2000 06 07 IABz
P.O. Box 1504
`c, 78-495 CALLE TAMPICO (760) 777-7000
® LA QUINTA, CALIFORNIA 92253 (TDD) (760) 777-1227
AGENDA
INVESTMENT ADVISORY BOARD
Study Session Room
78-495 Calle Tampico- La Quinta, CA 92253
June 7, 2000 - 5:30 P.M.
I CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
II PUBLIC COMMENT - (This is the time set aside for public comment on any matter not scheduled on the agenda.)
III CONFIRMATION OF AGENDA
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on May 10, 2000 for the Investment Advisory
Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for April, 2000
B. Continued Consideration of Fiscal Year 2000/01 Investment Policy
C. Workplan for Fiscal Year 2000/01
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - May, 2000
B. Pooled Money Investment Board Reports - March, 2000
C. LAIF Answer Book Update
VII BOARD MEMBER ITEMS
VIII ADJOURNMENT'
4
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: June 7, 2000
ITEM TITLE:
Transmittal of Treasury Report
for April 30, 2000
BACKGROUND:
Attached please find the Treasury Report for April 30, 2000.
RECOMMENDATION:
Review, Receive and File the Treasury Report for April 30, 2000.
Finance Director
T 0 0
4,f t 4 4 Qum&
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falconer, Finance Director/Treasurer
SUBJECT: Treasurer's Report for April 30, 2000
DATE: May 30, 2000
Attached is the Treasurer's Report for the month ending April 30, 2000. The report is submitted to
the City Council each month after a reconciliation of accounts is accomplished by the Finance Dept.
The following table summarizes the changes in investment types for the month:
Investment
Beginning
Purchased
Sold/Matured
Other
Change
-Ending
Cash (1)
LAW
US Treasuries (2)
US Gov't Agencies (2)
Commercial Paper (2)
Mutual Funds
Total
$1,167,246
$10,832,650
$19,503,949
$19,790,293
$0
$5,348,920
$56 643 058
1,9901209
$1 990 209
755,339
259,690
999,686
$2 014 715
(8,337)
55,786
$47 449
411,907
10,572,960
21,485,821
19,846,079
0
4,349,234
$56 666 001
($755,339)
(259,690)
1,981,872
55,786
0
(999,686)
$22 943
I certify that this report accurately reflects all pooled investments and is in compliance with the California
Government Code; and ins 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 Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York
Monthly Custodian Report to determine the fair market value of investments at month end.
n M. Falconer I
ance Director/Treasurer
Sr-- 31 o �
Date
Footnote
(1) The amount reported in the other column represents the net increase (decrease) of deposits and
withdrawals from the previous month.
(2) The amount reported in the other column represents the amortization of premium/discount for the
month on US Treasury, Commercial Paper and Agency investments.
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068
CITY OF LA QUINTA
CITY
CITY
RDA RDA FA
BALANCE SHEET 04/30/00
FIXED
LONG TERM
FIXED LONG TERM FINANCING LONG TERM
GRAND
CITY ASSETS
DEBT
RDA
ASSETS DEBT AUTHORITY DEBT
TOTAL
ASSETS:
POOLED CASH
1,463,361.82
8,345,206.97
(786.84)
9,807,781.95
LQRP INVESTMENT IN POOLED CASH
805,000.00
805,000.00
INVESTMENTT-BILL/NOTES & OTHER
31,980,000.00
31,980,000.00
AUTO MALL CASH
309,118.44
309,118.44
LQRP CASH
61,988.86
61,966.86
BOND REDEMPTION CASH
11,069.61
28.73
11,098.34
BOND RESERVE CASH
BOND PROJECT CASH
13,210,297.40
593,838.24
13,804,135.64
BOND ESCROW CASH
PETTY CASH
1,000.00
1,000.00
CASH & INVESTMENT TOTAL
33,753,480.26
22,433,540.84
593,080.13
56,780,101.23
INVESTMENT IN LAND HELD FOR RESALE
ACCOUNTS RECEIVABLE
29,931.67
60,983.90
8,260,000.00
8,350,915.57
PREMIUM/DISCOUNT ON INVESTMENT
(90.423.90)
(11,552.08)
(12,123.07)
(114,099.05)
LQRP-ACCOUNTS RECEIVABLE
56,516.36
56,516.36
INTEREST RECEIVABLE
27,229.46
27,229.46
LOAN/NOTES RECEIVABLE
18,606.17
2,668,850.80
2,687,456.97
DUE FROM OTHER AGENCIES
127,984.00
127,984.00
DUE FROM OTHER GOVERNMENTS
DUE FROM OTHER FUNDS
785,501.19
741,656.90
1,527,158.09
DUE FROM RDA
7,113,127.20
7,113,127.20
INTEREST ADVANCE -DUE FROM RDA
1,776,774.34
1,776,774.34
ADVANCES TO OTHER FUNDS
170,780.58
170,780.58
NSF CHECKS RECEIVABLE
1,911.86
1,911.86
ACCRUED REVENUE
833.40
833.40
TRAVEL ADVANCES
2,013.00
2,013.00
EMPLOYEE ADVANCES
PREPAID EXPENSES
RECEIVABLE TOTAL
9,963,435.57
3,517,289.28
8,247,876.93
21,728,601.78
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
1,356,535.88 15,285,816.00
10,236,506.05
26,878,857.93
ACCUMULATED DEPRECIATION
(685,581.27)
(685,581.27)
AMOUNT AVAILABLE TO RETIRE L/T DEBT
3,395,117.03
3,395,117.03
AMOUNT TO BE PROVIDED FOR Lrr DEBT
1,677,482.02
95,221,384.06 8,260,000.00
105,158,866.08
TOTAL OTHER ASSETS
670,954.61 15,285,816.00
1,677,482.02
10,236,506.05 98,616,501.09 8,260,000.00
134,747,259.77
TOTAL ASSETS
44,390,045.44 15,285,816.00
1,677,482.02 25,950,830.12 10 236 506.05 98,616,501.09 8,840,957.06 8,260,000.00
213,258,137.78_
LIABILITY
ACCOUNTS PAYABLE
11,999.44
11,999.44
DUE TO OTHER AGENCIES
928,959.44
928,959.44
DUE TO OTHER FUNDS
575.00
1,517,278.09
9,305.00 1,527,158.09
INTEREST ADVANCE -DUE TO CITY
,
ACCRUED EXPENSES
PAYROLL LIABILITIES
46,924.20
46,924.20
STRONG MOTION INSTRUMENTS
3,584.78
3,584.78
FRINGE TOED LIZARD FEES
28,890.00
28,890.00
SUSPENSE
2,800.00
2,800.00
DUE TO THE CITY OF LA QUINTA
PAYABLES TOTAL
1,011,733.42
11,999.44 1,517,278.09
9,305.00 2,550,315.95
ENGINEERING TRUST DEPOSITS
SO. COAST AIR QUALITY DEPOSITS
ARTS IN PUBLIC PLACES DEPOSITS
427,971.30
427,971.30
LQRP DEPOSITS
15,164.00
15,164.00
DEVELOPER DEPOSITS
1,175,899.20
25,000.00
1,200,899.20
MISC. DEPOSITS
408,271.59
408,271.59
AGENCY FUND DEPOSITS
1,182,185.10
1,182,185.10
TOTAL DEPOSITS
3,194,327.19
40,164.00
3,234,491.19
DEFERRED REVENUE
8,270.67
8,260,000.00 8,268,270.67
OTHER LIABILITIES TOTAL
8,270.67
8,260,000.00 8,268,270.67
COMPENSATED ABSENCES PAYABLE
337,880.86
337,880.86
DUE TO THE CITY OF LA QUINTA
1,327,601.72
8,667,115.34
9,994,717.06
DUE TO COUNTY OF RIVERSIDE
12,486,237.00
12,466,237.00
DUE TO C.V. UNIFIED SCHOOL DIST.
10,068,148.75
10,068,148.75
DUE TO DESERT SANDS SCHOOL DIST.
BONDS PAYABLE
67,415,000.00
8,260,000.00 75,675,000.00
TOTAL LONG TERM DEBT
1,665,482.58
98,616,501.09
8,260,000.00 108,541,983.67
TOTAL LIABILITY
4,214,331.28
1,677,482.02 1,557,442.09
98,616,501.09
8,289,305.00 8,260,000.00 122,595,061.48
EQUITY -FUND BALANCE
40,175,714.16 15,285,816.00
24,393,388.03 10,236,506.05
571,652.06 90,663,076.30
TOTAL LIABILITY & EQUITY
44,390,045.44 15,285,816.00
1,677,482.02 25,950,830.12 10 236 506.05
98,616,501.09
8,840,957.06 8,260,000.00 213,258. 337.78
CASH & INVESTMENT TOTAL
56,780,101.23
PREMIUM/DISCOUNT ON INVESTMENT
(114,099,05)
TOTAL
56,666,002.18
U€�j
INVESTMENT ADVISORY BOARD Business Session No. B
Meeting Date: June 7, 2000
TITLE:
Continued Consideration of Fiscal Year 2000/01
Investment Policies
BACKGROUND:
Pursuant to State Legislation the City investment policies must be approved on an
annual basis by the City Council. This approval is done in June of each year.
During the last several months, the Board has met to update the City Investment
Policy.
Pursuant to the Investment Policy, the Board meets with the City Manager and City
Attorney to discuss the Investment Policy before they are forwarded to the City
Council for their consideration.
In addition, Board Member Moulin has submitted written materials dated May 30,
2000 expressing his concerns of Section IX - U.S. Government and Related Issues.
RECOMMENDATION:
Forward the revised Investment Policy to the City Council for their consideration with
an appropriate recommendation.
John M. Falconer, Finance Director
May 3012000
Mr. John M. Falconer, Treasurer
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Dear John:
Donald J. Moulin
78-863 Via Carmel
La Quinta, California 92253
(760) 564-1081
Concern with Investment Policy for 2000-2001
Assuming the Investment Policy for 2000-2001 presented for final approval at the June 7, 2000,
meeting of the IAB includes the same provisions as tentatively approved at the IAB meeting on
May 10, 2000, I intend to vote for approval, but will request that the minutes describe my
continuing concern with the investment limitations for securities of U.S. government agencies. I
drafted two paragraphs that are attached. I will ask that they be included in the minutes of the
June 7, 2000, meeting.
Please distribute the comments with the other material for the June 7 meeting so the other board
members have an opportunity to see them in advance. This is merely a repetition of the thoughts
I expressed at our previous meetings, but I do not want to surprise anyone. I would like it to be
covered during the discussion of the Investment Policy on the agenda.
Thanks.
Sin ely,
Donald J. Moulin
Board Member Moulin requests that the minutes covering the approval of the Investment Policy
for 2000/2001 explain his continuing concern with the U.S. Government and Related Issues
section on pages 9 and 10. Last year Board Member Moulin recommended that this section of
the Policy be revised to clearly distinguish between direct obligations of the U.S. government
backed as to principal and interest by its full faith and credit and obligations of U.S. government
agencies, instrumentalities and sponsored enterprises not backed by the full faith and credit of the
U.S. government. The Board agreed and changed the Policy to recognize this distinction, but
did not adopt Board Member Moulin's recommendation that, once this distinction is made, the
investment limitations recognize the difference in credit risk of guaranteed and non -guaranteed
financial instruments. Board Member Moulin believes that the investment limitations of 75 % of
the categories and 25 % for single issuer should be lower for non -guaranteed than for guaranteed
obligations as a recognition of the differing inherent risks. For example, the existing Policy
allows the City to invest simultaneously up to 25 % of the portfolio in FNMA obligations, 25 % in
FHLMC obiagations, 25 % in FHLB obligations and 25 % in Federal Farm Credit Bank
obligations. The purpose of first three of these agencies is to provide funds for home mortgage
loans. The latter agency makes loans to farmers. In such circumstances, the City would be
100% at risk for non -guaranteed obligations of U.S. agencies either highly influenced by the real
estate market or farm production and prices. Adverse conditions in the real estate and farm
markets periodically occur in our system, sometimes at the same time. Board Member Moulin
believes that the City subjects itself to unnecessary risk by allowing this concentration of its
portfolio, and he favors more restrictive limitations to lower the risk and diversify the portfolio.
He voted against approval of the Investment Policy in 1999 partly for this reason.
Board Member Moulin recognizes that the Treasurer exercises good judgment to diversify the
portfolio and would not concentrate the portfolio in similar risk U.S. agency securities.
However, Board Member Moulin believes that the Policy should require such prudence. An
example of similar prudence was shown by the Board and the Treasurer in their review of the
Investment Policy for LAIF. They recognized that the investments of LAIF have become more
risky, and the investment limitation in LAW was lowered from 35 % to 20% of the portfolio. At
the same time, investment limitations in commercial paper and in diversified management
companies in the form of money market mutual funds were increased to allow the Treasurer
greater flexibility in view of the restrictions placed on investments in LAIF. One change allows
investments in money market funds that invest in U.S. agency securities, relaxing the former
restriction to funds investing only in direct issues of the U.S. Treasury. Board Member Moulin
agrees with these changes, but notes that the addition of money market funds investing in U.S.
agency securities increases the City's aforementioned exposure to these non -guaranteed
obligations. He believes that the Investment Policy, as it does in the LAIF situation, should
recognize the risks and include a more restrictive limitation for investments in non -guaranteed
U.S. agency securities.
INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
June 7, 2000
Workplan for Fiscal Year 2000/01
BACKGROUND:
Business Session No. C
The of this report is to obtain from the Investment Advisory Board issues
purpose
and items that Staff should consider in developing a workplan and budget for
Fiscal Year 2000/01.
Based upon recent meetings, Staff has not identified any items that are in addition
to the monthly recurring agenda items.
RECOMMENDATION:
Provid Staff with furt r direction.
Jo n M. Falconer, Finance Director
CITY OF LA QUINTA
Investment Policy
Table of Contents
Section
Tom
pie
Executive Summary
2
I
General Purpose
4
II
Investment Policy
4
III
Scope
4
IV
Objectives
5
► Safety
► Liquidity
► Yield
► Diversified Portfolio
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 Limitations
9
Investment Pools
13
XI
Safekeeping and Custody
13
XII
Interest Earning Distribution Policy
13
XIII
Internal Controls and Independent Auditors
14
XIV
Benchmark
16
XV
Reporting Standards
16
XVI
Investment of Bond Proceeds
17
XVII
Investment Advisory Board - City of La Quinta
17
XVIII
Investment Policy Adoption
17
Appendices: A. Summary of Authorized Investments and Limitations
19
B. Municipal Code Ordinance 2.70 - Investment Advisory Board
20
C. Municipal Code Ordinance 3.08 - Investment of Moneys and Funds
21
D. Segregation of Major Investment Responsibilities
23
E. Listing of Approved Financial Institutions
24
F. Broker/Dealer Questionnaire and Certification
25
G. Investment Pool Questionnaire
30
H. Glossary
34
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.
Within the constraints of safety, liquidity and yield, the City will endeavor to
maintain a diversified portfolio by allocating assets between different types of
investments within policy limitations.
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. As part
of the annual audit of the City of La Quinta's financial statements the independent
auditor reviews the adequacy of those controls and comments if weaknesses are
found.
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 Investment Policy 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 A - Summary of Authorized Investments and Limitations. At
least two bids will be required of investments in the authorized investment vehicles.
Collateral ization will be required for Certificates of Deposits in excess of $100,000.
Collateral will always be held by an independent third party from the institution that
sells the Certificates of Deposit to the City. Evidence of compliance with State
Collateral ization policies must be supplied to the City and retained by the City
Treasurer.
The City of La Quinta Investment Policy 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 Investment Policy 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
City of La Quinta
Statement of Investment Policy
July 1, 2000 through June 30, 2001
Adopted by the City Council on
. . . a
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 as the primary objective 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.
III SCOPE
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
IN. Special Revenue
► Capital Projects
► Debt Service
► Internal Service
► Trust and Agency
► Any new fund types and fund(s) that may be created.
2
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 sufficient liquid funds are available to meet
anticipated demands. Furthermore since all possible cash demands cannot be
anticipated the portfolio should be diversified and consist of securities with
active secondary or resale markets.
5
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.
4. Diversified Portfolio
Within the constraints of safety, liquidity and yield, the City will endeavor to
maintain a diversified portfolio by allocating assets between different types of
investments within policy limitations.
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
R
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.
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.
VIII AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City of La Quinta Investment Policy 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
VA
► 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.
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 deposit or investment:
A. Insurance - Public Funds shall be deposited only in financial
institutions having accounts insured by the Federal Deposit
Insurance Corporation (FDIC)
B. Collateral - The amount of City of La Quinta deposits or
investments not insured by the FDIC -shall be 1 10% collateralized
by securities' or 150% mortgages' market values of that amount
of invested funds plus unpaid interest earnings.
C. Disclosure - Each financial institution maintaining invested funds
in excess of the FDIC insured amount shall furnish the City a copy
of the most recent Annual Call Report.
The City shall not invest in excess of the FDIC insured amount in
banking institutions which do not disclose to the city a current
listing of securities pledged for collateral ization in public monies.
IX AUTHORIZED INVESTMENTS AND LIMITATIONS
The City Treasurer will be permitted to invest in the investments summarized in the
Appendix A.
I. STATE OF CALIFORNIA AND CITY OF LA QUINTA LIMITATIONS
As provided in Sections 16429.1, 53601, 53601.1, and 53649 of the
Government Code, the State of California limits the investment vehicles
available to local agencies as summarized in the following paragraphs. Section
53601, as now amended, provides that unless Section 53601 specifies a
limitation on an investment's maturity, no investments with maturities
exceeding five years shall be made. The City of La Quinta Investment Policy
has specified that no investment may exceed two years.
State Treasurer's Local Agency Investment Fund (LAIF) - As authorized in
Government Code Section 16429.1 and by LAIF procedures, local government
agencies are each authorized to invest a maximum of $30 million per account
in this investment program administered by the California State Treasurer. The
City's investment in the State Local Agency Investment Fund (LAIF) is allowable
as long as the average maturity of its investment portfolio does not exceed two
years, unless specific approval is authorized by the City Council. The City of La
Quinta has two accounts with LAIF. The City of La Quinta Investment Policy
has a limitation of 35% 20% (with a commitment from staff to manage at
15%) of the portfolio.
U.S. Government and Related Issues - As authorized in Government Code
Sections 53601 (a) through (n) as they pertain to surplus funds, this category
includes a wide variety of government securities which include the following:
• Local government bonds or other indebtedness and State bonds or other
indebtedness. The City of La Quinta Investment Policy does not allow
investments in local and state indebtedness
• U.S. Treasury bills, notes and bonds directly issued and backed by the
full faith and credit of the U.S. Government. The City of La Quinta
Investment Policy limits investments in U.S. Treasury issues to 75% of
the portfolio.
• U.S. Government agencies issuing securities backed as to principal and
interest by the full faith and credit of the U.S. Government. Government
National Mortgage Association (GNMA) is such an agency. The City of
La Quinta Investment Policy has a limitation of 75% of the portfolio with
a single issuer limit of 25% of the portfolio.
• U.S. Government instrumentalities and agencies issuing securities not
backed as to principal and interest by the full faith and credit of the U.S.
Government. The Federal Home Loan Bank (FHLB), Federal Farm Credit
Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit
Bank (FICB) are such issuers. The City of La Quinta Investment Policy
has a limitation of 75% of the portfolio with a single issuer limit of 25%
of the portfolio.
• Federal government sponsored enterprises (GSEs) issuing securities not
backed as to principal and interest by the full faith and credit of the U.S.
Government. These GSEs include Federal National Mortgage Association
(FNMA), Federal Home Loan Mortgage Corporation (FHMC) and Student
Loan Marketing Association (SLMA) which are publicly owned. The City
of La Quinta Investment Policy has a limitation of 75% of the portfolio
with a single issuer limit of 25% of the portfolio.
Bankers' Acceptances - As authorized in Government Code Section 53601 (f),
40% of the portfolio may be invested in Bankers' Acceptances, although no
more than 30% of the portfolio may be invested in Bankers' Acceptances with
any one commercial bank. Additionally, the maturity period cannot exceed 270
days; however, Bankers' Acceptances are seldom marketed with maturities in
excess of 180 days. The City of La Quinta Investment Policy does not allow
investment in Bankers' Acceptances.
Commercial Paper - As authorized in Government Code Section 53601(g), 15%
of the portfolio may be invested in commercial paper of the highest rating (A-1
or P-1) as rated by Moody's or Standard and Poor's, with maturities not to
exceed 180 days. This percentage may be increased to 30% if the dollar
weighted average maturity does not exceed 31 days. The City of La Quinta
Investment Policy only allows investments in commercial paper to 30% of the
portfolio with a maximum maturity of 39 90 days per issue. There are a
number of other qualifications regarding investments in commercial paper based
on the financial strength of the corporation and the size of the investment. The
City of La Quinta Investment Policy also limits Commercial Paper to no more
than $+ 2 million dollars in any one entity at any time for no more than W 90
days. The City of La Quinta follows The Government Code with the following
two (2) restrictions of a maximum maturity per issue of 90 days and $2 million
per issuer.
Negotiable Certificates of Deposit- As authorized in Government Code Section
53601(h), 30% of the portfolio may be invested in negotiable certificates of
'deposit issued by commercial banks and savings and loan associations. The
City of La Quinta Investment Policy does not allow investment in Negotiable
Certificates of Deposit.
Repurchase and Reverse Repurchase Agreements - As authorized in Government
Code Section 53601(i), these investment vehicles are agreements between the
local agency and seller for the purchase of government securities to be resold
at a specific date and for a specific amount. Repurchase agreements are
generally used for short term investments varying from one day to two weeks.
There is no legal limitation on the amount of the repurchase agreement.
However, the maturity period cannot exceed one year. The market value of
securities underlying a repurchase agreement shall a at least 102% of the funds
invested and shall be valued at least quarterly. The City of La Quinta
Investment Policy does not allow investment in Repurchase Agreements.
The term "reverse repurchase agreement" means the sale of securities by the
local agency pursuant to an agreement by which the local agency will
repurchase such securities on or before a specific date and for a specific
amount. As provided in Government Code Section 53635, reverse repurchase
agreements require the prior approval of the City Council. The City of La Quinta
Investment Policy does not allow investment in Reverse Repurchase
Agreements.
Corporate Notes - As authorized in Government Code Section 53601 (j), local
agencies may invest in corporate notes for a maximum period of five years in
an amount not to exceed 30% of the agency's portfolio. The notes must be
issued by corporations organized and operating in the United States or by
depository institutions licensed by the United States or any other state and
operating in the United States. The City of La Quinta Investment Policy does
not allow investment in corporate notes.
Diversified Management Companies - As authorized in Government Code
Section 53601 (k), local agencies are authorized to invest in shares of
beneficial interest issued by diversified management companies (mutual funds)
in an amount not to exceed 20% of the agency's portfolio. There are a number
of other qualifications and restrictions regarding allowable investments in
corporate notes and shares of beneficial interest issued by mutual funds which
include (1) attaining the highest ranking or the highest letter and numerical
rating provided by not less than two of the three largest nationally recognized
rating services, or (2) having an investment advisor registered with the
Securities and Exchange Commission with not less than five years' experience
investing in the securities and obligations and with assets under management
in excess of five hundred million dollars ($500,000,000). The City of La
Quinta Investment Policy only allows investments in mutual funds that are
11
money market funds maintaining a par value of $1 per share that invests in
direct issues of the U. S. Treasury and/or US Agency Securities with an average
maturity of their portfolio not exceeding 60/90 days and the City limits such
investments to 20% of the portfolio.
Mortoaae-Backed Securities - As authorized in Government code Section
53601(n), local agencies may invest in mortgage -backed securities such as
mortgage pass -through securities and collateralized mortgage obligations for a
maximum period of five years in an amount not to exceed 20% of the agency's
portfolio. Securities eligible for investment shall have a "A" or higher rating.
The City of La Quinta Investment Policy does not allow investment in Mortgage -
Backed Securities.
Financial Futures and Financial Option Contracts - As authorized in Government
Code Section 53601.1, local agencies may invest in financial futures or option
contracts in any of the above investment categories subject to the same overall
portfolio limitations. The City of La Quinta Investment Policy does not allow
investments in financial futures and financial option contracts.
Certificates of Deposit - As authorized in Government Code Section 53649,
Certificates of Deposit are fixed term investments which are required to be
collateralized from 1 10% to 150% depending on the specific security pledged
as collateral in accordance with Government Code Section 53652. There are
no portfolio limits on the amount or maturity for this investment vehicle.
Collateral ization will be required for Certificates of Deposits in excess of the
FDIC insured amount. The type of collateral is limited to City authorized
investments. Collateral will always be held by an independent third party from
the institution that sells the Certificates of Deposit to the City. Evidence of
compliance with State Collateral ization policies must be supplied to the City and
retained by the City Treasurer as follows:
1. Certificates of Deposits Insured by the FDIC.
The City Treasurer may waive collateral ization of a deposit that is
federally insured.
2. Certificates of Deposit in excess of FDIC Limits.
The amount not federally insured shall be 110% collateralized by
securities or 150% mortgages market value of that amount of invested
funds plus unpaid interest earnings.
The City of La Quinta Investment Policy limits the percentage of Certificates of
Deposit to 60% of the portfolio.
12
Sweep Accounts - As authorized by the City Council, a U.S. Treasury and/or
U.S. Agency Securities Money Market Sweep Account with a $50,000 target
balance may be maintained in conjunction with the checking account.
Derivatives - The City of La Quinta Investment Policy does not allow
investment in derivatives.
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 Investment Policy has authorized 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 $30 million. In
addition, LAIF 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 allow investments with any other Investment Pool - County Pools
or Third Party Pools.
XI SAFEKEEPING AND CUSTODY
All security transactions of the City of La Quinta Investment Policy 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, broker or dealer. Money
market mutual funds and LAIF shall also operate on a DVP basis to be considered for
investment.
XII INTEREST EARNING DISTRIBUTION POLICY
Interest earnings is generated from pooled investments and specific investments.
13
1. Pooled 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 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.
. 1 , . 41119 , ;
The City Treasurer shall establish a system of internal controls to accomplish the
following objectives:
0. 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:
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.
14
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 shall 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.
The System of Internal Controls developed by the City, shall be reviewed annually by
the independent auditor in connection with the annual audit of the City of La Quinta's
Financial Statements.
The independent auditor's 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 auditor's letter. The
management letter comments pertaining to cash and investment activities and the City
Treasurer's response shall be provided to the City's Investment Advisory Board for
their consideration. Following the completion of each annual audit, the independent
auditor shall meet with the Investment Advisory Board and discuss the auditing
procedures performed and the review of internal controls for cash and investment
activities.
15
XIV 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 Investment Policy will use the six month U.S. Treasury Bill as
a benchmark when measuring the performance of the investment portfolio.
XV REPORTING STANDARDS
SB564 section 3 requires a quarterly report to the Legislative Body of Investment
activities. The City of La Quinta Investment Advisory Board 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 cash and investments under the
authority of the Treasurer.
The Treasurers Report shall summarize cash and investment activity and changes in
balances and include the following:
► A certification by City Treasurer;
► A listing of Purchases and sales/maturities of investments;
► Cash and Investments categorized by authorized investments, except for
LAIF which will be provided quarterly and show yield and maturity;
► Comparison of month end actual holdings to Investment Policy
limitations;
► Current year and prior year monthly history of cash and investments for
trend analysis;
► Balance Sheet;
► Distribution of cash and investment balances by fund;
► A comparison of actual and surplus funds;
► A year to date historical cash flow analysis and projection for the next six
months.
KWEIM 1 k Kola:• --•
The City's Investment Policy shall govern bond proceeds and bond reserve fund
investments. California Code Section 5922 (d) governs the investment of bond
proceeds and reserve funds in accordance with bond indenture provisions which shall
be structured in accordance with the City's Investment Policy.
W
Arbitrage Requirement
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.
XVII 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 usually meets on
a monthly basis, but at least Iquarterly to (1) review at least annually the City's
Investment Policy and recommend appropriate changes; (2) review monthly Treasury
Report and note compliance with the Investment Policy and adequacy of cash and
investments for anticipated obligations; (3) receive and consider other reports provided
by the City Treasurer; (4) meet with the independent auditor after completion of the
annual audit of the City's financial statements, and receive and consider the auditor's
comments on auditing procedures, internal controls and findings for cash and
investment activities, and; (5) serve as a resource for the City Treasurer on matters
such as proposed investments, internal controls, use or change of financial institutions,
custodians, brokers and dealers.
The appendices include City of La Quinta Ordinance 2.70 entitled Investment Advisory
Board Provisions.
XVIII 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.
17
Appendix A
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18
Appendix B
Chapter 2.70
INVESTMENT ADVISORY BOARD PROVISIONS
Sections:
2.70.010 General Rules Regarding Appointment.
2.70.020 Board meetings.
2.70.030 Board functions.
2.70.010 General rules regarding appointment
A. Except as set out below, see Chapter 2.06 for General Provisions.
B. 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".
C. 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.
D. 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 that have a bearing on the
appropriateness of that member's service on the board. Such matters may include, but are not
limited to, changes in employment, changes in residence, or changes in clients.
2.70.020 Board meetings.
The Board usually will meet monthly, 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.
A. The principal functions of the Board are: (1) review at least annually the City's Investment
Policy and recommend appropriate changes; (2) review monthly Treasury Report and note
compliance with the Investment Policy and adequacy of cash and investments for anticipated
obligations; (3) receive and consider other reports provided by the City Treasurer; (4) meet
with the independent auditor after completion of the annual audit of the City's financial
statements, and receive and consider the auditor's comments on auditing procedures, internal
controls, and findings for cash and investment activities, and; (5) serve as a resource for the
City Treasurer on matters such as proposed investments, internal controls, use or change of
financial institutions, custodians, brokers and dealers.
B. The Board will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting.
19
Appendix C
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)
011
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)
21
Appendix D
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
Manager
Record investment transactions in City's
accounting records Accounting Manager
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
22
Appendix E
LISTING OF APPROVED FINANCIAL INSTITUTIONS
1. Banking Services - Wells Fargo Bank, Government Services,
patio Los Angeles, California
2. Custodian Services - Bank of New York, Los Angeles, California
3. Deferred Compensation - International City/County Management
Association
Retirement Corporation
4. Broker/Dealer Services - Merrill Lynch, Indian Wells, CA
Morgan Stanley Dean Witter, San Frai
Los Angeles, California
Salomon 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 - US Bank
1991 RDA Project Area 1 - US Bank
1992 RDA Project Area 2 - US Bank
1994 RDA Project Area 1 - US Bank
1995 RDA Project Area 1 & 2 - US Bank
Assessment Districts - US Bank
No Changes to this listing may be made without City Council approval.
23
Appendix F
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm:
2. Address:
3.
3
Telephone: ( )
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):
24
% Repos
% Reverse Repos
% CMO's
% Derivatives
% Stocks/Equities
% Other (specify):
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 y u 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
25
Do yqu have any current, or pending complaints that are unreported to the
NASD?
Yes No If yes, please provide action taken
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 No
If yes, explain primary and excess coverage and carriers.
17. What portfolio information, if any, do you require from your clients?
26
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
20. Does your firm have professional liability insurance. Yes No
If yes, please provide the insurance carrier, limits and expiration date.
21.
22.
Please list your NASD Registration Number
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'
*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.
27
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
Date Title
Partner*
Appendix G
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?)
29
d. How are gains/losses reported? Factored monthly or only when realized?
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?
SECURI T Y
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
30
method)?
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?
31
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?
32
Appendix H
GLOSSARY .
(Adopted from the Municipal Treasurers Association)
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 and/or
Government -sponsored enterprises.
ASKED: The price at which securities are
offered.
BANKERS' ACCEPTANCE (BA): A draft or bill of
exchange accepted by a bank or trust company.
The accepting institution guarantees payment of
the bill, as well as the issuer.
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): A time deposit
with a specific maturity evidenced by a
certificate. Large -denomination CD's are
typically negotiable.
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.
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
33
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 3.
below original offering price shortly after sale
also is considered to be at a discount.
DISCOUNT SECURITIES: Non -interest bearing
money market instruments that are issued a
discount and redeemed at maturity for full face
value, e.g., U.S. Treasury Bills.
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.
1. FNMAs (Federal National Mortgace
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
34
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.
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.
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 Mortgage
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 DEPOSITOR 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.
35
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.
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
$30,000,000 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
W
Exchange Commission (SEC) -registered securities
broker -dealers, banks and a few unregulated
firms.
QUALIFIED PUBLIC DEPOSITORIES: A financial
institution which does not claim exemption from
the payment of any sales or compensating use or
ad valorem taxes under the laws of this state,
which has segregated for the benefit of the
commission eligible collateral having a value of
not less than its maximum liability and which has
been approved by the Public Deposit Protection
Commission to hold public deposits.
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 (RRP or
RevRepo) - A holder of securities sells these
securities to an investor with an agreement to
repurchase them at a fixed price on a fixed date.
The security "buyer" in effect lends the "seller"
money for the period of the agreement, and the
terms of the agreement are structured to
compensate him for this. Dealers use RRP
extensively to finance their positions. Exception:
When the Fed is said to be doing RRP, it is
lending money, that is, increasing bank reserves.
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 necessities to be
payment due within one week.
TREASURY BILLS: A non -interest bearing
discount security issued by the U.S. Treasury to
finance the national debt. Most bills are issued
to mature in three months, six months, or one
year.
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.
37
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.
i
INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
June 7, 2000
Month End Cash Report - May 2000
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. This report also includes other statistical investment data
for the Board to review.
RECOMMENDATION:
Information item only.
n M. Falconer, Finance Director
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FRB: H.15--Selectod Interested Rates, Web -Only Daily Update-- May 26, 2000
http://www.federalreserve.gov/Releases/H 15/update/
Federal Reserve Statistical Release
H.15
Selected Interest Rates
Release Date: May 26, 2000
H.15: Release I Release dates I About I ASCII I Historical data I Daily update
H.15 Daily Update
The weekly release is posted on Monday. Daily updates of the weekly release are posted
Tuesday through Friday on this site.
H.15 DAILY UPDATE: WEB RELEASE ONLY
SELECTED INTEREST RATES
Yields in percent per annum
Instruments
SELECTED INTEREST RATES
Federal funds (effective) 1 2 3
Commercial paper 3 4 5 6
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
Bankers acceptances (top rated) 3 4 7
3-month
6-month
CDs ( secondary market)
1-month
3-month
6-month
Eurodollar deposits (London) 3 9
1-month
3-month
6-month
Bank prime loan 2 3 10
Discount window borrowing 2 11
U.S. Government securities
Treasury bills
Auction high 3 4 12
3-month
For immediate release
May 26, 2000
Mon Tue Wed Thu
May 22 May 23 May 24 May 25
6.52
6.47
6.48
6.56
6.48
6.48
6.48
6.48
6.53
6.54
6.55
6.54
6.62
6.61
6.62
6.60
6.50
6.48
6.49
6.48
6.59
6.57
6.54
6.58
6.65
6.64
6.64
6.63
6.70
6.70
6.64
6.64
6.88
6.85
6.84
6.84
6.54
6.55
6.54
6.56
6.76
6.76
6.76
6.78
7.01
6.99
6.99
7.04
6.53
6.53
6.53
6.56
6.78
6.78
6.75
6.78
7.00
7.00
7.00
7.03
9.50
9.50
9.50
9.50
6.00
6.00
6.00
6.00
5.81
1 of 3 05/31/2000 8:27 AM
FRB: H.15--Selected Interested Rates, Web -Only Daily Update-- May 26, 2000
http://www.federalreserve.gov/Releases/H 15/update/
6-month
1-year
Secondary market 3 4
3-month
6-month
1-year
Treasury constant maturities
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite
Over 10 years (long-term) 14
Corporate bonds
Moody's seasoned
Aaa
Baa
State & local bonds 15
Conventional mortgages 16
6.13
5.71
5.84
5.75
5.68
6.12
6.14
6.13
6.09
5.89
5.89
5.89
5.88
6.01
6.01
5.92
5.85
6.42
6.43
6.41
6.37
6.29
6.30
6.29
6.27
6.81
6.83
6.79
6.71
6.75
6.77
6.76
6.69
6.66
6.68
6.71
6.64
6.69
6.70
6.72
6.63
6.44
6.45
6.47
6.39
6.58
6.58
6.61
6.50
6.18
6.17
6.19
6.11
6.52 6.51
8.05 8.06
9.01 9.00
6.54 6.45
8.04 7.95
8.99 8.89
6.01
FOOTNOTES
1. The daily effective federal funds rate is a weighted average of rates
on trades through N.Y. brokers.
2. Weekly figures are averages of 7 calendar days ending on Wednesday of
the current week; monthly figures include each calendar day in the
month.
3. Annualized using a 360-day year or bank interest.
4. On a discount basis.
5. Interest rates interpolated from data on certain commercial paper
trades settled by The Depository Trust Company. The trades represent
sales of commercial paper by dealers or direct issuers to investors
(that is, the offer side). See Board's Commercial Paper -Web pages
(http://www.federalreserve.gov/releases/cp) for more information.
6. The 1-, 2-, and 3-month rates are equivalent to the 30-, 60-, and
90-day dates reported on the Board's Commercial Paper Web page.
7. Representative closing yields for acceptances of the highest rated
money center banks. Source: Telerate, Inc.
8. An average of dealer offering rates on nationally traded certificates
of deposit.
9. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time.
10. Rate posted by a majority of top 25 (by assets in domestic offices)
insured U.S.-chartered commercial banks. Prime is one of several base
rates used by banks to price short-term business loans.
11. Rate for the Federal Reserve Bank of New York.
12. Auction date for daily data; weekly and monthly averages computed
on an issue -date basis. Data are stop yields from uniform -price
auctions, rounded to two decimal places. (The U.S. Treasury
publishes stop yields to three decimal places at
http://www.publicdebt.treas.gov).
13. Yields on actively traded issues adjusted to constant maturities.
Source: U.S. Treasury.
2 of 3 05/31/2000 8:27 AM
FRB: H.15--Selected Interested Rates, Web -Only Daily Update-- May 26, 2000 http://www.federalreserve.gov/Releases/H 15/update/
14. Unweighted average of rates on all outstanding bonds neither due nor
callable in less than 10 years.
15. Bond Buyer Index, general obligation, 20 years to maturity, mixed
quality; Thursday quotations.
16. Contract interest rates on commitments for fixed-rate first mortgages.
Source: FHLMC.
DESCRIPTION OF THE TREASURY CONSTANT MATURITY SERIES
Yields on Treasury securities at "constant maturity" are interpolated
by the U.S. Treasury from the daily yield curve. This curve, which
relates the yield on a security to its time to maturity, is based on
the closing market bid yields on actively traded Treasury securities in
the over-the-counter market. These market yields are calculated from
composites of quotations obtained by the Federal Reserve Bank of New
York. The constant maturity yield values are read from the yield curve
at fixed maturities, currently 3 and 6 months and 1, 2, 3, 5, 7, 10, 20,
and 30 years. This method provides a yield for a 10-year maturity, for
example, even if no outstanding security has exactly 10 years remaining
to maturity. In estimating the 20-year constant maturity, the Treasury
incorporates the prevailing market yield on an outstanding Treasury bond
with approximately 20 years remaining to maturity.
H.15: Release I Release dates About ASCII I Historical data I Daily update
Home I Statistical releases
To comment on this site, please fill out our feedback form.
Last update: May 26, 2000
3 of 3 05/31/2000 8:27 AM
FRB:Commercial Paper Rates and Outstandings
http://www.federalreserve.gov/Releases/CP/
Federal. Reserve Release
Commerc i ial Paper
Release I About I Outstanding I Historical discount rates I Historical outstanding
.Data as of May 30, 2000 Volume
Commercial Paper Rates and Outstandings Statistics
Derived from data supplied by The Depository Trust Company 2000:01
Posted May 31, 2000
Yield curve
Money market basis
Percent
1 7 15 30 150 90
Da ya to Mat rr rity
Financial — — — Nanfinanaial •----d2%P2
Discount rate spread
Thirty -day A2/P2 less AA nonfinancial commercial paper (daily)
Basis points
7.2
7.1
7.0
6.8
6.8
6.7
6.6
6.5
6.4
110
100
90
80
01 MAY98 09AUG98 17NOV98 25FE939 OW UN99 13SEP99 220EC99 31 MARDO OQJ ULSO
--- A2/P39pread,5—day moving average
It
,r
Ii
1 of 3
05/31/2000 8:27 AM
FRB:Commercial Paper Rates and Outstandings
http://www.federalreserve.gov/Releases/CP/
Discount rate history
Thirty -day commercial paper (daily)
a
r��rwr+wir.
' � �4 � ■a g+. rid p�
Percent
8
r� 7
�I 8"
1 1
5
14
1
01 MAY98 09AUG98 17 NOV98 25FEE99 05J U N 9g 13SE P99 22❑ EG99 31 MAROO 09J U LOO
_ Fneneial — — — Nonfinancial ••••• A2/P2
Outstandings
Weekly (Wednesday), seasonally adjusted
Billions of dollars
12+CIO ,
Billions of dollars
320
310
1100 � � ,� 300
290
`+ 280
1c 270
260
250
2W
220
210
01MAY98 09AUG98 17NOV9a 25FE999 05JUN99 13SEP99 22❑EG99 31MAROO 09JULOO
Finencial — — — Nonfinancial
The daily commercial paper release will usually be available before 11:00am EST. However, the
Federal Reserve makes no guarantee regarding the timing of the daily commercial paper release.
When the Federal Reserve is closed on a business day, yields for the previous business day will
appear in the historical discount rates table. This policy is subject to change at any time without
notice.
2 of 3
05/31/2000 8:27 AM
FRB: Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP/
Commercial paper outstanding
Commercial paler outstanding, miscellaneous categories
Release I About I OutstandHistorical discount rates I Historical outstandings
Home I Statistical releases
To comment on this site, please fill out our feedback form.
Last update: May 31, 2000
of 3 05/31/2000 8:27 AM
LAIF Performance Report, Philip Angelides
http://www.treasurer.ca.gov/Stolperf htm
Corporate
E
r
Commercial
Paper
27.16%
Bank
Acceptz
0.09%
a INTO"
�I
Pooled Money Investment Account
Portfolio Composition
4 .0 Billion
Reverses 04/30/00
Loans 4.25% -2.05%a o Treasuries
�
9.64 to
CD's/BN's
23.52%
Deposits
81%
Ilortgages
0.03%
Agencies
23.85%
■ Treasuries
o Time Deposits
■ Mortgages
13 Agencies
■ CD's/BN's
11 Bankers Acceptance
■ Repo
■ Commercial Paper
■ Corporate Bonds
o Loans
■ Reverses
2 of 2 05/31 /2000 8:27 AM
LAIF Perfon-nap-ce Report, Philip Angelides http://www.treasurer.ca.gov/Stolperfhtm
A
Philip Angei aes, State Treasurer
Inside the State Treasurer's Office
Local Agency Investment Fund
LAIF Performance
Reporting Date:
Effective Date:
Quarter Yield:
Daily:
Year:
Life:
Quarter Ending 3/31/00
Apportionment Rate:
Earnings Ratio:
Fair Value Factor:
Monthly Average For April:
05/24/00
05/23/00
6.08%
6.22%
5.61%
183
5.80%
.00015841267567897
.997765840
6.014%
I of
05/31/2000 8:27 AM
INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
June 7, 2000
Pooled Money Investment Board Report
for March 2000
BACKGROUND:
Correspondence & Written
Material Item B
The Pooled Money Investment Board Report for March, 2000 is included in the
agenda packet.
RECOMMENDATION:
Receive & File
Joh6 M. Falconer, Finance Director
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
POOLED MONEY INVESTMENT BOARD REPORT
MARCH 2O00
TABLE OF CONTENTS
SUMMARY...........................................................................1
SELECTED INVESTMENT DATA.............................................2
PORTFOLIO COMPOSITION...................................................3
INVESTMENT TRANSACTIONS...............................................4
TIMEDEPOSITS..................................................................17 .-
BANK DEMAND DEPOSITS...................................................26
POOLED MONEY INVESTMENT BOARD DESIGNATION .......... 27
POOLED MONEY INVESTMENT ACCOUNT.
SUMMARY OF INVESTMENT DATA
A COMPARISON OF MARCH. 2000 WITH MARCH 1999
(DOLLARS IN THOUSANDS)
Average Daily Portfolio
Accrued Earnings
Effective Yield
'.MARCH 3�D0 Nt�IR�H i�� Ei
Hi0.C+lGE
$ 33,979,494 $ 33,089,763 $ +889,731
$ 168,381 $ 144,352 +249029
5.851 5.136 +.715
Average Life -Month End (In Days) 201 199 +2
Total Security Transactions
Amount
Number
Total Time Deposit Transactions
Amount
Number
Average Workday Investment Activity
Prescribed Demand Account Balances
For Services
For Uncollected Funds
$
191"1,306
$
1999389137
-496,831
431
439
-8
$
1,241,695
$
828,600
+413,095
115
73
+42
$
899,261
$
902,902
-3,641
$
168,433
$
2269642
-58,209
$
153,162
$
132,450
+20,712
1
PHILIP ANGELIDES
TREASURER
STATE. OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
MARCH 31, 2000
PERCENTAGE
TYPE OF SECURITY
AMOUNT
PERCENT
CHANGE FROM
PRioR MoNTH
Government
Bills
$ 19373,355
4.03
+0.36
Bonds
0
0.00
0.00
Notes
19998,424
5.87
-0.30
Strips
0
0.00
0.00
Total Government
$ 313710779
9.90
+0.06
Federal Agency Coupons
$ 31,5899987
10.55
+0.49
Certificates of Deposit
5,858,704
17.20
+7.14
Bank Notes
198909014
5.55
+0.12
Bankers' Acceptances
0
0.00
0.00
Repurchases
0
0.00
0.00
Federal Agency Discount Notes
5,129,982
15.06
+0.27
Time Deposits
39178,490
9.33
+0.67
GNMAs
1,395
0.00
0.00
Commercial Paper
6,860,354
20.14
-2.54
FHLMC
139396
0.04
0.00
Corporate Bonds
2,581,581
7.59
+0.43
Pooled Loans
1,9289224
5.66
-0.25
GF Loans
0
0.00
0.00
Reversed Repurchases
(348,170)
-1.02
+0.28
Total (All Types)
$ 3490559726
100.00
INVESTMENT ACTIVITY
MARCH 2O00
FEBRUARY 2000
NUMBER
AMOUNT
NUMBER
AM_
Pooled Money
431
$199"1,306
626
$ 28,657,191
Other
26
22,382
16
56,149
Time Deposits
115
19241,695
78
1,375,700
Totals
572
$ 20,705,383
720
$ 30,089,040
PMIA Monthly Average Effective Yield
5.851
5.824
Year to Date Yield Last Day of Month 5.518 5.475
2
Commercial
Paper
20.14%
Pooled Money Investment Account
Portfolio Composition
$34.0 Billion
Reverses
Loans -1.02% Treasuries
5.66% 9.90%
Corporate fir
Bonds rr.
7.59% ti
CD's/BN's
22.75%
M
Time Deposits
9.33%
Mortgages
0.04%
Agencies
25.61 %
3/31 /00
S Treasuries
8 Time Deposits
■ Mortgages
Ul Agencies i
® CD's/BN's
113 Bankers Acceptances
■ Repo
D Commercial Paper
® Corporate Bonds
0 Loans
0 Reverses
03/01/00. REDEMPTIONS
BN
B/A
6.010%
03/01/00
6.010
$50,000
120
$1,001,666.67
6.093
BN
B/A
6.010%
03/01/00
6.010
50,000
120
1,001,666.67
6.093
BN
B/A
6.010%
03/01/00
6.010
50,000
120
1,001,666.67
6.093
CD
Svenska
5.230%
03/01/00
5.970
25,000
.83
357,480.34
6.302
CD
BNParis
5.980%
03/01/00
5.970
35,000
83
482,467.22
6.061
CP
GECC.
03/01/00
5.730
50,000
8
63,666.67
5.816
CP
GECC
03/01/00
5.730
50,000
8
63,666.67
5.816
CP
GECC
03/01/00
5.730
50,000
8
63,666.67
5.816
CP
Bear
03/01/00
5.950
50,000
83
685,902.78
6.116
CP
Bear
03/01/00
5.950
50,000
83
685,902.78
6.116
CP
GECC
03/01/00
5.900
50,000
84
688,333.33
6.065
CP
W/F
03/01/00
5.880
25,000
120
490,000.00
6.080
CP
GECC
03/01/00
5.910
15,000
121
297,962.50
.6.099
CP
GECC
03/01/00
5.910
50,000
121
993,208.33
6.099
CP
Heller
03/01/00
6.080
50,000
133
1,123,111.11
6.306
CP
GECC
03/01/00
5.920
50,000
134
1,101,777.78
6.137
CP
GECC
03/01/00
5.920
50,000
134
1,101,777.78
6.137
CP
GECC
03/01/00
5.880
50,000
139
1,135,166.67
6.100
CP
GECC
03/01/00
5.830
40,000
148
958,711.11
6.056
PURCHASES
CP
ConAgra
03/29/00
5.890
15,000
CP
W/F
03/30/00
5.760
10,000
CP
W/F
03/03/00
5.760
50,000
CP
W/F
03/31/00
5.760
20,000
CP
Hertz
03/31/00
5.770
25,000
CP
W/F
03/31/00
5.760
50,000
CP
Heller
04/05/00
5.900
50,000
CP
Heller
04/07/00
5.900
50,000
03/02/00 REDEMPTIONS
CP
Merrill
03/02/00
5.750
50,000
14
111,805.56
5.842
CP
Merrill
03/02/00
5.750
50,000
14
111,805.56
5.842
CP
ConAgra
03/02/00
5.850
39,610
34
218,845.25
5.964
CP
Salomon
03/02/00
5.900
35,000
84
481,833.33
6.065
CP
Bear
03/02/00
5.950
50,000
84
694,166.67
6.117
CP
GECC
03/02/00
5.900
5,000
85
69,652.78
6.066
CP
GECC
03/02/00
5.900
50,000
85
696,527.78
6.066
CP
Morg Stan
03/02/00
5.960
50,000
132
1,092,666.65
6.177
CP
Morg Stan
03/02/00
5.960
50,000
132
1,092,666.65
6.177
CP
GECC
03/02/00
5.920
50,000
135
1,110,000.00
6.138
CP
GECC
03/02/00
5.920
50,000
135
1,110,000.00
6.138
PURCHASES
CD
Banc One
6.210% 08/29/00
6.210
50,000
CD
Banc One
6.210% 08/29/00
6.210
50,000
4
03/02/00 PURCHASES (continued)
CP
Rohm
03/03/00
5.780
8533
CP
Rohm
03/03/00
5.780
50,000
CP
Amer Exp
03/07/00
5.700
50,000
CP
Amer Exp
03/07/00
5.700
50,000
CP
Amer Exp
03/07/00
5.700
50,000
CP
Amer Exp
03/07/00
5.700
50,000
CP
FMCC
03/07/00
5.700
50,000
CP
FMCC
03/07/00
5.700
50,000
CP
FMCC
03/07/00
5.700
50,000
CP
FMCC
03/07/00
5.700
50,000
CP
Morg Stan
04/03/00
5.850
50,000
CP
Morg Stan
04/03/00
5.850
50,000
CP
Morg Stan
04/03/00
5.850
50,000
03/03/00 REDEMPTIONS
CD
CIBC
5.270%
03/03/00
5.100
12,000
317
543,371.45
5.207
CP
Rohm
03/03/00
5.780
8,533
1
1,370.02
5.861
CP
Rohm
03/03/00
5.780
50,000
1
8,027.78
5.861
FHLB
5.060%
03/03/00
5.120
50,000
366
2,558,886.10
5.122
FHLB
5.060%
03/03/00
5.120
50,000
366
2,558,886.10
5.122
FHLB
5.060%
03/03/00
5.120
50,000
366
2,559,000.00
5.122
PURCHASES
CP
GMAC
04/03/00
5.810
50,000
CP
GMAC
04/03/00
5.810
50,000
CP
GMAC
04/03/00
5.810
50,000
03/06/00 REDEMPTIONS
CP
Merrill
03/06/00
6.000
50,000
81
675,000.00
6.166
CP
Merrill
03/06/00
6.000
50,000
81
675,000.00
6.166
CP
Merrill
03/06/00
6.020
50,000
82
685,611.11
6.188
CP
GECC
03/06/00
5.920
50,000
139
1,142,888.89
6.142
CP
GECC
03/06/00
5.920
50,000
139
1,142,888.89
6.142
CP
GECC
03/06/00
5.900
50,000
140
1,147,222.22
6.124
CP
GECC
03/06/00
5.900
50,000
140
1,147,222.22
6.124
CP
GECC
03/06/00
5.830
50,000
153
1,238,875.00
6.061
CP
GECC
03/06/00
5.830
50,000
153
1,238,875.00
6.061
PURCHASES
CB
FR FMCC
6.300%
07/16/02
6.110
25,000
03/07/00 REDEMPTIONS
CP
Amer Exp
03/07/00
5.700
50,000
5
39,583.33
5.783
CP
Amer Exp
03/07/00
5.700
50,000
5
39,583.33
5.783
5
03/07/00 REDEMPTIONS (continued)
CP
Amer Exp
03/07/00
5.700
50,000
5
39,583.33
5.783
CP
Amer Exp
03/07/00
5.700
50,000
5
39,583.33
5.783
CP
FMCC
03/07/00
5.700
50,000
5
39,583.33
5.783
CP
FMCC
03/07/00
5.700
50,000
5
39,583.33
5.783
CP
FMCC
03/07/00
5.700
50,000
5
39,583.33
5.783
CP
FMCC
03/07/00
5.700
50,000
5
39,583.33
5.783
CP
ConAgra
03/07/00
5.850
40,000
13
84,500.00
5.943
CP
Merrill
03/07/00
5.760
50,000
19
152,000.00
5.857
CP
Merrill
03/07/00
5.760
50,000
19
152,000.00
5.857
PURCHASES
CP
Assoc
03/08/00
5.650
50,000
CP
Assoc
03/08/00
5.650
50,000
CP
Assoc
03/08/00
5.650
50,000
CP
GECC
03/08/00
5.650
50,000
CP
GECC
03/08/00
5.650
50,000
CP
GECC
03/08/00
5.650
50,000
CP
GECC
03/08/00
5.650
50,000
CP
Enron
03/09/00
5.770
7,000
CP
Enron
03/09/00
5.770
50,000
CP
Bear
04/07/00
5.840
50,000
CP
Bear
04/07/00
5.840
50,000
03/08/00 REDEMPTIONS
CP
Assoc
03/08/00
5.650
50,000
1
7,847.22
5.729
CP
Assoc
03/08/00
5.650
50,000
1
7,847.22
5.729
CP
Assoc
03/08/00
5.650
50,000
1
7,847.22
5.729
CP
GECC
03/08/00
5.650
50,000
1
7,847.22
5.729
CP
GECC
03/08/00
5.650
50,000
1
7,847.22
5.729
CP
GECC
03/08/00
5.650
50,000
1
7,847.22
5.729
CP
GECC
03/08/00
5.650
50,000
1
7,847.22
5.729
CP
GMAC
03/08/00
5.750
50,000
20
159,722.22
5.848
CP
GMAC
03/08/00.
5.750
50,000
20
159,722.22
5.848
CP
Heller
03/08/00
5.850
50,000
21
170,625.00
5.951
CP
B/A
03/08/00
6.040
50,000
83
696,277.78
6.210
CP
B/A
03/08/00
6.040
50,000
83
696,277.78
6.210
CP
B/A
03/08/00
6.040
50,000
83
696,277.78
6.210
CP
B/A
03/08/00
6.040
50,000
83
696,277.78
6.210
CP
Merrill
03/08/00
6.020
50,000
84
702,333.33
6.190
CP
W/F
03/08/00
5.870
25,000
146
595,152.77
6.096
CP
W/F
03/08/00
5.870
50,000
146
1,190,305.55
6.096
PURCHASES
BN
Banc One
6.240%
08/29/00
6.240
50,000
CD
CIBC
5.890%
04/07/00
5.860
4,000
CD
CIBC
5.890%
04/07/00
5.860
50,000
03/08/00 PURCHASES (continued)
CD
CIBC
5.890% 04/07/00
5.860
50,000
CP
Assoc
03/09/00
5.700
50,000
CP
Assoc
03/09/00
5.700
50,000
CP
Enron
03/10/00
5.800
50,000
03/09/00 REDEMPTIONS
CP
Assoc
03/09/00
5.700
50,000
1
7,916.67
5.780
CP
Assoc
03/09/00
5.700
50,000
1
7,916.67
5.780
CP
Enron
03/09/00
5.770
7,000
2
2,243.89
5.852
CP
Enron
03/09/00
5.770
50,000
2
16,027.78
5.852
CP
Baxter
03/09/00
5.780
30,000
22
105,966.67
5.881
Disc Notes
FHLMC
03/09/00
5.130
50,000
261
1,859,625.00
5.401
PURCHASES
CP
Assoc
03/10/00
5.730
40,000
CP
Assoc
03/10/00
5.730
50,000
CP
Assoc
03/10/00
5.730
50,000
CP
Assoc
03/10/00
5.730
50,000
03/10/00 REDEMPTIONS
CP
Assoc
03/10/00
5.730
40,000
1
6,366.67
5.810
CP
Assoc
03/10/00
5.730
50,000
1
7,958.33
5.810
CP
Assoc
03/10/00
5.730
50,000
1
7,958.33
5.810
CP
Assoc
03/10/00
5.730
50,000
1
7,958.33
5.810
CP
Enron
03/10/00
5.800
50,000
2
16,111.11
5.882
CP
FMCC
03/10/00
5.750
50,000
22
175,694.44
5.850
CP
FMCC
03/10/00
5.750
50,000
22
175,694.44
5.850
CP
Heller
03/10/00
5.850
50,000
23
186,875.00
5.953
CP
ConAgra
03/10/00
5.870
47,500
24
185,883.33
5.974
CP
W/F
03/10/00
5.900
50,000
144
1,180,00.00
6.126
Disc Notes
FNMA
03/10/00
5.120
50,000
262
1,863,111.11
5.392
Disc Notes
FNMA
03/10/00
5.120
50,000
262
1,863,111.11
5.392
PURCHASES
CB FR
FMCC
6.300% 07/16/02
6.130
25,000
03/13/00 REDEMPTIONS
CP
ConAgra
03/13/00
5.860
20,000
20
65,111.11
5.960
CP
FMCC
03/13/00
5.760
50,000
20
160,000.00
5.858
CP
FMCC
03/13/00
5.760
50,000
20
160,000.00
5.858
CP
Amer Exp
03/13/00
5.750
35,000
24
134,166.67
5.852
CP
Amer Exp
03/13/00
5.750
50,000
24
191,666.67
5.852
CP
ConAgra
03/13/00
5.830
25,000
25
101,215.28
5.935
CP
Merrill
03/13/00
5.760
30,000
25
120,000.00
5.863
7
03/13/00 PURCHASES
CP
GECC
CP
GECC
CP
GECC
CP
GECC
CP
Household
03/14/00 SALES
Treas
Notes
Treas
Notes
REDEMPTIONS
CP
GECC
CP
GECC
CP
GECC
CP
GECC
CP
GECC
CP
Citigroup
CP
ConAgra
PURCHASES
BN
Banc One
BN
Banc One
CP
Assoc
CP
Assoc
CP
W/F
CP
GMAC
CP
W/F
CP
GMAC
CP
W/F
CP
GMAC
03/15/00 REDEMPTIONS
CP
Assoc
CP
Assoc
PURCHASES
CP FMCC
CP FMCC
CP FMCC
03/16/00 REDEMPTIONS
Disc Notes FNMA
03/14/00
5.790
50,000
03/14/00
5.790
50,000
03/14/00
5.790
50,000
03/14/00
5.790
50,000
03/14/00
5.800
50,000
5.750% 10/31 /00 6.263 50,000 1,107
5.750% 10/31 /00 6.263 50,000 1,110
9,442,830.63 6.339
9,404,156.60 6.288
03/14/00
5.790
50,000
1
8,041.67
5.871
03/14/00
5.790
50,000
1
8,041.67
5.871
03/14/00
5.790
50,000
1
8,041.67
5.871
03/14/00
5.790
50,000
1
8,041.67
5.871
03/14/00
5.790
50,000
1
8,041.67
5.871
03/14/00
5.770
50,000
18
144,250.00
5.867
03/14/00
5.870
30,000
21
102,725.00
5.971
6.270% 08/29/00
6.270
50,000
6.270% 08/29/00
6.270
50,000
03/15/00
5.780
10,000
03/15/00
5.780
50,000
03/29/00
5.810
50,000
03/29/00
5.830
50,000
03/30/00
5.810
50,000
03/30/00
5.830
50,000
03/31 /00
5.810
50,000
03/31 /00
5.830
50,000
03/15/00
5.780
10,000 1 1,605.56 5.861
03/15/00
5.780
50,000 1 8,027.78 5.861
04/03/00
5.850
50,000
04/03/00
5.850
50,000
04/03/00
6.850
60,000
03/16/00 5.120 25,000 268
E:1
952,888.89 5.396
03/16/00 PURCHASES
CID Rohm
03/17/00
5.820
50,000
CID Rohm
03/17/00
5.820
50,000
CID ConAgra
03/28/00
5.950
15,000
CID Citigroup
04/03/00
5.970
35,000
CID Citigroup
04/03/00
5.970
50,000
CID Merrill
04/03/00
5.890
50,000
CID Salomon
04/03/00
5.980
50,000
CID Salomon
04/03/00
5.980
50,000
03/17/00 REDEMPTIONS
CID Rohm
03/17/00
5.820
50,000
1
8,083.33
5.901
CID Rohm
03/17/00
5.820
50,000
1
8,083.33
5.901
Disc Notes FHLB
03/17/00
4.700
50,000
332
2,167,222.22
4.981
Disc Notes FNMA
03/17/00
5.185
45,000
267
1,730,493.75
5.467
PURCHASES
CID Baxter
03/20/00
5.750
30,000
CID GMAC
07/03/00
6.070
50,000
CID GMAC
07/03/00
6.070
50,000
CID GMAC
07/05/00
6.070
50,000
CID GMAC
07/05/00
6.070
50,000
CID GMAC
08/01/00
6.100
50,000
CID GMAC
08/01/00
6.100
50,000
CID GMAC
08/01/00
6.100
50,000
03/20/00 REDEMPTIONS
CID Baxter
03/20/00
5.750
30,000
3
14,375.00
5.832
PURCHASES
CID W/F
06/01 /00
6.070
25,000
CID W/F
06/01 /00
6.070
50,000
CID W/F
06/01 /00
6.070
50,000
CID Merrill
06/01 /00
6.070
50,000
CID Merrill
06/01 /00
6.070
50,000
CID Merrill
06/02/00
6.070
50,000
CID Merrill
06/02/00
6.070
50,000
CID GMAC
07/03/00
6.080
50,000
CID GMAC
07/03/00
6.080
50,000
03/21/00 REDEMPTIONS
CD Toronto
6.110% 03/21 /00
6.095
50,000
91
770,369.04
6.17
CD Toronto
6.110% 03/21/00
6.095
50,000
91
770,369.04
6.17
9
03/21/00 PURCHASES
CD
Montreal
6.250%
08/29/00
CD
U/B Calif
6.290%
08/31/00
CD
U/B Calif
6.290%
08/31/00
CP
Morg Stan
04/07/00
CP
Morg Stan
04/10/00
CP
Morg Stan
04/10/00
CP
Heller
05/19/00
CP
Bear
07/07/00
CP
Bear
07/07/00
03/22/00 NO SALES
PURCHASES
CD
CommerzBk
6.270%
08/29/00
CP
Amer Exp
04/10/00
CP
Amer Exp
04/10/00
MTN FR
B/A
6.250%
02/11/02
03/23/00 REDEMPTIONS
Disc Notes FHLMC 03/23/00
PURCHASES
CB
FR Assoc
6.210% 05/17/02
CB
FR FMCC
6.211 % 05/20/02
CB
FR FMCC
6.297% 05/23/02
CP
GECC
03/24/00
CP
GECC
03/24/00
CP
GECC
03/24/00
CP
GECC
03/24/00
CP
Amer Exp
03/29/00
CP
Amer Exp
03/29/00
CP
Baxter
04/05/00
CP
Amer Exp
04/10/00
CP
Amer Exp
04/10/00
CP
ConAgra
04/26/00
CP
ConAgra
04/26/00
CP
GECC
07/03/00
CP
GECC
07/03/00
CP
GECC
07/03/00
CP
GECC
07/03/00
03/24/00 REDEMPTIONS
CP
GECC
03/24/00
CP
GECC
03/24/00
CP
GECC
03/24/00
10
6.250
6.290
6.290
6.050
6.050
6.050
6.120
6.110
6.110
50,000
25,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
6.270
50,000
6.020
50,000
6.020
50,000
6.228
5,000
5.160 50,000 274
6.241
6.241
6.241
6.020
6.020
6.020
6.020
5.940
5.940
6.050
6.010
6.010
6.150
6.150
6.080
6.080
6.080
6.080
6.020
6.020
6.020
10,000
10,000
42,470
50,000
50,000
50,000
50,000
50,000
509000
32,000
50,000
50,000
10,000
50,000
50,000
50,000
50,000
50,000
1,963,666.67
5.445
50,000 1 8,361.11 6.104
50,000 1 8,361.11 6.104
50,000 1 8,361.11 6.104
03/24/00 REDEMPTIONS (continued)
CP
GECC
PURCHASES
CP
GMAC
CP
GMAC
CP
GMAC
CP
GMAC
CP
GMAC
Treas
Bills
Treas
Bills
03/27/00 REDEMPTIONS
CP
GMAC
CP
GMAC
CP
GMAC
CP
GMAC
CP
GMAC
CP
Amer Exp
CP
Amer Exp
CP
Amer Exp
CP
Morg Stan
CP
GECC
CP
GECC
CP
GECC
CP
GECC
FNMA
FNMA
PURCHASES
CP
Assoc
CP
Assoc
CP
GMAC
CP
GMAC
CP
GMAC
CP
GMAC
CP
GMAC
CP
Amer Exp
CP
Amer Exp
CP
FMCC
CP
FMCC
CP
Heller
FNMA
FNMA
03/24/00 6.020 50,000 1 8,361.11 6.104
03/27/00
5.900
15,000
03/27/00
5.900
50,000
03/27/00
5.900
50,000
03/27/00
5.900
50,000
03/27/00
5.900
50,000
03/01/01
5.900
50,000
03/01 /01
5.900
50,000
03/27/00
5.900
15,000
3
7,375.00
5.984
03/27/00
5.900
50,000
3
24,583.33
5.984
03/27/00
5.900
50,000
3
24,583.33
5.984
03/27/00
5.900
50,000
3
24,583.33
5.984
03/27/00
5.900
50,000
3
24,583.33
5.984
03/27/00
5.500
50,000
89
679,861.11
5.653
03/27/00
5.500
50,000
89
679,861.11
5.653
03/27/00
5.500
50,000
89
679,861.11
5.653
03/27/00
6.150
50,000
91
777,291.67
6.333
03/27/00
5.880
30,000
150
735,000.00
6.111
03/27/00
5.880
50,000
150
1,225,000.00
6.111
03/27/00
5.910
50,000
152
1,247,666.67
6.145
03/27/00
5.910
50,000
152
1",247,666.67
6.145
5.600%
03/27/00
5.000
50,000
488
3,369,888.89
5.003
5.600%
03/27/00
5.000
50,000
488
3,369,888.89
5.003
03/28/00
6.020
50,000
03/28/00
6.020
50,000
03/28/00
6.020
50,000
03/28/00
6.020
50,000
03/28/00
6.020
50,000
03/28/00
6.020
50,000
03/28/00
6.020
50,000
04/05/00
6.060
50,000
04/05/00
6.060
50,000
04/07/00
6.060
15,000
04/07/00
6.060
50,000
04/26/00
6.150
50,000
6.520%
03/16/01
6.642
10,000
6.520%
03/16/01
6.642
50,000
03/28/00 REDEMPTIONS
CD
CP
Rabo
5.180% 03/28/00
5..170
25,000
330
1,191,243.18
5.271
CP
Assoc
Assoc
03/28/00
6.020
50,000
1
8,361.11
6.104
CP
GMAC
03/28/00
03/28/00
6.020
6.020
50,000
50,000
1
1
8,361.11
6.104
CP
GMAC
03/28/00
6.020
50,000
1
8,361.11
8,361.11
6.104
6.104
CP
CP
GMAC
GMAC
03/28/00
6.020
50,000
1
8,361.11
6.104
CP
GMAC
03/28/00
6.020
50,000.
1
8,361.11
6.104
CP
Conagra
03/28/00
03/28/00
6.020
5.950
50,000
15,000
1
12
8,361.11
6.104
CP
Morg Stan
03/28/00
5.780
50,000
29
29,750.00
232,805.55
6.044
5.887
PURCHASES
CP
Assoc
03/29/00
5.980
35,000
CP
Assoc
03/29/00
5.980
50,000
CP
GMAC
03/29/00
6.020
50,000
CP
GMAC
03/29/00
6.020
50,000
CP
GMAC
03/29/00
6.020
50,000
CP
GMAC
03/29/00
6.020
50,000
CP
GMAC
03/29/00
6.020
50,000
CP
GMAC
03/29/00
6.020
50,000
CP
Amer Exp
03/30/00
6.000
50,000
CP
Amer Exp
03/30/00
6.000
50,000
03/29/00 RRS
Treas Bills 06/22/00 5.77040,000
REDEMPTIONS
BN
BN
B/A
B/A
6.010% 03/29/00
6.010
50,000
152
1,268,777.78
6.093
CP
Assoc
6.010% 03/29/00
6.010
50,000
152
1,268,777.78
6.093
CP
Assoc
03/29/00
5.980
35,000
1
5,813.89
6.064
CP
GMAC
03/29/00
03/29/00
5.980
6.020
50,000,
50,000
1
8,305.56
6.064
CP
GMAC
03/29/00
6.020
50,000
1
1
8,361.11
8,361.11
6.104
6.104
CP
CP
GMAC
GMAC
03/29/00
6.020
50,000
1
8,361.11
6.104
CP
GMAC
03/29/00
03/29/00
6.020
6.020
50,000
50,000
1
8,361.11
6.104
CP
GMAC
03/29/00
6.020
50,000
1
1
8,361.11
8,361.11
6.104
6.104
CP
CP
Amer Exp
Amer Exp
03/29/00
03/29/00
5.940
50,000
6
49,500.00
6.028
CP
W/F
5.940
50,000
6
49,500.00
6.028
CP
GMAC
03/29/00
5.810
50,000
15
121,041.67
5.904
CP
ConAgra
03/29/00
5.830
50,000
15
121,458.33
5.925
CP
Morg Stan
03/29/00
03/29/00
5.890
5.780
15,000
50,000
28
68;716.67
5.999
CP
CP
Morg Stan
03/29/00
5.770
20,000
30
36
240,833.33
115,400.00
5.888
5.884
CP
Morg Stan
Morg Stan
03/29/00
5.770
50,000
36
288,500.00
5.884
03/29/00
5.770
50,000
36
288,500.00
5.884
12
03/29100 REDEMPTIONS (continued)
CP
GMAC
03/29/00
5.770
50,000
40
40
320,555.56
5.887
CP
GMAC
03/29/00
03/29/00
5.770
5.640
50,000
30,000
82
385,400.00
5.792
CP
FMCC
03/29/00
5.640
50,000
82
CP
FMCC
03/29/00
5.650
50,000
91
714,097.22
5.811
CID
Amer Exp
03/29/00
5.650
50,000
91
714,097.22
5.811
CP
Amer Exp
03/29/00
5.650
50,000
91
714,097.22
5.811
CP
Amer Exp
03/29/00
6.150
50,000
97
828,541.67
6.340
CP
Morg Stan
03/29/00
6.150
50,000
97
828,541.67
6.340
CP
Morg Stan
03/29/00
6.030
50,000
112
938,000.00
6.230
CP
SRAC
03/29/00
5.880
50,000
148
1,208,666.67
6.109
CP
GECC
03/29/00
5.880
50,000
148
1,208,666.67
6.109
CP
GECC
03/29/00
5.880
50,000
148
1,208,666'.67
6.109
CP
GECC
03/29/00
5.880
50,000
148
1,208,666.67
60
CP
CP
GECC
GECC
03/29/00
5.910
50,000
159
1,305,125.00
.1 2
6.152
CP
GECC
03/29/00
5.910
50,000
159
159
1,305,125.00
1'737,277078
6.152
CP
GECC
03/29/00
03/29/00
5.910
5.770
50,000
50,000
92
.
5.937
Disc Notes
FHLMC
03/29/00
5.770
50,000
92
737,277.78
5.937
Disc Notes
FHLMC
PURCHASES 91
CID Morg Stan 06/22/00 6.100 40,000
PURCHASES
BN
B/A
6.850% 03/28/01
6.850
50,000
BN
B/A
6.850% 03/28/01
6.850
50,000
CP
NCAT
03/30/00
6.000
50,000
CP
NCAT
03/30/00
6.000
50,000
CP
NCAT
03/30/00
6.000
50,000
CP
NCAT
03/30/00
6.000
50,000
CP
FMCC
04/03/00
6.010
5,000
CP
FMCC
04/03/00
6.010
50,000
CP
FMCC
04/03/00
6.010
50,000
CP
SRAC
08/08/00
6.250
40,000
Disc Notes
FHLB
03/23/01
6.250
50,000
Disc Notes
FHLMC
03/01/01
6.270
43,950
Disc Notes
FHLMC
03/29/01
6.270
25,000
Disc Notes
FHLMC
03/29/01
6.270
50,000
Disc Notes
FHLMC
03/29/01
6.270
50,000
Disc Notes
FHLMC
03/29/01
6.270
50,000
Disc Notes
FHLMC
03/29/01
6.270
50,000
Disc Notes
FHLMC
03/29/01
6.270
50,000
Disc Notes
FNMA
03/22/01
6.230
50,000
Disc Notes
FNMA
03/22/01
6.230
50,000
FR
SBA
6.125% 03/25/25
6.125
26,093
Treas
Bills
03/01 /01
5.950
50,000
Treas
Bills
03/01 /01
5.950
50,000
13
03/29/00 . PURCHASES (continued)
FHLB 6.750% 02/15/02 7.020 25,000
03/30/00 RRS
Treas
Notes
5.500% 05/31/00
5.763
50,000
Treas
Notes
5.500% 05/31/00
5.763
50,000
REDEMPTIONS
CP
CP
NCAT
NCAT
03/30/00
6.000
50,000
1
8,333.33
6.084
CP
NCAT
03/30/00
03/30/00
6.000
6.000
50,000
1
8,333.33
6.084
CP
NCAT
03/30/00
6.000
50,000
50,000
1
1
8,333.33
6.084
CP
Amer Exp
03/30/00
6.000
50,000
2
8,333.33
6.084
CP
Amer Exp
03/30/00
6.000
50,000
2
16,666.67
6.085
CP
CP
W/F
GMAC
03/30/00
5.810
50, 000
16
16,666.67
129,111.11
6.085
5.905
CP
W/F
03/30/00
03/30/00
5.830
50,000
16
129,555.56
926
CP
W/F
03/30/00
5.760
5.760
10,000
50,000
29
46,400.00
5.5.926
867
CP
W/F
03/30/00
5.760
50,000
29
34
232,000.00
5.867
CP
SRAC
03/30/00
5.820
50,
291,000.00
5.871
CP
GMAC
03/30/00
5.770
50,000
46
221,569.44
5.935
CP
GMAC
03/30/00
5.770
50,000
41
328,569.44
5.888
Disc Notes
FHLMC
03/30/00
5.170
50,000
281
328,569.44
5.5.888
Disc Notes
FHLMC
03/30/00
5.135
50,000
282
2,017,736.11
Disc Notes
FHLMC
03/30/00
5.135
50,000
282
2,011,208.33
5.462
24
MTN
Assoc
5.250% 03/30/00
5.113
27,000
414
2,011,208.33
1,575,765.00
5.424
5.138
PURCHASES g/
CP
CP
Bear
05/31/00
6.090
50,000
Bear
05/31/00
6.090
50,000
PURCHASAES
CD
WestDeut
6.210% 06/30/00
6.210
50,000
CD
WestDeut
6.210% 06/30/00
6.210
50,000
CP
CP
Rohm
03/31/00
6.130
19,000
CP
Rohm
03/31/00
6.130
50,000
CP
Amer Exp
04/03/00
6.080
50,000
CP
Amer Exp
04/03/00
6.080
50,000
CP
Amer Exp
04/03/00
6.080
50,000
CP
Amer Exp
04/03/00
6.080
50,000
Amer Exp
04/03/00
6.080
50,000
CP
CP
Amer Exp
04/03/00
6.080
50,000
CP
GECC
GECC
06/30/00
6.100
50,000
CP
GECC
06/30/00
6.100
50,000
CP
GECC
06/30/00
6.100
50,000
06/30/00
6.100
50,000
14
03/30/00 . PURCHASES (continued)
CP
SRAC
07/03/00
6.150
50,000
CP
GECC
07/10/00
6.170
45,000
CP
GECC
07/10/00
6.170
50,000
Disc Notes
FHLMC
03/29/01
03/29/01
6.290
6.290
50,000
50,000
Disc Notes
FHLMC
SBA
6.125%
04/25/25
6.125
9,092
FR
FHLB
6.750%
02/15/02
7.000
25,000
FHLB
6.750%
02/15/02
7.000
50,000
FHLB
6.750%
02/15/02
7.016
50,000
FNMA
6.650%
03/30/01
6.666
50,000
FNMA
6.650%
03/30/01
6.666
50,000
03/31 /00 SALES
Treas
Bills
03/01 /01
5.915
50,000
2
2
32,812.56
32,812.56
12.683
12.683
Treas
Bills
03/01 /01
5.915
50,000
REDEMPTIONS
CD
ABN Amro
5.870%
03/31/00
5•830
000
79
642,986.15
3,235.28
5.941
6.216
CP
Rohm
03/31/00
6•
6.130
19,000
50,000
1
8,513.89
6.216
CP
Rohm
03/31/00
03/31 /00
5.810
50,000
17
137,180.56
5.906
CP
W/F
03/31 /00
5.810
50,000
17
137,180.56
5.90
5.8
CP
CP
W/F
W/F
03/31 /00
5.760
20,000
30
30
96,000.00
120,208.33
5.878
CP
Hertz
03/31 /00
5.770
5.760
25,000
50,000
30
240,000.00
5.868
CP
W/F
03/31 /00
03/31/00
5.890
50,0000
597.22
6.002
CP
Heller
03/31 /00
5.760
50,00
35
280,000.00
5.872
5.936
CP
CP
W/F
SRAC
03/31/00
5.820
50,000
37
99
299,083.33
845,625.00
6.342
CP
Morg Stan
03/31 /00
6.150
6.150
50,000
50,000
99
845,625.00
6.342
CP
Morg Stan
03/31/00
03/31 /00
5.522
50,000
640
4,839,694.33
5.5 23
Treas
Notes
.5.500%
RRP
5.500% 03/31/00
5.350
50,000
79
596,157.71)
-5.424
Treas
Notes
PURCHASES
CP
GECC
04/03/00
6.180
50,000
15
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 (EXIM),
Bankers Acceptances (BA), Commercial Paper (CP), Government
National Mortgage Association (GNMA), Federal Home Loan Bank
Notes (FHLB), 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.
V Repurchase Agreement against Reverse Repurchase Agreement.
,/ Outright purchase against Reverse Repurchase Agreement.
h/ Security "SWAP" transactions.
Buy back agreement.
RRS Reverse Repurchase Agreement.
RRP Termination of Reverse Repurchase Agreement.
16
TIME DEPOSITS.
AG RA HILLS
Pacific Crest Bank
10/12/99
5.180
5,000,000 00
5,000,00
06/01/00
Pacific Crest Bank
02/18/00
10/12/99
5.830
5.390
5,000,000.00
10/16/00
Pacific Crest Bank
11/30/99
5.740
5,000,000.00
12/01/00
Pacific Crest Bank
12/28/99
5.980
5,000,000.00
12/27/00
Pacific Crest Bank
ALHAMBRA
12/28/99
5.470
12,000,000.00
04/03/00
East West Bank
01/14/00
5.430
35,000,000.
04/13/00
East West Bank
01/21/00
5.560
35,000,0000
05/04 00
East West Bank
02/11/00
5.680
38,000,0
East West Bank
�01/14/00
5.430
2,000,000.00
04/14/00
Grand National Bank
01/20/00
5.390
3,095,000.00
04/21/00
Grand National Bank
02/07/00
5.650
3,000,000.00
05/08/00
Grand National Bank
03/23/00
5.950
1,000,000.00
06/23/00
Grand National Bank
03/06/00
6.060
39000,000.00
09/06/00
Grand National Bank
BEVERLY HILLS
City National Bank
05/04/99
4.820
25,000,000.00
10,000,000.00
05/03/00
07/26/00
City National Bank
07/27f99
09/15/99
5.040
5.280
20,000,000.00
09/15/00
City National Bank
03/31/00
6.200
50,000,000.00
09/29/00
City National Bank
10/12/99
5.360
25,000,000.00
10/16/00
City National Bank
02/28/00
6.220
20,000,000.00
OZ/28/01
City National Bank
CAME ON PARK
Roseville First National Bank
01 /24/00
5.850
1,000,000.00
1,000,000.00
07/24/00
/08/00
005/01
Western Sierra National Bank
11 /08/99
5.420
6.040
3,000,000.00
/00
Western Sierra National Bank
02/03/00
CH_
North State National Bank
04/06/99
4.730
1'000,000.00
1,000,000.00
04/06/00
04f07 /00
North State National Bank
10/04/99
08/24/99
5.020
5.210
1,000,000.00
08/07/00
North State National Bank
09/07/99
5.240
500,000.00
09/01/00
North State National Bank
08/30/99
5.160
1,000,000.00
09/01/00
North State National Bank
01/11/00
5.390
10,000,000.00
04/10/00
Tri Counties Bank
03/09/00
5.880
10,000,000.00
00
�61�3/00
Tri Counties Bank
03/15/00
5.930
10,000,000.00
Tri Counties Bank
03/20/00
5.940
10,000,000.00
06/20/00
Tri Counties Bank
17
TIME DEPOSITS
CITY OF INDUSTRY
EverTrust Bank
EverTrust Bank
03/13/00
5.860
1,000,000.00
06/12/00
EverTrust Bank
03/13/00
03/24/00
5 80
5.910
3,000,000.00
06/19/00
EverTrust Bank
01/20/00
0
50
2,000,000.00
06/26/00
EverTrust Bank
01/20/00
.68
3,000,000.00
07/18/00
.68
3,000,000.00
10/16/00
EL CENTRO
Valley Independent Bank
02/02/00
5.770
Valley Independent Bank
02/07/00
5 710
15,000,000.00
05/02/00
Valley Independent Bank
OZ/02/00
6.000
3,750,000.00
05/15/00
Valley Independent Bank
08/11 /99
5.250
5,000,000.00
07/31/00
3, 750, 000.00
08/11 /00
FRESNO
United Security Bank
United Security Bank
02/16/00
5.650
10,000,000.00
05/17/00
01/31/00
5.830
15, 000, 000.00
07/31 /00
FULLERTON
Fullerton Community Bank
01/19/00
6.160
8, 000, 000.00
01 /19/01
INGLEWOOD
Imperial Bank
Bank
10/14/99
0Imperial 8/12/99
5.190
20,000,000.00
04/13/00
Imperial Bank
11/18/99
5.100
5.500
26,000,000.00
04/27/00
Imperial Bank
10/21 /99
5.290
25,000,000.00
05/18/00
Imperial Bank
10/28/99
5.450
25, 000, 000.00
05/25/00
Imperial Bank
12/22/99
2.920
20,000,000.00
06/22/00
Imperial Bank
02/24/00
6.040
25,000,000.00
07/06/00
Imperial Bank
01/27/00
5.930
18,000,000.00
08/10/00
Imperial Bank
03/02/00
6.110
25,000,000.00
08/17/00
Imperial Bank
02/03/00
6.120
25,000,000.00
09/14/00
Imperial Bank
03/09/00
6.190
50,000,000.00
09/14/00
Imperial Bank
03/30/00
6.320
25, 000, 000.00
10/12/00
18,000,000.00
11 /09/00
L_
Bank of Lodi
Bank of Lodi
10/08/99
5.110
2,000,000.00
04/10/00
03/23/00
5.960
3, 000, 000.00
06/22/00
LOS ANGELES
Broadway Federal Bank
07/01/99
5.200
Broadway Federal Bank
12/28/09
5.790
1,250,000.00
06/30/00
1,250,000.00
07/07/00
18
TIME DEPOSITS
LOS ANGELES (continued)
Broadway Federal Bank
09/29/99
5.230
5.950
500,000-00
9,000,000.00
10/02/00
06/19/00
Cathay Bank
12/20/99
03/28/00
5.930
10,000,000.00
06/28/00
06/22/00
Cathay Bank
Community Bank
06/22/99
5.030
5.230
5,000,000.00
15,000,000.00
08/11/00
Community Bank
08/11/99
10/25/99
5.490
5,000,000.00
10/27/00
Community Bank
12/07/99
5.700
5,000,000.00
12/15/00
12//00
Community Bank
12/13/99
5.650
10,000,000.00
01 /12/01
Community Bank
01/10/00
6.040
20,000,000.00
04/25/00
Community Bank
01 /21 /00
5.560
7,000,000.00
04/28/00
General Bank
01/24/00
5.500
28,000,000.00
p5/02/00
General Bank
02/02/00
5.770
15,000,000.00
05/15/00
General Bank
02/14/00
5.690
15,000,OOOp:pp
06/01/00
Gener al Bank
02/18/00
5.800
10,000,00
06/08/00
General Bank
03/10/00
5.880
25,000,000.00
05/08/00
General Bank
Manufacturers Bank
02/07/00
5.680
10,000,000.00
10,000,000.00
06/05/00
Manufacturers Bank
03/06/00
03/27/00
5.850
5.930
10,000,000.00
06/26/00
Manufacturers Bank
03/13/00
6.110
13,000,000.00 ,000,000-00
09/11/00
Manufacturers Bank
01 /04/00
5.480
04/03/00
Preferred Bank
01/18/00
5.430
3,000,000.00
04/18l00
Preferred Bank
02/14/00
5.670
4,000,000.00
05/15/00
05/31/00
Preferred Bank
Preferred Bank
03//00
5.830
5,000,000.00
05/31 /00
Preferred Bank
0 /0 /00
03/14/00
5.810
5.920
9,000,000.00
06/12/00
Preferred Bank
03/20/00
5.890
9,000,000.00
06/20/00
11 /30/00
Preferred Bank
State Bank of India
11/19/99
5.600
2,000,000.00
2,000,000.00
01/19/01
State Bank of India
01/31/
08/31/99
6.110
5.290
4,000,000.00
08/31/00
Wilshire State Bank
01 /17/00/00
6.090
4,000,000.00
01/12/01
Wilshire State Bank
03/1
6.230
4,000,000.00
03/19/01
Wilshire State Bank
MERCED
5,000,000.00 09/11/00
County Bank 03/16.180 5,000,000.00 03/09/01
County Bank 03/09/00 l00 6.200
MONTEREY PARK
Trust Bank FSB
/27/5.790
6.180
2,000,000-00
4,000,000.00
06/26/00
10/02/00
Trust Bank FSB
03 /27/00
OAK_ DALE
Oak Valley Community Bank
11 /31/99 5.360/00
500,000.00
1,000,000.00
05/01 /00
05/01 /00
Oak Valley Community Bank
01 / 5.680
19
TIME DEPOSITS
OAKDALE (continued)
Oak Valley Community Bank
Oak Valley Community Bank
Oak Valley CommunityBank
Oak Valley Community Bank
Oak Valley CommunityBank
Oak Valley Community08/10/99
Bank
Oak Valley Community Bank
ONTARIO
05/06/99
03/31/00
02/04/00
09/27/99
03/24/00
4.830
5.930
5.390
5.830
5.220
5.190
6.230
500,000.00
1,000,000.00
500,000.00
500,000.00
500,000.00
500 ,000.00
1, 000, 000.00
05/22/00
06/30/00
07/31/00
08/02/00
09/29/00
0/9/00
03/23/01
Citizens Business Bank
Citizens Business Bank
Citizens Business Bank
Citizens Business Bank
Citizens Business Bank
Citizens Business Bank
Citizens Business Bank
PALM SPRINGS
04/07/99
08/23/99
06/16/99
07/07/99
08/10/99
03/22/00
03/08/00
4.720
4.970
5.150
5.100
5.220
6.180
6.240
10,000,000.00
20,000,000.00
10,000,000.00
5,000,000.00
10,000,000.00
10,000,000.00
5, 000, 000.00
04/06/00
05/25/00
06/15/00
07/06/00
08/09/00
09/18/00
03/08/01
Canyon National Bank
03/17/00
5.920
95,000.00
06/16/00
PALO ALTO
Bay Area Bank
Cupertino National Bank
Cupertino National Bank
Mid -Peninsula Bank
Mid -Peninsula Bank
Peninsula Bank of Commerce
PALOS VERDES ESTATES
10/08/99
03/22/00
02/04/00
OZ/04/00
03/24/00
03/ 4/00
5.140
6.180
5.870
5.870
6.150
6.110
5,000,000.00
10,000,000.00
10,000,000.00
15,000,000.00
10,000,000.00
15, 000,000.00
04/17/00
09/18/00
08/OZ/00
08/02/00
09/20/00
09/11 /00
Malaga Bank
03/28/00
6.250
6, 000, 000.00
09/26/00
PICO RIVERA
Pacific West National Bank
11/23/99
5.650
1, 000, 000.00
11 /30/00
PLACERVILLE
El Dorado Savings Bank
El Dorado Savings Bank
02/08/00
03/22/00
6.230
6.250
5,000,000.00
5,000,000.00
02/08/01
03/22/01
20
TIME DEPOSITS
POMONA
11/30/99 5.900 8,000,000.00 12/01/00
PFF Bank and Trust 03/09/01
PFF Bank and Trust 03/10/00 6.450 10,000,000.00
PETALLI
01/24/00 5.840 2,500,000.00 07/24/00
Bank of Petaluma 02/07/01
Bank of Petaluma 02/07/00 6.210 1,000,000.00
REDDING
North Valley Bank
03/22/00
6.190
3,000,000.00
09/18/00
RICHMOND
Mechanics Bank
04/05/99
4.740
10,000,000.00
10,000,000.00
04/04/00
05/05/00
Mechanics Bank
05/06/99
06/11/99
4.810
5.150
10,000,000.00
06/12/00
Mechanics Bank
08/12/99
5.250
10,000,000.00
08/11l00
Mechanics Bank
10/07/99
5.330
10,000,000.00
10/13/00
Mechanics Bank
03/07/00
6.230
101000,000.00
03/07/01
Mechanics Bank
SACRAMENTO
American River Bank
09/29/99
4.990
1,000,000.00
1,000,000.00
04/03/00
06/26/00
American River Bank
12/28/99
/22/28//99
5.770
6.200
3,000,000-00
09/26/00
American River Bank
1
5.960
1,000,000 00
12/27/00
American River Bank �
03/03/00
6.290
500,000.00
03/05/01
Bank of Sacramento
Q2/16/00
6.240
1,000,000.00
02/16/01
Bank of Sacramento
01/1 /000/00
20,000,000.00
03/23/01
Golden One Credit Union
01 /1.440
5.180
5,000,000.00
04/10/00
River City Bank
0/31/99/00
5.210
5,000,000.00
08/18/00
River City Bank
01 /
6.140
5,000,000.00
10/27/00
River City Bank
07/15/99
5.000
10,000,000.00
07/14/00
Sanwa Bank of California
07/27/99
5.010
5,000,000.00
07l26/00
Sanwa Bank of California
08/16/99
5.190
50,000,000.00
08/15/00
Sanwa Bank of California
08/23/99
5.180
10,000,000.00
08/22/00
Sanwa Bank of California
02/07/00
6.180
000000.00
7,,
02/09/01_
Sanwa Bank of California
01/25/00
5.450
50,000,000.00
04/25/00
Union Bank of California
02/01/00
5.660
100,000,000.00
05/02/00
Union Bank of California
02/15/00
5.640
50,000,000.00
05/16/00
Union Bank of California
02/23/00
5.810
100,000,000.00
05/23/00
Union Bank of California
03/28/00
6.220
100,000,000.00
09/25/00
Union Bank of California
21
TIME DEPOSITS
SAL_
Community Bk Central California
01/26/00
5.480
8,000,000.00
04/20/00
Community Bk Central California
01/27/00
5.610
12,000,000.00
04/27/00
Community Bk Central California
02/01/00
5.630
10,000,000.00
05/01/00
Community Bk Central California
02/02/00
5.720
10,000,000.00
05/31/00
SAN DIEGO
First United Bank
11/30/99
5.700
1,500,000.00
12/01/00
Neighborhood National Bank
02/02/00
6.240
1,000,000.00
02/09/01
San Diego First Bank
06/22/99
5.030
1,500,000.00
06/21/00
San Diego First Bank
08/04/99
5.150
1,000,000.00
08/07/00
SAN FRANCISCO
Bank of Canton California
05/06/99
4.810
5,000,000.00
05/05/00
Bank of Canton California
05/13/99
4.780
5,000,000.00
05/12/00
Bank of Canton California
06/01/99
5.000
5,000,000.00
05/31/00
Bank of Canton California
06/02/99
5.000
5,000,000.00
05/31/00
Bank of Canton California
07/21/99
4.950
5,000,000.00
07/21/00
Bank of Canton California
09/01/99
5.280
5,000,000.00
09/01/00
Bank of Canton California
11/10/99
5.430
15,000,000.00
09/01/00
Bank of Canton California
09/13/99
5.290
5,000,000.00
09/13/00
Bank of Canton California
11/10/99
5.460
10,000,000.00
11/10/00
Bank of the West
01/05/00
5.490
34,000,000.00
04/04/00
Bank of the West
01/12/00
5.380
50,000,000.00
04/14/00
Bank of the West
04/29/99
4.760
51,500,000.00
04/29/00
Bank of the West
01/31/00
5.620
25,000,000.00
05/01/00
Bank of the West
11/02/99
5.340
25,000,000.00
05/05/00
Bank of the West
02/16/00
5.640
25,000,000.00
05/16/00
Bank of the West
02/22/00
5.760
50,000,000.00
05/22/00
Bank of the West
08/27/99
4.960
25,000,000.00
05/25/00
Bank of the West
05/19/99
4.890
30,000,000.00
05/25/00
Bank of the West
05/26/99
4.860
87,000,000.00
05/25/00
Bank of the West
03/02/00
6.070
50,000,000.00
09/01/00
California Federal Bank
01/18/00
5.440
100,000,000.00
04/17/00
California Federal Bank
01/05/00
6.080
8,000,000.00
01/05/01
Millennium Bank
10/27/99
5.390
2,000,000.00
05/01/00
Millennium Bank
03/03/00
5.840
1,000,000.00
06/01/00
Millennium Bank
03/03/00
6.090
1,000,000.00
08/30/00
Oceanic Bank
03/07/00
6.230
2,000,000.00
03/15/01
Oceanic Bank
03/15/00
6.210
2,000,000.00
03/15/01
Trans Pacific National Bank
03/17/00
6.250
800,000.00
03/19/01
United Commercial Bank
03/20/00
6.240
25,000,000.00
03/20/91
United Commercial Bank
10/04/99
5.030
20,000,000.00
04/05/00
United Commercial Bank
09/20/99
5.100
20,000,000.00
04/27/00
United Commercial Bank
02/11/00
5.690
20,000,000.00
05/11/00
22
TIME DEPOSITS
SAN FRANCISCO (continued)
United Commercial Bank
United Commercial Bank
SANJOSE
San Jose National Bank
SAN LEANDRO
Bay Bank of Commence
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
Mission Community Bank
Mission Community Bank
Mission Community Bank
San Luis Trust Bank
San Luis Trust Bank
SAN RAFAEL
Westamerica Bank
Westamerica Bank
Westamerica Bank
Westamerica Bank
Westamerica Bank
Westamerica Bank
Westamerica Bank
SANTA BARBARA
FNB of Central California
FNB of Central California
FNB of Central California
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
09/03/99
5.310
20,000,000.00
09/01 /00
10/07/99
5.360
10,000,000.00
10/13/00
07/12/99
5.010
5,000,000.00
07/11/00
01 /13/00
5.47
5,000,000.00
04/12/00
01/14/00
5.440
1,000,000.00
04/13/00
01 /25/00
5.500
1,000,000.00
04/24/00
02/04/00
5.630
3,600,000.00
05/05/00
02/10/00
5.710
2,000,000.00
05/10/00
02/22/00
5.770
2,500,000.00
05/22/00
01/10/00
5.420
500,000.00
04/10/00
01/10/00
5.700
1,000,000.00
07/10/00
01/10/00
6.060
500,000.00
01 /12/01
01/13/00
5.460
350,000.00
04/12/00
01 /31 /00
5.930
1,000,000.00
08/04/00
01/12/00
5.440
25,000,000.00
04/14/00
01/19/00
5.390
25,000,000.00
04/18/00
02/14/00
5.680
50,000,000.00
05/15/00
03/20/00
5.910
25,000,000.00
06/19/00
01/27/00
5.800
25,000,000.00
07/25/00
01 /31 /00
5.910
25,000,000.00
07/31 /00
01/31/00
5.910
25,000,000.00
08/07/00
01/10/00
5.690
10,000,000.00
07/10/00
03/31/00
6.080
5,000,000.00
08/07/00
02/07/00
5.870
5,000,000.00
08/07/00
10/04/99
5.010
5,000,000.00
04/07/00
10/08/99
5.110
5,000,000.00
04/17/00
03/08/00
5.880
10,000,000.00
06/09/00
01/07/00
5.740
5,000,000.00
07/07/00
01/07/00
5.740
5,000,000.00
07/07/00
01/14/00
5.690
5,000,000.00
07/14/00
01/14/00
5.690
5,000,000.00
07/14/00
23
Y
TIME DEPOSITS
SANTA BARBARA (continued)
Santa Barbara Bank & Trust
01/19/00
5.710
10,000,000.00
07/21/00
Santa Barbara Bank & Trust
01/21/00
5.900
5,000,000.00
08/11/00
Santa Barbara Bank & Trust
02/11/00
6.030
5,000,000.00
08/11/00
Santa Barbara Bank & Trust
03/03/00
6.070
5,000,000.00
09/08/00
Santa Barbara Bank & Trust
03/17/00
6.170
5,000,000.00
09/08/00
SANTA CLARA
Bank of Santa Clara
03/17/00
5.900
2,000,000.00
06/15/00
Bank of Santa Clara
03/17/00
6.170
2,000,000.00
09/13/00
Bank of Santa Clara
03/17/00
6.230
2,000,000.00
03/19/01
SANTA CLARITA
Valencia Bank & Trust
9/23/99
5.28
1,000,000.00
9/22/00
SANTA CRUZ
Coast Commercial Bank
01/18/00
5.430
5,000,000.00
04/21/00
Coast .Commercial Bank
03/13/00
5.870
20,000,000.00
06/12/00
SARATOGA
Saratoga National Bank
06/22/99
5.100
1,750,000.00
06/30/00
Saratoga National Bank
10/01/99
5.150
5,000,000.00
06/30/00
STOCKTON
Union Safe Deposit Bank
01/14/00
5.480
10,000,000.00
04/13/00
Union Safe Deposit Bank
02/15/00
5.680
10,000,000.00
05/16/00
Union Safe Deposit Bank
03/15/00
6.260
10,000,000.00
03/15/01
Washington Mutual Bank
09/17/99
5.260
15,000,000.00
09/15/00
Washington Mutual Bank
03/21/00.
6.160.
15,000,000.00
09/15/00
Washington Mutual Bank
10/13/99
5.370
15,000,000.00
10/27/00
Washington Mutual Bank
11/08/99
5.420
15,000,000.00
11/13/00
Washington Mutual Bank
12/20/99
5.940
15,000,000.00
12/28/00
Washington Mutual Bank
01/24/00
6.120
15,000,000.00
01/23/01
Washington Mutual Bank
02/18/00
6.210
15,000,000.00
02/22/01
TORRANCE
China Trust Bank (USA)
01/05/00
5.500
10,000,000.00
04/04/00
China Trust Bank (USA)
01/24/00
5.490
15,000,000.00
04/24/00
China Trust Bank (USA)
02/14/00
5.690
5,000,000.00
05/15/00
China Trust Bank (USA)
03/06/00
5.830
10,000,000.00
06/05/00
China Trust Bank (USA)
03/09/00
5.880
10,000,000.00
06/07/00
24
TIME DEPOSITS
TORRANCE (continued)
China Trust Bank (USA)
03/17/00
5.900
5,000,000.00
South Bay Bank
11/02/99
5.400
2,000,000.00
South Bay Bank
03/13/00
5.890
2,000,000.00
South Bay Bank
01/31/00
5.880
1,000,000.00
TUSTIN
First Fidelity Thrift & Loan
01/18/00
5.440
5,000,000.00
First Fidelity Thrift & Loan
01 /28/00
5.620
4,000,000.00
First Fidelity Thrift & Loan
01/19/00
5.700
5,000,000.00
First Fidelity Investment & Loan
02/11/00
5.680
6,000,000.00
First Fidelity Investment & Loan
03/01/00
6.210
15,000,000.00
Sunwest Bank
01/11/00
5.650
3,500,000.00
Sunwest Bank
01/21/00
5.810
2,500,000.00
Sunwest Bank
01/13/00
5.720
3,300,000.00
Sunwest Bank
01/21/00
5.820
2,500,000.00
Sunwest Bank
03/08/00
6.100
1,000,000.00
TOTAL TIME DEPOSITS AS OF MARCH 31, 2000 3,178,490,000.00
25
06/16/00
05/01 /00
06/12/00
07/31 /00
04/17/00
04/28/00
07/17/00
05/11 /00
03/01 /01
07/10/00
07/19/00
07/27/00
07/31 /00
09/08/00
BANK DEMAND DEPOSITS
MARCH 2O00
($ in thousands)
DAY OF
MONTH
BALANCES
WARRANTS
PER B_
OUTSTANDING
1
2
$ 769003
$ 1,768,332
3
413,003
2,2219339
4
368,432
2,368,101
5
368,432
29368,101
6
368,432
29368,101
7
350,039
1,983,899
8
266,053
19624,972
9
1579950
1,450,973
10
129,956
1,645,242
11
4449120
1,698,186
12
4449120
1,698,186
13
444,120
1,698,186
14
2849480
1,511,666
15
185,137
1,431,090
16
507,440
1,383,928
17
328,165
1,572,838
18
506,331
195539891
19
506,331
195539891
20
� 5069331
1,553,891
21
420,149
1,555,678
22
297,407
19477,489
23
415,823
1,389,619
24
287,096
115149797
25
3699211
1,767,836
26
369,211
1,767,836
27
369,211
1,767,836
28
234,297
1,546,721
29
3409444
11748,439
30
88,488
1,574,489
31
19,695
3,1349536
2499157
2,682,835
AVERAGE DOLLAR DAYS $326,292,749 a/
a/ The prescribed bank balance for March was $321,595. This co
nsisted of
$163,674 in compensating balances for services, balances for uncollected
funds of $157,921 and a deduction of $4,759 for February delayed deposit
credit.
26
DESIGNATIONBY POOLED MONEY INVESTMENT BOARD
OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS
No. 1609
In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled
oroney Investment deposit and investment
t its
meeting on March 15, 2000, has determined and designated the amount of money the
under said sections. In accordance with sections 16480.1 and 16480.2 ofatnd savinrs and loan associations or invested nment Code, it is the intent in
e Gove
money available for deposit or investment be deposited in bank accounts 9
securities in such a manner so as to realize the maximum return consistent withtsaf bank e and prud ntst savings madam ent, -
and the Board does hereby designate the amount of money available for deposiof such deposits and investments as follows:
actions, and for investment in securities and the type
1. In accordance with law, for deposit in demand
b k accounts as Compensating Balance for Services
$ 190,368,000
Cal
ses of
The
active noninterest-bearing bank accounts designation constitutes a calendar m the daily balances any amounts contained the ein as
computing the compensating balances, the Treasurer shall exclude froany
a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall n such accounts may fall below the albove amount
depositsdeposits not credited by the bank as of the date of deposit. The balances
provided that balances computed by dividing the sum of daily balances of that calendar month by the number of days in
P t the approximates that amount. The balances may exceed this amount during heavy collection
the calendar month reasonably
the
es
periods or in anticipation of large impending warrant presentations to the
Treasury, udent treasury balance are to be maintainedin
such a manner as to realize the maximum return consistent with safe a p
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 folio
Time Deposits in
Various Financial
Institutions
In Securities
(sections 16503a
Estimated
From
To
Transactions
(section 16430)'
16602 '
and Z--
$
Total
32,025,900,000
( 1)
03/13/2000
03/17/2000
$
775,400,000
$
28,908,505,000
$ 3,117,395,000
3,117,395,000
$
2, 300,00
(2)
03/20/2000
03/24/2000
$
1,826,400,000
$
30,734,905,000
$
$ 3,117,395,000
$
3, 85,000,000
(3)
03/27/2000
03/31/2000
$
(1,867,300,000)
$
28,867,605,000
$ 3,117,395,000
$
31,85
,000,000
(4)
04/03/2000
04/07/2000
$
(1,332,000,000)
$
27,535,605,000
$ 3,117,395,000
$
32 00,000
742,870,100,000
(5)
04/10/2000
04/14/2000
$
2,089,100,000
$
29,624,705,000
$ 3,117,395,000
37
(6)
04/17/2000
04/21/2000
$
5,127,900,000
$
34,752,605,000
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
from Additional amounts available in treasury trust account and ithe
d sienated above.
e to time, in excess of the
m
amounts and for the same types of investments as specifically 9
own undersubject Provided, that the availability of the amounts shbe reduced be ow the calamount
calendar month average balance
which the bank accounts under paragraph 1 would otherwise
of $ 190,368,000.
POOLED MC NI y INVESTMENT BOARD:
J
Chairperson
Member
Dated: March 15, 2000 Member
" Government Code 27
INVESTMENT ADVISORY BOARD Written Correspondence C
Meeting Date: June 7, 2000
TITLE:
LAIF Answer Book Update
BACKGROUND:
From time to time LAIF updates their answer book. No significant changes to the
updated information was noted by staff.
RECOMMENDATION:
eceive ,and file.
Johbn M. Falconer, Finance Director
MARCH 319 2000
QUARTERLY
ANSWER BOOK
UPDATE
REPLACEMENT PAGES
29 49 59 129 139 14, 159 16, 17, 18, 19, 209 21, 229 23,
249 259 269 279 28, 379 399 409 41, 42 AND 47
Additionally, the PMIA has Policies, Goals and Objectives for the portfolio to
make certain that our goals of Safety, Liquidity and Yield are not jeopardized and that
prudent management prevails. These policies are formulated by investment staff and
reviewed by both the PMIB and the LAIF Board on an annual basis.
The State Treasurer's Office is audited by the Bureau of State Audits on an
annual basis. The resulting opinion is included in the subsequent Pooled Money
monthly report following its publication. The Bureau of State Audits also has a
continuing audit process throughout the year. All investment and LAIF claims are
audited on a daily basis by the State Controller's Office as well as an in-house audit
process involving three separate divisions.
It has been determined that the State of California cannot declare bankruptcy
under Federal regulations, thereby allowing the Government Code Section 16429.3 to
stand. This Section states that "money placed with the state treasurer for deposit in the
LAIF shall not be subject to either: (a) transfer or loan pursuant to Sections 16310,
16312, or 16313, or (b) impoundment or seizure by any state official or state agency."
The LAIF has grown from 293 participants and $468 million in 1977 to 2,785
participants and $12.5 billion in 2000.
State Treasurer's Office
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
http://www.treasurer.ca.gov
2 Revised March 31, 2000
LOCAL AGENCY INVESTMENT FUND
Participation as of 03/31/00
2,785 Agencies
227 187 BONDS
TRUSTEES 7% 54 COUNTIES 0 465 CITIES
g o/ ° 11"YoL
19852
DISTRICTS
66%
■
54 COUNTIES
❑
465 CITIES
■ 1,852 DISTRICTS
■
227 TRUSTEES
■
187 BONDS
4 Revised March 31, 2000
PHILIP ANGELIDES
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
MARCH 31, 2000
PERCENTAGE
CHANGE FROM
TYPE OF SECURITY
AMOUNT
PERCENT
PRIOR MONTH
Government
Bills
$ 1,373,355
4.03
+0.36
Bonds
0
0.00
0
Notes
1,998,424
5.87
-0.30
Strips
0
0.00
0
Total Governments
$ 3,371,779
9.90
+0.06
Federal Agency Coupons
$ 3,589,987
10.55
+0.49
'^ Ceritficates of Deposit
5,858,704
17.20
+7.14
Bank Notes
1,890,014
5.55
+0.12
Bankers' Acceptances
0
0.00
0
Repurchases
0
0.00
0
Federal Agency Discount Notes
5,129,982
15.06
+0.27
Time Deposits
3,178,490
9.33
+0.67
GNMAs
1,385
0.00
0
Commercial Paper
6,860,354
20.14
-2.54
FHLMC
13,396
0.04
0
Coporate Bonds
2,581,581
7.59
+0.43
Pooled Loans
1,928,224
5.66
-0.25
GF Loans
0
0.00
0
Reversed Repurchases
(348,170)
1.02
+0.28
Total (All Types)
$ 34,055,726
100.00
Average Life of Portfolio as of March 31, 2000 is 201 Days
5
Revised March 31, 2000
State of California
Pooled Money
Investment Account
Market Valuation
3/31 /00
K.
.a ,R
A rn
United States Treasury:
Bills
$
1,373,354,673.69
$
1,400,097,100.73
$
1,397,435,391.66
NA
Notes
$
1,998,424,355.83
$
1,998,424,355.83
$
1,982,655,500.00
$
24,341,411.25
Federal Agency:
Bonds
$
2,736,090,316.95
$
2,734,263,871.80
$
2,720,098,087.95
$
39,438,479.26
Floaters
$
100,000,000.00
$
100,000,000.00
$
100,000,000.00
$
890,625.00
MBS
$
441,758,316.87
$
441,758,316.87
$
418,725,930.49
$
2,395,110.85
GNMA
$
1,385,017.82
$
1,385,017.82
$
1,546,811.32
$
13,654.15
SBA
$
312,138,340.80
$
311,898,277.20
$
311,146,970.24
1
2,848,784.15
FHLMC PC
$
13,396,428.51
$
13,396,428.51
$
13,801,521.49
$
215,320.26
Discount Notes
$
5,129,981,858.47
$
5,228,279,188.18
$
5,225,447,815.04
NA
Bankers Acceptances
$
-
$
-
$
-
NA
Corporate:
Bonds
$
1,118,649,105.67
$
1,117,935,465.24
$
1,107,568,765.85
$
19,918,614.56
Floaters
$
1,462,931,944.91
$
1,462,144,214.98
$
1,465,671,788.50
$
10,115,963.83
CDs
$
5,858,704,385.56
$
5,857,684,785.54
$
5,850,906,850.33
$
126,467,704.14
Bank Notes
$
1,890,013,744.49
$
1,890,005,313.93
$
1,887,317,584.00
$
44,348,313.86
Repurchase Agreement.,
$
-
$
-
$
-
NA
Time Deposits
$
3,178,490,000.00
$
3,178,490,000.00
$
3,178,490,000.00
NA
AB 55 & GF Loans
$
1,928,223,685.88
$
1,928,223,685.88
$
1,928,223,685.88
NA
Commercial Paper
$
6,860,354,375.02
$
6,900,456,377.80
$
6,898,961,066.67
NA
Reverse Repurchase
$
348,170,430.00
$
348,170,430.00
$
348,170,430.00
$
1,538,711.45
1
TOTAL
$
34,055,726,120.47
$
34,216,271,970.31
$
34,139,827,339.42
$
269,455,269.86
Fair Value Including Accrued Interest
$
34,409,282,609.28
Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and
Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
-- The value of each participating dollar equals the fair value divided by the amortized cost (.997765840).
As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its
participation in the LAIF valued at $19,955,316.80 or $20,000,000.00 x .997765840.
12 Revised March 31, 2000
O
444
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13
Revised March 31, 2000
SOURCE OF FUNDS
Pooled Money Investment Account
as of 3/31/00
$34.056 Billion
Surplus
Local
Money Agencies
39.04% 36.24%
OTHER General
.24% Fund
24.48%
14 Revised March 31, 2000
Office of the State Treasurer
unt
Approved by Treasurer Philip Angelides
on
March 2, 2000
15 Revised March 31, 2000
STATE TREASURER'S OFFICE
STATEMENT OF PORTFOLIO MANAGEMENT GOALS,
OBJECTIVES AND POLICIES
POOLED MONEY INVESTMENT ACCOUNT-PMIA
All state money held by the State Treasurer in Treasury trust accounts, and all
money in the State Treasury,..... is appropriated for the purpose of investment and deposit
as provided in article 4.5, Section 16480 et. al. of the Government Code.
GOAL I. PORTFOLIO SAFETY/DIVERSIFICATION
The pool will be managed to insure the safety of the portfolio by investing in high
quality securities and by maintaining a mix of securities that will provide reasonable
assurance that no single investment or class of investments will have a disproportionate
impact on the total portfolio.
OBJECTIVE: In addition to the safety provided by investing in high quality
securities, the safety of the portfolio is enhanced three ways by maintaining a prudent
mix (i.e., diversity) of investments: 1) Spreading investments over different investment
types minimizes the impact any one industry/investment class can have on the portfolio;
2) Spreading investments over multiple credits/issuers within an investment type
minimizes the credit exposure of the portfolio to any single firm/institution; and 3)
Spreading investments over various maturities minimizes the risk of portfolio
depreciation due to a rise in interest rates. An unforeseen liquidity need allows no
options if "all your eggs are in one basket."
POLICY: The portfolio shall contain a sufficient number and diversity of
marketable securities so that a reasonable portion of the portfolio can be readily
converted to cash without causing a material change in the value of the portfolio.
Limitation and eligibility as to specific investments are to be determined by the Pooled
Money Investment Board in the case of Commercial Paper, the Treasurer's Office
Investment Committee in cases of new dealer authorizations and approval of new
corporate investments, and the Treasury Investment Division in all other matters.
GOAL II. LIQUIDITY
The pool will be managed to ensure that normal cash needs, as well as scheduled
extraordinary cash needs can be met. Further, adequate liquidity shall be maintained to
ensure the unforeseen cash needs, whether ordinary or extraordinary.
OBJECTIVE: The pool will maintain a "cash flow generated" portfolio balance
sufficient to cover specifically the one month prepared cash forecast, as well as generally
16 March 2, 2000
the six month prepared cash forecast. Further, sufficient marketable treasuries will be
maintained to cover unforeseen withdrawals or delayed deposits.
POLICY: First priority is given to maintaining specific calendar liquidity, as
dictated by the most recent cash forecast. Second priority is the maintenance of Treasury
Bill positions adequate to meet unscheduled needs. Final consideration would be given
to "other" investments deemed appropriate to portfolio maintenance, enhancement, or
restructuring.
GOAL III. RATE OF RETURN
Pooled investments and deposits shall be made in such a way as to realize the
maximum return consistent with safe and prudent treasury management.
OBJECTIVE: The rate of return will be maintained on a consistent level
representative of current market yield direction.
POLICY: Sales gains/losses will not be incurred to the point of radically
altering the final quarterly apportionment rate. Significant sales gains will be offset for
restructuring purposes to maintain consistent current return, as well as maximizing future
portfolio performance. Significant sales losses shall be incurred only by consent of the
Treasurer, or when sufficient profits negate the alteration of the apportionment rate.
Range bonds and inverse yielding securities are examples of the types of investments
which are precluded by the above stated objective.
CONFORMANCE
All of the foregoing goals, objectives and policies shall be observed by the Chief of
Investments or his designee, monitored by the Treasurer's Investment Committee, and
reviewed continually by the Treasurer or his/ her assistant.
17
March 2, 2000
STATE TREASURER'S OFFICE
STATEMENT OF PORTFOLIO MANAGEMENT GUIDELINES
POOLED MONEY INVESTMENT ACCOUNT-PMIA
The State Treasurer's Investment Division has set forth a general declaration of
portfolio goals, objectives and policies. Following are various guidelines necessary to the
good faith observance of these policies.
I. GUIDELINES FOR MAINTAINING SAFETY/DIVERSIFICATION
There are few statutory limitations placed on individual categories of authorized
investments. However, this does not entitle the investment staff to "carte blanche"
participation in these security types. In the absence of direct statutory limitations, the
"prudent person rule" shall be utilized by the investment staff. As market conditions
change, altering credit risk, marketability, yield spreads, and securities availability,
application of this rule shall govern any investment decision. This application shall be
discussed as soon as time permits with the Chief of Investments. At the Chief of
Investments determination, the situation may be discussed with the full investment
committee or brought directly to the attention of the Treasury Management.
Following are various considerations/limitations as they pertain to specific
investment types:
A. U.S. Treasury Securities
1) Maximum maturity: Statutory: 30 years.
Policy: 5 years.
2) Maximum par value, total portfolio: None.
3) Maximum par value per name: None.
4) Maximum par value per maturity: None.
5) Credit: Full faith and credit of the Federal Government.
Treasury Bills are maintained for liquidity, trading, and yield enhancement as the
underlying security in a Reverse Repurchase transaction. Treasury strips and full coupon
securities are purchased for average maturity preservation, liquidity, and trading.
18
March 2, 2000
-- B. Federal Agency Securities
1) Maximum maturity: Statutory: 30 years.
Policy: 5 years.
2) Maximum par value, total portfolio: None.
3) Maximum par value per name: None.
4) Maximum par value per maturity: None.
5) Credit: Despite there being no statutory limitations concerning this
category, prudent investment practice necessitates constant credit analysis
of certain issuing agencies. Although there exists an implicit or explicit
government guarantee of the various agency issues, market perception
often limits the liquidity of these issues.
C. Bankers Acceptances-Domestic/Foreign
1) Maximum maturity: Statutory: None.
Policy: 180 days.
(This maximum maturity is a criterion used to determine eligibility for purchase
by the Federal Reserve. Our authority is based on the eligibility as determined by
the Fed. However, since the Fed has discontinued its eligibility requirements and
purchases, this criterion is no longer applicable. Currently, a majority of
acceptances are created only for 180 days.)
2) Maximum par value, total portfolio: None.
3) Maximum par value per name: None.
4) Maximum par value per maturity: None.
5) Credit:
a) The history of the acceptance market is spotless on "Failures to
redeem." This is true even through the years of WW II.
b) Geopolitical location is of prime concern when considering
potential candidates. Internal, as well as border political and
economic stability of the host country are of prime concern.
c) Liquidity as far as both credit risk and marketability in the
secondary level are addressed.
d) Although statutory authority does not limit eligibility according to
ranking or rating, previously listed general criteria eliminate lesser
credits.
19
March 2, 2000
E.
Certificates of Deposits
1)
Maximum maturity: Statutory:
None.
Policy:
5 years.
2)
Maximum par value, total portfolio:
None.
3)
Maximum par value per name:
None.
4)
Maximum par value per maturity:
None.
5)
Credit:
a) Criteria concerning loan make-up, LDC exposure, geographic
location, market perceptions, and financial condition all serve to
eliminate lesser names.
b) Liquidity as far as both credit risk and marketability in the
secondary level are addressed. There must be a market for the
name in which at least three major dealers will bid or offer at a
given moment.
Collateralized Time Deposits
1) Maximum maturity: Statutory: None.
Policy: 5 years.
2) Maximum par value, total portfolio: None.
3) Maximum par value per name: Statutory: Shall not exceed the
net worth of the
institution.
Policy: Same.
4) Maximum par value per maturity: None.
5) Credit: Institutions must be rated average or better, or above a "D ", by a
recognized rating service utilized by the State Treasurer's Office (STO)
Investment Division, and must pass a credit evaluation by the STO Staff.
This evaluation may include a review of such criteria as geographic
location, market perception, loan diversity, management factors, overall
fiscal soundness and the Community Reinvestment Act Rating of the
institution. If, while holding a pool deposit, an institution is downgraded
below acceptable levels by the rating agencies, the following steps shall be
taken:
20
March 2, 2000
a) Notify the Deposits Section to monitor collateral closely.
b) Review financials and update credit report.
c) Determine the appropriate plan of action which may include early
termination of the time deposit, or allow the time deposit to
mature.
6) Collateral must comply with Government Code, Chapter 4, Bank Deposit
Law Section 16500 (et seq.) and the Savings and Loan Association and
Credit Union Deposit Law G.C. Section 16600 (et seq.).
F. Commercial Paper
1)
Maximum maturity: Statutory:
180 days.
Policy:
180 days.
2)
Maximum par value, total portfolio:
Statutory:
30% of the current
portfolio.
Policy:
Same.
3)
Maximum par value per name:
Statutory:
10% of outstanding
Policy:
Same.
4)
Maximum par value per maturity:
None.
5) Credit: Commercial paper eligible for investment under this subdivision
must be rated "Prime" quality as defined by a nationally recognized
organization which rates such securities and must be issued by a
corporation, trust or special purpose corporation approved by the Pooled
Money Investment Board. Furthermore, in the case of general
corporations, they must be organized and operating within the United
States and have total assets in excess of five hundred million dollars
($500,000,000). In the case of trusts or special purpose corporations, they
must be organized within the United States and have programwide credit
enhancements including, but not limited to, overcollateralization, letters of
credit or surety bonds.
21
March 2, 2000
G. Corporate Bonds/1Votes
1) Maximum maturity: Statutory: None.
Policy: 5 years.
2) Maximum par value, total portfolio: None.
3) Maximum par value per name: None.
4) Maximum par value per maturity: None.
5) Credit: Securities eligible for investment under this subdivision must be
issued by corporations (including banks) organized and operating within
the United States and shall be within the top three ratings of a nationally
recognized rating service.
H. Repurchases (RP) and Reverse Repurchase (RRP)
1) Maximum maturity: Statutory: None.
Policy: 1 year.
2) Maximum par value, total portfolio: Statutory: None.
Policy: RRP is limited to
10% of the current
portfolio.
3) Maximum par value per name: None.
4) Maximum par value per maturity: None.
5) Credit:
a) Must have on file, a signed Security Loan Agreement and/or
General Repurchase Agreement. (Repurchase Agreement may be
either STO General- Agreement or PSA Standard Agreement.)
b) Reverses and reverse repurchases are only done with long
established and/or well capitalized broker -dealers.
The Reverse Repurchase Program is designed to augment the overall portfolio
yield in a safe and prudent manner. . It is not viewed as a tool with which to effect specific
portfolio moves or plan major market strategy. The portfolio carries reversed securities at
negative book and the re -investment at positive book. As a result, the reported size of the
portfolio represents the true cash participation of its members. All reverses are cash matched
either to the maturity of the re -investment or an adequately positive cash flow date which
is approximate to the maturity of the re -investment. For example, if cash flow is positive
on January 27 and negative on January 31, then the reverse may mature on the 27th, and
the re -investment may be taken to the 31 st. Cash flow is evened out, and a
positive spread is achieved. Only securities already held in the portfolio and
22
March 2, 2000
unencumbered may be reversed. No item purchased against reverse will be used as a
reversible security while the original reverse is outstanding (i.e., the STO does not
leverage one liability with another). The against reverse re -investment will be limited to
maturities under one year, effectively limiting the appropriate securities to generic money
market issues. Because of the role played by the Reverse Program in this office,
customized or structured products are not considered appropriate re -investment
candidates. All costs, earnings, and spreads are fixed at the beginning of each transaction.
II. GUIDELINES FOR MAINTAINING LIQUIDITY
First priority will be the cash flow needs as reported on both the monthly and six
month cash forecasts. These forecasts will be updated daily using the current investment
input, as well as adjustment information provided by Cash Management personnel.
Sufficient Treasury securities will be maintained for unscheduled cash needs. It
has been determined that Treasury Bills having maximum maturity of 1 year will be used
for this purpose. Because of their Government guarantee, as well as the short maturity, the
exposure to market risk is minimal.
Due to the make-up of the portfolio participants, an average maturity of six to
eighteen months will be maintained.
III GUIDELINES FOR MAINTAINING RATE OF RETURN
Always keep in mind the need to provide a consistent rate of return not only to the
quarterly participants of the pool, but the longer term depositors as well. It is often the
case that investments made with long term deposits create the base rate to the portfolio.
Since sales gains/losses impact the portfolio on a quarterly basis; large gains/losses are to
be avoided. Failure to offset either gains or losses proportionately would result in a saw-
toothed apportionment rate history. For this reason, extreme positions or styles of trading
are prohibited.
An informal weekly meeting, with the Chief of Investments, Assistant Chief, and
Investment Manager, will be held to discuss current investment philosophies and
upcoming economic releases. Decisions of value and direction are made to accommodate
the occurrence of all those events which might be considered reasonable and probable.
Although securities trading is allowed for purposes of enhancing portfolio return,
specific limitations have been established to protect the portfolio rate of return:
1) Prior to taking a position, apparent value and size will be discussed
between the Chief and Treasury Trader involved.
2) During a "when issued" (W.I.) period our long position shall never exceed
the amount we are willing to purchase.
3) Short positions will not be taken at any time.
4) Trading positions are to be reported daily to the Chief of Investments.
23 March 2, 2000
Changes to the
State Treasurer's Office
Investment Policy for the Pooled Money Investment Account
• In the first full paragraph on page 17, delete "and domiciled in the San Francisco Depository to
facilitate mid -day cash needs".
• In the second paragraph on page 18, change `prudent man rule" to `prudent person rule".
• In paragraph D.5)b) on page 20, change "a least" to "at least".
• In paragraph E.5) on page 20, change "... STO Staff which..." to "... STO Staff. This evalua-
tion...' .
• In paragraph F.5) on page 21, change to a narrative paragraph and add language related to "trusts
and special purpose corporations". This new language was authorized by legislation in late 1999
and allows the use of asset backed commercial paper.
• In the second paragraph of "II. GUIDELINES FOR MAINTAINING LIQUIDITY" on page
23, delete "Domiciled in San Francisco, these securities are available throughout a great portion
of the business day to meet most emergencies.".
24 March 2, 2000
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LOCAL AGENCY INVESTMENT FUND
ADMINISTRATIVE EARNINGS (COST)
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03/31 /98
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3/31 /00
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1.3
The law provides that reimbursements cannot exceed one-half of 1 percent of the
EARNINGS of the fund per quarter. Listed above is the percentage of earnings
(costs) per quarter.
28 Revised March 31, 2000
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37 Revised March 31, 2000
DISCLOSURE STATEMENT
PORTFOLIO HOLDINGS: DERIVATIVES
STRUCTURED NOTES, AND ASSET -BACKED SECURITIES
The Treasury Investment Division has received a number of inquiries
concerning our various portfolio holdings. Questions involving
structured notes, derivative products, and asset -backed securities are
the most notable. We have found that the lack of acceptable
definitions regarding these financial products has led to confusion
and disagreement with our reported positions.
In an effort to clarify the information provided in our monthly
statements, we would like to share with you our understanding of
these financial products, as defined by the U.S. General Accounting
Office (GAO).
In a recent survey of sales practices for these financial products the
GAO provided definitions and examples of what they considered
1) plain vanilla OTC derivatives, 2) more complex OTC derivatives,
3) structured notes, and 4) asset -backed securities. Following are the
GAO definitions, as well as the State of California Treasurer's
holdings in each category as of March 31, 2000:
39 Revised March 31, 2000
* 1. Plain Vanilla OTC Derivative Products
A derivative product is a financial instrument whose market value is
derived from a reference rate, index, or value of an underlying asset. OTC
derivatives are privately negotiated contracts and are not traded on organized
exchanges.
U.S. $ As of. 3/31/009
*2. More Complex OTC Derivative Products
Other more complex OTC derivatives have at least one of the following
characteristics:
n
Their prices tend to be difficult to obtain because they are often
available from only a few dealers.
b. The payments required by the derivative contract are calculated on
the basis of more than one interest rate, currency, asset, or other factor.
C. The derivative contract has terms that are not determined until some
future date.
d. The contract involves a term that acts as a multiplier or increases the
leverage of the rate(s) used to compute payments.
e. The contract CAN entail potentially unlimited risk.
U.S. $ 0 As of: 3/31 /00
* The Pooled Money Investment Account Portfolio has not invested in, nor
will it invest in, Derivative Products as defined in General Accounting
definitions #1 & #2. The GAO separation of derivatives, structured notes, and
asset -backed securities is consistent with GASB 94-1.
40 Revised March 31, 2000
3. Structured Notes
Structured notes are debt securities (other than asset -backed securities) whose cash -flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or
more indices and/or that have embedded forwards or options. They are issued by
corporations and by government -sponsored enterprises such as the Federal National
Mortgage Association and the Federal Home Loan Bank System.
U.S. $1,801.820 million As of: 3/31/00
4. Asset -Backed Securities
Asset -backed securities, the bulk of which are mortgage -backed securities, entitle their
purchasers to receive a share of the cash flows from a pool of assets such as principal
and interest repayments from a pool of mortgages (such as CMOs) or credit card
receivables.
U.S. $768.677 million As of: 3/31/00
Securities Accountability
1) Vanilla Derivatives o
2) Complex Derivatives o
3) Structured Notes
a. Callable Agency
b. 3 month LIBOR Agency Floater
C. 3 month LIBOR Corporate Floater
d. 2 year CMT Corporate Floater
e. 3 month T-Bill Agency Floater
f. 3 month T-Bill Corporate Floater
$ 00.000 million
$ 100.000 million
$ 1,701.820 million
$ 00.000 million
$ 00.000 million
$ 00.000 million
41 Revised March 31, 2000
4) Asset -Backed
a. Small Business Association Pools $ 312.138 million
b. Agency CMOs $ 441.758 million
C. GNMA Pools $ 1.385 million
d. FHLMC PC Pools $ 13.396 million
Total Portfolio As of. 3/31/00 $34905597265120.47
Financial Products as a percent of portfolio: 7.548%
42 Revised March 31, 2000
How to Participate in the
- Local Agency Investment Fund
Before any deposits will be accepted, the local governmental agency must file with the
State Treasurer a resolution and bank authorization form. The resolution will contain
the following:
I. Name, address, and telephone number of agency.
2. A statement that the agency agrees to deposit or withdraw money in the Local
Agency Investment Fund in the State Treasury in accordance with the provisions
of Section 16429.1 of the Government Code for the purpose of investment as
stated therein.
3. The names and titles of the officials authorized by this resolution to order the
deposit or withdrawal of money in the Local Agency Investment Fund.
4. Resolution number and date passed by the governing body.
5. Signature(s) of the persons) authorized to sign resolutions.
6. Seal of the agency if one is usually affixed to resolutions.
The bank authorization form will contain the following:
1. The names, titles and signature(s) of person (s) authorized to order the deposit or
withdrawal of money in the Local Agency Investment Fund.
2. Banking information signed by two persons authorized on the resolution.
Deposits or withdrawals must be in multiples of one thousand dollars ($1,000);
minimum transaction size is five thousand dollars ($5,000) and a cap of $30 million
per account. Bond proceeds also have a five thousand dollar ($ 5,000) minimum with
no cap. Fifteen transactions are allowed per month for each regular account. Deposits
and withdrawals count as separate transactions.
The LAIF provides each participating agency the following monthly reports:
• Agency Statement of Activity
• LAIF Newsletter providing Selected Investment Data of Pooled Portfolio, available
on the STO home page at www.treasurer.ca.gov
• Report of Monthly Activity of Pooled Portfolio, available on request
• Market Valuation of the Pooled Portfolio, available on the STO home page at
www.treasurer.ca.gov
A Maturity Schedule of the Pooled Portfolio will be provided quarterly.
47
Revised March 31, 2000