of La Quinta. All sales personnel will be routinely informed of the City's investment objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable risks associated with financial transactions conducted with our firm. By signing this document the City of La Quinta is authorized to conduct any and all background checks. Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my knowledge. Broker Representative Date Title Sales Manager and/or Managing Partner* Date Title 25 INVESTMENT POOL QUESTIONNAIRE Note: This Investment Pool Questionnaire was developed by the Government Finance Officers Association (GFOA). Prior to entering a pool, the following questions and issues should be considered. SECURITIES Government pools may invest in a broader range of securities than your entity invests in. It is important that you are aware of, and are comfortable with, the securities the pool buys. 1. Does the pool provide a written statement of investment policy and objectives? 2. Does the statement contain: a. A description of eligible investment instruments? b. The credit standards for investments? c. The allowable maturity range of investments? d. The maximum allowable dollar weighted average portfolio maturity? e. The limits of portfolio concentration permitted for each type of security? f. The policy on reverse repurchase agreements, options, short sales and futures? 3. Are changes in the policies communicated to the pool participants? 4. Does the pool contain only the types of securities that are permitted by your investment policy? INTEREST Interest is not reported in a standard format, so it is important that you know how interest is quoted, calculated and distributed so that you can make comparisons with other investment alternatives. Interest Calculations 1. Does the pool disclose the following about yield calculations: a. The methodology used to calculate interest? (Simple maturity, yield to maturity, etc.) b. The frequency of interest payments? c. How interest is paid? (Credited to principal at the end of the month, each quarter; mailed?) d. How are gains/losses reported? Factored monthly or only when realized? 26 REPORTING 1. Is the yield reported to participants of the pool monthly? (If not, how often?) 2. Are expenses of the pool deducted before quoting the yield? 3. Is the yield generally in line with the market yields for securities in which you usually invest? 4. How often does the pool report, and does that report include the market value of securities? SECURITY The following questions are designed to help you safeguard your funds from loss of principal and loss of market value. 1. Does the pool disclose safekeeping practices? 2. Is the pool subject to audit by an independent auditor? 3. Is a copy of the audit report available to participants? 4. Who makes the portfolio decisions? 5. How does the manager monitor the credit risk of the securities in the pool? 6. Is the pool monitored by someone on the board of a separate neutral party external to the investment function to ensure compliance with written policies? 7. Does the pool have specific policies with regards to the various investment vehicles? a. What are the different investment alternatives? b. What are the policies for each type of investment? 8. Does the pool mark the portfolio to its market value? 9. Does the pool disclose the following about how portfolio securities are valued: a. The frequency with which the portfolio securities are valued? b. The method used to value the portfolio (cost, current value, or some other method)? 27 OPERA TONS The answers to these questions will help you determine whether this pool meets your operational requirements: 1. Does the pool limit eligible participants? 2. What entities are permitted to invest in the pool? 3. Does the pool allow multiple accounts and sub -accounts? 4. Is there a minimum or maximum account size? 5. Does the pool limit the number of transactions each month? What is the number of transactions permitted each month? 6. Is there a limit on transaction amounts for withdrawals and deposits? a. What is the minimum and maximum withdrawal amount permitted? b. What is the minimum and maximum deposit amount permitted? 7. How much notice is required for withdrawals/deposits? 8. What is the cutoff time for deposits and withdrawals? 9. Can withdrawals be denied? 10. Are the funds 100% withdrawable at anytime? 11. What are the procedures for making deposits and withdrawals? a. What is the paperwork required, if any? b. What is the wiring process? 12. Can an account remain open with a zero balance? 13. Are confirmations sent following each transaction? STA TEMENTS It is important for you and the agency's trustee (when applicable), to receive statements monthly so the pool's records of your activity and holding are reconciled by you and your trustee. 1. Are statements for each account sent to participants? a. What are the fees? b. How often are they passed? c. How are they paid? d. Are there additional fees for wiring funds (what is the fee)? 2. Are expenses deducted before quoting the yield? QUESTIONS TO CONSIDER FOR BOND PROCEEDS It is important to know (1) whether the pool accepts bond proceeds and (2) whether the pool qualifies with the U.S. Department of the Treasury as an acceptable commingled fund for arbitrage purposes. 1. Does the pool accept bond proceeds subject to arbitrage rebate? 2. Does the pool provide accounting and investment records suitable for proceeds of bond issuance subject to arbitrage rebate? 3. Will the yield calculation reported by the pool be acceptable to the IRS or will it have to be recalculated? 4. Will the pool accept transaction instructions from a trustee? 5. Are you allowed to have separate accounts for each bond issue so that you do not commingle the interest earnings of funds subject to rebate with funds not subject to regulations? M SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Responsibilities Develop formal Investment Policy City Treasurer Recommend modifications to Investment Policy Investment Advisory Board Review formal Investment Policy and recommend City Manager and City Council action City Attorney Adopt formal Investment Policy City Council Review Financial Institutions & Select Investments City Treasurer Approve investments City Manager or Assistant City Manager Execute investment transactions City Treasurer Confirm wires, if applicable City Manager or Accounting Supervisor Record investment transactions in City's accounting records Accounting Supervisor Investment verification - match broker confirmation to City investment records Account Technician Reconcile investment records - to accounting records and bank statements - to Treasurers Report of investments Account Technician Security of investments at City Vault Security of investments Outside City Third Party Custodian Review internal control procedures External Auditor 30 GLOSSARY The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities ASKED: The price at which securities are offered. BANKERS' ACCEPTANCE (BA): Short-term credit arrangements to enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the drafts at its maturity. An acceptance is a high-grade negotiable instrument. Acceptances are purchased in various denominations for 30, 60 or 90 days, but no longer than 270 days. The interest is calculated on a 360-day discount basis similar to treasury bills. Local agencies may not invest more than 40% of their surplus money in bankers acceptances. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): Time deposits of a bank or savings and loan. They are purchased in various denominations with maturities ranging from 30 to 360 days. The interest is calculated on a 360-day, actual - day month basis and is payable monthly. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: S h o r t- t e r m unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. 31 DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal, government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. The following is a listing: 1. FNMAs (Federal National Mortaaae Association) - Used to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. They are issued in various maturities and in minimum denominations of $10,000. Principal and Interest is paid monthly. 2. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage - lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. The bonds are issued with various maturities and carry semi-annual coupons. Interest is calculated on a 360- day, 30-day month basis. 3. FLBs (Federal Land Bank Bonds) - Long- term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi-annual coupons. Interest is calculated on a 360- day, 30 day month basis. 4. FFCBs (Federal Farm Credit Bank) - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six- month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. M 5. FICBs (Federal Intermediate Credit bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine - month maturity. Interest is payable at maturity and is calculated on a 360-day, 30-day month basis. 6. FHLMCs (Federal Home Loan Mortaage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and Interest is paid monthly. Other federal agency issues are Small Business Administration notes (SBAs), Government National Mortgage Association notes (GNMAs), Tennessee Valley Authority notes (TVAs), and Student Loan Association notes (SALLIE- MAEs). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open -market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: the central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "passthroughs" is often used to describe Ginnie Maes. 0c3 LAIF (Local Agency Investment Fund) - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $ 5,000, in multiples of $1,000 above that, with a maximum balance of $20,000,000 for any agency. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one -quarter of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and. reasonable size can be done. at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase --reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the vent of default by the seller - borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, banders' acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity an depositions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) - registered securities broker -dealers, banks and a few unregulated firms. 34 RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO): A repurchase agreement is a short-term investment transaction. Banks buy temporarily idle funds from a customer by selling U.S. Government or other securities with a contractual agreement to repurchase the same securities on a future date. Repurchase agreements are typically for one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal funds and the maturity of the repo. Some banks will execute repurchase agreements for a minimum of $100,000 to $500,000, but most banks have a minimum of $1, 000, 000. REVERSE REPURCHASE AGREEMENTS - A reverse repurchase agreement is the opposite of a repurchase agreement. The City loans a security to a bank in exchange for cash. The City agrees to pay off the loan with interest on a future date. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMAS, SLMA, etc.) And Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative -based returns) into their debt structure, Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the Shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate neccesities to be payment due within one week. TREASURY BILLS: Issued weekly with maturity dates up to one year. They are issued and traded on a discount basis with interest figured on a 360-day basis, actual number of days. They are issued in amounts of $10,000 and up, in multiples of $5,000. They are a highly liquid security. TREASURY BONDS: Long-term coupon - bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. 35 TREASURY NOTES: Medium -term coupon - bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker - dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par of plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 36 INVESTMENT ADVISORY BOARD Business Session Item No. C Meeting Date: May 14, 1997 TITLE: FY 97/98 Work Plan BACKGROUND: The purpose of this report is to obtain from the Investment Advisory Board issues and items that Staff should consider in developing a work plan for FY 97/98. Staff has identified the development of an Investment Strategy based upon past Board Member comments RECOMMENDATION: Provide Staff with further direction. i hn M. Falconer, Finance Director INVESTMENT ADVISORY BOARD Meeting Date: TITLE: May 14,. 1997 Month End Cash Report - April 1997 BACKGROUND: Correspondence & Written Material Item A This cash report is not a complete Treasury Report (exclude petty cash, deferred compensation and fiscal agent balances, ) but would report in a timely fashion selected cash balances. RECOMMENDATION: Information item only. hn M. Falconer, Finance Director City of La Quinta Month End Cash Report - See Footnote April 30, 1997 Wells Fargo Wells Fargo Wells Fargo City RDA Description Checking Housing Money Market LAIF LAIF Investments Total Beginning Balance - 4/29/97 (637,785.50) 19,440.42 269,214.63 3,675,516.22 3,653,9W.47 12,973,618.23 19,953,904.47 Deposits Daily Deposit 4,899.16 4,899.16 Transfers 0.00 4/30197 Maturing Investment 5,000,000.00 (5,032,226.56) (32,226.56) 4/30/97 Maturing Investment Interest 162,500.00 162,5W.00 4130/97 Purchased Investment 3,017,659.70) 2,980,781.25 (36,878.45) 4/30/97 Purchased Investment 2,007,568.47) 2,000,781.24 (6,787.23) P/R Direct Deposit (54,711.39) (54,711.39) P/R Chk # 15824-15900 (20,888.55) (20,888.55) Housing Checks 916-925 6,035.79 6,035.79 Ending Balance per books 713,385.44 13,404.63 411,385.62 3,675,516.22 3,653,900.47 12,922,954.16 19,963,775.66 Add Back - Accts Pay Chks - #28851-28991 638,811.77 638,811.77 Adjusted Balance 74,573.67 13,404.63 411,385.62 3,675,516.22 3,653,900.47 12,922,954.16 20,602,587.43 Estimated Interest Accruals December 15,166.37 15,166.37 January 29,111.83 29,111.83 February 34,577.20 34,577.20 March 38,281.90 38,281.90 April 15,276.00 16,854.00 37,047.00 69,177.00 Adjusted Balances after accruals 74 573.67 13 404.63 411 385.62 3,690,792.22 3,670,754.47 13 077 138.46 20 788 901.73 Investment Class 350,216.58 7,361,546.69 13,077,138.46 20,788,901.73 Percentages 1.6846% 35.4109% 62.9044% 100.00% The following report is a special purpose report which has been prepared at the request of the Investment Advisory Board. This report was created because the Finance Department cannot prepare the Treasurers report for the month end before the 2nd Wednesday of each month (e.g. June report for the July meeting). As a result, the IAB does not receive the Treasurers Report until approximately 1 1/2 months after the date of the report (e.g. June report for the August meeting). The report is prepared on a monthly basis from the Daily Cash Report. The purpose of this report is for staff to project daily cash needs and invest excess cash. This report does not include all investments of the City, RDA and Financing Authority. Specifically excluded from this report are the Petty Cash , Deferred Compensation, and Fiscal Agent accounts. These accounts are included in the Treasurers Report. In addition, the percentage numbers in this report are for information only. These percentages should not be used to compare the maximum allowable percentages allowed in the investment policy because this report does not include all investments and is not prepared from the reconciled book balances. INVESTMENT ADVISORY BOARD Meeting Date: "it" May 14, 1997 Pooled Money Investment Board Report - January 1997 and February 1997 BACKGROUND: Correspondence & Written Material Item B The Pooled Money Investment Board Report for January 1997 and February 1997 is included in the agenda packet. At the May Investment Advisory Board meeting the Board asked for clarification on the Federal Agency Coupons and Pooled Loan line items in the December LAIF report. At the CMTA conference at Palm Springs, I had the opportunity to speak with Bill Sherwood, LAIF Chief of Investments about these two accounts. Federal Agency Coupons - As of January 2, 1997 LAIF had Investments as follows: Callable Agency 3 Months LIBOR Agency Floater 3 Months LIBOR Corporate Floater 2 Year Constant Maturity Treasury (CMT) Corporate Floater 3 Month T-Bill Agency Floater 3 Month T-Bill Corporate Floater Pooled Loan - This program was legislatively mandated and allows the State to borrow funds on a short term basis for the construction of prisons. This is a temporary program that is necessary before long term bond financing for prison construction is obtained. Mr. Sherwood stated that funds loaned for this program are charged the LAIF interesting earning rate. He did state based upon my questions that the State had developed an alternative short term financing method that would use commercial paper and thus would not require LAIF to loan funds. However, there are legal issues that have delayed its implementation. RECOMMENDATION: Receive & File hn M. Falconer, Finance Director L <fr - � ""� 5 ..si • � .. A N r :��ka a 'y�t'•- ''� a' ., t �+ - � .. �� •g�F-`".5 �. 3`.w 4 �'S•fi R;j^ '<TS"„aeb�'-�'i„Y 3'7 ,,pFjrt � ;� 3x wp*. +�r+F'^��:. o-S�4+ �.: re �t Yt ''�'•n?4 .� Ft. rh '�� ���Sy,"'� . •� �:'a ."•� �';r �`•T*•�r,� ��"�t k '� .,�� r<�"" a� 3'��k 4�� • a` �m`ayTr �r'�`'r'�? �. � a '`y;�74"� '� '�, - � r:� {� �> �.;.' .a �"'�<,T^. rt � '+�s� s � ,�� � _� �„,,� �, 2,!+.t z• ,Q ''� .# ;'�^':-. .�� �t .I "kct;'i� � � .�,4 ����+'!F f'' � :�_r "i� r 4 .. - 40. 'rye r s. e � N � �.,. .rF"� �� F• �,?-. x�r� �,. � . ,•�°' �s�i �`•5e�a,r;.m;� L?r c�x�s'��'Y;:��, „ `�i. "�' � � x�' "�`#�°. » Sri(' � ..k�� ;', �.,� _ '"�i�c �.'. `�,,�i• „y �+^r. i XA h' .. ...� ; $F Y'";� �• � - .3.... ., . , . t`�.'�' :rx:`R�r'�4+�F�:� ,ifs 't L x , :. '�� • 4 n+i.� �< .�,,, ,qA��< r ..v>" "` �s i ,�iY"�Y. 2� t �� T ti " N e µ +G " i. � , `+' .._:. '..d i '" � 2•'y�k�}/�' .{a R i -' �.,, 4,x°^4",�•,x R. :�' •,�� A ;�..,� x x.,�:; >,. ., rt i{run','`'fr„"M .� *€,..'?r145 �M j +t.�f+i xas.• � . 44 Ar . t �.:�9.��am _,. ;. �<... �. ?'.. ,., s�.. ,�: ,.,.� ro•., ;. �: .r`.: xr gi .I,.��^'u":. x'*,'S'"<��^, �s '4n� 7y�,.1.<e, �*..,a„ , r � C f : � a t,-ti s I Alkv 91 •r " Itr" Janua _ 1997ry r Ot w ,r M f'°i{�jg'�' 3 ' ' iaw. AN V-7 k i)4ATT FONG Treasurer State of California Pooled Money divestment Board Report =1 anuary 1997 LOCAL AGENCY INVESTMENT FUND fafflary 1997 Cash Management Division The Cash Management Division manages the State's cash resources in the Centralized Treasury System. This includes cash forecasting, processing all state warrants and agency checks, bank reconciliations, and maintaining the State's vault for the safekeeping of monies and securities. Centralized Treasury System The Cash Management Division manages the Centralized Treasury System (CTS), which was statutorily established in 1949. The goal of the system is to be 100% invested every day. This is accomplished by accurately forecasting revenue collections and disbursement needs of each State agency, including LAN participants. Forecasting The three types of forecasts prepared are Long Term (at minimum six months), Ten Weeks (presented to the Pooled Money Investment Board), and Five Day. The daily cash flow analysis provides the Invest- ment Division agency cash needs or cash availability on a daily basis. Bang Relationship for Cal iforrria The Cash Management Division maintains the banking relationships. Currently, Treasurer Fong has designated four banks as State Depository Banks: Bank of America, Sanwa Bank, Union Bank, and U.S. Bank. Over $432 billion flowed into and out of the depository banks last fiscal year. Centralized Banking Services Over 120 million items passed through the Item Processing (IP) Section last fiscal year. The section is responsible for redeeming, processing, and validating all state warrants and agency checks issued within the CTS. The Bank Reconciliation Section reconciles the State Depository Banks records and, like the Item Processing Section, it also provides forecasting information to the Cash Management program. Vault Services The State's vault provides the safekeeping of monies and securities and provides security in the handling and processing of negotiable securities. About $4 billion worth in assets are now in physical custody of the vault. STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT JANUARY 1997 Table of Contents STJNIlVIARY...............................................................:............................................1 SELECTED INVESTMENT DATA....................................................................2 PORTFOLIO COMPOSITION...........................................................................3 INVESTMENT TRANSACTIONS ......................................................................4 TIMEDEPOSITS................................................................................................18 DEMAND BANK DEPOSITS............................................................................20 POOLED MONEY INVESTMENT BOARD DESIGNATION .....................19 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF JANUARY 1997 WITH JANUARY 1996 (Dollars in Thousands) 7aauary 1�97 January' I996 t,7�Bo Average Daily Portfolio $29,553,019 $26,642,349 + $2,910,670 Accrued Earnings $140,142 $128,586 + $11,556 Effective Yield 5.583 5.698 - .115 Average Life —Month End (in days) 241 233 + 8 Total Security Transactions Amount $19,022,037 $16,502,815 + $2,519,222 Number 417 389 + 28 Total Time Deposit Transactions Amount $261,500 $375,190 - $113,690 Number 32 20 + 12 Average Workday Investment Activity $918,264 $803,715 + $114,549 Prescribed Demand Account Balances For Services $132,412 $142,484 - $10,072 For Uncollected Funds $223,103 $164,959 + $58,144 —1— MATT FONG STATE TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED DIVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) Change in January 31,1997 Percent From Type of Security Amount Percent Previous Month Governments Bills 2,1619898 730 + .29 Bonds 0 0 0 Notes 5,749,184 19A2 + 1.78 Strips 2389813 .81 - . .02 Total Governments 891499895 2753 + 2.05 Federal Agency Coupons 1,2519893 4.23 - 1.60 Certificates of Deposit 8t0579231 27.22 + 3.98 Bank Notes 635,000 2.15 + A7 Bankers Acceptances 187,051 .63 - .69 Repurchases 0 0 - .17 Federal Agency Discount Notes 4971,128 1.68 - .56 Time Deposits 386,595 131 + .02 GNMA's 3,434 .01 0 Commercial Paper 6,816,900 23.03 - 4.10 FHLMC 31,337 .10 - .02 Corporate Bonds 29343,035 7.92 + .99 Pooled Loans 1,684,693 5.69 - .24 GF Loans 0 0 0 Reversed Repurchases -4449425 -1.50 + .13 Total, All Types 29,599,767 100 INVESTMENT ACTIVITY January 1997 December 19% Number Amount Number Amount Pooled Money 417 $ 19,0229037 379 $ 169,123493 Other 3 $ 99468 39 $ 161A33 Time Deposits 32 $ 2619500 23 $ 1319900 TOTALS 452 $ 19,293,005 441 $ 1694169726 PMIA Monthly Average Effective Yield 5583 5.574 Year to Date Yield for Last Day of Month 5.597 5588 —2— Pooled Money Investment Account Portfolio Composition $29.6 Billion Corporate Loans Bonds 5.69% Commercial 7.92% E B Acc C D's/B N's 29.37% ;uries 13% Time Deposits 1.31% Mortgages 0.11% gencies 5.91 % 1 /31 /97 ® Treasuries El Time Deposits ■ Mortgages ® Agencies ■ CD's/BN's E Bankers Acceptances ■ Commercial Paper 0 Corporate Bonds ® Loans 0 Reverses -3- .FOOLED 1YEt3 It�V IENi_�cCO iNT dl .. ._ W. MATURITY TRANS , RAM DAYS AMOUNT EFFECTIVE :: DESt1t1PT1ON DATE 1f LIM HELD EARNED 01/02/97 SALE c/ CD Soc Gen 5.740% 10/27/97 5.800 $50,000 7 55,895.49 5.880 REDEMPTION CD CIBC 5.380% 01/02/97 5.380 50,000 90 672,500.00 5.454 CD CIBC 5.380% 01/02/97 5.380 50,000 90 672,500.00 5.454 CD Nova Scotia 5.370% 01/02/97 5.370 60,000 90 805,500.00 5.444 CD Barclays 5.680% 01/02/97 5.670 27,000 119 506,063.92 5.748 CP GMAC 01/02/97 7.050 50,000 2 19,583.33 7.150 CP GMAC 01/02/97 7.050 50,000 2 19,583.33 7.150 CP GMAC 01/02/97 7.050 50,000 2 19,583.33 7.150 CP Salomon 01/02/97 7.000 25,000 3 14,583.33 7.101 CP CIT 01/02/97 7.020 50,000 3 29,250.00 7.121 CP CIT 01/02/97 7.020 50,000 3 29,250.00 7.121 CP GMAC 01/02/97 6.030 50,000 6 50,250.00 6.119 CP GMAC 01/02/97 6.030 50,000 6 50,250.00 6.119 CP Household 01/02/97 5.920 5,000 7 5,755.55 6.009 CP Household 01/02/97 5.920 50,000 7 57,555.55 6.009 CP Household 01/02/97 5.920 50,000 7 57,555.55 6.009 CP Heller 01/02/97 5.480 20,000 92 280,088.89 5.635 CP Heller 01/02/97 5.480 50,000 92 700,222.22 5.635 CP GECC 01/02/97 5.340 50,000 148 1,097,666.67 5.535 CP GECC 01/02/97 5.340 50,000 148 1,097,666.67 5.535 CP SRAC 01/02/97 5.340 50,000 148 1,097,666.67 5.535 CP Chase 01/02/97' 5.390 50,000 149 1,115,430.55 5.589 CP FMCC 01/02/97 5.340 50,000 150 1,112,500.00 5.537 PURCHASE CP GMAC 01/30/97 5.370 50,000 CP GMAC 01/30/97 5.370 50,000 CP GMAC 01/30/97 5.370 40,000 CP Salomon 01/29/97 5.500 25,000 CD Svensck H 5.380% 02/28/97 5.380 10,000 CD Montreal 5.380% 02/28/97 5.380 50,000 CD Montreal 5.380% 02/28/97 5.380 50,000 CD Nova Scotia 5.390% 02/27/97 5.390 85,000 CD CIBC 5.400% 02/27/97 5.400 50,000 CD CIBC 5.400% 02/27/97. 5.400 50,000 01/03/97 REDEMPTION FR FHLB 5.503% 01/03/97 5.400 50,000 346 2,562,625.00 5.410 FR FHLB 5.503% 01/03/97 5.400 50,000 346 2,562,625.00 5.410 —4— OGLED. - d► $t MATURflY. TRANS: PAR DAYS AMOUNT EEFE4i'lVa ........... 01/03/97 PURCHASE CP Enron 02/20/97 5.470 50,000 CP GMAC 02/20/97 5.380 25,000 CP GECC 03/03/97 5.350 50,000 CP GECC 03/03/97 5.350 40,000 CD RB Canada 5.410% 04/02/97 5.400 25,000 CD Montreal 5.410% 04/01 /97 5.410 50,000 CD Montreal 5.410% 04/01 /97 5.410 10,000 CD Bayrsche L 5.370% 04/10/97 5.370 50,000 CD Bayrsche L 5.370% 04/10/97 5.370 50,000 CD Bayrsche V 5.400% 04/10/97 5.390 50,000 CD Bayrsche V 5.400% 04/10/97 5.390 50,000 01/06/97 REDEMPTION CP SRAC 01 /06/97 PURCHASECI CD CommerzBk 5.370% 02/07/97 CD CommerzBk 5.370% 02/07/97 PURCHASE CP FMCC 01 /27/97 CP FMCC 01 /27/97 CP Baxter 02/10/97 CP GMAC 02/11/97 CP Baxter 02/13/97 Treas Note 5.750% 12/31 /98 Treas Note 5.750% 12/31 /98 Treas Note 5.750% 12/31 /98 Treas Note 5.750% 12/31 /98 01/07/97 SALE c/ CD CommerzBk 5.370% 02/07/97 CD CommerzBk 5.370% 02/07/97 PURCHASE c/ CD Soc Gen 5.720% 10/20/97 CD Soc Gen 5.600% 11 /14/97 CD ABN Amro 5.650% 12/23/97 PURCHASE CD Stand Chart 5.430% 04/14/97 CP Merrill 04/09/97 CP Merrill 04/09/97 5.950 50,000 5.300 50,000 5.300 50,000 5.330 50,000 5.330 50,000 5.370 28,000 5.370 40,000 5.370 35,000 5.948 50,000 5.948 50,000 5.948 50,000 5.948 50,000 10 5.300 50,000 1 5.300 50,000 1 5.200 41,000 5.200 29,000 5.200 30,000 5.420 75,000 5.350 50,000 5.350 50,000 82,638.89 6.042 7,213.89 5.373 7,213.89 5.373 —5- ... MATURRY TRANS _,. - PAR. DAYS tiOtiE1T. EFFE VE' DA'��..'.... __.. !:................ 'DERTSNt DATE 1(IE HELD EARNED l(fELD 01/08/97 SALE c/ CD Soc Gen 5.720% 10/20/97 5.200 41,000 1 5,874.56 5.272 CD Soc Gen 5.600% 11 /14/97 5.200 29,000 1 4,135.44 5.272 CD ABN Amro 5.650% 12/23/97 5.200 30,000 1 4,253.74 5.272 REDEMPTION CD Soc Gen 5.400% 01/08/97 5.350 25,000 63 234,326.25 5.430 CID Conagra 01/08/97 5.720 50,000 23 182,722.22 5.820 CID Conagra 01/08/97 5.630 10,000 26 40,661.11 5.731 CID Conagra 01/08/97 5.630 50,000 26 203,305.56 5.731 CID Bear 01/08/97 5.330 20,000 92 272,422.22 5.478 CID Bear 01/08/97 5.330 50,000 92 681,055.55 5.478 PURCHASE c/ CD Svenska 5.390% 02/03/97 5.250 50,000 CD Svenska 5.400% 02/06/97 5.250 50,000 CD Tokyo-Mits 5.510% 03/24/97 5.250 50,000 PURCHASE CD ABN Amro 5.400% 04/08/97 5.390 11,500 CD U/B Calif 5.400% 04/08/97 5.400 50,000 CD Soc Gen 5.400% 04/10/97 5.400 25,000 CD Bkrs Trst 5.420% 04/10/97 5.410 50,000 CID Conagra 04/01 /97 5.470 22,695 CID GECC 04/10/97 5.310 45,000 01/09/97 SALE c/ CD Svenska 5.390% 02/03/97 CD Svenska 5.400% 02/06/97 CD Tokyo-Mits 5.510% 03/24/97 REDEMPTION CD CommerzBk 5.370% 01 /09/97 CD Montreal 5.370% 01 /09/97 CD Deutsche 5.460% 01 /09/97 CD Deutsche 5.460% 01 /09/97 CID GECC 01/09/97 CID GMAC 01 /09/97 CID GMAC 01 /09/97 PURCHASE c/ CD Svenska 5.390% 02/03/97 CD Svenska 5.400% 02/06/97 CD Tokyo-Mits 5.510% 03/24/97 5.250 50,000 1 7,145.83 5.322 5.250 60,000 1 7,145.83 5.322 5.250 50,000 1 7,145.83 5.322 5.350 10,000 62 92,169.28 5.425 5.350 50,000 62 460,710.17 5.425 5.440 50,000 153 1,156,096.04 5.515 5.440 50,000 153 1,156,096.04 5.515 5.310 50,000 50 368,750.00 5.424 5.570 50,000 125 967,013.89 5.758 5.570 26,000 125 502,847.22 5.758 5.250 50,000 5.250 50,000 5.250 50,000 —6— V-QO .M-, 3i Y II ENT ACCoti r 01/10/97 SALE c/ CD Svenska 5.390% 02/03/97 5.250 50,000 1 7,145.83 5.322 CD Svenska 5.400% 02/06/97 5.250 50,000 1 7,145.83 5.322 CD Tokyo-Mits 5.510% 03/24/97 5.250 50,000 1 7,145.83 5.322 REDEMPTION BA Montreal 01/10/97 5.320 10,000 154 227,577.78 5.519 CD RaboBank 5.370% 01/10/97 5.350 25,000 63 234,070.62 5.424 CD Soc Gen 5.630% 01/10/97 5.630 24,000 123 461,660.00 5.708 CD Soc Gen 5.630% 01/10/97 5.630 50,000 123 961,791.67 5.708 CID Country 01/10/97 6.050 32,000 15 80,666.67 6.149 CID Salomon 01/10/97 5.620 20,000 28 87,422.22 5.723 CID GECC 01/10/97 5.370 50,000 154 1,148,583.33 5.572 CP GECC 01/10/97 5.370 3,000 154 68,915.00 5.572 PURCHASE c/ CD Svenska 5.390% 02/03/97 5.230 50,000 CD Svenska 5.400% 02/06/97 5.230 50,000 CD Tokyo-Mits - 5.510% 03/24/97 5.230 50,000 01/13/97 RRS Treas Note 5.750% 12/31/98 4.890 50,000 Treas Note 5.750% 12/31/98 4.890 50,000 Treas Note 5.750% 12/31/98 4.890 50,000 Treas Note 5.750% 12/31/98 4.890 50,000 SALE c/ CD Svenska 5.390% 02/03/97 5.230 50,000 3 21,355.83 5.302 CD Svenska 5.400% 02/06/97 5.230 50,000 3 21,355.83 5.302 CD Tokyo-Mits 5.510% 03/24/97 5.230 50,000 3 21,355.83 5.302 REDEMPTION CD Deutsche 5.480% 01 /13/97 5.470 6,000 151 137,667.31' 5.545 CD Deutsche 5.480% 01 /13/97 5.470 50,000 151 1,147,227.60 5.545 CD Deutsche 5.480% 01 /13/97 5.470 50,000 151 1,147,227.60 5.545 CD Deutsche 5.480% 01 /13/97 5.460 50,000 152 1,152,761.81 5.535 CID Hertz 01 /13/97 5.650 25,000 17 66,701.39 5.743 CID GMAC 01 /13/97 5.400 25,000 153 573,750.00 5.603 —7— iPooLiEa M�)![�tE' 'ACCOUNT OUNT df TEIR[FY MA TRANS PARDAYS AIY WNT EFFECTIVE �A TYPE . DESCRIPTION D �E, 2 HEW IF. �!MYE 01/13/97 PURCHASE r/ CD Svenska 5.390% 02/03/97 5.320 50,000 CD Svenska 5.400% 02/06/97 5.320 50,000 CD Tokyo-Mits 5.510% 03/24/97 5.320 50,000 PURCHASE g/ Disc Note FHLB 01/31/97 5.180 50,000 Disc Note FHLB 01/31/97 5.180 50,000 Disc Note FHLB 01/31/97 5.180 50,000 Disc Note FHLB 01/31/97. 5.180 50,000 PURCHASE MTN GMAC 8.250% 01/20/98 5.830 24,000 CD ABN Amro 5.530% 07/29/97 5.520 30,000 CD Deutsche 5.530% 07/29/97 5.510 50,000 CD Deutsche 5.530% 07/29/97 5.510 50,000 CD Bayrsche L 5.510% 07/29/97 5.500 50,000 CD Bayrsche L 5.510% 07/29/97 5.500 50,000 Treas Bill 01/08/98 5.335 50,000 Treas Bill 01 /08/98 5.335 50,000 01 /14197 RRS Treas Note Treas Note SALE Treas Note Treas Note SALE c/ CD Svenska CD Svenska CD Tokyo-Mits REDEMPTION CD Montreal CID FMCC CP FMCC CID Union Disc.Note FNMA 5.750% . 12/31 /98 4.650 50,000 5.750% 12/31 /98 4.650 50,000 4.750% 02/15/97 5.809 50,000 1002 980,978.26 5.986 4.750% 02/15/97 5.809 50,000 1002 980,978.75 5.986 5.390% 02/03/97 5.320 50,000 1 7,241.11 5.393 5.400% 02/06/97 5.320 50,000 1 7,241.11 5.393 5.510% 03/24/97 5.320 50,000 1 7,241.11 5.393 5.360% 01 /14/97 5.350 40,000 62 368,616.22 5.425 01 /14/97 5.650 50,000 18 141,250.00 5.744 01 /14/97 5.650 50,000 18 141,250.00 5.744 01 /14/97 5.380 35,000 155 810,736.11 5.584 01 /14/97 5.400 50,000 25 187,500.00 5.495 —8— POOL I3 MONEY INVESTMENT -ACCOUNT g/ a/ MATURITY TRANS PAR DAYS _.AMOUNT. EFFECTIVE DATE TYPE DESMPT10N DACE YIELD i00� HELD EARNED YIELD 01/14/97 PURCHASE CP Bear 01 /31 /97 5.300 50,000 CID Bear 01 /31 /97 5.300 50,000 Treas Bill 01/08/98 5.340 50,000 Treas Note 5.750% 12/31/98 6.056 50,000 r 01 /15197 SALE Treas Note. Treas Note REDEMPTION CD WestDeut Disc Note TVA NO PURCHASES 01/16/97 NO REDEMPTIONS PURCHASE c/ CD Soc Gen CD Soc Gen PURCHASE CD WestDeut CD Nat W.Mstr CD RaboBank CD Soc Gen CD Soc Gen CD Nat W.Mstr CD Deutsche CD Deutsche CD Deutsche CP Country CID Hertz CID GMAC 01/17/97 RRS 4.750% 02/15/97 5.745 50,000 1034 987,432.07 5.806 4.750% 02/15/97 5.745 50,000 1034 987,432.07 5.806 5.760% 01 /15/97 5.480 25,000 156 596,968.21 5.580 6.000% 01/15/97 6.470 12,175 959 2,052,502.08 6.489 5.740% 10/27/97 5.300 50,000 5.600% 11 /14/97 5.300 50,000 5.380% 03/10/97 5.350 20,000 5.510% 07/01 /97 5.500 50,000 5.560% 07/15/97 5.500 15,000 5.500% 07/29/97 5.500 25,000 5.500% 07/29/97 5.500 50,000 5.510% 07/31 /97 5.500 50,000 5.500% 07/31 /97 5.500 50,000 5.500% 07/31/97 5.500 50,000 5.500% 07/31 /97 5.500 50,000 02/28/97 5.320 43,000 03/10/97 5.320 50,000 07/15/97 5.410 50,000 Treas Note 5.750% 12/31/98 4.650 50,000 Treas Note 5.750% 12/31/98 4.650 50,000 Treas Note 5.750% 12/31/98 4.650 50,000 Treas Note 5.750% 12/31/98 4.650 50,000 Treas Note 5.750% 12/31/98 4.700 50,000 Treas Note 5.750% 12/31/98 4.700 50,000 —9— PLED MONEX iN ' NE �►CCOUNT . _. ... . a/ ;; IIAI4TtIREiY TRANS . PAR DAYS AMOUNT EFFECTIVE O,IITE 'iXPE . DESttIPTiON .. DATE:::,YIELD:: HELD EARNED YIELD ` 01/17/97 SALE c/ CD Soc Gen 5.740% 10/27/97 5.300 50,000 1 7,302.22 5.373 CD Soc Gen 5.600% 11 /14/97 5.300 50,000 1 7,272.78 5.373 REDEMPTION CID Morg Stan 01/17/97 5.340 50,000 74 548,833.35 5.474 CP Morg Stan 01/17/97 5.340 50,000 74 548,833.35 5.474 CID Morg Stan 01/17/97 5.340 50,000 74 548,833.35 5.474 CP Morg Stan 01/17/97 5.340 50,000 74 548,833.35 5.474 CP Morg Stan 01/17/97 5.340 50,000 74 548,833.35 5.474 RRP Treas Note 5.250% 01/31/01 5.200 50,000 74 (524,824.44) -5.272 Treas Note 5.250% 01/31/01 5.200 50,000 74 (524,824.44) -5.272 Treas Note 5.250% 01/31/01 5.200 50,000 74 (524,824.44) -5.272 Treas Note 5.250% 01/31/01 5.200 50,000 74 (524,824.44) -5.272 Treas Note 5.250% 01/31/01 5.200 50,000 74 (524,824.44) -5.272 PURCHASE g/ CP Morg Stan 01/31/97 5.280 50,000 CP Morg Stan 01/31/97 5.280 50,000 CP Morg Stan 01/31/97 5.280 50,000 CP Morg Stan 01/31/97 5.280 50,000 CP . Disney 01/31/97 5.200 50,000 CP Disney 01/31/97 5.200 50,000 PURCHASE BN Nations 6.100% 01/19/99 6.100 50,000 CD Montreal 5.480% 07/21 /97 5.480 35,000 CP GECC 07/01/97 5.350 50,000 CP GECC 07/01/97 5.350 50,000 CP GECC 07/01/97 5.350 50,000 CP GECC 07/01/97 5.350 50,000 CP Bkrs Trst 07/09/97 5.370 50,000 CP Bkrs Trst 07/09/97 5.370 50,000 CP GMAC 07/14/97 5.360 50,000 CP GMAC 07/14/97 5.360 50,000 02/21/97 NO SALES PURCHASE c/ CD ABN Amro 5.650% 12/23/97 5.300 50,000 —10— 9001E'It' 1 i ESQ' AFNT ACCOUNT _ . dl at . MA'I'E1RI1'1( TRANS :PAR:DAYS411lOUt�i' - EFFECTNE DESCMPT�QN �. HELD, EI► N _YIELD 02121/97 PURCHASE CP GECC 01/22/97 5.280 50,000 CP Household 04/10/97 5.320 50,000 CP Household 04/10/97 5.320 25,000 CP Hertz 04/07/97 5.330 50,000 CP GMAC 06/30/97 5.370 50,000 CP GMAC 06/30/97 5.370 5,000 CD Deutsche 5.500% 07/25/97 5.500 30,000 CD Montreal 5.480% 06/30/97 5.480 20,000 01/22/97 SALE c/ CD ABN Amro REDEMPTION CP Lehman CP GECC PURCHASE c/ CD ABN Amro CD ABN Amro PURCHASE CD RB Canada CD RB Canada 01/23/97 SALE c/ CD ABN Amro CD ABN AMro PURCHASE CP GECC CP GECC CP GECC CP GECC CD Mellon CD Cr Swiss CP Bear CP B/A 5.650% 12/23/97 5.300 50,000 1 7,228.61 5.373 01/22/97 6.080 13,926 27 63,502.56 6.192 01/22/97 5.280 50,000 1 7,333.33 5.354 5.650% 12/23/97 5.250 50,000 5.650% 12/23/97 5.250 50,000 5.510% 07/29/97 5.500 50,000 5.510% 07/29/97 5.500 25,000 5.650% 12/23/97 5.250 50,000 1 7,160.42 5.322 5.650% 12/23/97 5.250 50,000 1 7,160.42 5.322 06/30/97 5.340 50,000 06/30/97 5.340 50,000 06/30/97 5.340 50,000 06/30/97 5.340 50,000 5.400% 06/30/97 5.400 50,000 5.480% 07/31/97 5.480 45,000 06/30/97 5.380 35,000 06/30/97 5.340 50,000 —11— D MirtiFS'IIIEI I�OOt?tNT . l fMTURr Y TRANS PAR 'DAYS _ ALMNT EFFECTNE ......._ ........ ....... ... . QESCR1PT�o%i DA YIELD 000 HELD EARNED YIELD 01/24/97 REDEMPTION CD Montreal 5.430% 01/24/97 5.430 40,000 49 295,633.33 5.505 CD Montreal 5.430% 01/24/97 5.430 50,000 49 369,541.67 5.505 CD Cr Swiss 5.340% 01/24/97 5.320 38,000 71 398,720.00 5.393 CID GMAC 01/24/97 5.400 50,000 165 1,237,500.00 5.613 BA U/B 01/24/97 5.400 12,000 114 205,200.00 5.570 PURCHASE g/ CD Svenska 5.330% 02/24/97 5.200 50,000 PURCHASE Treas Note 6.875% 08/31/99 6.106 50,000 01/27/97 SALE c/ CD Svenska REDEMPTION CID GECC CID GECC CID GECC CID FMCC CID FMCC PURCHASE CD RB Canada CD Montreal CD Montreal CID GMAC CID GMAC Treas Note Treas Note 01/28/97 REDEMPTION BA Duetsche BA Tokyo-Mits BA Tokyo-Mits BA Chase CID GMAC CID GMAC 5.330% 02/24/97 5.200 50,000 3 21,233.33 5.272 01/27/97 5.500 25,000 31 118,402.78 5.602 01/27/97 5.500 50,000 31 236,805.56 5.602 01/27/97 5.500 50,000 31 236,805.56 5.602 01/27/97 5.330 50,000 21 155,458.33 5.420 01/27/97 5.330 50,000 21 155,458.33 5.420 5.510% 07/29/97 5.500 42,000 5.500% 07/31 /97 5.500 30,000 5.500% 07/31 /97 5.500 50,000 01/28/97 5.330 50,000 01/28/97 5.330 50,000 6.875% 08/31/99 6.130 50,000 6.875% 08/31/99 6.130 50,000 01/28/97 5.320 10,000 118 174,377.78 5.489 01/28/97 5.640 48,350 139 1,052,901.83 5.845 01/28/97 5.640 60,000 140 1,316,000.00 .5.846 01/28/97 5.320 18,900 172 483,105.00 5.566 01/28/97 5.330 50,000 1 7,402.78 5.404 01/28/97 5.330 50,000 1 7,402.78 5.404 —12— 1AOME-Y II VESMENT ACCOUNT 'af _:. MATURITY TRANS PAR DAYS AMOUNT EFFEC7NE DATE . ..... DA:...0 HELD EARNED YIELD 01/28/97 PURCHASE c/ CD ABN Amro 5.650% 12/23/97 5.330 50,000 CD ABN Amro 5.650% 12/23/97 5.330 50,000 PURCHASE Treas Note 6.875% 08/31 /99 6.130 50,000 CD CommerzBk 5.480% 07/29/97 5.470 50,000 CD CommerzBk 5.480% 07/29/97 5.470 50,000 01/29/97 SALE c/ CD ABN Amro 5.650% 12/23/97 5.330 50,000 1 7,291.74 5.404 CD ABN Amro 5.650% 12/23/97 5.330 50,000 1 7,291.74 5.404 REDEMPTION BA Tokyo-Mits 01/29/97 5.700 19,550 41 126,912.08 5.816 BA B/A 01/29/97 5.370 31,000 176 813,853.32 5.590 CD Stand Chart 5.580% 01/29/97 5.560 . 100,000 34 525,120.98 5.637 CD Bayrsche L 5.500% 01/29/97 5.490 50,000 36 274,502.73 5.566 CD Bayrsche L 5.500% 01/29/97 5.490 50,000 36 274,502.73 5.566 CD Stand Chart 5.580% 01/29/97 5.560 100,000 36 556,011.06 5.637 CD Bkrs Trst 5.545% 01/29/97 5.540 50,000 135 1,038,769.08 5.616 CD Nova Scotia 5.540% 01/29/97 5.540 100,000 135 2,077,500.00 5.616 CD RaboBank 5.500% 01/29/97 5.480 25,000 166 631,779.05 5.556 CD RaboBank 5.500% 01/29/97 5.480 50,000 166 1,263,558.09 5.556 CD Hong Kong 5.550% 01/29/97 5.550 15,000 180 416,250.00 5.627 CD Hong Kong 5.550% 01/29/97 5.550 50,000 180 1,387,500.00 5.627 CD Hong Kong 5.550% 01/29/97 5.550 50,000 180 1,387,500.00 5.627 CP Salomon 01/29/97 5.500 25,000 27 103,125.00 5.599 CP GMAC 01/29/97 5.530 50,000 33 253,458.33 5.635 CP GMAC 01/29/97 5.530 50,000 33 253,458.33 5.635 CP Assoc 01/29/97 5.480 50,000 41 312,055.56 5.591 CP Assoc 01/29/97 5.480 50,000 41 312,055.56 5.591 CP GECC 01/29/97 5.500 25,000 41 156,597.22 5.611 CP GECC 01/29/97 5.500 50,000 41 313,194.44 5.611 CP GECC 01/29/97 5.500 50,000 41 313,194.44 5.611 CP Dean 01/29/97 5.500 50,000 41 313,194.44 5.611 CP GMAC 01/29/97 5.530 50,000 41 314,902.78 5.642 CP GMAC 01/29/97 5.530 50,000 41 314,902.78 5.642 CP Lehman 01/29/97 5.650 50,000 41 321,736.11 5.765 CP Lehman 01/29/97 5.650 50,000 41 321,736.11 5.765 CP Morg Stan 01/29/97 5.320 50,000 91 672,388.90 5.467 CP Morg Stan 01/29/97 5.320 50,000 91 672,388.90 5.467 CP Lehman 01/29/97 5.560 50,000 142 1,096,555.56 5.763 CP GECC 01/29/97 5.370 25,000 167 622,770.83 5.583 CP GECC 01/29/97 5.370 50,000 167 1,245,541.67 5.583 CP GECC 01/29/97 5.370 50,000 167 1,245,541.67 5.583 —13— #OtEL MON .INVES 1� mm!! i=ACC�JNT .... at MATURITY TRANS PAR .:DAYS AIYtOUNT fFFECTlYE QATE TX E ! aESCR1RTION DATE YIELD (000) HELD EARNED YIELD 01/29/97 REDEMPTION CP Bear 01/29/97 5.400 50,000 167 1,252,500.00 5.615 CP Bear 01/29/97 5.400 50,000 173 1,297,500.00 5.620 CP GECC 01/29/97 5.390 50,000 174 1,302,583.33 5.611 CP GECC 01/29/97 5.390 50,000 174 1,302,583.33 5.611 CP GMAC 01/29/97 5.390 50,000 176 1,317,555.56 5.612 CP GMAC 01/29/97 5.390 50,000 176 1,317,555.56 5.612 CP GMAC 01/29/97 5.390 50,000 176 1,317,555.56 5.612 CP GMAC 01/29/97 5.390 50,000 176 1,317,555.56 5.612 CP Union 01/29/97 5.410 50,000 176 1,322,444.45 5.634 Disc Note FNMA 01/29/97 5.390 50,000 40 299,444.44 5.497 Disc Note FNMA 01/29/97 5.390 50,000 40 299,444.44 5.497 PURCHASE c/ CD ABN Amro 5.650% 12/23/97 5.570 50,000 CD ABN Amro 5.650% 12/23/97 5.570 50,000 Disc Note FHLMC 04/29/97 5.550 3,360 Disc Note FHLMC 04/29/97 5.550 50,000 Disc Note FHLMC 04/29/97 5.550 50,000 Treas Note 5.750% 12/31 /98 5.500 4,128 Treas Note 5.750% 12/31/98 5.500 50,000 Treas Note 5.750% 12/31 /98 5.500 50,000 Treas Note 5.750% 12/31 /98 5.500 50,000 Treas Note 5.750% 12/31198 5.500 50,000 PURCHASE CD Hong Kong 5.510% 07/29/97 5.510 50,000 CD Chase 5.530% 07/31/97 5.500 50,000 CP Assoc 01 /30/97 5.500 50,000 CP Assoc 01 /30/97 5.500 50,000 CP GECC 02/13/97 5.300 50,000 CP GECC 02/13/97 5.300 50,000 CP GECC 02/13/97 5.300 50,000 CP GECC 02/13/97 5.300 50,000 CP GMAC 02/19/97 5.340 50,000 CP GMAC 02/19/97 5.340 50,000 CP GMAC 02/19/97 5.340 50,000 CP GMAC 02/19/97 5.340 50,000 CP GMAC 02/19/97 5.340 50,000 CP GMAC 02/19/97 5.340 50,000 Treas Note 6.875% 07/31/99 6.114 50,000 Treas Note 6.875% 07/31 /99 6.114 50,000 01/30/97 SALE c/ CD ABN Amro 5.650% 12/23/97 5.570 50,000 1 7,620.07 5.647 CD ABN Amro 5.650% 12/23/97 5.570 50,000 1 7,620.07 5.647 Disc Note FHLMC 04/29/97 5.550 3,360 1 501.35 5.627 —14— PQO Q Ii1 YIN T�.... ACCOUNT ; ,, _... _ . dl ;. _. MATURFTY TRANS PAR DAYS AMOt1NT EFFECTIVE DATE XIELU : HELD EARNED 01/30/97 SALE c/ Disc Note FHLMC 04/29/97 5.550 50,000 1 7,457.66 5.627 Disc Note FHLMC 04/29/97 5.550 50,000 1 7,457.66 5.627 Treas Note 5.750% 12/31/98 5.500 4,128 1 617.83 5.576 Treas Note 5.750% 12/31/98 5.500 50,000 1 7,484.43 5.576 Treas Note 5.750% 12/31/98 5.500 50,000 1 7,484.43 5.576 Treas Note 5.750% 12/31/98 5.500 50,000 1 7,484.43 5.576 Treas Note 5.750% 12/31/98 5.500 50,000 1 7,484.43 5.576 REDEMPTION CD Bkrs Trst 5.480% 01/30/97 5.470 35,000 167 888,155.46 5.545 CP Assoc 01/30/97 5.500 50,000 1 7,638.89 5.577 CP Assoc 01/30/97 5.500 50,000 1 7,638.89 5.577 CP GMAC 01/30/97 5.370 50,000 28 208,833.33 5.467 CP GMAC 01/30/97 5.370 50,000 28 208,833.33 5.467 CP GMAC 01/30/97 5.370 40,000 28 167,066.67 5.467 CP Assoc 01/30/97 5.300 50,000 84 618,333.33 5.440 CP Assoc 01/30/97 5.300 50,000 84 618,333.33 5.440 CP Merrill 01/30/97 5.320, 50,000 92 679,777.78 5.468 PURCHASE SBA (FR) 5.875% 01/25/22 5.875 8,183 CD Chase 5.530% 07/31/97 5.500 50,000 CD Chase 5.530% 07/31/97 5.500 50,000 BN B/A 5.490% 08/04/97 5.490 50,000 BN B/A 5.490% 08/04/97 5.490 50,000 CD Nova Scotia 5.410% 06/30/97 5.410 50,000 CD Nova Scotia 5.410% 06/30/97 5.410 50,000 CD Bkrs Trst 5.540% 07/29/97 5.530 50,000 CD Bkrs Trst 5.540% 07/29/97 5.530 50,000 CD Hong Kong 5.500% 07/31/97 5.500 15,000 CD Hong Kong 5.500% 07/31/97 5.500 50,000 CD U/B Calif 5.560% 07/31/97 5.560 50,000 CD Bayrsche V 5.490% 08/04/97 5.470 50,000 CD Bayrsche V 5.490% 08/04/97 5.470 50,000 CD Bayrsche V 5.490% 08/04/97 5.470 50,000 CP Hertz 07/01/97 5.350 30,000 CP FMCC 07/02/97 5.340 50,000 CP FMCC 07/02/97 5.340 50,000 01/31/97 RRS Treas Note 5.250% 01/31/01 5.060 50,000 Treas Note 5.250% 01 /31 /01 5.060 50,000 Treas Note 5.750% 12/31/98 4.950 50,000 Treas Note 5.750% 12/31/98 4.950 50,000 Treas Note 5.750% 12/31/98 4.950 50,000 Treas Note 5.750% 12/31/98 4.950 50,000 —15— _. PO ii Ti ZONE' flri S'T EI iACC�O►ifNT MIAT TRANS PAR SAYS : AM013NT EFFECTIVE DATE . TYKE .... DATE YIELD 1 _.. HELD YiE 01/31/97 REDEMPTION CP Morg Stan 01/31/97 5.280 50,000 14 102,666.65 5.364 CP Morg Stan 01/31/97 5.280 50,000 14 102,666.65 5.364 CP Morg Stan 01/31/97 5.280 50,000 14 102,666.65 5.364 CP Morg Stan 01/31/97 5.280 50,000 14 102,666.65 5.364 CP Disney 01/31/97 5.200 50,000 14 101,111.11 5.364 CP Disney 01/31/97 5.200 50,000 14 101,111.11 5.364 CP Bear 01/31/97 5.300 50,000 17 125,138.90 5.387 CP Bear 01/31/97 5.300 50,000 17 125,138.90 5.387 Disc Note FHLB 01/31/97 5.180 50,000 18 129,500.00 5.265 Disc Note FHLB 01/31/97 5.180 50,000 18 129,500.00 5.265 Disc Note FHLB 01/31/97 5.180 50,000 18 129,500.00 5.265 Disc Note FHLB 01/31/97 5.180 50,000 18 129,500.00 5.265 RRP Treas Note 5.750% 12/31/98 - 4.890 50,000 18 (121,822.13) -4.957 Treas Note 5.750% 12131 /98 4.890 50,000 18 (121,822.13) -4.957 Treas Note 5.750% 12/31/98 4.890 50,000 18 (121,822.13) -4.957 Treas Note 5.750% 12/31/98 4.890 50,000 18 (121,822.13) -4.957 Treas Note 5.750% 12/31/98 4.650 50,000 17 (109,791.67) -4.714 Treas Note 5.750% 12/31/98 4.650 50,000 17 (109,791.67) -4.714 Treas Note 5.750% 12/31/98 4.650 50,000 14 (90,190.62) -4.714 Treas Note 5.750% 12/31/98 4.650 50,000 14 (90,190.62) -4.714 Treas Note 5.750% 12/31/98 4.650 50,000 14 (91,260.94) -4.765 Treas Note 5.750% 12/31/98 4.650 50,000 14 (91,260.94) -4.765 PURCHASE g/ CD Stand Chart 5.330% 02/28/97 5.320 100,000 CP Morg Stan 02/13/97 5.320 50,000 CP Morg Stan 02/13/97 5.320 50,000 CP Morg Stan 02/13/97 5.320 50,000 CP Morg Stan 02/13/97 5.320 50,000 PURCHASE Treas Note 5.875% 01 /31 /99 6.000 50,000 Treas Note 5.875% 01 /31 /99 6.000 50,000 —16— a/ The abbreviations indicate the type of security purchased or sold; i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes, and Participation Certificates: Federal National Mortgage Association (FNMA), Farmers Home Administration Notes (FHA), Student Loan Marketing Association (SLMA), Small Business Association (SBA), Negotiable Certificates of Deposit (CD), Negotiable Certificates of Deposit Floating Rate (CD FR), Export Import Notes (EXII11)9 Bankers Acceptances (BA), Commercial Paper (CP), Government National Mortgage Association (GNMA), Federal Home Loan Bank. Notes MMB), Federal Land Bank Bonds (FLB), Federal Home Loan Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC), Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount Notes (FTC), Corporate Securities (CB), U.S. Ship Financing Bonds (TITLE XI'S), International Bank of Redevelopment (ORD), Tennessee Valley Authority (TVA) Medium Term Notes (MTN). b/ Purchase or sale yield based on 360 day calculation for discount obligations and Repurchase Agreements. c/ Repurchase Agreement. d/ Par amount of securites purchased, sold, or redeemed. e/ Securities were purchased and sold as of the same date. f/ Repurchase Agreement against Reverse Repurchase Agreement. g/ Outright purchase against Reverse Repurchase Agreement. h/ Security "SWAP" transactions. i/ Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. --17- TIME DEPOSIT NAME DEPOSIT DATE YIELD PAR AMOUNT ($I MATURITY DATE ALHAMBRA East West Federal Bank 01/15/97 5.190 2,000,000.00 04/16/97 BEVERLY HILLS City National Bank 08/21/96 5.350 20,000,000.00 02/19/97 City National Bank 11 /05/96 5.320 10,000,000.00 05/06/97 City National Bank 01/28/97 5.350 10,000,000.00 07/29/97 CHICO North State National Bank 08/22/96 5.350 500,000.00 02/20/97 Tri - Counties Bank 01 /07/97 5.060 15,000,000.00 02/10/97 North State National Bank 01 /07/97 5.190 2,000,000.00 04/08/97 FRESNO United Security Bank 10/24/96 5.180 3,000,000.00 02/20/97 United Security Bank 12/03/96 5.140 1,300,000.00 03/04/97 United Security Bank 12/27/96 5.100 1,500,000.00 03/27/97 INGLEWOOD Imperial Bank 11/04/96 5.210 10,000,000.00 02/04/97 Imperial Bank 11 /06/96 5.210 20,000,000.00 02/06/97 Imperial Bank 11 /13/96 5.210 20,000,000.00 02/13/97 Imperial Bank 12/10/96 5.070 10,000,000.00 03/11/97 Imperial Bank 12/11/96 5.070 15,000,000.00 03/12/97 Imperial Bank 12/18/96 4.970 11,000,000.00 03/19/97 Imperial Bank 12/31 /96 5.150 11,000,000.00 04/02/97 Imperial Bank 01/15/97 5.210 15,000,000.00 04/16/97 Imperial Bank 01/16/97 5.220 10,000,000.00 04/16/97 Imperial Bank 01/28/97 5.220 5,000,000.00 04/29/97 LA MIRADA Southern California Bank 01/03/97 5.260 5,000,000.00 04/03/97 Southern California Bank 01/15/97 5.230 5,000,000.00 04/16/97 LOS ANGELES Preferred Bank 11 /22/96 5.180 4,000,000.00 02/20/97 Preferred Bank 11/26/96 5.180 2,000,000.00 02/26/97 South Bay Bank 12/04/96 5.210 500,000.00 03/05/97 Preferred Bank 12/18/96 4.930 5,000,000.00 03/19/97 Preferred Bank 12/20/96 5.020 4,000,000.00 03/20/97 Western Sierra National Bank 01/15/97 5.150 2,500,000.00 02/25/97 Western Sierra National Bank 01/28/97 5.150 1,000,000.00 02/25/97 Preferred Bank 01/04/97 5.170 3,000,000.00 04/15/97 MANTECA Delta National Bank 11/1.8/96 5.180 1,000,000.00 02/19/97 -18- TIME DEPOSIT NAME DEPOSIT DATE YIELD PAR AMOUNT ($) MATURITY DATE OAKDALE Oak Valley Community Bank 9/25/96 5.52 500,000.00 3/25/97 PLACER Sierra West Bank 12/05/96 5.270 2,800,000.00 06/06/97 PETALUMA Bank of Petaluma 11 /12/96 5.180 1,000,000.00 02/11 /97 REDDING North Valley Bank 09/23/96 5.500 3,000,000.00 03/25/97 SACRAMENTO Sanwa Bank of California 08/20/96 5.310 50,000,000.00 02/19/97 Sanwa Bank of California 08/26/96 5.350 10,000,000.00 02/25/97 Sanwa Bank of California 01 /28/97 5.370 5,000,000.00 07/29/97 SAN FRANCISCO Trans Pacific National Bank 09/18/96 5.700 800,000.00 03/18/97 Bank of Canton California 11/05/96 5.180 5,000,000.00 02/05/97 Bank of Canton California 11/13/96 5.180 5,000,000.00 02/13/97 Bank of Canton California 12/03/96 5.180 5,000,000.00 03/04/97 Bank of Canton California 12/09/96 5.250 5,000,000.00 06/10/97 Bank of Canton California 01/22/97 5.170 5,000,000.00 04/22/97 SAN LEANDRO Bay Bank of Commerce 01/06/97 5.200 2,000,000.00 04/07/97 SAN LUIS OBISPO First Bank of San Luis Obispo 08/06/96 5.440 2,600,000.00 02/04/97 First Bank of San Luis Obispo 11/13/96 5.190 2,000,000.00 02/13/97 First Bank of San Luis Obispo 11 /26/96 5.200 1,500,000.00 02/26/97 First Bank of San Luis Obispo 01 /07/97 5.200 1,000,000.00 04/08/97 SAN RAFAEL West America Bank 01 /23/97 5.180 25,000,000.00 04/23/97 West America Bank 01/30/97 5.200 25,000,000.00 04/30/97 SANTA ANA Grand National Bank 10/01/96 5.300 95,000.00 04/01/97 Grand National Bank 12/12/96 4.960 1,500,000.00 03/13/97 Grand National Bank 12/12/96 5.220 1,500,000.00 06/10/97 VACAVILLE Continental Pacific Bank 12/03/96 5.160 1,000,000.00 03/04/97 TOTAL TIME DEPOSITS AS OF JANUARY 31, 1997 $ 386,595,000.00 19— DEMAND BANK DEPOSITS JANUARY 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. AVERAGE DOLLAR DAYS (000 omitted) DAILY BALANCES PER BANK $235,297 417,747 556,183 5569183 556,183 270,938 344,100 199,786 429,929 302,301 302,301 302,301 104,940 188,916 450,415 242,692 257,351 257,351 257,351 257,351 227,103 343,418 145,012 315,916 315,916 315,916 163,164 257,067 443,953 245,212 428,316 a/ $3129600 WARRANTS OUTSTANDING $2,177,849 1,460,467 1,621,874 1,621,874 1,621,874 1,335,880 1,435,770 1,112,836 1,2929621 1,269,982 1,269,982 1,269,982 1,183,979 1,125,392 2,375,927 2,507,396 2,585,327 2,585,327 2,585,327 2,585,327 2,511,940 2,472,834 2,263,374 2,614,735 2,614,735 2,614,735 2,549,092 2,514,491 2,669,033 2,633,268 2,978,771 a/ The prescribed bank balance for January was $355,515,000.00. This consisted of $132,412,000.00 in compensating balances for services, $229,577,000.00 uncollected funds and a deduction of $6,474,000.00 for September delayed deposit credit. -20- DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS No. 1571 In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on January 15, 1997, has determined and designated the amount of money available for deposit and investment under said sections. In accordance with sections 16480.1 and 16480.2 of the Government Code, it is the intent that the money available for deposit or investment be deposited in bank accounts and savings and loan associations or invested in securities in such a manner so as to realize the maximum return consistent with safe and prudent treasury management, and the Board does hereby designate the amount of money available for deposit in bank accounts, savings and loan associ- ations, and for investment in securities and the type of such deposits and investments as follows: 1. In accordance with law, for deposit in demand bank accounts as Compensating Balance for Services $ 188,668,000 The active noninterest-bearing bank accounts designation constitutes a calendar -month average balance. For purposes of computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in such a manner as to realize the maximum return consistent with safe and prudent treasury management. 2. In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest - bearing deposits in banks and savings and loan associations as follows: From To ( 1) 01 /13/97 01 /17/97 (2) 01 /20/97 01 /24197 (3) 01 /27/97 01 /31 /97 (4) 02/03/97 02/07/97 (5) 02/10/97 02/14/97 (6) 02/17/97 02/21/97 Transactions $ 1,139,300,000 $ 66,000,000 $ (1,459,400,000) $ 1,083,200,000 $ 169,300,000 $ 266,900,000 Time Deposits in various Financial Institutions In Securities (sections 16503a (section 16430)' and 16602)' $ 29,230,605,000 $ 375,595,000 $ 29,296,605,000 $ 375,595,000 $ 27,837,205,000 $ 375,595,000 $ 28,920,405,000 $ 375,595,000 $ 29,089,705,000 $ 375,595,000 $ 29,356,605,000 $ 375,595,000 Estimated Total $ 29,606,200,000 $ 29,672,200,000 $ 28,212,800,000 $ 29,296,000,000 $ 29,465,300,000 $ 29,732,200,000 From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested in prime commercial paper under section 16430(e), Government Code. Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the amounts and for the same types of investments as specifically designated above. Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance of $188,668,000. POOLED MONEY INVESTMENT BOARD: Chairperion Member Dated: January 15, 1997 *Government Code Member -21- February-1997 iN,IATT FONG Treasurer dateort,amorma Pooled Money Tni. estment Board Report February 1,997 v LOCAL AGENCY INVESTMENT FUND Fe6ruary 1997 PUBLIC FINANCE DIVISION The Public Finance Division administers programs that carry out the fiduciary responsibilities of the State Treasurer. This includes (1) issuing, managing, and servicing of State debt; and (2) accounting for State investments and collateral securities held by the State. These activities are performed by: the Debt Issuance Section, Interim Finance Section, Investor Relations Program, Bondholder Services Section, and Securities Clearance Section. Debt Issuance Suction. This Section is responsible for the sale of $5-6 billion of State bonds each year to finance capital projects. An innovative master refunding program, which consolidates much of the preparatory work for each of the bond sales, allows the Treasurer's Office to sell individual issues when market conditions yield greater savings for taxpayers. Since August 1996, the master refunding program has saved taxpayers nearly $48 million. The Section also serves as trustee for approximately $ 30 billion in bonds and $ 3 billion in notes. Interim Finance Section. This Section is responsible for interim financing programs administered by the State Treasurer's Office. These. programs include: (1) the tax-exempt commercial paper (TXCP) program for the Department of Water Resources; (2) the State's Pooled Money Investment Account (PMIA) loan program; and (3) a new TXCP program for the State's general obligation bond program. This new program enables the State to take advantage of the interest rate differential between short-term TXCP rates and the higher bond rates available to the State. Since its inception in May 1996, the general obligation TXCP program has saved taxpayers $9.1 million. Investor Relations Program. This Program provides continuing disclosure to bondholders. Information to bondholders and the investment community is disseminated through the monthly newsletter " The Treasury Note," the Treasurer's website on the Internet (www.treasurerca.gov), and the Bloomberg site. The Internet and Bloomberg sites contain information about current offerings, California's finances, credit ratings, and special issues. Bondholder Services Section. This Section is responsible for providing transfer agent services for over $29 billion of State of California bond issues for which the Treasurer is a trustee and/or registrar. Annual payments to bondholders are in excess of $1.7 billion. Sercurlties Clearance SwHon. This Section carries out the safekeeping of securities and other personal property owned by or pledged to the State with an average monthly balance of over $4 5 billion. This includes: (1) accounting for an average of nearly $500 million of daily investment transactions; (2) accountability for $5.2 billion of assets pledged to the State as collateral; (3) accountability of $14 billion assets of State investments; and (4) accountability of approximately $28.2 billion investments for the State Pool. In addition, this Section clears and settles approximately 15,000 security trade transactions and completes approximately 10,000 safekeeping and pledge transactions per year. STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT FEBRUARY 1997 Table of Contents SUMMARY............................................................................................................1 SELECTED INVESTMENT DATA....................................................................2 PORTFOLIO COMPOSITION...........................................................................3 INVESTMENT TRANSACTIONS......................................................................4 TIMEDEPOSITS.................................................................................................19 DEMANDBANK DEPOSITS............................................................................21 POOLED MONEY INVESTMENT BOARD DESIGNATION .....................22 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF FEBRUARY 1997 WITH FEBRUARY 1996 (Dollars in Thousands) Average Daily Portfolio $30,379,056 $28,484,590 + $1,894,466 Accrued Earnings $129,929 $127,371 + $2,558 Effective Yield 5.575 5.643 - .068 Average Life —Month End (in days) 260 263 - 3 Total Security Transactions Amount $21,643,428 $19,469,454 + $2,173,974 Number 502 468 + 34 Total Time Deposit Transactions Amount $450,700 $242,400 + $208,300 Number 38 23 + 15 Average Workday Investment Activity $1,227,451 $1,037,466 + $189,985 Prescribed Demand Account Balances For Services $139,307 $129,388 + $9,919 For Uncollected Funds $194,631 $152,210 + $42,421 —1— MATT FONG STATE TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OIVIITTED) Change in February 28,1997 Percent From Tyne of Security Amount Percent Previous Month Governments Bills $2,0669058 7.16 - .14 Bonds 0 0 0 Notes 5,839,577 20.24 + .82 Strips 1219604 .42 - 39 Total Governments $8,027,239 27.82 + .29 Federal Agency Coupons 19,2689,168 439 + .16 Certificates of Deposit 7,5829669 26.28 - .94 Bank Notes 5669002 1.96 - .19 Bankers Acceptances 403,197 1.40 + .77 Repurchases 0 0 0 Federal Agency Discount Notes 584,314 2.02 + .34 Time Deposits 485,095 1.68 + 37 GNMA's 39365 .01 0 Commercial Paper 69,1889687 21.44 - 1.59 FHLMC 309757 .11 + .01 Corporate Bonds 2,3629289 8.19 + .27 Pooled Loans 1,751,229 6.07 + 38 GF Loans 0 0 0 Reversed Repurchases -3949500 -1.37 - .13 Total, All Types $28,8589511 100 INVESTMENT ACTIVITY February 1997 January 1997 Number ount Number Amount Pooled Money 502 $ 21,6439,428 417 $ 19,022,037 Other 13 529,964 3 99468 Time Deposits 38 450,700 32 2619500 TOTALS 553 $ 2291479092 452 $ 1992939005 PMIA Monthly Average Effective Yield 5.575 5.583 Year to Date Yield for Last Day of Month 5.586 5.587 —2— Pooled Money Investment Account Portfolio Composition $28.9 Billion Loans Reverses Coroorate 6.07% -1.37% Commercial Paper 21.44% CD's/BN's 28.24% Furies 12% Time Deposits 1.68% Mortgages 0.12% )encies ).41 % 2/28/97 ■ Treasuries ® Time Deposits ■ Mortgages ® Agencies ■ CD's1BN's ■ Bankers Acceptances' ■ Repo Cl Commercial Paper ® Corporate Bonds Moans i 0 Reverses -3- 02103/97 RRS Treas Note 5.750% 12/31/98 4.900 50,000 Treas Note 5.750% 12/31/98 4.900 50,000 Treas Note 5.750% 12/31/98 4.900 50,000 Treas Note 5.750% 12/31/98 4.900 50,000 Treas Note 5.750°% 12/31/98 4.900 50,000 Treas Note 5.750% 12/31/98 4.900 50,000 REDEMPTION CD Nat W.Mstr 5.370% 02/03/97 5.360 50,000 60 446,872.16 5.436 CD CIBC 5.340% 02/03/97 5.340 20,000 89 660,083.33 5.414 CD CIBC 5.340% 02/03/97 5.340 50,000 89 660,083.33 5.414 CD CIBC 5.340% 02/03/97 5.340 50,000 89 660,083.33 5.414 CD CommerzBk 5.410% 02/03/97 5.370 40,000 96 572,945.10 5.445 CD Soc Gen 5.630% 02/03/97 5.610 50,000 138 1,075,330.70 5.687 CD Soc Gen 5.630% 02/03/97 5.610 50,000 138 1,075,330.70 5.687 CP FMCC 02/03/97 5.290 50,000 88 646,555.56 5.433 CP FMCC 02/03/97 5.290 50,000 88 646,555.56 5.433 CP FMCC 02/03/97 5.290 50,000 88 646,555.56 5.433 CP FMCC 02/03/97 5.290 50,000 88 646,555.56 5.433 CP FMCC 02/03/97 5.290 50,000 88 646,555.56 5.433 CP Merrill 02/03/97 5.300 50,000 88 647,777.78 5.444 CP Merrill 02/03/97 5.300 50,000 88 647,777.78 5.444 CP Merrill 02/03/97 5.300 50,000 88 647,777.78 5.444 CP SRAC 02/03/97 5.310 50,000 90 663,750.00 5.456 CP Bear 02/03/97 5.310 50,000 90 663,750.00 5.456 CP Bear 02/03/97 5.310 50,000 90 663,750.00 5.456 CP Bear 02/03/97 5.310 50,000 90 663,750.00 .5.456 CP FMCC 02/03/97 5.390 15,000 123 276,237.50 5.567 CP FMCC 02/03/97 5.390 50,000 123 920,791.67 5.567 PURCHASE g/ Treas Note 5.625% 11/30/98 5.200 8,300 Treas Note 5.625% 11/30/98 5.200 50,000 Treas Note 5.625% 11/30/98 5.200 50,000 Treas Note 5.625% 11/30/98 5.200 50,000 Treas Note 5.625% 11/30/98 5.200 50,000 Treas Note 5.625°% 11/30/98 5.200 50,000 Treas Note 5.625% 11/30/98 5.200 50,000 PURCHASE c/ CD ABN Amro 5.650% 12/23/97 5.380 50,000 —4— 02/03/97 PURCHASE BA Bk of NYC 07/21/97 5.300 15,000 BA UB Calif 07/22/97 5.320 8,000 BN B/A 5.500% 98/04/97 5.490 34,000 CD Bayrsche L 5.440% 07/09/97 5.440 50,000 CD Bayrsche L 5.440% 07/09/97 5.440 50,000 CP GECC 02/04/97 5.310 20,000 CP GECC 02/04/97 5.310 50,000 CP GECC 02/04/97 5.310 50,000 CP Salomon 02/14/97 5.350 25,000 CP Salomon 02/14/97 5.350 50,000 CP SRAC 07/09/97 5.330 50,000 CP FMCC 07/14/97 5.340 50,000 CP FMCC 07/14/97 5.340 50,000 CP GECC 07/23/97 5.330 50,000 CP GECC 07/23/97 5.330 50,000 CP Merrill 07/25/97 5.370 50,000 CP Merrill 07/25/97 5.370 50,000 CP Merrill 07/25/97 5.370 50,000 CP Merrill 07/25/97 5.370 50,000 CP Bear 08/01/97 5.370 50,000 CP Bear 08/01/97 5.370 50,000 CP Amer Exp 06/30/97 5.310 50,000 CP Amer Exp 06/30/97 5.310 50,000 CP Amer Exp 06/30/97 5.310 50,000 CP Amer Exp 06/30/97 5.310 50,000 02/04/97 SALE c/ CD ABN Amro 5.650% 12/23/97 5.380 50,000 1 7,366.12 5.454 REDEMPTION CP GECC 02/04/97 5.310 20,000 1 2,950.00 5.384 CP GECC 02/04/97 5.310 50,000 1 7,375.00 5.384 CP GECC 02/04/97 5.310 50,000 1 7,375.00 5.384 CP Textron 02/04/97 5.600 27,000 55 231,000.00 5.726 MTN AT&T 4.750% 02/04/97 6.760 10,000 867 1,559,286.11 6.974 PURCHASE c/ CD ABN Amro 5.650% 12/23/97 5.250 26,000 CD ABN Amro 5.650% 12/23/97 5.250 50,000 —5— 02104/97 PURCHASE MTN IBM Corp 5.650% 01/22/98 . 5.730 33,340 MTN Transam 8.375% 02/15/98 5.800 14,350 BA B/A 04/03/97 5.280 10,000 BA Montreal 07/31 /97 5.280 10,000 CD CIBC 5.400% 06/30/97 5.400 45,000 CD RaboBank 5.520% 08/04/97 5.480 40,000 CID GECC 02/05/97 5.200 50,000 CID GECC 02/05/97 5.200 50,000 CID Heller 05/28/97 5.390 50,000 CID Heller 05/28/97 5.390 50,000 CID SRAC 07/21/97 5.310 50,000 CID UB Calif 07/22/97 5.340 25,000 CID UB Calif 07/22/97 5.340 50,000 CID SRAC 07=97 5.310 50,000 CID GMAC 07/23/97 5.340 50,000 CID Bkrs Trst 08/01 /97 5.350 50,000 CID Bkrs Trst 08101 /97 5.350 50,000 Treas Note 5.875% 01 /31199 5.895 50,000 Treas Note 5.875% 01131 /99 5.895 50,000 02/05/97 SALE Treas Note 5.875% 04/30/98 5.673 50,000 257 787,120.17 7.101 Treas Note 5.875% 04/30/98 5.673 50,000 279 787,120.17 6.843 Treas Note 5.875% 04/30/98 5.673 50,000 279 787,120.17 6.843 Treas Note 6.000% 12/31 /97 5.523 50,000 1493 298,342.54 6.177 Treas Note 6.000% 12/31 /97 5.523 50,000 1493 298,342.54 6.177 Strip Cpns 05/15/98 5.650 26,000 1121 3,206,320.00 4.968 Strip Cpns 08/15/98 5.717 15,000 1318 2,260,200.00 5.441 Strip Cpns 08/15/98 5.717 50,000 1318 7,534,000.00 5.441 SALE c/ CD ABN Amro 5.650% 12/23/97 5.250 CD ABN Amro 5.650% 12/23/97 5.250 REDEMPTION CID GECC CID GECC PURCHASE BA B/A BA Montreal BA Chase CD Nat W.Mstr CD Soc Gen CD Soc Gen CD US Oregon 02/05/97 5.200 02/05/97 5.200 05/05/97 05/05/97 07/23/97 5.520% 07/01 /97 5.530% 07/22/97 5.530% 07/22/97 5.430% 07/29/97 5.280 5.280 5.300 5.450 5.480 5.480 5.430 26,000 50,000 50,000 50,000 10,000 10,000 9,500 - 9,500 29,000 50,000 50,000 1 3,733.33 5.322 1 7,189.58 5.322 1 7,222.22 5.272 1 7,222.22 5.272 02105/97 PURCHASE CD CD CD CP CP CP CP CP 02106/97 SALE Treas Treas Treas Treas SALE c/ -EFFEC97NE- YIELD US Oregon 5.430% 07/29/97 5.430 50,000 US Wash 5.430% 07/29/97 5.430 50,000 US Wash 5.430% 07/29/97 5.430 50,000 Enron 03/27/97 5.440 10,000 FMCC 06/30/97 5.300 25,000 FMCC -06/30/97 5.300 50,000 FMCC 06/30/97 5.300 50,000 Lehman 08/04/97 5.370 50,000 Note 5.750% 12/31 /98 5.856 50,000 23 293,853.59 11.690 Note 5.750% 12/31/98 5.856 50,000 26 293,853.59 11.127 Note 6.875% 07/31 /99 5.973 50,000 8 56,975.14 20.595 Note 6.875% 07/31 /99 5.973 50,000 8 56,975.14 20.595 Strip Cpns 05/15/98 5.685 24,000 1122 2,953,680.00 4.953 Strip Cpns 05/15/98 5.688 25,000 1361 4,051,750.00 5.651 Strip Cpns 05/15/98 5.688 10,000 1368 1,585,200.00 5.473 CP JC Penney REDEMPTION Treas Bill Treas Bill Treas Bill Treas Bill RRP Treas Bill Treas Bill Treas Bill PURCHASE _q/ CD Swiss Bk CD Swiss Bk PURCHASE 02/06/97 .5.390 50,000 58 434,194.45 5.512 02/06/97 4.820 50,000 351 2,349,750.00 5.127 02/06/97 4.820 50,000 351 2,349,750.00 5.127 02/06/97 4.645 50,000 352 2,270,888.90 4.933 02/06/97 4.645 50,000 352 2,270,888.90 4.933 02/06/97 4.800 50,000 58 (382,606.67) -4.866 02/06/97 4.800 50,000 58 (382,606.67) -4.866 02/06/97 4.810 50,000 58 (383,403.76) -4.876 5.410% 04/23/97 5.260 5.410% 04/23/97 5.260 BA Chase 07/28/97 5.300 CD CommerzBk 5.440% 08/01 /97 5.440 CD CommerzBk 5.440% 08/01 /97 5.440 CD Cr Swiss 5.440% 08/05/97 5.420 CD ABN Amro 5.450% 08/06/97 5.450 CP Conagra 03/26/97 5.420 CP GMAC 06/30/97 5.300 50,000 50,000 5,900 25,000 50,000 55,000 45,000 25,000 50,000 —7— 02/06/97 PURCHASE CP GMAC CP FMCC CP FMCC CP FMCC CP FMCC 02/07/97 SALE c/ CD Swiss Bk CD Swiss Bk REDEMPTION CD BN Paris CD BN Paris CD US Oregon CD US Oregon PURCHASE c/ CD Swiss Bk CD Swiss Bk CP Merrill 02/10/97 SALE c/ CD Swiss Bk CD Swiss Bk CP Merrill REDEMPTION CD Bkrs Trst CP Baxter CP Conagra CP Conagra CP Textron CP GMAC CP GMAC CP GMAC CP GMAC Disc Note FNMA NO PURCHASES 06/30/97 5.300 50,000 06/30/97 5.300 50,000 06/30/97 5.300 50,000 06/30/97 5.300 50,000 06/30/97 5.300 50,000 5.410% 04/23/97 5.260 50,000 1 7,174.06 5.333 5.410% 04/23/97 5.260 50,000 1 7,174.06 5.333 5.370% 02/07/97 5.360 48,000 85 608,107.04 5.440 5.370% 02/07/97 5.360 45,000 91 609,804.75 5.435 5.330% 02/07/97 5.330 50,000 93 688,458.33 5.404 5.330% 02/07/97 5.330 50,000 93 688,458.33 5.404 5.410% 04/23/97 5.200 45,000 5.410% 04123/97 5.200 50,000 03/31/97 5.200 7,000 5.410% 04/23/97 5.200 45,000 3 19,149.00 5.272 5.410% 04/23/97 5.200 50,000 3 21,276.67 5.272 03/31 /97 5.200 7,000 3 2,946.67 5.272 5.400% 02/10/97 5.400 50,000 124 930,000.00 5.475 02/10/97 5.370 28,b00 35 146,183.33 5.473 02/10/97 5.580 20,000 60 186,000.00 5.710 02/10/97 5.540 50,000 61 469,361.11 5.670 02/10/97 5.560 30,000 67 310,433.33 5.696 02/10/97 5.320 45,000 68 452,200.00 5.448 02/10/97 5.320 50,000 68 502,444.44 5.448 02/10/97 5.590 10,000 152 236,022.22 5.804 02/10/97 5.590 50,000 152 1,180,111.11 5.804 02/10/97 5.210 25,000 94 340,097.22 5.355 —8— 02/11/97 RRS Treas Note Treas Note Treas Note Treas Note REDEMPTION g/ CP JC Penney CP JC Penney 41143Lal l CD Midland CD Midland CP Conagra CP Morgan CP Morgan CP GMAC CP Textron PURCHASE g/ Disc Note FNMA Disc Note FNMA Disc Note FNMA Disc Note FNMA PURCHASE c/ Treas Bill Treas Bill Treas Bill Treas Bill Treas Bill PURCHASE BA Barclays CP Country BA B/A 02/13/97 RRS Treas Note Treas Note Treas Note Treas Note 5.250% 01 /31 /01 5.250% 01 /31 /01 5.250% 01/31/01 5.250% 01 /31 /01 r Rai DAB �I�NT EFFECTIVE . ._....�.__... _ .. ._ .:; �. .imn ... 4.890 50,000 4.890 50,000 4.890 50,000 4.890 50,000 02/11/97 5.380 50,000 63 470,750.00 5.506 02/11/97 5.380 50,000 63 470,750.00 5.506 5.430% 02/11/97 5.430 50,000 125 942,708.33 5.505 5.430% 02/11/97 5.430 50,000 125 942,708.33 5.505 02/11/97 5.540 19,300 69 204,933.83 5.677 02/11/97 5.320 50,000 69 509,833.35 5.449 02/11/97 5.320 50,000 69 509,833.35 5.449 02/11/97 5.370 40,000 36 214,800.00 5.473 02/11/97 5.620 20,000. 60 187,333.33 5.751 03/13/97 5.170 50,000 03/13/97 5.170 50,000 03/13/97 5.170 50,000 03/13/97 5.170 50,000 02/05/98 5.200 50,000 02/05/98 5.200 50,000 02/05/98. 5.200 50,000 02/05/98 5.200 50,000 02/05/98 5.200 15,323 08/11 /97 5.260 11,000 02/14/97 5.270 18,000 05/09/97 5.250 8,000 5.750% 12/31 /98 4.950 50,000 5.750% 12/31 /98 4.950 50,000 5.750% 12/31 /98 4.950 50,000 5.750% 12/31 /98 4.950 50,000 =m 02/13/97 SALE a/ CP Morgan 02/13/97. 5.320 50,000 13 96,055.55 5.404 CP Morgan 02/13/97 5.320 50,000 13 96,055.55 5.404 CP Morgan 02/13/97 5.320 50,000 13 96,055.55 5.404 CP Morgan 02/13/97 5.320 50,000 13 96,055.55 5.404 SALE cl Treas Bill 02/05/98 5.200 50,000 2 13,416.58 5.272 Treas Bill 02/05/98 5.200 50,000 .2 13,416.58 5.272 Treas Bill 02/05/98 5.200 50,000 2 13,416.58 5.272 Treas Bill 02/05/98 5.200 50,000 2 13,416.58 5.272 REDEMPTION CP GECC 02/13/97 5.300 50,000 15 110,416.67 5.385 CP GECC 02/13/97 5.300 50,000 15 110,416.67 5.385 CP GECC 02/13/97 5.300 50,000 15 110,416.67 5.385 CP GECC 02/13/97 5.300 50,000 15 110,416.67 5.385 CP Baxter 02/13/97 5.370 35,000 38 198,391.67 5.475 RRP Treas Note 12/31 /98 4.950 50,000 13 (89,263.28) -5.018 Treas Note 12/31 /98 4.950 50,000 13 (89,263.28) -5.018 Treas Note 12/31 /98 4.950 50,000 13 (89,263.28) -5.018 Treas Note 12/31 /98 4.950 50,000 13 (89,263.28) -5.018 PURCHASE S/ CP Morg Stan 03/13/97 5.270 50,000 CP Morg Stan 03/13/97 5.270 50,000 CP Morg Stan 03/13/97 . 5.270 50,000 CP Morg Stan 03/13/97 5.270 50,000 PURCHASE MTN (FR) Citicorp 5.543% 02/15/00 5.554 25,000 02/14/97 REDEMPTION CP Country 02/14/97 5.270 18,000 3 7,905.00 5.345 CP Salomon 02/14/97 5.350 25,000 11 40,868.06 5.433 CP Salomon 02/14/97 5.350 50,000 11 81,736.11 5.433 —10— EFFECMVE . , YIELD 02/14/97 PURCHASE MTN (FR) Citcorp 5.563% 08/13/01 . 6.105 25,000 BA Montreal 05/02/97 5.240 10,000 BA Montreal 05/07/97 5.240 10,000 CD Midland 5.375% 06/30/97 5.375 50,000 CD Midland 5.375% 06/30/97 5.375 50,000 CD Soc Gen 5.470% 07/11 /97 5.400 20,000 CD RaboBank 5.430% 07/14/97 5.370 15,000 CD Bayrsche V 5.380% 08/28/97 5.370 50,000 CD Bayrsche V 5.380% 08/28/97 5.370 50,000 CID FMCC 06/27/97 . 5.260 50,000 02-18-97 SALE c/ Treas Note 5.625% 11/30/98 5.200 8,300 15 171555.33 5.272 Treas Note 5.625% 11/30/98 5.200 50,000 15 105,755.00 5.272 Treas Note 5.625% 11/30/98 5.200 50,000 15 105,755.00 5.272 Treas Note 5.625% 11/30/98 5.200 50,000 15 105,755.00 5.272 Treas Note 5.625% 11/30/98 5.200 50,000 15 105,755.00 5.272 Treas Note 5.625% 11/30/98 5.200 50,000 15 105,755.00 5.272 Treas Note 5.625% 11/30/98 5.200 50,000 15 105,755.00 5.272 REDEMPTION CD Nat W.Mstr 5.430% 02/18/97 5.425 50,000 64 482,226.47 5.500 CD Nat W.Mstr 5.430% 02/18/97 5.425 50,000 64 482,226.47 5.500 CD Nat W.Mstr 5.430% 02/18/97 5.425 50,000 64 482,226.47 5.500 CD Mellon 5.550% 02/18/97 5.500 10,000 139 213,779.76 5.613 CID Bear 02/18/97 5.300 31,000 74 337,727.76 5.432 MTN World 7.625% 02/18/97 5.689 12,000 271 509,981.67 5.689 MTN (FR) FMCC 3.713% 02/18/97 3.713 30,000 1076 5,038,917.52 5.697 MTN (FR) FMCC 3.713% 02/18/97 3.408 25,000 1091 4,220,269.81 5.643 RRP Treas Note 5.750% 12/31/98 4.900 50,000 15 (102,410.00) -4.968 Treas Note 5.750% 12/31/98 4.900 50,000 15 (102,410.00) -4.968 Treas Note 5.750% 12/31/98 4.900 50,000 15 (102,410.00) -4.968 Treas Note 5.750% 12/31/98 4.900 50,000 15 (102,410.00) -4.968 Treas Note 5.750% 12/31/98 4.900 50,000 15 (102,410.00) -4.968 Treas Note 5.750% 12/31/98 4.900 50,000 15 (102,410.00) -4.968 PURCHASE c/ CD Soc Gen 5.490% 08/11 /97 5.500 34,000 CD Soc Gen 5.600% 11 /14/97 5.500 24,000 CD Soc Gen 5.600% 11/14/97 5.500 50,000 CD Barclays 5.770% 01 /16/98 5.500 28,000 CD Barclays 5.770% 01/26/98 5.500 15,000 Treas Note 6.250% 10/31 /01 5.420 49,680 -11- 02/18/97 PURCHASE CD BN Paris 5.430% 08/20/97 5.420 25,000 CD US Oregon 5.375% 08/20/97 5.380 50,000 CD US Oregon 5.375% 08/20/97 5.380 50,000 CD US Wash 5.375% 08/20/97 5.380 50,000 02/19/97 SALE BN NabonsBk SALE c/ CD Soc Gen CD Soc Gen CD Soc Gen CD Barclays CD Barclays Treas Note REDEMPTION CP GMAC CP GMAC CP GMAC CP GMAC CP GMAC CP GMAC PURCHASE CD Svenska CD Morg Guar CD Morg Guar CP Conagra CP B/A 02/20/97 REDEMPTION 6.100% 01 /19/99 6.040 50,000 33 33,888.89 7.225 5.490% 08/11/97 5.500 34,000 1 5,095.14 5.576 5.600% 11/14/97 5.500 24,000 1 3,594.82 5.576 5.600% 11 /14/97 5.500 50,000 1 7,489.21 5.576 5.770% 01 /16/98 5.500 28,000 1 4,300.69 5.576 5.770% 01 /26/98 5.500 15,000 1 2,329.86 5.576 6.250% 10/31/01 5.420 49,680 1 7,527.78 5.495 02/19/97 5.340 50,000 21 155,750.00 5.431 02/19/97 5.340 50,000 21 155,750.00 5.431 02/19/97 5.340 50,000 21 155,750.00 5.431 02/19/97 5.340 50,000 21 155,750.00 5.431 02/19/97 5.340 50,000 21 155,750.00 5.431 02/19/97 5.340 50,000 21 155,750.00 5.431 5.430% 08/20/97 5.420 5.360% 08/27/97 5.360 5.360% 08/27/97 5.360 03/27/97 5.380 06/30/97. 5.250 CD Union 5.420% 02/20/97 5.405 CD Union 5.420% 02/20/97 5.405 CD Union 5.420% 02/20/97 5.405 CD Union 5.420% 02/20/97 5.405 CD Union 5.400% 02/20/97 5.400 CD Union 5.400% 02/20/97 5.400 CD Nova Scotia 5.630% 02/20/97 5.610 CP Enron 02/20/97 5.470 CP GMAC 02/20/97 5.380 CP GMAC 02/20/97 5.340 CP GMAC 02/20/97 5.340 60,000 35,000 50,000 15,000 25,000 50,000 65 487,964.48 5.480 50,000 65 487,964.48 5.480 50,000 65 487,964.48 5.480 50,000 65 487,WA.48 5.480 50,000 133 997,500.00 5.475 50,000 133 997,500.00 5.475 115,000 154 2,760,038.91 5.687 50,000 48 364,666.67 5.586 25,000 48 179,333.33 5.494 50,000 126 934,500.00 5.517 50,000. 126 934,500.00 5.517 —12— - VE ... - a/AI4T.ZRf TRANS BAR i�i4YS ARot�NT EIVF ..- 02/20/97 PURCHASE BA Deutsche 08/06/97 5.230 10,000 BA RNB NYC 08/08/97 5.230 5,000 BA BK of NYC 08/13/97 5.230 10,000 CD BN Paris 5.340% 05/28/97 5.330 50,000 CD BN Paris 5.340% 05/28/97 5.330 50,000 CD Nova Scotia 5.340% 06/27/97 5.340 115,000 CD Barclays 5.330% 06/30/97 5.330 50,000 CD Union 5.380% 08/06/97 5.380 50,000 CD Union 5.380% 08/06/97 5.380 50,000 CP FMCC 07/01 /97 5.250 50,000 CP FMCC 07/01/97 5.250 50,000 CP FMCC 07/03/97 5.250 50,000 CP GECC 08/06/97 5.250 50,000 CP GECC 08/08/97 5.280 50,000 CP GMAC 08/08/97 5.280 50,000 CP SRAC 08/11/97 5.240 50,000 CP GMAC MI1/97 5.280 50,000 CP GMAC 08/11/97 5.280 50,000 CP Heller 08/12/97 5.350 20,000 CP Heller 08/12/97 5.350 50,000 CP GECC 08/13/97 5.250 50,000 CP GECC 08/13/97 5.250 50,000 02/21/97 RRS Trees Note 5.750% 12/31/98 4.850 50,000 Trees Note 5.750% 12/31/98 4.850 50,000 Trees Note 5.750% 12/31/98 4.850 50,000 Trees Note 5.750%, 12/31/98 4.850 50,000 Trees Note 5.750% 12/31/98 4.850 50,000 Trees Note 5.750% 12/31/98 4.850 50,000 PURCHASE g/ Trees Note 6.000% 08/15/99. 5.150 10,230 Trees Note 6.000% 08/15/99 5.150 50,000 Trees Note 6.000% 08/15/99 5.150 50,000 Trees Note 6.000% 08/15/99 5.150 50,000 Trees Note 6.000% 08/15/99 5.150 50,000 Trees Note 6.000% 08/15/99 5.150 50,000 Trees Note 6.000% 08/15/99 5.150 50,000 —13— 02/21197 PURCHASE BN MTN BA BN CD CD CP CP CP FNB Chicago 5.410% 08/21/97 Assoc 7.300% 03/15/98 Tokyo-Mits 03/27/97 B/A 5.400% 08/28/97 Bkrs Trst 5.420% 08/27/97 Bkrs Trst 5.420% 08/27/97 Salomon 03/24/97 Bear 06/10/97 Bear 06/10/97 5.400 5.604 5.330 5.400 5.410 5.410 5.420 5.270 5.270 02/24/97 REDEMPTION MTN (FR) FMCC 3.750% . 02/24/97 3.750 PURCHASE 40,000 22,425 37,000 50,000 50,000 50,000 50,000 50,000 50,000 25,000 1096 4,163,162.29 5.548 CD Nat W.Mstr 5.320% 05/28/97 5.310 50,000 CD Nat W.Mstr 5.320% 05/28/97 5.310 50,000 CD Nat W.Mstr 5.320%- 05/28/97 5.310 50,000 CD RaboBank 5.380% 08/27/97 5.360 50,000 CD RaboBank 5.380% 08/27/97 5.360 50,000 CP Country 02/27/97 5.270 38,300 CP GECC M08/97 5.260 50,000 CP GECC 08/08/97 5.260 50,000 CP Bear 08/20/97 5.280 45,000 02/25/97 NO SALES PURCHASE CP GECC 07/01/97 5.260 50,000 CP GECC 07/01/97 5.260 30,000 CP FMCC 05/16/97 5.260 50,000 CD Wachovia 5.320% 06/30/97 5.320 50,000 CD US Wash 5.290% 06/02/97 5.300 50,000 CD CIBC 5.420% 08/27/97 5.420 50,000 CD CIBC 5.420% 08/27/97 5.420 30,000 CD Nat. W.Mstr 5.400% 08/27/97 5.380 40,000 02126/97 NO SALES PURCHASE cl Treas Note 6.125% 08/31/98 5.370 41,073 Treas Note 7.750% 11/30/99 5.370 50,000 Treas Note 7.750% 11 /30/99 5.370 6,005 —14— 02/27/97 SALE c/ Treas Note 6.125% 08/31 /98 . 5.370 41,073 1 6,215.92 5.444 Treas Note 7.750% 11/30/99 5.370 50,000 1 7,746.97 5.444 Treas Note 7.750% 11 /30/99 5.370 6,005 1 930.05 5.444 REDEMPTION CP GECC 02/27/97 5.350 50,000 1 7,430.56 5.425 CP GECC 02/27/97 5.350 50,000 1 7,430.56 5.425 CP GECC 02/27/97 5.350 50,000 1 7,430.56 5.425 CP GECC 02/27/97 5.350 50,000 1 7,430.56 5.425 CD Nova Scotia 5.390% 02/27/97 5.390 85,000 56 712,677.78 5.464 CD CIBC 5.400% 02/27/97 5.400 50,000 56 420,000.00 5.475 CD CIBC 5.400% 02/27/97 5.400 50,000 56 420,000.00 5.475 CD Barclays 5.360% 02/27/97 5.360 50,000 93 692,333.33 5.434 CD Barclays 5.360% 02/27/97 5.360 50,000 93 692,333.33 5.434 CP Country 02/27/97 5.270 38,300 3 16,820.08 5.345 CP GMAC 02/27/97 5.340 35,000 79 410,141.67 5.478 CP GMAC 02/27/97 5.340 50,000 79 585,916.67 5.478 CP Assoc 02/27/97 5.320 50,000 79 583,722.22 5.457 CP Assoc 02/27/97 5.320 50,000 79 583,722.22 5.457 CP GMAC 02/27/97 5.300 5,000 93 68,458.33 5.448 CP GMAC 02/27/97 5.300 50,000 93 684,583.33 5.448 CP Merrill 02/27/97 5.310 50,000 113 833,375.00 5.475 CP Morgan 02/27/97 5.300 50,000 118 868,611.10 5.468 CP Morgan 02/27/97 5.300 50,000 118 868,611.10 5.468 CP Bkrs Trst 02/27/97 5.550 10,000 162 249,750.00 5.771 CP Bkrs Trst 02/27/97 5.550 50,000 162 1,248,750.00 5.771 CP GECC 02/27/97 5.510 50,000 162 1,239,750.00 5.728 CP GECC 02/27/97 5.510 50,000 162 1,239,750.00 5.728 Disc Note FHLB 02/27/97 5.270 15,000 205 450,145.83 5.508 PURCHASE CD CIBC 5.420% 08/27/97 5.420 30,000 CD CIBC 5.420% 08/27/97 5.420 50,000 SBA (FR) 5.875% 02/25/22 5.875 12,239 SBA (FR) 5.875% 02/25/22 5.875 5,910 CP Assoc 02/28/97 5.240 50,000 CP Assoc 02/28/97 5.240 50,000 CP Assoc 02/28/97 5.240 50,000 CP Assoc 02/28/97 5.240 50,000 Treas Bill 02/05/98 5.332 50,000 Treas Bill 02/05/98 5.332 50,000 Treas Note 06/30/97 5.370 32,000 —15— `OOZED If...... 11i EST MENT AO i�1T _. at MATURrrY TRANS : ..PAR ` DAYS ,! Ai1ROilNT EFFECTIVE DAB .. _� DE5tT10N QATE ` .. ;l43.. 1�ELD EARNED'. T YIELD 02/28/97 SALE g/ Treas Note 6.000% 08/15/99 5.150 10,230 7 9,980.62 5.221 Treas Note 6.000% 08/15/99 5.150 50,000 7 48,781.16 5.221 Treas Note 6.000% 08/15/99 5.150 50,000 7 48,781.16 5.221 Treas Note 6.000% 08/15/99 5.150 50,000 7 48,781.16 5.221 Treas Note 6.000% 08/15/99 5.150 50,000 7 48,781.16 5.221 Treas Note 6.000% 08/15/99 5.150 50,000 7 48,781.16 5.221 Treas Note 6.000% 08/15/99 5.150 50,000 7 48,781.16 5.221 REDEMPTION g/ CD Stand Chart 5.330% 02/28/97 5.320 100,000 28 413,780.99 5.393 REDEMPTION CP Assoc 02/28/97 5.240 50,000 1 7,277.78 5.313 CP Assoc 02/28/97 5.240 50,000 1 7,277.78 5.313 CP Assoc 02/28/97 5.240 50,000 1 7,277.78 5.313 CP Assoc 02/28/97 5.240 50,000 1 7,277.78 5.313 BA Tokyo-Mits 02/28/97 5.350 7,500 107 119,260.42 5.511 BN B/A 5.670% 02/28/97 5.670 50,000 169 1,220,875.00 5.748 BN B/A 5.670% 02/28/97 5.670 50,000 169 1,220,875.00 5.748 BN B/A 5.510% 02/28/97 5.510 50,000 205 1,568,819.44 5.586 CD Montreal 5.380% 02/28/97 5.380 50,000 57 425,916.67 5.454 CD Montreal 5.380% 02/28/97 5.380 50,000 57 425,916.67 5.454 CD Svenska 5.380% 02/28/97 5.380 100,000 57 851,833.33 5.454 CD Barclays 5.360% 02/28/97 5.360 50,000 108 804,000.00 5.434 CD Barclays 5.360% 02/28/97 5.360 50,000 108 804,000.00 5.434 CD BN Paris 5.370% 02/28/97 5.360 50,000 108 804,024.00 5.434 CD Mellon 5.438% 02/28/97 5.438 45,000 141 958,359.37 5.513 CD CommerzBk 5.410% 02/28/97 5.390 50,000 141 1,055,622.64 5.464 CD CommerzBk 5.410% 02/28/97 5.390 50,000 141 1,055,622.64 5.464 CD RaboBank 5.390% 02/28/97 5.370 50,000 142 1,059,165.15 5.444 CD RaboBank 5.390% 02/28/97 5.380 50,000 142 1,059,165.15 5.444 CD Deutsche 5.460% 02/28/97 5.440 25,000 148 559,156.08 5.515 CD Deutsche 5.460% 02/28/97 5.440 50,000 148 1,118,312.15 5.515 CD Cr Agricole 5.450% 02/28/97 5.450 25,000 148 560,138.89 5.525 CD Cr Agricole 5.450% 02/28/97 5.450 50,000 148 1,120,277.78 5.525 CD BN Paris 5.480% 02/28/97 5.460 25,000 148 561,211.79 5.535 CD BN Paris 5.480% 02/28/97 5.460 50,000 148 1,122,423.58 5.535 CD Cr Swiss 5.470% 02/28/97 5.460 100,000 148 2,244,756.92 5.535 CD CommerzBk 5.640% 02/28/97 5.620 25,000 161 628,402.04 5.698 CD ABN Amro 5.650% 02/28/97 5.640 10,000 161 252,244.34 5.718 CD ABN Amro 5.650% 02/28/97 5.640 50,000 161 1,261,221.68 5.718 CD Bkrs Trst 5.620% 02/28/97 5.610 50,000 161 1,254,513.06 5.687 CD West Deut 5.640% 02/28/97 5.640 50,000 161 1,261,166.67 5.718 CD West Deut 5.640% 02/28/97 5.640 50,000 161 1,261,166.67 5.718 CD Soc Gen 5.730% 02/28/97 5.730 50,000 170 1,352,916.67 5.809 CD Soc Gen 5.730% 02/28/97 5.730 50,000 170 1,352,916.67 5.809 CD Union 5.620% 02/28/97 5.620 50,000 206 1,607,944.44 5.698 CD Union 5.620% 02/28/97 5.620 50,000 206 1,607,944.44 5.698 CP Country 02/28/97 5.320 43,000 43 273,241.09 5.428 -16- '; �-�.r _.M14 .Tt1f` 'TRANS - ;DIIY$ AIR�NT = EFEF�C?lVE _ _... ._ _ .. ......: ...__ . 02/28/97 REDEMPTION CP J.C. Penney 02/28/97 5.420 19,138 78 224,743.91 5.560 CP Bear 02/28/97 5.330 50,000 78 577,416.65 5.467 CP Bear 02/28/97 5.330 50,000 78 577,416.65 5.467 CP Salomon 02/28/97 5.520 25,000 79 302,833.33 5.665 CP Salomon 02/28/97 5.520 50,000 79 605,666.67 5.665 CP B/A 02/28/97 5.320 50,000 133 982,722.20 5-502 CP B/A 02/28/97 5.320 50,000 133 982,722.20 5.502 CP Assoc 02/28/97 5.300 10,000 144 212,000.00 5.489 CP Assoc 02/28/97 5.300 50,000 144 1,060,000.00 5.489 CP GMAC 02/28/97 5.310 50,000 144 1,062,000.00 5.500 CP GMAC 02/28/97 5.310 50,000 144 1,062,000.00 5.500 CP GMAC 02/28/97 5.420 50,000 149 1,121,638.89 5.621 CP GMAC 02/28/97 5.420 50,000 149 1,121,638.89 5.621 CP GMAC 02/28/97 5.420 50,000 149 1,121,638.89 5.621 CP GMAC 02/28/97 5.420 50,000 149 1,121,638.89 5.621 CP GMAC 02/28/97 5.420 50,000 149 1,121,638.89 5.621 CP TransAm 02/28/97 5.530 35,000 161 865,598.61 5.748 CP GECC 02/28/97 5.510 50,000 163 1,247,402.78 5.729 CP GECC 02/28/97 5.510 50,000 163 1,247,402.78 5.729 CP GECC 02/28/97 5.410 50,000 168 1,262,333.33 5.627 CP GECC 02/28/97 5.410 50,000 168 1,262,333.33 5.627 CP GECC 02/28/97 5.410 25,000 168 631,166.67 5.627 CP Merrill 02/28/97 5.580 50,000 169 1,309,750.00 5.809 CP Merrill 02/28/97 5.580 25,000 169 654,875.00 5.809 CP SRAC 02/28/97 5.600 50,000 170 1,322,222.22 5.832 Disc Note FNMA 02/28/97 5.260 25,000 206 752,472.22 5.498 Disc Note FNMA 02/28/97 5.260 50,000 206 1,504,944.44 5.498 RRP Treas Note 5.250% 01 /31 /01 5.060 50,000 28 (189,398.61) -5.130 Treas Note 5.250% 01/31/01 5.060 50,000 28 (189,398.61) -5.130 Treas Note 5.750% 12/31/98 4.850 50,000 7 (47,506.42) -4.917 Treas Note 5.750% 12/31/98 4.850 50,000 7 (47,506.42) -4.917 Treas Note 5.750% 12/31/98 4.850 50,000 7 (47,506.42) -4.917 Treas Note 5.750%- 12/31/98 4.850 50,000 7 (47,506.42) -4.917- Treas Note 5.750% 12/31/98 4.850 50,000 7 (47,506.42) -4.917 Treas Note 5.750% 12/31/98 4.850 50,000 7 (47,506.42) -4.917 PURCHASE Treas Note 5.750% 10/31/00 6.259 50,000 Treas Note 5.875% 02/15100 6.202 50,000 Treas Note 5.875% 02/15/00 6.202 50,000 Treas Note 5.875% 02/28/99 6.001 50,000 Treas Note 5.875% 02/28/99 6.001 50,000 Treas Note 5.875% 02/28/99 6.064 50,000 Treas Note 5.875% 02/28/99 6.064 50,000 Treas Note 6.750% 06/30/99 6.126 50,000 Treas Note 6.750% 06/30/99 6.126 50,000 CP Bear 03/03/97 5.450 50,000 —17— a_/ The abbreviations indicate the type of security purchased or sold; i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes, and Participation Certificates: Federal National Mortgage Association (FNMA), Farmers Home Administration Notes (FSA), Student Loan Marketing Association (SLMA), Small Business Association (SBA), Negotiable Certificates of Deposit (CD), Negotiable Certificates of Deposit Floating Rate (CD FR), Export Import Notes (EXMO, Bankers Acceptances (BA), Commercial Paper (CP), Government National Mortgage Association (GNMA), Federal Home Loan Bank. Notes (F RX), Federal Land Bank Bonds (FLB), Federal Home Loan Mortgage Corporation Obligation MMMC PC) & (FHLMC GMC), Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount Notes (FFC), Corporate Securities (CB), U.S. Ship Financing Bonds ('TITLE 3WS), International Bank of Redevelopment (IBRD), Tennessee Valley Authority (TVA) Medium Term Notes (MTN). b/ Purchase or sale yield based on 360 day calculation for discount obligations and Repurchase Agreements. c/ Repurchase Agreement. d! Par amount of securites purchased, sold, or redeemed. _el Securities were purchased and sold as of the same date. f/ Repurchase Agreement against Reverse Repurchase Agreement. g/ Outright purchase against Reverse Repurchase Agreement. h/ Security "SWAP" transactions. i/ Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. 18— NAME ALHAMBRA East West Federal Bank BEVERLY_HILLS City National Bank City National Bank City National Bank City National Bank CHICO North State National Bank North State National Bank FRESNO United Security Bank United Security Bank INGLEWOOD Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank LA MIRADA Southern California Bank Southern California Bank LOS ANGELES South Bay Bank Preferred Bank Preferred Bank Preferred Bank Preferred Bank Preferred Bank Oak Valley Community Bank PLACER Sierra West Bank TIME DEPOSIT DEPOSIT DATE YIELD PAR AMOUNT ($) MATURITY DATE 01 /15/97 5.190 2,000,000.00 04/16/97 11 /05/96 5.320 10,000,000.00 05/06/97 01/28/97 5.350 10,000,000.00 07/29/97 02/19/97 5.200 20,000,000.00 08/19/97 02/21/97 5.390 20,000,000.00 12/18/97 01/07/97 5.190 2,000,000.00 04/08/97 02/25/97 5.270 500,000.00 08/26/97 12/03/96 5.140 1,300,000.00 03/04/97 12/27/96 5.100 1,500,000.00 03/27/97 12/10/96 5.070 10,000,000.00 03/11/97 12/11/96 5.070 15,000,000.00 03/12/97 12/18/96 4.970 11,000,000.00 03/19/97 12/31/96 5.150 11,000,000.00 04/02/97 01/15/97 5.210 15,000,000.00 04/16/97 01 /16/97 5.220 10,000,000.00 04/16/97 01 /28/97 5.220 5,000,000.00 04/29/97 02/04/97 5.200 10,000,000.00 05/06/97 02/06/97 5.200 20,000,000.00 05/08/97 02/13/97 5.180 20,000,000.00 05/14/97 01/03/97 5.260 5,000,000.00 04/03/97 01 /15/97 5.230 5,000,000.00 04/16/97 12/04/96 5.210 500,000.00 03/05/97 12/18/96 4.930 5,000,000.00 03/18/97 12/20/96 5.020 4,000,000.00 03/20/97 01 /14/97 5.170 3,000,000.00 04/15/97 02/20/97 5.120 4,000,000.00 05/21 /97 02/26/97 5.120 2,000,000.00 05/27/97 9/25/96 5.52 12/05/96 5.270 —19- 500,000.00 3/25/97 2,800,000.00 06/06/97 NAME PETALUMA Bank of Petaluma REDDING North Valley Bank SACRAMENTO Sanwa Bank of California Union Bank of California Sanwa Bank of California Sanwa Bank of California SAN FRANCISCO Trans Pacific National Bank Bank of Canton California Bank of Canton California Bank of Canton California Bank of Canton California Bank of Canton California SAN LEANDRO Bay Bank of Commerce SAN LUIS OBISPO First Bank of San Luis Obispo First Bank of San Luis Obispo First Bank of San Luis Obispo First Bank of San Luis Obispo First Bank of San Luis Obispo SAN RAFAEL West America Bank West America Bank SANTA ANA Grand National Bank Grand National Bank Grand National Bank VACAVILLE Continental Pacific Bank TIME DEPOSIT DEPOSIT DATE YIELD PAR AMOUNT (S) MATURITY DATE 02/11 /97 5.290 1,000,000.00 08/12/97 09/23/96 5.500 3,000,000.00 03/25/97 01 /28/97 5.370 5,000,000.00 07/29/97 02/05/97 5.150 100,000,000.00 05/07/97 02/19/97 5.250 50,000,000.00 08/19/97 02/25/97 5.280 10,000,000.00 08/26/97 09/18/96 5.700 800,000.00 03/18/97 12/03/96 5.180 5,000,000.00 03/04/97 12/09/96 5.250 5,000,000.00 06/10/97 01/22/97 5.170 5,000,000.00 04/22/97 02/05/97 5.130 5,000,000.00 05/07/97 02/13/97 5.300 5,000,000.00 08/13/97 01/06/97 5.200 2,000,000.00 04/07/97 01/07/97 5.200 1,000,000.00 04/08/97 02/04/97 5.180 2,600,000.00 05/06/97 02/13/97 5.160 2,000,000.00 05/14/97 02/24/97 5.110 1,000,000.00 05/28/97 02/26/97 5.110 1,500,000.00 05/28/97 01/23/97 5.180 25,000,000.00 04/23/97 01/30/97 5.200 25,000,000.00 04/30/97 10/01 /96 5.300 95,000.00 04/01 /97 12/12/96 4.960 1,500,000.00 03/13/97 12/12/96 5.220 1,500,000.00 06/10/97 12/03/96 5.160 TOTAL TIME DEPOSITS AS OF FEBRUARY 28, 1997 1,000,000.00 03/04/97 $485,095,000.00 —20— DEMAND BANK DEPOSITS (000 omitted) DAILY BALANCES WARRANTS FEBRUARY PER BANKS OUTSTANDING 1. $428,316 $395649969 2. 4289,316 39564,969 3. 7679978 2,796,925 4. 3769644 2,521,930 5. 34%492 2,734,375 6. 3979349 5,736,245 7. 1749419 299009201 8. 1749419 2,900401 9. 174,419 29900401 10. 1629582 29,6299071 11. 1189,563 29469,917 12. 2089166 294699917 13. 3239080 29,3229031 14. 251,352 294789478 15. 251,352 294789478 16. 2519352 294859820 17. 2519352 294859820 18. 3179088 24959484 19. 560,574 29341,362 20. 5229705 292899823 21. 2539238 295049,347 22. 253,238 29504,347 23. 253438 2,504,347 24. 4359227 294089557 25. 509,715 1,0849521 26. 2739757 191289090 27. 3439094 192819028 28. 558,364 193709003 a/ AVERAGE DOLLAR DAYS $3349300 a/ The prescribed bank balance for February was $333,939,000.00. This consisted of $139,308,000.00 in compensating balances for services, $200,573,000.00 uncollected funds and a deduction of $5,942,000.00 for October delayed deposit credit. —21— DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS No. 1572 In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on February 19, 1997, has determined and designated the amount of money available for deposit and investment under said sections. In accordance with sections 16480.1 and 16480.2 of the Government Code, it is the intent that the money available for deposit or investment be deposited in bank accounts and savings and loan associations or invested in securities in such a manner so as to realize the maximum return consistent with safe and prudent treasury management, and the Board does hereby designate the amount of money available for deposit in bank accounts, savings and loan associ- ations, and for investment in securities and the type of such deposits and investments as follows: 1. In accordance with law, for deposit in demand bank accounts as Compensating Balance for Services $132,412,000 The active noninterest-bearing bank accounts designation constitutes a calendar -month average balance. For purposes of computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in such a manner as to realize the maximum return consistent with safe and prudent treasury management. 2. In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest - bearing deposits in banks and savings and loan associations as follows: (1) (2) (3) (4) (5) (6) (7) (8) (9) From 02/17/97 02/24/97 03/03/97 03/10/97 03/17/97 03/24/97 03/31 /97 04/07/97 04/14/97 To 02/21 /97 02/28/97 03/07/97 03/14/97 03/21 /97 03/28/97 04/04/97 04/11 /97 04/18/97 Transactions 145,100,000 (849,000,000) (1,000,400,000) (314,500,000) 687,300,000 13,200,000 (1,180,100,000) (508,000,000) 2,323,800,000 Time Deposits in various Financial Institutions In Securities (sections 16503a (section 16430)' and 16602)' $ 29,676,505,000 $ 470,595,000 $ 28,827,505,000 $ 470,595,000 $ 27,827,105,000 $ 470,595,000 $ 27,512,605,000 $ 470,595,000 $ 28,199,905,000 $ 470,595,000 $ 28,213,105,000 $ 470,595,000 $ 27,033,005,000 $ 470,595,000 $ 26,525,005,000 $ 470,595,000 $ 28,848,805,000 $ 470,595,000 Estimated Total $ 30,147,100,000 $ 29,298,100,000 $ 28,297,700,000 $ 27,983,200,000 $ 28,670,500,000 $ 28,683,700,000 $ 27,503,600,000 $ 26,995,600,000 $ 29,319,400,000 From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested in prime commercial paper under section 16430(e), Government Code. Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the amounts and for the same types of investments as specifically designated above. Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance of $132,412,000. POOLED MONEY INVESTMENT BOARD: Chairpers n Member Dated: February 19, 1997 *Government Code Member -22-