2003 05 14 IABP.O. Box 1504
78-495 CALLE TAMPICO (760) 777-7000
LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101
AGENDA
INVESTMENT ADVISORY BOARD
Study Session Room
78-495 Calle Tampico- La Quinta, CA 92253
May 14, 2003 - 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 April 9, 2003 for the Investment
Advisory Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for March 2003
B. Consideration of Fiscal Year 2003/04 Investment Policies
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report and other selected Financial Data -
April 2003
B. Pooled Money Investment Board Reports - February 2003
C. GASB No. 40 - New Rules Regarding Investment Disclosures in the
notes to the Financial Statements.
VII BOARD MEMBER ITEMS
VIII ADJOURNMENT
Lite of Calibrcti i
av 20(13
To: All Local Agency, Investrnctttfun.d ParticipaItts
I am aware of concents expressed on. behalf ol.1-ocal � ,(:Teiicv Int-estment Fund J AIR
participants its to the relationship of this program to the State's current fiscal difficulties.
In addressing, concerns regardina the safetywid Iigyidity of your depos-its in the Local
Agency Investment Fund, I would like: to remind you that Government C'.ode Section
I t`i429,3 speci.-fically excludes your LAW deposits frombeing transferred. loaned,
impounded or seized by any State AggeAncy or Official.
As } r trustee far . A1*F Iutid.s, I would. oppose any statutory' ch.angea in reg-ard to the
pr n and. I will support: the intent of the statttte'that: protects your funds.
r,
t
:`Sir ei ly,
3
Phil Ange j. es
t� to Treasurer
915 CAPITOL MALL. ROOM 110 SACRAMENTO, CA 95814 �t (916) 653-2995 FAx (916) 653.31 25
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: May 14, 2003
ITEM TITLE:
Transmittal of Treasury Report
for March 2003
BACKGROUND:
Attached please find the Treasury Report March 2003
RECOMMENDATION:
Review, Receive and File the Treasury Report for March 2003
n M. Falconer, Finance Director
Ta 0 19�
4bf 4 Qu&rA
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falconer, Finance Directorfrreasurer
SUBJECT: Treasurer's Report for March 31, 2003
DATE: April 28, 2003
Attached is the Treasurer's Report for the month ending March 31, 2003. The report is submitted to
On City Council each month after a reconciliation of accounts is accomplished by the Finance Department.
The following table summarizes the changes in investment types for the month:
Investment
Beainning
Purchased
Notes
Sold/Matured
Other
Ending
Change
Cash
($876,960)
$1,019,242
(1)
$142,282
$1,019,242
LAW
$20,175,157
(1,000,000)
14,175,157
(1,000,000)
US Treasuries (2)
$57,876,305
3,988,979
(26,912)
61,838,372
3,962,067
US Gov't Agencies (2)
$19,876,446
19,635
19,896,081
19,635
Commercial Paper (2)
$5,997,312
(6,000,000)
2,688
0
(5,997,312)
Mutual Funds
$4 320 215
1
4 035 715
284,500
4 035,T15
Total
$107 368 475
1 $5 008 221
$11 035 715)
1 ($4,5891
1 $101 336 392
$6 032 083
I certify that this report accurately reflects all pooled investments and is in compliance with the California
Government Code; and is in conformity with the City Investment Policy.
As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated
revenues are available to meet the pools expenditure requirements for the next six months. the City of
La Quints used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York
Montt►f)r Custodian Report to determine the fair market value of investments at month end.
John M. Falconer
Finance Director/Treasurer
Footnote
(1) The amount reported 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.
Sys
9"
a
r
r
r
Le
Lo
W
C
r
N
pp�
v
N
LD
Y
S
$
$
to
jcy��
t �• N
a l
7_ss_�s 7_s 7a
Oxl N
3
� aQ
a-
v
ul
8
8
�
8
x
3
L`
X
$
9000
�§
x
g
3
8
is
$
3
LL
Z
ys
C
y
ia
_ o 2 =
y0 LL_ g
$p� ��IZLvN J
LF
{p
W
Y
W
W a
W
y
a�
W
N
s
E
N
.
O
N
Qy
V s IIIJLLi
,s
�
`
yg�
vi C � 7► 's
U.
*Ogg
oi•�..-
N O
Mts%%
saaaaaa
V)N -O)N
O
9
Y Q Q
HIM11
O $ $ O O $ $ 8"
d
�$ 8 8 p
$ 8 OUR
O
ON
j N 3 3.6 • N
Q
�egmpD
d O h N N h
N
N w
�
' :
�
� 4�
N
$� S2 13�
N H bi y(NN
YYYYYYY
V!
YYYYYYYtA
a 0 a a a a a
I
a
N N
0 0 0 0 0 0 0 0 0 0 0 0
33333333333335t
O
I�fw! 1AAeD 0A
O O O O O O O O G O 0 0 0
uuuLri��^i1Xtd��iL'i^t
I's.
>8 >8 f's. >8 >8 >
ILL yfgdNNd��NdydF
<V1m
N low, N�fA
jhVl�yy�h�NjNj
F -
N
4
0
a
w
c
�U
c
N
c_
E
d C
N
� c
cQ
a E
coo
�:3 ,�. z O
U' O N N
Ems
0
zM
Uc/U2
O
d
O 2
Zct
0
v
o
O Q
O
v+
'
M
O
p
Z V Z
M
O
C6
�0
OD0
0
0
°'
4*
rn =
c m
0voc0
as
~
s
�C000 v�
0
L j
U
0
.O
c
N
71
L
U 4)
a
a� 0 N
Zc 5c t
CL=
0-C iLa� 0�a
t
c V V N p Z
tO 0
>Z���za,�4)
c
IL
Q E E N E
E
E
H
0
E E 0 M
CDC)
0
0
c
o'er
0
m E
.Y 0 0 H- e N
�U-U- E E'C6�
�a
'CZOgg(L'c
as»
o
P
O
d
oo
Q
Z
00
M �
�
O
N N
a
Z
v
m
00
v
� �
Z
cc
O
o
O O
`80
M
ti'f
u
w
c
I
a
0
00
0
IX
EL
0
U )
C
y
rn
cep
u-
c
c
U0
E
�
CL
o00
ad o. o.
M
~_IN49
J9 mm
w �
�,.
U
0
H
o
0
U
0
CD
L
L
�
U
y0w
0
0 ��—=•c
cca�
a
ZccoccoMMmm0V°
ra.o.aIS"ZI
o0.N
.o
0MCI)0.1
0
•r
�Z 0)�.
O O
La. ��ZZ
C Z
q)
C
m
Cl)
0 0
E 0
0
0d�aEEENNwcm
sU
o�-
c
E
UUU
oEo:�
min
_ _
— -
vi v�
vi
�ic��gaaa�
0
O
C
0
r)
O
C)
c � H
cv
m
O
°- N
E
s.
0f
A
V
.p C c
W I CL
m
c
N
0
Crs
00coow
E
N N
E
a
�; E
'S
z
�aa-4
)J��
k
�^���o_o�-o�- �■
�KAk� I j$kd■
_
�
�
a
_
ass
�o��
A&
■
0
V.
40
I I-Ne
CO)
�A
~(
An
CL C4wVe
I 40
r-/�
In
� iCt
lo
_
�27J
2 LL
e
§LL
k
§
211e.61 Q§■ems
§m
«�
LL
� LL co22�-U§�
_
�
��
■
c__2at�o&$2
»
uLL.
m�
Q«<OLu
2mB■
■ Qom
■aC
o
R
k
g§2
s%0cli
aRia
o
le I IR
I
O
eOcp
CMiN1O0
ddc4
xco)
'I
E$
� -* g
'100,N
'" c
O
C
A O o 4 O
N W-V ��r
M
N
v
LL
I
mI
Q
^� u�i�
�R't
�i
c
IN
�+
h
o
N N
p
O�
K
N
O
K
v
LL
p
lh0%
A
R�Na�oe�i
OIit
e�
M
NO O
N 00 O
O
- OpS�
If�g O 0/
�p f.: W)
K
�.
Olt
ef
off
r-0
c
p
h
U.In
r
l
•-
o
r
a
$
pj
li
S
�ShV-
N
co
S O t0
V.
S
O
10
wf
S
O
/0
ais►api
O
Nf
01Cli
N
Oi
cli
N
IQ
cq
N a0 LLf
co
/0 1A !+ N P
A
b
�
c� A
�S
� �O�Np
� ��5
��NaOUY�
GfOaDN�O
MY9tneN
N �O.'
S t0
w
r.
v
�NN��.,S
V-
N
V.
Z
C
O
C
w
Ec
Lam'
-
x
c
u
ai'
.c
a
'� a
E- h
d y
GO
c
ex 0.
10
w
V
c
41
otS 06
a�ul
,ty
�
Z U
9
W
Z
L
�N
W�
v
a°fo
O O
N
N
a a
c O 40
ri e+i
LL
g
O
Kl
0
�p
Vdo
N
P: c
O N O
M is
O
9 co
�M
O
a
CDC
LL g
a�mo
l0
U
$LLa
'doom
�E E1�
W W W
�d
Cr-
� - �U)
09*aR
Al919.
aioivri
IMID IV W) i
049*-
4 QO 1: N O
W) lw 0 IV
***aR0
C$$$-
0U)mV
ae aE aE ae *
muim�
g4aeaE�
vcaisA�
m wi m wi
aee*a ,
mvRq lco°
rd cc 'c rc
aeae�pa4ae�MN
�Nlw7e�Rj
�p fp tC f0
avE9 a�pR—
MNe'ONN
tC fC tC tC
ae a4 ae aE N
m m m m
tG fp �O f0
C
ski
FA
m
R1?P
E 'f E
cc
W W W
20
ddd���
8
0
>000
=000
9. 19
e0
1 0 -C n 4111
IRRMOR go 1.8-le
cos
AxxxAA xttxx ^' Me='
$1;1Mn�a
> e=
AxxxAA
10ypaOMa
Y
r »»>asd
w
O b b
r
6g
��
CITY OF LA OUINTA
BALANCE SHEET 02I2M03
ASSETS:
TOTAL ASSETS
CITY CITY RDA RDA FA
FIXED LONG TERM FIXED LONG TERM FINANCING LONG TERM GRAND
CITY ASSETS DEBT RDA ASSETS DEBT AUTHORITY DEBT TOTAL
POOLED CASH
(938,80.01)
0.00
0.00 19,586,602.52
0.00
0.00
7.847.60
0.00
18,655,587.11
LORP INVESTMENT IN POOLED CASH
0.00
0.00
0.00 590.000.00
0.00
0.00
0.00
0.00
590,000.00
INVESTMENT T43 LLNOTES & OTHER
52,000.000.00
0.00
0.00 0.00
0.00
0.00
0.00
0.00
52,000.000.00
AUTO MALL CASH
0.00
0.00
0.00
LORP CASH
0.00
0.00
0.00 7,272.52
0.00
0.00
0.00
0.00
7,272.52
BOND REDEMPTION CASH
0.00
0.00
0.00 2;077.78
0.00
0.00
193.940.00
0.00
196.017.78
BOND RESERVE CASH
0.00
0.00
0.00 0.00
0.00
0.00
0.00
0.00
0.00
BOND PROJECT CASH
0.00
0.00
0.00 30,088,779.89
0.00
0.00
0.10
0.00
30,088,779.79
BOND ESCROW CASH
0.00
0.00
0.00 0.00
0.00
0.00
0.00
0:00
0.00
PETTY CASH
1 .00
0.00
0.00 0.00
0.00
0.00
0.00
0.00
1,200.00
CASH & INVESTMENT TOTAL
51.062.336.99
0.00
0.00 50,274,732.51
0.00
0.00
201,78 .70
0.00
101,538,857.20
INVESTMENT IN LAND HELD FOR RESALE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ACCOUNTS RECEIVABLE
141,182.56
0.00
0.00
60,900.00
0.00
0.00
0.00
0.00
202.082.58
PREMIUMIDISCOUNT ON INVESTMENT
(114.379.54)
0.00
0.00
(88.087.00)
0.00
0.00
0.00
0.00
(202.468.54)
LORP-ACCOUNTS RECEIVABLE
0.00
0.00
0.00
53,104.94
0.00
0.00
0.00
0.00
53.104.94
INTEREST RECEIVABLE
220,844.75
0.00
0.00
0.00
0.00
0.00
0.00
0.00
220.844.75
LOANAVOTES RECEIVABLE
(59.05)
0.00
0.00
13.215,683.11
0.00
0.00
0.00
0.00
13,215,624.05
DUE FROM OTHER AGENCIES
1,184,702.00
227,833.02
1,392.535.02
DUE FROM OTHER AGENCIES - CVAG
2,298,096.09
0.00
0.00
0.00
0.00
0.00
0.00
2,299,096.89
CVAG ALLOWANCE
(220.096.09)
(2,299.096.89)
DUE FROM OTHER GOVERNMENTS
30,800.37
0.00
0.00
0.00
0.00
0.00
0.00
0.00
30,600.37
DUE FROM OTHER FUNDS
0.00
0.00
175,002.41
0.00
0.00
0.00
0.00
175,002.41
DUE FROM RDA
8.497.550.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
8,497,550.20
INTEREST ADVANCE -DUE FROM RDA
5.035.047.95
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5,035,047.95
ADVANCES TO OTHER FUNDS
1,100,000.00
4,445,923.52
5,545,923.52
NSF CHECKS RECEIVABLE
3,806.56
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3,8W.56
ACCRUED REVENUE
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
FIXED ASSETS
0.00 308,13MA99.00
308,622.199.00
ACCUMULATED DEPRECIATION
1.016,482.90
0.00
1,018,482.90
TRAVEL ADVANCES
625.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
625.00
EMPLOYEE ADVANCES
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
PREPAID EXPENSES
16.497.16
0.00
0.00
0.00
0.00
0.00
0.00
0.00
16,497.15
RECEIVABLE TOTAL
17,114.900.87 308.622,199.00
0.00
18.090,360.00
0.00
0.00
0.00
0.00
343,827,459.87
WORKER COMPENSATION DEPOSIT
148,445.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
148,445.00
RENT DEPOSITS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
UTILITY DEPOSITS
75.00
0.00
0.00
0.00
0.00
0.00
10.00
0.00
75.00
MISC. DEPOSITS
998.21
0.00
0.00
0.00
0.00
0.00
0.00
0.00
996.21
DEPOSITS TOTAL
149.518.21
0.00
0.00
0.00
0.00
0.00
0.00
0.00
149,518.21
GENERAL FIXED ASSETS 0.00 0.00 0.00 0.00 52,094,306.00 0.00 0.00 0.00 52,094,306.00
ACCUMULATED DEPRECIATION 0.00 0.00 0.00
AMOUNT AVAILABLE TO RETIRE UT DEBT 0.00 0.00 OAO 0.00 0.00 0.00 0.00 0.00 0.00
AMOUNT TO BE PROVIDED FOR L/T DEBT 0.00 0.00 1,MM,231.51 0.00 0.00 160,998,172.00 0.00 7.475,000.00 170,167,403.51
TOTAL OTHER ASSETS 0.00 0.00 1.694,231.51 0.00 52.094,306.00 160.998.172.00 0.00 7.475.000.00 222,281,709.51
88,328,758.07 308,822,198.00 1,694,231.51 88,385,092.51 52,094,306.00 180,998,172.00 201,787.70 7,475,000.00 687,777,544.79
LIABNLIMS:
ACCOUNTS PAYABLE
14.144.54
0.00
0.00 0.00
0.00
0.00
0.00
0.00
14,144.54
DUE TO OTHER AGENCIES
949,365.79
0.00
0.00 0.00
0.00
0.00
0.00
0.00
949.365.79
DUE TO OTHER FUNDS
175,002.41
0.00
0.00 2.149.054.57
0.00
0.00
0.00
0.00
2.324,066.98
INTEREST ADVANCE -DUE TO CITY
4.445.923.52
0.00
0.00 12.483.537.00
0.00
0.00
0.00
0.00
16.929.460.52
ACCRUED EXPENSES
0.00
0.00
0.00 0.00
0.00
0.00
0.00
0.00
0.00
INTEREST PAYABLE
0.00
0.00
0.00 95,538.44
95,838.44
PAYROLL LIABILITIES
2,844.11
0.00
0.00 0.00
0.00
0.00
0.00
0.00
2,844.11
STRONG MOTION INSTRUMENTS
6,518.60
0.00
0.00 0.00
0.00
0.00
0.00
0.00
6,518.60
FRINGE TOED LIZARD FEES
104.430.00
0.00
0.00 0.00
0.00
0.00
0.00
0.00
104,430.00
SUSPENSE
10,968.97
0.00
0.00 0.00
0.00
0.00
0.00
0.00
10,968.97
DUE TO THE CITY OF LA OUINTA
0.00
0.00
0.00 0.00
0.00
0.00
0.00
0.00
0.00
PAYABLES TOTAL
5.709.197.94
0.00
0.00 14,720,140.01
0.00
.0.00
0.00
0.00
20.437,337.95
ENGINEERING TRUST DEPOSITS
1,400.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,400.00
SO. COAST AIR QUALITY DEPOSITS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
LORP DEPOSITS
0.00
0.00
0.00
18.409.00
0.00
0.00
0.00
0.00
18,409.00
DEVELOPER DEPOSITS
1,208,569.28
0.00
0.00
10,922.50
0.00
0.00
0.00
0.00
1,219.491.78
MISC. DEPOSITS
440,237.32
0.00
0.00
25.000.00
0.00
0.00
0.00
0.00
465,237.32
AGENCY FUND DEPOSITS
1,382,541.99
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,382,541.99
TOTAL DEPOSITS
3.032.748.59
0.00
0.00
54,331.50
0.00
0.00
0.00
0.00
3.087,080.09
DEFERRED REVENUE
1 164 702.00
0.00
0.00 11,079,895.08
0.00
0.00
0.00
0.00
12244.397.08
OTHER LIABILITIES TOTAL
1,164,702.00
0.00
0.00 11,079.695.08
0.00
0.00
0.00
0.00
12,244,397.08
COMPENSATED ABSENCES PAYABLE
0.00
0.00
422,197.92
0.00
0.00
0.00
0.00
0.00
422,197.92
DEVELOPER AGREEMENT
0.00
0.00
743,722.59
0.00
0.00
0.00
0.00
0.00
743.722.59
DUE TO THE CITY OF LA OUINTA
0.00
0.00
528,311.00
0.00
0.00
0.00
0.00
0.00
528,311.00
DUE TO COUNTY OF RIVERSIDE
0.00
0.00
0.00
0.00
0.00
2250,600.00
0.00
0.00
2,250.000.00
DUE TO C.V. UNIFIED SCHOOL DIST.
0.00
0.00
0.00
0.00
0.00
8.053,172.00
0.00
0.00
8,063.172.00
DUE TO DESERT SANDS SCHOOL DIST.
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
BONDS PAYABLE
0.00
0.00
0.00
0.00
0.00 150,885,000.00
0.00
7,475,000.00 158,100,000.00
TOTAL LONG TERM DEBT
0.00
0.00
1,694.231.51
0.00
0.00
160,998,172.00
0.00
7,475.000.00 170,167.403.51
TOTAL LIABILITIES
9,906.648.53
0.00
1.694,231.61 25.862,186.59
0.00
160.998,172.00
0.00
7,475,000.00 205,936.218.63
EQUITY4FUND BALANCE
58,420.107.59 308,622,199.00
0.00 42,502.925.92
52.094.306.00
0.00
201,787.70
0.00 461.841.326.21
TOTAL LIABILITY & EQUITY
68 326 756.12 308 622199.00
1 694 31.51 68 365 092.51
52 094 308.00 /60 996172.00
201 787.70
7,475,000.00 857,7 544.84
(0.05)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(0.05)
CASH & INVESTMENT TOTAL
101,53 jw.20
PREMNIMIDISCOUNT ON INVESTMENT
1202.466.841
TOTAL
101,336.390.66
1-1 .,! 10
INVESTMENT ADVISORY BOARD Business Session No. B
Meeting Date: May 14, 2003
TITLE:
Consideration of Fiscal Year 2003/04
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.
Attached please find a strikeout version of the changes to the Investment Policy.
RECOMMENDATION:
Continued review of the Investment policies for approval by City Council in June
2003.
Join M. Falcohed Finance Director
CITY OF LA QUINTA
Investment Policy
Table of Contents
Section Topic
Page
Executive Summary
2
I
General Purpose
5
II
Investment Policy
5
III
Scope
5
IV
Objectives
6
< Safety
< Liquidity
< Yield
< Diversified Portfolio
V
Maximum Maturities
7
VI
Prudence
7
VII
Delegation of Authority
8
Vlll
Conflict of Interest
8
IX
Authorized Financial Dealers and Institutions
8
< Broker/Dealers
< Financial Institutions
X
Authorized Investments and Limitations
10
XI
Investment Pools
13
XII
Safekeeping and Custody
14
XIII
Interest Earning Distribution Policy
14
XIV
Internal Controls and Independent Auditors
14
XV
Benchmark
16
XVI
Reportin Standards
16
17
as e
Investment of Bond Proceeds
17
-:;
Investment Advisory Board - City of La Quinta
18
w
�a
Investment Policy Adoption
18
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
Statement of Investment Policy
July 1, 2002�t through June 30, 2004#
Adopted by the City Council on June 4-9, 200
GENERAL PURPOSE
The general purpose of this document is to provide the rules and standards users must
follow in administering the City of La Quinta cash investments.
II INVESTMENT POLICY
It is the policy of the City of La Quinta to invest public funds in a manner which will
provide a diversified portfolio with safety of principal 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,
��ov
� of the City of La Quinta, City of La Quinta Redevelopment Agency and
the City of La Quinta Financing Authority, hereafter referred in this document as the
"City". These funds are reported in the City of La Quinta Comprehensive Annual
financial Report (CAFR) and include:
All funds within the following fund types:
< General
< Special Revenue
< Capital Projects
< Debt Service
< Internal Service
< Trust and Agency
< Any new fund types and fund(s) that may be created.
5
< Liquidity needs of the portfolio require that the security be sold.
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
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 MAXIMUM MATURITIES
It is the policy of the City of La Quinta to hold securities and other investments of
cash in financial instruments until maturity, thus avoiding the risk that the market
value on investments fluctuates with overall market interest rates. The hold until
maturity policy shall not prevent the sale of a security to minimize loss of principal
when the issuer or backer suffers declining credit worthiness. The hold until
maturity policy requires that the City of La Quinta's investment portfolio is
structured so that sufficient funds are available from maturing investments and
other sources to meet anticipated cash needs. To meet anticipated cash needs, it
is essential that the Treasurer have reasonably accurate, diligently prepared cash
flow projections.
Annually, the Treasurer shall project the amount of funds not expected to be
disbursed within five years. For FY 2002#/O-A, , the amount of such funds was
$4-Of million. Funds up to that amount may be invested in U.S. Treasury bills,
notes and bonds maturing between 2 and 5 years. For all other funds, investments
are limited to two years maximum maturity.
VI 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 exercise 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.
7
X 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, except the projected
annual dollar amount, as detailed in Section V, may be invested in U.S. Treasury
bills, notes and bonds maturing between 2 and 5 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 $40 million per account in
this investment program administered by the California State Treasurer. The
City's investment in the State Local Agency Investment Fund (LAIF) is allowable
as long as the average maturity of its investment portfolio does not exceed two
years, unless specific approval is authorized by the City Council. The City of La
Quinta has two accounts with LAIF. The City of La Quinta Investment Policy
has a limitation of 2$'% 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 and Government National Mortgage
Association (GNMA) securities 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 and GNMA to 100% 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 ` are Federal Home Loan
Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal Land Bank (FLB)
and Federal Intermediate Credit Bank (FICB). We sueh issueFS.
10
The City of La Quinta Investment Policy has a limitation of $ million
v :� a:>S'.i�'98rr'ra2� n raR:ii^�c�ggBY;`g::En>:8,:o wk
per issuer >
.s,aa�,��y' MENFedere
�$ u
gf
^ ,
GSEs include Federal National
Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation
(FHLMC) and Student Loan Marketing Association (SLMA). whieh are
publiely owned. The City of La Quinta Investment Policy has a limitation
of $§ million Mi for FNMA FHLMC. e
$3 million for
a
:. `' :`c:,,c.•o oHoa< .>.�aR'»a.. o:.. �,:a a a..w. .�, ?w: ` :,�E;fio :>..w:».> �> . .. .,xa, 9, oaa o a .kn� :. .<8 r. .:.. ,a. w
W
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 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 270 days. This percentage may be increased to 30% if the dollar
weighted average maturity does not exceed 31 days. 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's Investment Policy follows The Government Code with the following
additional limitations: (1) maximum maturity per issue of 90 days and (2) a
maximum of $3 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 be at least 102% of the
funds invested and shall be valued at least quarterly.
11
< 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;
< A two-year list of historical interest rates.
Q/oF INVESTMENT OF BOND PROCEEDS
The City's Investment Policy shall govern bond proceeds and bond reserve fund
investments. California Code Section 5922 (d) governs the investment of bond
proceeds and reserve funds in accordance with bond indenture provisions which shall
be structured in accordance with the City's Investment Policy.
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.
17
Appendix E
LISTING OF APPROVED FINANCIAL INSTITUTIONS
1. Banking Services - Wells Fargo Bank, Government Services,
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, 'ndoen We" , G ^
welt`0"*
Morgan Stanley, 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
1998 RDA Project Area 1 &2 - US Bank
2001 RDA Project Area 1 - US Bank
2002 RDA Project Area 1 - US Bank
Assessment Districts - US Bank
No Changes to this listing may be made without City Council approval
24
E Lon
C7
c
c
n
w
LL
U.
D C
ff
LA
N
yv
Uc
co
1p
E:gLA
12 Le
N
N
N
N N N N N N N
N
�D
N
w
N
j
a
O
�
cc
_
c
c
ci
u,
to
I
c
>
E
M a
o=o
a
$
E
g
,
Cto
cc
fA
11 v
Go
8
Ct
$
w
cn
Q
0
o
0
S
3
8
E�
E
LL
o
0
3
4
3
o
w
o
a
a
a
a
a°
aN
8
8
0
8
a
8
s
Q
mE
3
Q
$ 25�c2
° o�
s o.6
1a
E
g
0
a
a
a o00 o
Gp
O N r- �
CL m
a
aN
p
t0
p
O
^
C
m N
N
cc
c
�
Q
? W
10
f
A
p
c
c
co
49
89
8
E
�
c
y
NQ U
C
CO •c
O
u0i
z
v
qCq�� �mp
E-32r.m LL=
U = v
r
N
N
>> M 3pc Z
w
LL
U.
_
c
C
N O
10
.ems
O
Z
_ _
W t (D
rCC��
D c O p1
c
O
LL
a
c
Q
y
R
:
W C
mm `-::mod
B coo
yy
a
if
c
2
r3
,S
m
p a�
l0 Z 8 d c J
Ep�'���Lic
•TF
C
C
�j
Q�
C
E
*a
m
�
C�p
°a�
6
c
O
' N
~
lh
C�
LL U_LL LL
d
J
a
m
CCv
cc 8
2
to
C
a
p
m
C7
M
N
a
d
Cy
s
c
H
99
S
d
4
E
c
If
Lo
c-
O
N
m
E
>
Q
CO
1.2
a c
�5L
E
pp
8
IM
c 3
U
6c
Ci
c
a�i
£
Is
z�.
m
E
m���
Ds
26W
�
Y!c
E of
eo a
c
Ru,
Cy
v $
E
C0.
�_
$T
�
`°
.2r
a
O
�cm
32
$ s+
f F
a c
c
d z
a m
m
T
L
0 a
7
a U a
m a
C
Q J
8 a�
E
Q
L
~
w
.-
N
f'7
V
Kf
to
r
a
_v
S
$
m
LL
19
DISCOUNT: The difference between the cost 3.
price of a security and its maturity when quoted
at lower than face value. A security selling
below original offering price shortly after sale also
is considered to be at a discount.
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. 4.
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, 5.
farmers, farm cooperatives, and exporters.
1. FNMAs (Federal National Mortgage
Association) - Used to' assist the home
mortgage market by purchasing mortgages
insured by the Federal Housing
Administration and the Farmers Home
Administration, as well as those guaranteed by
the Veterans Administration. They are issued in
various maturities and in minimum denominations
of $10,000. Principal and Interest is paid
monthly.
2. FHLBs (Federal Home Loan Bank Notes and
Bonds) - Issued by the Federal Home Loan
Bank System to help finance the housing
industry. The notes and bonds provide
liquidity and home mortgage credit to savings
and loan associations, mutual savings banks,
cooperative banks, insurance companies, and
mortgage -lending institutions. They are
issued irregularly for various maturities. The
minimum denomination is $5,000. The notes
are issued with maturities of less than one
year and interest is paid at maturity.
35
A
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.
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.
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.
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.
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item A
Meeting Date: May 14, 2003
TITLE:
Month End Cash Report, April 2003 and
Other selected Financial Data
BACKGROUND:
This cash report is not a complete Treasury Report (exclude petty cash, deferred
compensation and fiscal agent balances, but would report in a timely fashion
selected cash balances.
RECOMMENDATION:
Information item only.
n M. Falcorier, Finance Director
FRB: H.15--Selected Interested Rates, Web -Only Daily Update --May 2, 2003
Page 1 of 3
* ,,
H 5
Selected Interest Dates (Day)
Skip to Content
Release Date: May 2, 2003
Weekly release dates and announcements I Historical data I About
Daily update Other formats: Screen reader I ASCII
The weekly release is posted on Monday. Daily updates of the weekly release are posted Tuesday throug
H.15 DAILY UPDATE: WEB RELEASE ONLY For immediate release
SELECTED INTEREST RATES May 2, 2003
Yields in percent per annum
2003
2003
2003
2003
Apr
Apr
Apr
May
Instruments
28
29
30
1
Federal funds (effective) 1 2 3
1.29
1.27
1.31
1.30
Commercial paper 3 4 5 6
Nonfinancial
1-month
1.24
1.20
1.24
1.22
2-month
1.23
1.22
1.22
1.20
3-month
1.21
1.21
1.21
1.20
Financial
1-month
1.25
1.25
1.25
1.23
2-month
1.24
1.25
1.23
1.23
3-month
1.25
1.24
1.25
1.23
CDs (secondary market) 3 7
1-month
1.26
1.27
1.27
1.26
3-month
1.24
1.25
1.26
1.24
6-month
1.21
1.23
1.25
1.20
Eurodollar deposits (London) 3 8
1-month
1.26
1.26
1.26
1.26
3-month
1.23
1.24
1.25
1.22
6-month
1.20
1.21
1.22
1.20
Bank prime loan 2 3 9
4.25
4.25
4.25
4.25
Discount window primary credit 2 10
2.25
2.25
2.25
2.25
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
1.11
1.12
1.11
1.07
3-month
1.12
1.13
1.11
1.08
6-month
1.15
1.15
1.12
1.10
Treasury constant maturities 11
1-month
1.13
1.14
1.13
1.09
3-month
1.14
1.15
1.13
1.10
6-month
1.18
1.18
1.15
1.13
1-year
1.28
1.28
1.22
1.21
2-year
1.59
1.62
1.51
1.50
3-year
2.02
2.06
1.95
1.93
5-year
2.90
2.94
2.85
2.82
7-year
3.43
3.47
3.39
3.37
10-year
3.92
3.96
3.89
3.88
http://www.federalreserve.gov/Releases/Hl 5/update/ 5/2/2003
FRB: H.15--Selected Interested Rates, Web -Only Daily Update --May 2, 2003
Page 2 of 3
20-year 4.83 4.86 4.79 4.80
Treasury long-term average
(25 years and above) 12 13 4.91 4.94 4.87 4.88
Interest rate swaps 14
1-year 1.35 1.37 1.33 1.27
2-year 1.83 1.86 1.78 1.67
3-year 2.38 2.42 2.33 2.22
4-year 2.85 2.89 2.81 2.70
5-year 3.24 3.27 3.20 3.08
7-year 3.78 3.81 3.75 3.63
10-year 4.28 4.31 4.26 4.16
30-year 5.08 5.11 5.06 5.00
Corporate bonds
Moody's seasoned
Aaa 15 5.57 5.61 5.53 5.54
Baa 6.71 6.73 6.65 6.65
State & local bonds 16 4.58
Conventional mortgages 17
See overleaf for footnotes
FOOTNOTES
1. The daily effective federal funds rate is a weighted average of rates
on brokered trades.
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. An average of dealer offering rates on nationally traded certificates
of deposit.
8. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time.
9. 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.
10. The rate charged for primary credit under an amendment to the Board's
Regulation A, which became effective January 9, 2003. This rate replaces
that for adjustment credit, which was discontinued after January 8, 2003.
For further information, see
www.federalreserve.gov/boarddocs/press/bcreg/2002/200210312/default.htm.
The rate reported is that for the Federal Reserve Bank of New York.
Historical series for the rate on adjustment credit is available at
www.federalreserve.gov/releases/hl5/data.htm.
11. Yields on actively traded issues adjusted to constant maturities.
Source: U.S. Treasury.
12. Based on the unweighted average of the bid yields for all Treasury
fixed -coupon securities with remaining terms to maturity of 25
h4://www.federalreserve.gov/Releases/Hl 5/update/ 5/2/2003
FRB: H. 15 --Selected Interested Rates, Web -Only Daily Update --May 2, 2003 Page 3 of 3
years and over.
13. A factor for adjusting the daily long-term average in order to
estimate a 30-year rate can be found at
http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/lt
14. International Swaps and Derivatives Association (ISDA) mid -market
par swap rates. Rates are for a Fixed Rate Payer in return for
receiving three month LIBOR, and are based on rates collected at
11:00 a.m. by Garban Intercapital plc and published on Reuters
Page ISDAFIXI. Source: Reuters Limited.
15. Moody's Aaa rates through December 6, 2001 are averages of Aaa
utility and Aaa industrial bond rates. As of December 7, 2001,
these rates are averages of Aaa industrial bonds only.
16. Bond Buyer Index, general obligation, 20 years to maturity, mixed
quality; Thursday quotations.
17. 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 1, 3 and 6 months and 1, 2, 3, 5, 7, 10
and 20 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.
Weekly release dates and announcements I Historical. data I About
Daily update Otherformats: Screen reader I ASCII
Statistical releases
ljgme I Economic research and data
Accessibility I Contact Ifs
Last update: May 2, 2003
4
http://www.federalreserve.gov/Releases/Hl 5/update/ 5/2/2003
LAIF Performance Report
Page I of 2
Phil Angelldes, State Treasurer
Inside the State Treasurees offic;ilj
Local Agency Investment Fund
LAW Performance Report
Reporting Date:
04123/03
Effective Date:
04/23/03
Quarter Yield:
1.88%
Daily:
1.82%
Year:
2.26%
Life:
143
Quarter Ending 03/31/03
Apportionment Rate:
1,98%
Earnings Ratio:
.00005415936814348
Fair Value Factor:
1.003425270
Monthly Average For March:
1.904%
Corporate
Bonds
3.19%
ConTnercial
Paper
18J95%
Pooled Money I Fwe*nent Account
PoFffolio Composition
$640 Billion
03131103
Loans Treasuries
10 HS 11.53%
Time
(kposits
10.15%
CUsJB Ns
1BB2%
M Adobe PDF version of LAI F Performance.
0 Tre asudEs
E3 WtgagES
® Agencies
* CCrs1BNs
* Time Deposits
* Banters Acceptances
* Fbpo
* CbnTnercial Paper
® Corporate Bonds
a Loans
m Flieverses
AWW
5
http://v;ww.treasurer.ca.gov/laif/Perfonnance.htm
5/2/2003
LAIF Performance Report Page 2 of 2
M.Help with Adobe Acrobat PDF.
1
http://www.treasurer.ca.gov/laiVperformance.htm 5/2/2003
O
O
LL .+" C
OZ�M
N
000Oo
M g
M
N
L Y3 o y
QN 8om
ds
LD N
U
4) V
22mco
I
z°O
2 d Z°
Ch
Q
N f��p 1-
�O CMOM
O
LO O Op
N
m
N
M
�'' ..
N
r V.
Q
e0 cq
Nn
N e0
�M p�ps
N
NIn
No �� ��
In
e-N
v-N 'tG
= 4)
O 000
O O O O
O O p
O
o
Q
�
:dFi v
H
N
c
M9L.
f�
N
N O LOO M N
co tffO
t
N
N42
�M�O�pp>
�MM 009
01p�
g0 U)i ��CL
ON
V
Ntn •-N
�= d'N
a
q
LO
M" g
CO)
0Go 04 CD
M
o
W
Cd2
�j� R
pO
a Lot
ti� �� �O
�f1 O
I[�
N
O N le
M .m..
Z
e
N
~
c m
z
co N
c.
CL H
az�'
�LLE $�
me a Z
e
m
N N
ccco
C y
a
oU
m
a wo
u'�cnw of-
Z
iC
O
E
M
t�6
a
m
LD
3
H�
Z LB
C p
O _ �
�0�t^�QQppO<OpMp-NNE 1f)
N a- v� N .OiQ vv O
D
N
cm
ca W w
w W w CL
g0CL
g
O N �OYwOV
�O—
O OZ=m
w 02c�oi�a�Z
m Z��JJ�m��F- G
?� wOO5O5OLL
0 C9LLU006m08-w9�
10
INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
May 14, 2003
Pooled Money Investment Board Report
for February 2003
BACKGROUND:
Correspondence & Written
Material Item B
The Pooled Money Investment Board Report for February 2003 is included in the
agenda packet.
At the last Board Meeting, Staff was asked to contact LAIF and inquire as to the
methods used to select commercial paper. I spoke to Bill Sherwood at the CMTA
Conference in Indian Wells and Elaine Park in Sacramento. Mr. Sherwood stated
that the commercial paper list generally is updated annually, by representatives of
the Treasurers Office, State Controllers Office and Department of Finance. In
addition, the List is monitored monthly for changes in the financial conditions of the
companies listed. A list of approved commercial dealers has been attached as well
as other information about commercial paper from the LAIF answer book.
RECOMMENDATION:
Receive & File
, Finance Director
APR-16-2003 15:26 CA STATE TREASURER/LAIF — --- —__ 916 654 9931 P.02
POOLED MONEY INVESTMENT ACCOUNT
APPROVED COMMERCIAL PAPER ISSUERS*
April 2003
Abbott Laboratories Inc.
American Express Credit Corp.
American Telephone & Telegraph Corp.
Asset Seeuritization Cooperative Corp.
Bank of America Corporation
Barclays U.S. Funding Corp.
Barton Capital Corp.
Baxter International Corp.
Bear Stearns & Co., Inc.
Bristol-Myers Squibb Co.
Campbell Soup Co.
Caterpillar Inc.
Chevron USA Inc.(merger w/Texaco 10/01)
Citicorp
Citigroup Inc.
Coca-Cola Company (The)
Commonwealth Edison Co.
ConAgra, Inc.
Corporate Asset Funding Co. Inc. (CAFCO)
Corporate Receivable Corp.
Countrywide Home Loans, Inc.
Delaware Funding
Dow Chemical Company
Eastman Kodak Company
Enterprise Funding Corporation
FCAR Owner Trust
Ford Motor Credit Company
Fortune Brands
General Electric Capital Corp.
General Electric Company
General Mills, Inc.
General Motors Acceptance Corp.
Goldman Sachs Group, Inc.
Halliburton Company
*Note--- Prohibited Investments:
Hertz Corporation
Hewlett-Packard Company
Honeywell International Inc.
Household Finance Corp.
IBM Corporation
IBM Credit Corporation
J.P. Morgan Chase & Company
John Deere Capital Corporation
Lehrman $rothers Holdings Inc.
McDonald's Corp.
Mellon Funding Corporation
Merrill Lynch & Company, Inc.
Minnesota Mining & Manf. Co. (3M)
Monsanto Company
Morgan Stanley, Dean Witter & Co
New Center Asset Trust (MCAT)
PepsiCo, Inc.
Pfuer, Inc.
Receivables Capital Corporation
Rohm & Haas Company
Safeway Inc.
Salomon Smith Barney Holdings Inc.
Sears Roebuck Acceptance Corp.
Textron Financial Corporation
Textron Inc_
Transamerica Finance Corporation
Union BanCal Commercial Funding Corp.
Union Oil Company Of California (Unocal)
Wal-Mart Stores Inc.
Walt Disney Co.
Wells Fargo & Company
Weyerhaeuser Company
Wyeth
0 Philip Morris Companies, Inc. -- (Tobacco Divestiture Policy, Dec 1999)
(Philip Morris changed its name to Altria Group, Inc. -- Jan 27, 2003)
D Ingersoll-Rand Company — (Corporate Expatriate Policy, July 2002)
PA C ricdit Information\ CP.List 04-03
TOTAL P.02
APR-16-2003 15:26 CA STATE TREASURER/LAIF
916 654 9931 P.01
Local Agency Investment Fund
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
P.O. BOX 942809
SACRAMENTO, CA 94209-0001
(916) 653-3001
(916) 654-9931 FAX
TELECOPY FORM
DATE: '�'�
AT'TN: �
FIRM;„
FAX NUMBER:
NUMBER OF PAGES INCLUDING COVER PAGE):2
"
If you do not rccoive total of pages transmitted, please call Eilemn Park
at (916) 653-3001.
Notes and/or comments; _
hF11-1- uo-3 -
.) 3
FHLMC PC, FHLMC GMC, GNM . PC are mortgage participation certific es
representing undivided interests in conventional or FHANA mortgages underwri and
previously purchased by FHLMC. FHLMC passes through to each certifi holder
every month a pro rata share of the principal and interest payments colle ed on the
mortgages in the underlying pool, including pre -payments. FHLMC G s represent
undivided interest in conventional residential mortgages previously u erwritten and
purchased by FHLMC. GMCs pay principal annually in guaranteed nimum amounts
and interest semi-annually. There are many considerations when de g in the mortgage
markets. Since paydowns may vary, resulting in maturities that a hard to determine,
portfolio accountability must be analyzed. Fast -paying premi onds would result in a
lower return, since the principal would pay down at a rate f r than the amortization of
premium. Fast -paying discount bonds, in contrast, would a ce the return. The rate of
paydown has a direct relationship with the prevailing rote st rate environment. It is the
duty of the investor to evaluate the economy and fo sound and correct scenario to
avoid detrimental returns. Apart from portfolio imp , there are a variety of concerns to
address when dealing in the mortgage market. G graphic location of the Mortgages
included in the pool also serves to determine the ay own rate. It has been established
that certain areas of the country are more trans' ry, resulting in more frequent sales and
resales of single family housing. This informs ' n, when used in tandem with coupon rate
information will not only avoid a detrime tal portfolio impact, but will enhance the
performance ofthe mortgage holdings.
CORPORATE BONDS
Secured and unsecured medio term debt issued by privately or publicly held banks,
holding companies, corporati , or institutions for the purpose of increasing capital, plant
and equipment purchase, r tooling, or other related expenditures. Currently, there are
more than thirty autho ' names available for investment consideration. It is the investor's
responsibility to direct a research and analysis essential to corporate trading. Since most
issues purchased are secured debt, expert credit analysis is of utmost importance. Also
necessary is the ab' ' to customize, or "create from scratch", a note or bond with unique
characteristics w ose sole purpose is portfolio yield enhancement. This custom debt
instrumern, g ally a corporate issue, is known as a private placement, and often involves
the Investor .negotiations with ChiefExecutive Officers, ChiefFinancial Officers, and
General Co sel. Often these negotiations cover several weeks, and require a specific
knowled of legal requirements and securities regulations. Past trades have been
announ nationally in the Wall Street Journal. Since most corporate issues are medium
to Ion ern, five years to fifteen years, the weighted impact on a portfolio with an average
life less than two years can be significant. It is essential for the investor to make a
c plete credit analysis, to conduct earnest negotiations, and to tie them all to a re-
o a e wl current portfolio needs and cash ay. ' tv.
COMMERCIAL PAPER
The market name for the short-termunseQued promissory notes issued by various economic
entities in the open market to finance certain short-term credit needs. In addition to providing
a source of seasonal working capital, commercial paper is increasingly being used as a
means of interim financing of major construction projects such as bank buildings, ships,
pipelines, nuclear fuel cores, and plant expansion. Presently, approximately 100 entities
are eligible investments for the Pooled portfolio. These represent a variety of industrial
companies, utilities, commercial bank holding companies, finance companies, insurance
companies, and savings and loan associations.
A- F A- -Do Pff-
Revised September 301 1998
The investor's responsibility is basically the same as that of corporate bonds, since
commercial paper is esentially a short-term corporate bond with a maturity of 1 day to
270 days. However, commercial paper is the only authorized investment with restrictions
pertaining to the amount eligible for investments. Since no more than 10% of any one
issuer's outstanding may be held by the Pool; the investor must maintain a working
knowledge ofthe issuing status ofall eligible entities. He must also keep in mind the ratings
of each issuer and how each issuer trades in relation to another, as well as the relative value
spread to other investment vehicles.
R se Repurchase Agreements, technically called matched sales -purchase agreements,
are es *ally the mirror image of RPs. In this instance, the investor is the owner ofthe
collater d the bank or dealer is the lender of money. All other aspects remain identical.
Again, the estor's responsibilities are two -fold, as the creditworthiness ofthe bank or
dealer is still sential consideration. Additionally, the investor now must arbitrage or
re -invest the mo received on the transaction into another security for a positive return.
The new investmen ust be secure from default, yet of lesser quality to create a spread.
Furthermore, the new estment must mature coincidentally with the Reverse Transaction,
or a cash shortage may r. If the maturity is staggered from the Reverse transaction,
the investor must now addr the mismatch as it applies to the now -altered cash forecast.
SECURITY LOANS
Portfolio issues are loaned to authoriVof
or dealers for a pre -arranged fee. In turn,
securities representing at least 102% he et value ofthe issues loaned are received
�-- as collateral for the loan. As long as mainte is continued on the collateral side, the
risk is minimal. A similar program is put out on co by the Retirement system, but this
office organizes, negotiates, and maintains the loan p gram exclusively.
BANKNOTES,
Bank Notes are senior, unsecured promissory notes issued in the sited States on either
anunderwritten or continuously -offered basis by domestic =er,ibanks, The Notes
represent senior debt ofthe bank which ranksparipamu wotheror obligations
of the bank, except deposit liabilities or obligations that are securedubject to any
priorities or preferences.
Bank Notes should not be confused with Medium -Term Notes (`MMs") or other ' 'es
issued by domestic bank holding companies ("BHCs"). Bank Notes are exempt om
SEC registration under Section 3(ax2) ofthe Securities Act of 1933. They are cl
as "Other Borrowings" on the bank's balance sheet, while De osit N d CDs are
o es are not deposits and are not insured by the Federal
Deposit Insurance Corporation ("FDIC") or any other insurer.
5
o vY C-e,(,, 1 rCS w e✓ (�� o 10
S
Revised September 30, 1998
e enosi s Section to monitor collateral
b) Review financials and update credit
c) Determine the ae plan of action which may include early
terminati the time deposit, or allow the time deposit to
e.
6 Collateral must comply with Government Code, Chapter 4, Bank Deposit
Law Section 16 ings an oan ssociation and
re t nion 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.
LA
SZs 0 V" C�'e
1
�. 6
November 13, 2002
Philip Angefides
February 2003
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
POOLED MONEY INVESTMENT BOARD REPORT
FEBRUARY 2003
TABLE OF CONTENTS
SUMMARY................................ ............................... 01
SELECTED INVESTMENT DATA ................................... 02
PORTFOLIO COMPOSITION ........................................ 03
INVESTMENT TRANSACTIONS ..................................... 04
TIMEDEPOSITS................................I........0............... 16
BANK DEMAND DEPOSITS .......................................... 29
POOLED MONEY INVESTMENT BOARD DESIGNATION... 30
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF FEBRUARY 2003 WITH FEBRUARY 2002
(DOLLARS IN THOUSANDS)
............ ........ ....................
.......... ................ .... . . ...... ....... ...... I .............
............ I .................. ..............
FEBRUARIf 2d03 ....... FEBRU.......ARY...
ZQd2 CHANCsE
Average Daily Portfolio
$ 58,265,526 $
52,435,059 $
+5,830,467
Accrued Earnings
$ 86,933 $
119,339
-32,406
Effective Yield
1.945
2.967
-1.022
Average Life -Month End (In Days) 181 185 -4 I
Total Security Transactions
Amount
$
19,280,370
$
21,968,939
-2,688,569
Number
415
483
-68
Total Time Deposit Transactions
Amount
$
2,771,600
$
2,309,100
+462,500
Number
132
146
-14
Average Workday Investment Activity
$
1,225,109
$
1,348,780
-123,671
Prescribed Demand Account Balances
For Services
$
949,857
$
607,025
+342,832
For Uncollected Funds
$
258,755
$
66,399
+192,356
1
PHILIP ANGELIDES
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
February 28, 2003
DIFFERENCE IN
PERCENT OF
PERCENT OF
PORTFOLIO FROM
TYPE OF SECURITY
AMOUNT
PORTFOLIO
PRIOR MONTH
Government
Bills
$
497,500
0.90
+0.04
Bonds
0
0.00
0.00
Notes
6,136,427
11.07
+0.16
Strips
0
0.00
0.00
Total Government
$
6,633,927
11.97
+0.20
Federal Agency Coupons
$
3,478,466
6.28
-0.69
Certificates of Deposit
8,720,188
15.75
-1.98
Bank Notes
499,995
0.90
-0.48
Bankers' Acceptances
0
0.00
0.00
Repurchases
500,000
0.90
+0.90
Federal Agency Discount Notes
10,819,022
19.53
+1.91
Time Deposits
5,469,095
9.87
+0.51
GNMAs
644
0.00
0.00
Commercial Paper
11,580,810
20.90
-0.67
FH LMC
5,645
0.01
0.00
Corporate Bonds
2,240,787
4.05
+0.20
Pooled Loans
5,450,817
9.84
+0.10
GF Loans
0
0.00
0.00
Reversed Repurchases
0
0.00
0.00
Total (All Types)
$
55,399,396
100.00
INVESTMENT ACTIVITY
FEBRUARY 2003
JANUARY 2003
NUMBER
AMOUNT
NUMBER
AMOUNT
Pooled Money
415
$ 19,280,370
436
$ 20,149,892
Other
21
390,317
6
76,689
Time Deposits
132
2,771,600
145
2,632,290
Totals
568
$ 22,442,287
587
$ 22,858,871
PMIA Monthly Average Effective Yield
1.945
2.103
Year to Date Yield Last Day of Month
2.350
2.413
2
Cc
Commercial
Paper
20.90%
Rep
0.90
Tir
Pooled Money Investment Account
Portfolio Composition
$55.3 Billion
Loans Treasuries
0
9.84 /0 11.97%
9.87% CD's/BN's
16.65%
3
ages
1%
Agencies
25.81 %
02/28/03
B Treasuries
® Mortgages
E3 Agencies
® CD's/BN's
N Time Deposits
E3 Bankers Acceptances
■ Repo
0 Commercial Paper
® Corporate Bonds
O Loans
El Reverses
02/01/03 REDEMPTIONS
MTN CITICORP 8.000% 02/01/03 5.130 $ 14,667 680 $1,442,659.20 5.027
MTN CITICORP 8.000% 02/01/03 4.990 12,641 683 1,216,862.72 4.886
MTN CITICORP 8.000% 02/01/03 6.849 15,250 859 2,493,985.00 6.783
NO PURCHASES
02/03/03 REDEMPTIONS
BN
WORLD
1.470%
02/03/03
1.490
50,000
89
184,171.48
1.510
BN
WORLD
1.470%
02/03/03
1.490
50,000
89
184,171.48
1.510
BN
WORLD
1.470%
02/03/03
1.490
50,000
89
184,171.48
1.510
BN
WORLD
1.470%
02/03/03
1.490
50,000
89
184,171.48
1.510
CD
SOC GEN
1.540%
02/03/03
1.540
50,000
96
205,333.33
1.561
CD
SOC GEN
1.540%
02/03/03
1.540
50,000
96
205,333.33
1.561
CD
SOC GEN
1.540%
02/03/03
1.540
50,000
96
205,333.33
1.561
CD
SOC GEN
1.540%
02/03/03
1.540
50,000
96
205,333.33
1.561
CD
CHASE
1.620%
02/03/03
1.620
50,000
96
216,000.00
1.642
CD
CHASE
1.620%
02/03/03
1.620
50,000
96
216,000.00
1.642
CD
CHASE
1.620%
02/03/03
1.620
50,000
96
216,000.00
1.642
CD
CHASE
1.620%
02/03/03
1.620
50,000
96
216,000.00
1.642
CD
CR SUISSE
1.815%
02/03/03
1.730
25,000
110
132,394.49
1.754
CD
CR SUISSE
1.815%
02/03/03
1.730
50,000
110
265,394.49
1.754
CP
HOUSEHOLD
02/03/03
1.550
50,000
55
118,402.78
1.575
CP
DEERE
02/03/03
1.580
50,000
55
120,694.44
1.605
CP
BEAR
02/03/03
1.350
30,000
56
63,000.00
1.371
CP
GECC
02/03/03
1.510
50,000
89
186,652.78
1.536
CP
GECC
02/03/03
1.510
50,000
89
186,652.78
1.536
CP
JP MORGAN
02/03/03
1.620
50,000
96
216,000.00
1.649
CP
JP MORGAN
02/03/03
1.620
50,000
96
216,000.00
1.649
CP
MERRILL
02/03/03
1.750
43,135
102
213,877.72
1.783
CP
MERRILL
02/03/03
1.750
50,000
102
247,926.67
1.783
MTN
GECC
7.000%
02/03/03
4.280
18,650
598
1,313,519.50
4.212
MTN FR
CHRYSLER
5.836%
02/03/03
5.644
10,000
1726
2,208,253.45
4.658
FFCB
5.000%
02/03/03
4.100
50,000
587
3,317,944.44
4.070
FFCB
5.000%
02/03/03
4.100
50,000
587
3,317,944.44
4.070
PURCHASES
CD
BK SCOT
1.250%
05/28/03
1.245
50,000
CD
BK SCOT
1.250%
05/28/03
1.245
50,000
CD
TORONTO
1.270%
06/26/03
1.265
50,000
CD
TORONTO
1.270%
06/26/03
1.265
50,000
CD
TORONTO
1.270%
06/26/03
1.265
50,000
CP
DFC
02/04/03
1.280
310
CP
DFC
02/04/03
1.280
50,000
CP
DEERE
03/10/03
1.370
50,000
CP
W/F
03/28/03
1.250
50,000
CP
W/F
03/28/03
1.250
50,000
4
02/03/03 PURCHASES (continued)
CP
GOLDMAN
CP
GOLDMAN
CP
GECC
CP
GECC
CP
GECC
CP
GECC
CP
DISNEY
CP
DISNEY
CP
DISNEY
DISC NOTES
FHLMC
DISC NOTES
FHLMC
DISC NOTES
FHLMC
DISC NOTES
FNMA
02/04/03 REDEMPTIONS
CP
DFC
CP
DFC
PURCHASES
CP
W/F
CP
SAFEWAY
CP
W/F
CP
W/F
CP
HEWLETT
CP
SALOMON
CP
SALOMON
DISC NOTES
FNMA
DISC NOTES
FNMA
DISC NOTES
FNMA
DISC NOTES
FNMA
DISC NOTES
FNMA
DISC NOTES
FNMA
DISC NOTES
FNMA
DISC NOTES
FNMA
02/05/03 REDEMPTIONS
CP W/F
PURCHASES
MTN PROCTER
02/06/03 NO SALES
05/12/03 1.260 50,000
05/12/03 1.260 50,000
05/12/03 1.260 50,000
05/12/03 1.260 50,000
05/13/03 1.260 50,000
05/13/03 1.260 50,000
05/19/03 1.400 35,000
05/29/03 1.400 7,190
05/29/03 1.400 50,000
06/30/03 1.205 30,000
06/30/03 1.205 50,000
06/30/03 1.205 50,000
06/04/03 1.210 27,487
02/04/03 1.280 310 1 11.02 1.297
02/04/03 1.280 50,000 1 1,777.78 1.297
02/05/03 1.250 50,000
02/13/03 1.320 25,000
02/21 /03 1.260 50,000
02/21 /03 1.260 50,000
02/27/03 1.400 28,304
04/11/03 1.260 50,000
04/11 /03 1.260 50,000
06/26/03 1.220 50,000
06/26/03 1.220 50,000
06/26/03 1.220 50,000
06/26/03 1.220 50,000
06/26/03 1.220 50,000
06/26/03 1.220 50,000
06/26/03 1.220 50,000
06/26/03 1.220 50,000
02/05/03 1.250 50,000 1 1,736.11 1.267
4.000% 04/30/05 1.920 10,000
5
02/06/03 PURCHASES
CP
GECC
04/09/02
1.260
50,000
CP
GECC
04/09/02
1.260
50,000
02/07/03 REDEMPTIONS
DISC NOTES
FHLB
02/07/03
1.230
1,439 85 4,179.10 1.250
DISC NOTES
FHLB
02/07/03
1.230
50,000 85 145,208.33 1.250
DISC NOTES
FHLB
02/07/03
1.230
50,000 85 145,208.33 1.250
PURCHASES
CP
BEAR
06/20/03
1.270
50,000
CP
FCAR
06/20/03
1.270
50,000
CP
FCAR
06/20/03
1.270
50,000
MTN
GMAC
4.150% 02/07/05
4.150
25,000
MTN
GMAC
4.150% 02/07/05
4.150
25,000
02/10/03 REDEMPTIONS
CD
WACHOVIA
1.570%
02/10/03
1.570
50,000
103
224,597.22
1.591
CD
WACHOVIA
1.570%
02/10/03
1.570
50,000
103
224,597.22
1.591
CD
WACHOVIA
1.570%
02/10/03
1.570
50,000
103
224,597.22
1.591
CD
WACHOVIA
1.570%
02/10/03
1.570
50,000
103
224,597.22
1.591
CD
MONTREAL
1.590%
02/10/03
1.590
50,000
103
227,458.33
1.612
CD
MONTREAL
1.590%
02/10/03
1.590
50,000
103
227,458.33
1.612
CP
BEAR
02/10/03
1.360
50,000
68
128,444.44
1.382
CP
BEAR
02/10/03
1.360
50,000
68
128,444.44
1.382 -
CP
CITICORP
02/10/03
1.330
50,000
87
160,708.33
1.352
CP
CITICORP
02/10/03
1.330
50,000
87
160,708.33
1.352
CP
CITICORP
02/10/03
1.330
50,000
87
160,708.33
1.352
CP
CITICORP
02/10/03
1.330
50,000
87
160,708.33
1.352
CP
GECC
02/10/03
1.330
50,000
87
160,708.33
1.352
CP
GECC
02/10/03
1.330
50,000
87
160,708.33
1.352
CP
GECC
02/10/03
1.330
50,000
87
160,708.33
1.352
CP
GECC
02/10/03
1.330
50,000
87
160,708.33
1.352
CP
MORG STAN
02/10/03
1.340
50,000
87
161,916.67
1.363
CP
MORG STAN
02/10/03
1.340
50,000
87
161,916.67
1.363
CP
MORG STAN
02/10/03
1.340
50,000
87
161,916.67
1.363
CP
MORG STAN
02/10/03
1.340
50,000
87
161,916.67
1.363
CP
GECC
02/10/03
1.500
50,000
96
200,000.00
1.526
CP
GECC
02/10/03
1.500
50,000
96
200,000.00
1.526
CP
GECC
02/10/03
1.610
20,000
103
92,127.78
1.639
CP
GECC
02/10/03
1.610
50,000
103
230,319.44
1.639
CP
GECC
02/10/03
1.610
50,000
103
230,319.44
1.639
DISC NOTES
FHLB
02/10/03
1.230
50,000
88
150,333.33
1.250
DISC NOTES
FHLB
02/10/03
1.230
50,000
88
150,333.33
1.250
C:
02/10/03 PURCHASES
CP
GECC
02/11/03
1.260
50,000
CID
GECC
02/11/03
1.260
50,000
CID
GECC
02/11/03
1.260
50,000
CID
GECC
02/11/03
1.260
50,000
CID
GECC
02/11/03
1.260
50,000
CID
GECC
02/11/03
1.260
50,000
CID
ASCC
03/21 /03
1.260
50,000
CID
BEAR
04/01 /03
1.270
30,000
CID
BEAR
04/01/03
1.270
50,000
DISC NOTES
FHLMC
06/20/03
1.225
50,000
MTN
GMAC
6.380%
01/30/04
2.650
18,500
02/11/03 REDEMPTIONS
CID
GECC
02/11/03
1.260
50,000
1
1,750.00
1.277
CID
GECC
02/11/03
1.260
50,000
1
1,750.00
1.277
CID
GECC
02/11/03
1.260
50,000
1
1,750.00
1.277
CID
GECC
02/11/03
1.260
50,000
1
1,750.00
1.277
CID
GECC
02/11/03
1.260
50,000
1
1,750.00
1.277
CID
GECC
02/11/03
1.260
50,000
1
1,750.00
1.277
CID
WALMART
02/11/03
1.220
50,000
13
22,027.78
1.237
CID
FCAR
02/11/03
1.340
45,000
64
107,200.00
1.361
CID
MORG STAN
02/11/03
1.350
5,000
81
15,187.50
1.372
CID
MORG STAN
02/11/03
1.350
50,000
81
151,875.00
1.372
PURCHASES
MTN
GMAC
6.850%
06/17/04
3.250
30,000
PURCHASES c/
TREAS
NOTES
3.000%
11/30/03
1.230
50,000
TREAS
NOTES
3.000%
11/30/03
1.230
50,000
TREAS
NOTES
3.250%
05/31/04
1.230
17,340
TREAS
NOTES
3.250%
05/31/04
1.230
50,000
02/13/03 REDEMPTIONS
CID
SAFEWAY
02/13/03
1.320
25,000
9
8,250.00
1.338
DISC NOTES
FHLMC
02/13/03
1.240
50,000
90
155,000.00
1.261
DISC NOTES
FHLMC
02/13/03
1.240
50,000
90
155,000.00
1.261
MTN FIR
FMCC
5.750%
02/13/03
5.718
20,000
1745
4,542,739.98
4.750
SALES c/
TREAS
NOTES
3.000%
11/30/03
1.230
50,000
2
3,416.67
1.247
TREAS
NOTES
3.000%
11/30/03
1.230
50,000
2
3,416.67
1.247
TREAS
NOTES
3.250%
05/31/04
1.230
17,340
2
1,196.52
1.247
7
02/13/03 SALES c/ (continued)
TREAS
NOTES
PURCHASES
BN
WORLD
BN
WORLD
BN
WORLD
BN
WORLD
CID
AMER EXP
CID
CRC
CID
CRC
DISC NOTES
FNMA
DISC NOTES
FNMA
DISC NOTES
FNMA
DISC NOTES
FNMA
02/14/03 REDEMPTIONS
FHLB
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
FNMA
3.250% 05/31 /04 1.230 50,000
1.250%
02/27/03
1.260
50,000
1.250%
02/27/03
1.260
50,000
1.250%
02/27/03
1.260
50,000
1.250%
02/27/03
1.260
50,000
02/19/03
1.240
50,000
03/14/03
1.260
50,000
03/14/03
1.260
50,000
06/09/03
1.220
50,000
06/09/03
1.220
50,000
06/20/03
1.220
50,000
06/20/03
1.220
50,000
2 3,450.15
5.000%
02/14/03
5.142
25,000
735
2,585,111.12
5.000%
02/14/03
4.105
50,000
598
3,385,451.19
5.000%
02/14/03
4.105
50,000
598
3,385,451.19
5.000%
02/14/03
4.103
50,000
598
3,383,833.33
5.000%
02/14/03
4.103
50,000
598
3,383,833.33
5.000%
02/14/03
4.103
50,000
598
3,383,833.33
5.000%
02/14/03
4.103
50,000
598
3,383,833.33
5.000%
02/14/03
4.103
50,000
598
3,383,833.33
5.000%
02/14/03
4.103
50,000
598
3,383,833.33
1.247
5.149
4.075
4.075
4.073
4.073
4.073
4.073
4.073
4.073
PURCHASES
CID
GECC
02/18/03
1.250
50,000
CID
GECC
02/18/03
1.250
50,000
CID
GECC
02/18/03
1.250
50,000
CID
GECC
02/18/03
1.250
50,000
CID
GECC
02/18/03
1.250
50,000
02/18/03 REDEMPTIONS
CID
GECC
02/18/03
1.250
50,000
4
6,944.44
1.267
CP
GECC
02/18/03
1.250
50,000
4
6,944.44
1.267
CID
GECC
02/18/03
1.250
50,000
4
6,944.44
1.267
CID
GECC
02/18/03
1.250
50,000
4
6,944.44
1.267
CP
GECC
02/18/03
1.250
50,000
4
6,944.44
1.267
PURCHASES
CID
NCAT
02/19/03
1.380
50,000
10
02/18/03 PURCHASES (continued)
CP
NCAT
02/19/03
1.380
50,000
CP
GECC
02/19/03
1.380
50,000
CP
GECC
02/19/03
1.380
50,000
CP
GECC
02/19/03
1.380
50,000
CP
GECC
02/19/03
1.380
50,000
CP
GECC
02/19/03
1.380
50,000
CP
HEWLETT
03/21/03
1.390
50,000
DISC NOTES
FNMA
06/30/03
1.220
17,500
DISC NOTES
FNMA
06/30/03
1.230
35,000
DISC NOTES
FNMA
06/30/03
1.230
50,000
DISC NOTES
FNMA
06/30/03
1.230
50,000
DISC NOTES
FNMA
06/30/03
1.230
50,000
DISC NOTES
FNMA
06/30/03
1.230
50,000
02/19/03 REDEMPTIONS
CP
NCAT
02/19/03
1.380
50,000
1
1,916.67
1.399
CP
NCAT
02/19/03
1.380
50,000
1
1,916.67
1.399
CP
GECC
02/19/03
1.380
50,000
1
1,916.67
1.399
CP
GECC
02/19/03
1.380
50,000
1
1,916.67
1.399
CP
GECC
02/19/03
1.380
50,000
1
1,916.67
1.399
CP
GECC
02/19/03
1.380
50,000
1
1,916.67
1.399
CP
GECC
02/19/03
1.380
50,000
1
1,916.67
1.399
CP
AMER EXP
02/19/03
1.240
50,000
6
10,333.33
1.257
CP
MORG STAN
02/19/03
1.330
50,000
65
120,069.45
1.351
CP
MORG STAN
02/19/03
1.330
50,000
65
120,069.45
1.351
DISC NOTES
FNMA
02/19/03
1.240
50,000
89
153,277.78
1.261
DISC NOTES
FNMA
02/19/03
1.240
50,000
89
153,277.78
1.261
PURCHASES
DISC NOTES
FNMA
06/02/03
1.220
50,000
DISC NOTES
FNMA
06/02/03
1.220
50,000
DISC NOTES
FNMA
06/20/03
1.220
50,000
DISC NOTES
FNMA
06/20/03
1.220
50,000
DISC NOTES
FNMA
06/20/03
1.225
50,000
02/20/03 REDEMPTIONS
CP
MORG STAN
02/20/03
1.330
50,000
66
121,916.65
1.351
CP
MORG STAN
02/20/03
1.330
50,000
66
121,916.65
1.351
CP
MORG STAN
02/20/03
1.330
50,000
69
127,458.35
1.351
CP
MORG STAN
02/20/03
1.330
50,000
69
127,458.35
1.351
CP
GECC
02/20/03
1.350
50,000
78
146,250.00
1.372
CP
GECC
02/20/03
1.350
50,000
78
146,250.00
1.372
CP
FMCC
02/20/03
1.970
50,000
90
246,250.00
2.007
CP
FMCC
02/20/03
1.970
50,000
90
246,250.00
2.007
CP
JP MORGAN
02/20/03
1.340
50,000
94
174,944.45
1.363
N
02/20/03 REDEMPTIONS (continued)
CP
JP MORGAN
02/20/03
1.340
50,000
94
174,944.45
1.363
CP
JP MORGAN
02/20/03
1.340
50,000
94
174,944.45
1.363
CP
JP MORGAN
02/20/03
1.340
50,000
94
174,944.45
1.363
DISC NOTES
FHLMC
02/20/03
1.630
50,000
127
287,513.89
1.662.
DISC NOTES
FHLMC
02/20/03
1.630
50,000
127
287,513.89
1.662
PURCHASES
CD
MONTREAL
1.240% 06/02/03
1.240
50,000
CD
MONTREAL
1.240% 06/02/03
1.240
50,000
CP
W/F
02/27/03
1.220
50,000
CP
W/F
02/27/03
1.220
50,000
CP
TRANSAM
03/03/03
1.250
5,000
CP
JP MORGAN
03/03/03
1.250
25,000
CP
SAFEWAY
03/03/03
1.320
25,000
CP
JP MORGAN
03/03/03
1.250
50,000
CP
JP MORGAN
03/03/03
1.250
50,000
CP
JP MORGAN
03/03/03
1.250
50,000
CP
TRANSAM
03/03/03
1.250
50,000
CP
SALOMON
03/03/03
1.230
50,000
CP
FMCC
03/03/03
1.200
50,000
CP
FMCC
03/03/03
1.200
50,000
CP
AMER EXP
03/04/03
1.240
50,000
CP
GECC
03/10/03
1.250
50,000
CP
GECC
03/10/03
1.250
50,000
CP
GECC
03/10/03
1.250
50,000
CP
GECC
03/10/03
1.250
50,000
CP
GECC
03/10/03
1.250
50,000
CP
GECC
03/10/03
1.250
50,000
CP
W/F
03/13/03
1.240
50,000
CP
MORG STAN
05/20/03
1.260
50,000
CP
MORG STAN
05/20/03
1.260
50,000
CP
MORG STAN
05/20/03
1.260
50,000
CP
MORG STAN
05/20/03
1.260
50,000
CP
SALOMON
06/02/03
1.250
50,000
CP
SALOMON
06/02/03
1.250
50,000
CP
SALOMON
06/02/03
1.250
50,000
CP
SALOMON
06/02/03
1.250
50,000
DISC NOTES
FNMA
03/10/03
1.210
50,000
DISC NOTES
FNMA
03/10/03
1.210
50,000
DISC NOTES
FHLMC
06/26/03
1.225
50,000
DISC NOTES
FHLMC
06/26/03
1.225
50,000
DISC NOTES
FHLMC
06/26/03
1.225
50,000
DISC NOTES
FHLMC
06/26/03
1.225
50,000
02/21/03 REDEMPTIONS
CD W/F 1.270% 02/21 /03 .1.250 46,500 23 37,146.37 1.267
10
02/21/03 REDEMPTIONS (continued)
CD W/F
CID W/F
CID W/F
PURCHASES
CID GECC
CID CAFCO
CID CAFCO
02/24/03 NO SALES
PURCHASES
CD CR AGRIC
CD CR AGRIC
CD CR AGRIC
CD CR AGRIC
CD BK SCOT
CD BK SCOT
CD BK SCOT
CD BK SCOT
CID DISNEY
CID HOUSEHOLD
CID HOUSEHOLD
CID W/F
CID W/F
CP W/F
CID W/F
MTN W/F
02/25/03 NO SALES
PURCHASES
CID PFIZER
DISC NOTES FNMA
DISC NOTES FNMA
DISC NOTES FNMA
DISC NOTES FNMA
02/26/03 REDEMPTIONS
DISC NOTES FNMA
DISC NOTES FNMA
1.270% 02/21/03 1.250 50,000
02/21/03 1.260 50,000
02/21/03 1.260 50,000
03/06/03 1.250 50,000
05/13/03 1.250 50,000
05/13/03 1.250 50,000
1.260% 04/07/03 1.260 50,000
1.260% 04/07/03 1.260 50,000
1.260% 04/07/03 1.260 50,000
1.260% 04/07/03 1.260 50,000
1.240% 06/20/03 1.235 50,000
1.240% 06/20/03 1.235 50,000
1.240% 06/20/03 1.235 50,000
1.240% 06/20/03 1.235 50,000
02/28/03 1.310 20,500
03/04/03 1.320 20,000
03/04/03 1.320 50,000
03/06/03 1.230 50,000
03/06/03 1.230 50,000
03/06/03 1.230 50,000
03/06/03 1.230 50,000
6.625% 07/15/04 1.550 10,350
03/03/03 1.230 30,000
03/03/03 1.200 20,000
03/03/03 1.200 50,000
03/03/03 1.200 50,000
03/03/03 1.200 50,000
23
17
17
02/26/03 1.680 38,329 132
02/26/03 1.680 50,000 132
11
39,942.33
29,750.00
29,750.00
236,106.64
308,000.00
1.267
1.278
1.278
1.713
1.713
02/26/03 PURCHASES
CP
GECC
02/27/03
1.290
50,000
CP
GECC
02/27/03
1.290
50,000
CP
GECC
02/27/03
1.290
50,000
CP
GECC
02/27/03
1.290
50,000
CP
GECC
02/27/03
1.290
50,000
CP
GECC
02/27/03
1.290
50,000
CP
AMER EXP
03/04/03
1.250
50,000
CP
CITICORP
03/11/03
1.250
40,000
CP
CITICORP
03/11/03
1.250
50,000
CP
CITICORP
03/12/03
1.250
50,000
CP
CITICORP
03/12/03
1.250
50,000
DISC NOTES
FNMA
05/28/03
1.225
50,000
DISC NOTES
FNMA
05/28/03
1.225
50,000
DISC NOTES
FNMA
05/28/03
1.225
50,000
DISC NOTES
FNMA
05/28/03
1.225
50,000
SBA
FR
1.550% 01 /25/28
1.550
14,246
PURCHASES c/
TREAS
BILLS
05/08/03
1.230
50,000
TREAS
BILLS
05/08/03
1.230
50,000
TREAS
BILLS
05/15/03
1.230
50,000
TREAS
BILLS
05/22/03
1.230
50,000
TREAS
BILLS
05/22/03
1.230
50,000
TREAS
BILLS
08/07/03
1.230
50,000
TREAS
BILLS
08/07/03
1.230
50,000
TREAS
BILLS
08/07/03
1.230
50,000
TREAS
NOTES
3.250% 05/31/04
1.230
50,000
TREAS
NOTES
2.875% 06/30/04
1.230
50,000
TREAS
NOTES
2.875% 06/30/04
1.230
50,000
02/27/03 REDEMPTIONS
BN
WORLD
1.250%
02/27/03
1.260
50,000
14
24,499.90
1.277
BN
WORLD
1.250%
02/27/03
1.260
50,000
14
24,499.90
1.277
BN
WORLD
1.250%
02/27/03
1.260
50,000
14
24,499.90
1.277
BN
WORLD
1.250%
02/27/03
1.260
50,000
14
24,499.90
1.277
CD
W/F
1.320%
02/27/03
1.310
50,000
63
114,627.00
1.328
CD
W/F
1.320%
02/27/03
1.310
50,000
63
114,627.00
1.328
CP
GECC
02/27/03
1.290
50,000
1
1,791.67
1.307
CP
GECC
02/27/03
1.290
50,000
1
1,791.67
1.307
CP
GECC
02/27/03
1.290
50,000
1
1,791.67
1.307
CP
GECC
02/27/03
1.290
50,000
1
1,791.67
1.307
CP
GECC
02/27/03
1.290
50,000
1
1,791.67
1.307
CP
GECC
02/27/03
1.290
50,000
1
1,791.67
1.307
CP
W/F
02/27/03
1.220
50,000
7
11,861.11
1.237
CP
W/F
02/27/03
1.220
50,000
7
11,861.11
1.237
CP
HEWLETT
02/27/03
1.400
28,304
23
25,316.36
1.420
CP
GMAC
02/27/03
1.530
35,000
30
44,625.00
1.553
12
02/27/03 REDEMPTIONS (continued)
CP FCAR 02/27/03 1.350 50,000 101 189,375.00 1.373
CID FCAR 02/27/03 1.350 50,000 101 189,375.00 1.373
NO PURCHASES
02/28/03 REDEMPTIONS
BN
BANC ONE
1.570%
02/28/03
1.570
50,000
121
263,847.22
1.591
BN
BANC ONE
1.570%
02/28/03
1.570
50,000
121
263,847.22
1.591
CD -
ABN AMRO
1.720%
02/28/03
1.710
50,000
134
318,261.77
1.733
CD
ABN AMRO
1.720%
02/28/03
1.710
50,000
134
318,261.77
1.733
CD
ABN AMRO
1.720%
02/28/03
1.710
50,000
134
318,261.77
1.733
CD
ABN AMRO
1.720%
02/28/03
1.710
50,000
134
318,261.77
1.733
CD
US BANK
1.720%
02/28/03
1.720
50,000
134
320,111.11
1.743
CD
US BANK
1.720%
02/28/03
1.720
50,000
134
320,111.11
1.743
CD
RB CANADA
1.740%
02/28/03
1.730
50,000
134
321,984.13
1.754
CD
CR AGRIC
1.730%
02/28/03
1.730
50,000
134
321,972.22
1.754
CD
CR AGRIC
1.730%
02/28/03
1.730
50,000
134
321,972.22
1.754
CD
CR AGRIC
1.730%
02/28/03
1.730
50,000
134
321,972.22
1.754
CD
CR AGRIC
1.730%
02/28/03
1.730
50,000
134
321,972.22
1.754
CD
ANZ
1.745%
02/28/03
1.740
50,000
134
323,839.32
1.764
CD
ANZ
1.745%
02/28/03
1.740
50,000
134
323,839.32
1.764
CD
ANZ
1.745%
02/28/03
1.740
50,000
134
323,839.32
1.764
CD
ANZ
1.745%
02/28/03
1.740
50,000
134
323,839.32
1.764
CD
SOC GEN
1.710%
02/28/03
1.710
50,000
135
320,625.00
1.733
CD
SOC GEN
1.710%
02/28/03
1.710
50,000
135
320,625.00
1.733
CD
MONTREAL
1.710%
02/28/03
1.710
50,000
135
320,625.00
1.733
CD
MONTREAL
1.710%
02/28/03
1.710
50,,000
135
320,625.00
1.733
CD
MONTREAL
1.710%
02/28/03
1.710
50,000
135
320,625.00
1.733
CD
MONTREAL
1.710%
02/28/03
1.710
50,000
135
320,625.00
1.733
CD
CIBC
1.720%
02/28/03
1.720
50,000
135
322,500.00
1.743
CD
CIBC
1.720%
02/28/03
1.720
50,000
135
322,500.00
1.743
CD
CIBC
1.720%
02/28/03
1.720
50,000
135
322,500.00
1.743
CD
CIBC
1.720%
02/28/03
1.720
50,000
135
322,500.00
1.743
CD
NOVA SCOT
1.730%
02/28/03
1.730
50,000
135
324,375.00
1.754
CD
NOVA SCOT
1.730%
02/28/03
1.730
50,000
135
324,375.00
1.754
CID
DISNEY
02/28/03
1.310
20,500
4
2,983.89
1.328
CID
SALOMON
02/28/03
1.330
50,000
74
136,694.45
1.352
CID
SALOMON
02/28/03
1.330
50,000
74
136,694.45
1.352
CID
SALOMON
02/28/03
1.330
50,000
74
136,694.45
1.352
CID
GECC
02/28/03
1.340
50,000
74
137,722.22
1.362
CID
GECC
02/28/03
1.340
50,000
74
137,722.22
1.362
CID
GECC
02/28/03
1.340
50,000
74
137,722.22
1.362
CID
GECC
02/28/03
1.340
50,000
74
137,722.22
1.362
CID
GE
02/28/03
1.340
50,000
74
137,722.22
1.362
CID
GE
02/28/03
1.340
50,000
74
137,722.22
1.362
CID
GE
02/28/03
1.340
50,000
74
137,722.22
1.362
CID
GE
02/28/03
1.340
50,000
74
137,722.22
1.362
CID
FMCC
02/28/03
1.970
50,000
95
259,930.56
2.007
13
02/28/03 REDEMPTIONS (continued)
CP
NCAT
02/28/03
1.340
50,000
102
189,833.33
1.363
CP
HOUSEHOLD
02/28/03
2.180
50,000
119
360,305.55
2.226
CP
HOUSEHOLD
02/28/03
2.180
50,000
119
360,305.55
2.226
CP
SRAC
02/28/03
2.280
50,000
119
376,833.33
2.329
CP
FMCC
02/28/03
2.230
50,000
120
371,666.67
2.277
CP
FMCC
02/28/03
2.230
50,000
120
371,666.67
2.277
CP
FMCC
02/28/03
2.230
50,000
120
371,666.67
2.277
CP
GECC
02/28/03
1.720
50,000
136
324,888.89
1.755
CP
GECC
02/28/03
1.720
50,000
136
324,888.89
1.755
CP
GECC
02/28/03
1.720
50,000
136
324,888.89
1.755
CP
GECC
02/28/03
1.720
50,000
136
324,888.89
1.755
CP
BEAR
02/28/03
1.730
50,000
136
326,777.78
1.765
CP
BEAR
02/28/03
1.730
50,000
136
326,777.78
1.765
CP
BEAR
02/28/03
1.730
50,000
136
326,777.78
1.765
CP
BEAR
02/28/03
1.730
50,000
136
326,777.78
1.765
CP
GOLDMAN
02/28/03
1.750
50,000
136
330,555.56
1.786
CP
GOLDMAN
02/28/03
1.750
50,000
136
330,555.56
1.786
CP
GOLDMAN
02/28/03
1.750
50,000
136
330,555.56
1.786
CP
GOLDMAN
02/28/03
1.750
50,000
136
330,555.56
1.786
CP
GOLDMAN
02/28/03
1.750
50,000
136
330,555.56
1.786
CP
GOLDMAN
02/28/03
1.750
50,000
136
330,555.56
1.786
CP
FMCC
02/28/03
2.120
45,000
149
394,850.00
2.168
DISC NOTES
FHLMC
02/28/03
1.660
50,000
134
308,944.44
1.693
DISC NOTES
FHLMC
02/28/03
1.660
50,000
134
308,944.44
1.693
DISC NOTES
FNMA
02/28/03
1.660
50,000
134
308,944.44
1.693
DISC NOTES
FNMA
02/28/03
1.660
50,000
134
308,944.44
1.693
DISC NOTES
FNMA
02/28/03
1.670
50,000
134
310,805.56
1.703
DISC NOTES
FNMA
02/28/03
1.670
50,000
134
310,805.56
1.703
DISC NOTES
FNMA
02/28/03
1.620
50,000
135
303,750.00
1.652
DISC NOTES
FNMA
02/28/03
1.620
50,000
135
303,750.00
1.652
DISC NOTES
FNMA
02/28/03
1.620
50,000
135
303,750.00
1.652
DISC NOTES
FNMA
02/28/03
1.620
50,000
135
303,750.00
1.652
DISC NOTES
FNMA
02/28/03
1.620
50,000
135
303,750.00
1.652
DISC NOTES
FNMA
02/28/03
1.620
50,000
135
303,750.00
1.652
DISC NOTES
FNMA
02/28/03
1.620
50,000
135
303,750.00
1.652
DISC NOTES
FNMA
02/28/03
1.620
50,000
135
303,750.00
1.652
DISC NOTES
FNMA
02/28/03
1.650
50,000
135
309,375.00
1.683
DISC NOTES
FNMA
02/28/03
1.650
50,000
135
309,375.00
1.683
MTN
GMAC
7.480%
02/28/03
2.810
9,100
246
176,052.58
2.784
MTN
GMAC
7.480%
02/28/03
4.790
15,000
612
1,235,883.33
4.774
TREAS
NOTES
5.500%
02/28/03
6.606
50,000
1002
8,930,027.17
6.606
TREAS
NOTES
5.500%
02/28/03
6.606
50,000
1002
8,930,027.17
6.606
TREAS
NOTES
5.500%
02/28/03
6.781
50,000
1023
9,261,892.59
6.781
TREAS
NOTES
5.500%
02/28/03
6.781
50,000
1023
9,261,892.59
6.781
NO PURCHASES
14
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 (FFC), Corporate Securities (CB), US Ship Financing Bonds
(TITLE XI'S), International Bank of Redevelopment (IBRD), Tennessee
Valley Authority (TVA), Medium Term Notes (MTN), Real Estate
Mortgage Investment Conduit (REMIC).
b/ Purchase or sold yield based on 360 day calculation for discount
obligations and Repurchase Agreements.
c/ Repurchase Agreement.
d/ Par amount of securities purchased, sold or redeemed.
el Securities were purchased and sold as of the same date.
f/ Repurchase Agreement against Reverse Repurchase Agreement.
9/ Outright purchase against Reverse Repurchase Agreement.
h/ Security "SWAP" transactions.
IL Buy back agreement.
RRS Reverse Repurchase Agreement.
RRP Termination of Reverse Repurchase Agreement.
15
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
ALHAMBRA
Bank of East Asia (USA)
11/13/02
1.310
6,000,000.00
05/13/03
Bank of East Asia (USA)
01/14/03
1.290
3,095,000.00
07/16/03
Bank of East Asia (USA)
02/13/03
1.230
3,000,000.00
08/14/03
Omni Bank
09/05/02
1.710
3,000,000.00
03/07/03
Omni Bank
10/21/02
1.730
2,000,000.00
04/23/03
Omni Bank
11 /20/02
1.310
2,000,000.00
05/21 /03
Omni Bank
02/25/03
1.230
3,000,000.00
08/28/03
ARROYO GRANDE
Mid -State Bank
09/11/02
1.700
5,000,000.00
03/12/03
Mid -State Bank
10/16/02
1.580
5,000,000.00
04/14/03
Mid -State Bank
11/13/02
1.310
5,000,000.00
05/13/03
Mid -State Bank
12/11/02
1.310
5,000,000.00
06/13/03
Mid -State Bank
01/16/03
1.290
5,000,000.00
07/17/03
Mid -State Bank
02/13/03
1.230
5,000,000.00
08/14/03
BEVERLY HILLS
City National Bank
09/09/02
1.640
10,000,000.00
03/10/03
City National Bank
12/09/02
1.260
10,000,000.00
03/13/03
City National Bank
10/17/02
1.620
25,000,000.00
04/15/03
BREA
Jackson Federal Bank
02/11 /03
1.200
10,000,000.00
05/14/03
Pacific Western National Bank
02/05/03
1.240
4,000,000.00
08/08/03
CALABASAS
First Bank of Beverly Hills FSB
08/28/02
1.740
10,000,000.00
03/03/03
First Bank of Beverly Hills FSB
09/18/02
1.750
10,000,000.00
03/19/03
First Bank of Beverly Hills FSB
02/06/03
1.250
10,000,000.00
08/07/03
CAMARILLO
First California Bank
09/25/02
1.650
3,000,000.00
03/24/03
First California Bank
01/30/03
1.240
4,000,000.00
07/30/03
CAMERON PARK
Western Sierra National Bank 01/16/03 1.280 7,000,000.00 07/16/03
16
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
CAMERON PARK (continued)
Western Sierra National Bank
02/14/03
1.220
6,000,000.00
08/15/03
CHICO
North State National Bank
09/11/02
1.710
1,000,000.00
03/12/03
North State National Bank
01/24/03
1.210
5,000,000.00
07/25/03
North State National Bank
02/14/03
1.220
1,500,000.00
08/15/03
Tri Counties Bank
12/16/02
1.260
10,000,000.00
03/18/03
Tri Counties Bank
12/09/02
1.270
10,000,000.00
03/18/03
CHULA VISTA
North Island Federal Credit Union
12/23/02
1.270
5,000,000.00
03/26/03
CITY OF INDUSTRY
EverTrust Bank
12/10/02
1.290
6,000,000.00
06/12/03
EverTrust Bank
01/27/03
1.210
6,000,000.00
07/31/03
DUBLIN
Operating Engineers FCU
10/10/02
1.580
5,000,000.00
04/08/03
Operating Engineers FCU
12/11 /02
1.290
10,000,000.00
06/13/03
Operating Engineers FCU
02/13/03
1.210
5,000,000.00
08/14/03
EL CENTRO
Valley Independent Bank
10/28/02
1.710
20,000,000.00
04/28/03
Valley Independent Bank
11/20/02
1.320
32,500,000.00
05/21/03
Valley Independent Bank
12/19/02
1.330
20,000,000.00
07/08/03
EL SEGUNDO
First Coastal Bank NA
02/26/03
1.260
1,000,000.00
05/30/03
First Coastal Bank NA
02/26/03
1.260
1,000,000.00
08/29/03
Hawthorne Savings FSB
12/20/02
1.250
50,000,000.00
03/24/03
Hawthorne Savings FSB
01/15/03
1.250
35,000,000.00
04/16/03
Hawthorne Savings FSB
11/15/02
1.270
25,000,000.00
05/14/03
Hawthorne Savings FSB
01 /09/03
1.300
30,000,000.00
07/09/03
Hawthorne Savings FSB
01/06/03
1.300
30,000,000.00
07/09/03
Hawthorne Savings FSB
02/05/03
1.240
15,000,000.00
08/07/03
Xerox Federal Credit Union
09/06/02
1.640
7,000,000.00
03/06/03
17
NAME
EL SEGUNDO (continued)
Xerox Federal Credit Union
FRESNO
United Security Bank
United Security Bank
United Security Bank
FULLERTON
Fullerton Community Bank
Fullerton Community Bank
GLENDALE
The California Credit Union
Verdugo Banking Company
Verdugo Banking Company
GOLETA
Pacific Capital Bank
Pacific Capital Bank
Pacific Capital Bank
Pacific Capital Bank
Pacific Capital Bank
Pacific Capital Bank
Pacific Capital Bank
Pacific Capital Bank
Pacific Capital Bank
Pacific Capital Bank
GRANADA HILLS
First State Bank of California
First State Bank of California
HUNTINGTON BEACH
First Bank and Trust
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
11/15/02
1.290
20,000,000.00
05/16/03
10/11/02
1.580
5,000,000.00
04/09/03
02/05/03
1.210
15,000,000.00
04/15/03
11/14/02
1.310
20,000,000.00
05/13/03
11 /13/02 1.320 9,000,000.00 05/13/03
01/23/02 1.260 8,000,000.00 07/25/03
02/27/03 1.270 5,000,000.00 08/29/03
10/01 /02 1.630 5,000,000.00 04/02/03
01/07/03 1.290 5,000,000.00 07/10/03
09/09/02
1.630
10,000,000.00
03/14/03
09/17/02
1.660
15,000,000.00
03/14/03
10/01/02
1.610
10,000,000.00
04/02/03
10/11 /02
1.560
10,000,000.00
04/02/03
10/29/02
1.660
10,000,000.00
04/29/03
12/05/02
1.330
25,000,000.00
06/09/03
12/11 /02
1.290
30,000,000.00
06/09/03
12/09/02
1.310
30,000,000.00
06/09/03
01/23/03
1.230
45,000,000.00
07/25/03
02/14/03
1.220
16,000,000.00
08/15/03
09/18/02
1.730
2,000,000.00
03/19/03
10/21 /02
1.730
3,000,000.00
04/23/03
09/09/02
18
1.650 12,000,000.00 03/11 /03
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
IRVINE
Commercial Capital Bank
12/16/02
1.290
10,000,000.00
06/18/03
Commercial Capital Bank
01/08/03
1.290
6,000,000.00
07/10/03
Commercial Capital Bank
02/24/03
1.220
15,000,000.00
08/20/03
Commercial Capital Bank
02/21 /03
1.220
14,000,000.00
08/28/03
LA JOLLA
Silvergate Bank
09/11/02
1.730
5,000,000.00
03/12/03
Silvergate Bank
01 /31 /03
1.240
5,000,000.00
08/06/03
LAKEPORT
Lake Community Bank
11/25/02
1.320
1,500,000.00
05/29/03
Lake Community Bank
01/15/03
1.290
2,000,000.00
07/16/03
LODI
Farmers & Merchant Bk Cen CA
01/10/03
1.240
10,000,000.00
04/11/03
LOS ANGELES
Broadway Federal Bank
09/09/02
1.660
3,000,000.00
03/11/03
Broadway Federal Bank
01/09/03
1.310
2,500,000.00
07/11/03
California Center Bank
01/06/03
1.250
10,000,000.00
04/09/03
California Chohung Bank
09/06/02
1.630
5,000,000.00
03/07/03
California Chohung Bank
10/02/02
1.540
3,000,000.00
04/01/03
California Chohung Bank
10/16/02
1.580
800,000.00
04/14/03
California Chohung Bank
10/02/02
1.540
2,500,000.00
04/14/03
California Chohung Bank
01/16/03
1.270
1,000,000.00
07/17/03
California Chohung Bank
02/19/03
1.210
4,000,000.00
08/21/03
Cathay Bank
09/25/02
1.660
19,000,000.00
03/24/03
Cathay Bank
10/09/02
1.590
19,000,000.00
04/07/03
Cathay Bank
11/12/02
1.310
15,000,000.00
05/13/03
Cathay Bank
12/10/02
1.290
30,000,000.00
06/12/03
Cedars Bank
09/06/02
1.650
4,500,000.00
03/05/03
Cedars Bank
10/04/02
1.560
5,000,000.00
04/03/03
Cedars Bank
10/24/02
1.750
4,000,000.00
04/22/03
Cedars Bank
12/12/02
1.310
4,500,000.00
06/12/03
Cedars Bank
02/19/03
1.230
• 2,000,000.00
08/21/03
Eastern International Bank
11/07/02
1.430
900,000.00
05/06/03
Eastern International Bank
12/10/02
1.310
1,000,000.00
06/12/03
Family Savings Bank
12/05/02
.1.350
3,000,000.00
06/16/03
19
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
LOS ANGELES (continued)
Family Savings Bank
01 /10/03
1.280
1,000,000.00
07/11 /03
Hanmi Bank
12/02/02
1.270
25,000,000.00
03/05/03
Hanmi Bank
09/19/02
1.710
25,000,000.00
03/18/03
Hanmi Bank
01 /17/03
1.240
25,000,000.00
04/18/03
Hanmi Bank
01 /31 /03
1.210
20,000,000.00
05/08/03
Manufacturers Bank
09/20/02
1.700
20,000,000.00
03/10/03
Manufacturers Bank
09/09/02
1.650
30,000,000.00
03/10/03
Mellon First Business Bank
12/17/02
1.250
50,000,000.00
03/19/03
Mellon First Business Bank
01/10/03
1.250
50,000,000.00
04/10/03
Nara Bank, NA
12/16/02
1.250
5,000,000.00
03/18/03
Nara Bank, NA
10/11 /02
1.560
5,000,000.00
04/23/03
Nara Bank, NA
10/21/02
1.710
15,000,000.00
04/23/03
Nara Bank, NA
02/07/03
1.230
10,000,000.00
08/08/03
Pacific Union Bank
09/04/02
1.650
20,000,000.00
03/06/03
Pacific Union Bank
01/07/03
1.290
10,000,000.00
07/10/03
Preferred Bank
09/10/02
1.730
9,000,000.00
03/05/03
Preferred Bank
09/18/02
1.740
9,000,000.00
03/21 /03
Preferred Bank
02/26/03
1.250
7,000,000.00
04/15/03
Preferred Bank
01 /16/03
1.250
6,000,000.00
04/17/03
Preferred Bank
02/07/03
1.240
4,000,000.00
08/08/03
Sae Han Bank
02/19/03
1.220
6,000,000.00
05/22/03
Western Federal Credit Union
10/21/02
1.710
30,000,000.00
04/23/03
Wilshire State Bank
12/17/02
1.250
8,000,000.00
03/19/03
Wilshire State Bank
10/11 /02
1.590
3,000,000.00
04/09/03
Wilshire State Bank
11 /06/02
1.470
4,000,000.00
05/06/03
Wilshire State Bank
05/14/02
2.420
2,000,000.00
05/13/03
Wilshire State Bank
11/22/02
1.320
5,000,000.00
05/29/03
Wilshire State Bank
12/17/02
1.310
2,000,000.00
06/19/03
Wilshire State Bank
07/12/02
2.060
4,000,000.00
07/10/03
Wilshire State Bank
02/05/03
1.240
4,000,000.00
08/07/03
Wilshire State Bank
02/24/03
1.230
4,000,000.00
08/27/03
MERCED
County Bank
10/16/02
1.600
5,000,000.00
04/14/03
County Bank
12/10/02
1.330
10,000,000.00
06/11/03
County Bank
01/16/03
1.300
5,000,000.00
07/17/03
County Bank
02/24/03
1.240
5,000,000.00
08/27/03
MODESTO
Valley First Credit Union
10/04/02
20
1.560 4,000,000.00 04/10/03
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
MONTEREY PARK
Trust Bank FSB
10/01/02
1.640
3,000,000.00
04/01/03
Trust Bank FSB
01 /02/03
1.270
3,000,000.00
07/09/03
NORTH HIGHLANDS
Safe Credit Union
01/15/03
1.250
5,000,000.00
04/16/03
Safe Credit Union
02/14/03
1.210
20,000,000.00
05/16/03
OAKDALE
Oak Valley Community Bank
12/09/02
1.270
1,500,000.00
03/11/03
Oak Valley Community Bank
03/22/02
2.640
2,000,000.00
03/20/03
Oak Valley Community Bank
01/14/03
1.240
2,500,000.00
04/16/03
OAKLAN D
Metropolitian Bank
09/25/02
1.650
1,000,000.00
03/24/03
Metropolitian Bank
10/28/02
1.700
1,000,000.00
04/28/03
Metropolitian Bank
11/25/02
1.300
1,000,000.00
05/28/03
ONTARIO
Citizens Business Bank
09/25/02
1.640
30,000,000.00
03/24/03
Citizens Business Bank
10/04/02
1.550
25,000,000.00
04/03/03
Citizens Business Bank
11 /20/02
1.310
30,000,000.00
05/21 /03
Citizens Business Bank
12/06/02
1.360
25,000,000.00
06/04/03
Citizens Business Bank
02/06/03
1.240
10,000,000.00
08/08/03
Citizens Business Bank
02/11/03
1.230
20,000,000.00
08/08/03
PALO ALTO
Bank of Petaluma
09/11/02
1.720
12,000,000.00
03/10/03
Bank of Petaluma
02/19/03
1.230
3,500,000.00
08/20/03
Bank of Santa Clara
02/19/03
1.230
20,000,000.00
08/20/03
Bay Area Bank
10/28/02
1.720
5,000,000.00
04/28/03
Bay Area Bank
01/15/03
1.300
5,000,000.00
07/16/03
Bay Bank of Commerce
10/28/02
1.710
5,000,000.00
04/28/03
Coast Commercial Bank
01/15/03
1.290
5,000,000.00
07/16/03
Coast Commercial Bank
02/19/03
1.230
20,000,000.00
08/20/03
Cupertino National Bank
09/11/02
1.730
10,000,000.00
03/10/03
Cupertino National Bank
01/28/03
1.210
35,000,000.00
04/30/03
Cupertino National Bank
02/19/03
1.230
20,000,000.00
05/22/03
21
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
PALO ALTO (continued)
Cupertino National Bank
01/15/03
1.300
10,000,000.00
07/16/03
Golden Gate Bank
02/19/03
1.230
9,000,000.00
05/22/03
Mid -Peninsula Bank
09/11/02
1.730
10,000,000.00
03/10/03
Mid -Peninsula Bank
10/28/02
1.720
35,000,000.00
04/28/03
Mid -Peninsula Bank
02/19/03
1.230
5,000,000.00
08/20/03
Mt. Diablo National Bank
09/11 /02
1.730
10,000,000.00
03/10/03
Peninsula Bank of Commerce
02/19/03
1.230
15,000,000.00
08/20/03
San Jose National Bank
02/19/03
1.230
20,000,000.00
05/22/03
PALOS VERDES ESTATES
Malaga Bank
09/12/02
1.710
2,000,000.00
03/13/03
Malaga Bank
10/30/02
1.580
4,000,000.00
05/13/03
Malaga Bank
10/24/02
1.720
4,000,000.00
05/13/03
Malaga Bank
12/23/02
1.280
4,000,000.00
06/25/03
Malaga Bank
02/20/03
1.220
2,000,000.00
08/22/03
PASADENA
Community Bank
10/23/02
1.720
5,000,000.00
04/15/03
Community Bank
10/15/02
1.570
10,000,000.00
04/15/03
Community Bank
11/08/02
1.260
15,000,000.00
05/07/03
Community Bank
12/19/02
1.320
20,000,000.00
06/19/03
Community Bank
01/10/03
1.280
20,000,000.00
07/11/03
Wescom Credit Union
11/13/02
1.330
10,000,000.00
05/13/03
PLACERVILLE
El Dorado Savings Bank
03/07/02
2.390
5,000,000.00
03/07/03
El Dorado Savings Bank
03/22/02
2.640
5,000,000.00
03/20/03
El Dorado Savings Bank
04/12/02
2.640
10,000,000.00
04/10/03
El Dorado Savings Bank
05/02/02
2.390
5,000,000.00
04/30/03
El Dorado Savings Bank
06/10/02
2.360
20,000,000.00
06/10/03
El Dorado Savings Bank
02/07/03
1.360
5,000,000.00
02/05/04
PLEASANTON
Valley Community Bank 09/12/02 1.750 5,000,000.00 03/13/03
P M NA
PFF Bank and Trust 12/09/02 1.330 20,000,000.00 06/11/03
22
NAME
POMONA (continued)
PFF Bank and Trust
PORTERVILLE
Bank of the Sierra
RANCHO SANTA FE
La Jolla Bank, FSB
La Jolla Bank, FSB
La Jolla Bank, FSB
La Jolla Bank, FSB
REDDING
North Valley Bank
REDWOOD CITY
Provident Central Credit Union
ROCKLIN
Five Star Bank
RICHMOND
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
RIVERSIDE
Provident Savings Bank
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
02/27/03 1.240 8,000,000.00 08/29/03
10/21 /02 1.730 10,000,000.00 04/23/03
09/04/02
1.660
10,000,000.00
03/06/03
11 /19/02
1.310
25,000,000.00
05/21 /03
12/05/02
1.350
10,000,000.00
06/04/03
02/05/03
1.230
25,000,000.00
08/08/03
12/11 /02 1.310 3,000,000.00 06/13/03
10/29/02 1.710 20,000,000.00 04/29/03
10/01/02 1.610 2,000,000.00 04/01/03
03/07/02
2.390
10,000,000.00
03/07/03
04/05/02
2.710
10,000,000.00
04/01/03
04/25/02
2.440
10,000,000.00
04/23/03
06/12/02
2.340
10,000,000.00
06/12/03
07/11/02
2.110
10,000,000.00
07/09/03
08/13/02
1.710
10,000,000.00
08/08/03
09/12/02
1.800
10,000,000.00
09/12/03
10/ 15/02
1.580
10, 000, 000.00
10/ 15/03
11 /07/02
1.510
10,000,000.00
11 /07/03
09/27/02 1.630 25,000,000.00 03/27/03
23
NAME
SACRAMENTO
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
American River Bank
09/25/02
1.680
2,000,000.00
03/27/03
American River Bank
10/11 /02
1.560
1,500,000.00
04/09/03
American River Bank
12/23/02
1.280
1,000,000.00
06/25/03
American River Bank
01 /10/03
1.260
1,000,000.00
07/11 /03
American River Bank
01 /14/03
1.270
1,500,000.00
07/31 /03
American River Bank
02/26/03
1.220
2,000,000.00
08/29/03
Bank of Sacramento
09/20/02
1.720
2,000,000.00
03/19/03
Bank of Sacramento
11 /25/02
1.330
2,000,000.00
05/29/03
Bank of Sacramento
02/11/03
1.240
1,500,000.00
08/13/03
Merchants National Bank
10/17/02
1.660
2,000,000.00
04/15/03
Merchants National Bank
01/22/03
1.230
2,000,000.00
07/24/03
River City Bank
10/01/02
1.630
4,000,000.00
04/02/03
River City Bank
01 /08103
1.320
2,000,000.00
07/10/03
River City Bank
01 /27/03
1.240
3,000,000.00
07/31 /03
River City Bank
02/25/03
1.230
2,000,000.00
08/28/03
U.S. Bank
01/08/03
1.310
100,000,000.00
07/10/03
U.S. Bank
01/31/03
1.230
25,000,000.00
08/06/03
U.S. Bank
02/06/03
1.230
50,000,000.00
08/13/03
U.S. Bank
02/19/03
1.230
25,000,000.00
08/21/03
U.S. Bank
02/19/03
1.230
25,000,000.00
08/21/03
Union Bank of California
12/18/02
1.270
4,000,000.00
03/20/03
Union Bank of California
12/18/02
1.270
46,000,000.00
03/20/03
Union Bank of California
12/16/02
1.250
100,000,000.00
03/20/03
Union Bank of California
01 /17/03
1.240
150,000,000.00
04/18/03
Union Bank of California
02/06/03
1.210
150,000,000.00
05/07/03
SALINAS
Community Bank of Central Cal
12/30/02
1.230
10,000,000.00
04/03/03
Community Bank of Central Cal
01 /14/03
1.240
8,000,000.00
04/16/03
SAN BERNARDINO
Business Bank of California 09/16/02 1.730 12,000,000.00 03/18/03
Business Bank of California 11/06/02 1.480 10,000,000.00 05/06/03
Business Bank of California 01/14/03 1.300 8,000,000.00 07/16/03
SAN DIEGO
First Future Credit Union 11/25/02 1.330 5,000,000.00 05/29/03
First Future Credit Union 12/05/02 1.360 10,000,000.00 06/04/03
First Future Credit Union 12/18/02 1.320 3,000,000.00 06/16/03
24
NAME
SAN DIEGO (continued)
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
First Future Credit Union
02/27/03
1.240
5,000,000.00
08/29/03
First United Bank
01/17/03
1.290
2,000,000.00
07/18/03
First United Bank
02/14/03
1.250
1,000,000.00
08/15/03
Neighborhood National Bank
02/21/03
1.240
2,000,000.00
08/22/03
SAN FRANCISCO
American California Bank
01/08/03
1.280
2,000,000.00
04/08/03
American California Bank
01/08/03
1.330
2,000,000.00
07/08/03
Bank of Canton California
03/08/02
2.390
20,000,000.00
03/07/03
Bank of Canton California
10/10/02
1.580
40,000,000.00
04/08/03
Bank of Canton California
08/30/02
1.920
20,000,000.00
08/28/03
Bank of the West
09/20/02
1.690
82,000,000.00
03/19/03
Bank of the West
12/30/02
1.250
134,000,000.00
04/04/03
Bank of the West
01/23/03
1.230
25,000,000.00
07/30/03
Bank of the West
01/16/03
1.290
75,000,000.00
07/30/03
Bank of the West
01/22/03
1.250
76,500,000.00
07/30/03
Bank of the West
02/20/03
1.240
242,000,000.00
08/22/03
California Federal Bank
10/16/02
1.590
100,000,000.00
04/14/03
Citibank (West) FSB
12/30/02
1.230
50,000,000.00
04/04/03
Citibank (West) FSB
02/19/03
1.220
100,000,000.00
05/22/03
Oceanic Bank
09/12/02
1.800
4,000,000.00
09/12/03
Trans Pacific National Bank
09/19/02
1.730
1,000,000.00
03/25/03
Trans Pacific National Bank
12/23/02
1.300
1,000,000.00
06/25/03
Trans Pacific National Bank
02/05/03
1.240
1,000,000.00
08/07/03
United Commercial Bank
09/10/02
1.710
30,000,000.00
03/21 /03
United Commercial Bank
09/10/02
1.710
35,000,000.00
03/21/03
United Commercial Bank
12/03/02
1.320
25,000,000.00
06/04/03
United Commercial Bank
12/30/02
1.310
25,000,000.00
07/01/03
United Commercial Bank
01/10/03
1.280
30,000,000.00
07/11/03
United Commercial Bank
01/15/03
1.280
20,000,000.00
07/16/03
United Commercial Bank
01/27/03
1.230
40,000,000.00
07/31/03
United Commercial Bank
02/28/03
1.240
30,000,000.00
09/04/03
SANJOSE
Comerica Bank of California
12/04/02
1.310
63,000,000.00
03/04/03
Comerica Bank of California
01/13/03
1.270
71,000,000.00
04/16/03
Comerica Bank of California
02/03/03
1.240
183,000,000.00
05/08/03
Heritage Bank of Commerce
02/14/03
1.240
2,000,000.00
08/15/03
Meriwest Credit Union
10/18/02
1.710
5,000,000.00
04/16/03
Meriwest Credit Union
11/07/02
1.460
5,000,000.00
05/06/03
25
NAME
SAN JOSE (continued)
Meriwest Credit Union
Meriwest Credit Union
San Jose National Bank
Santa Clara Co. Fed. C.U.
Santa Clara Co. Fed. C.U.
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 MARINO
East West Federal Bank
East West Federal Bank
East West Federal Bank
East West Federal Bank
SAN RAFAEL
Westamerica Bank
Westamerica Bank
Westamerica Bank
Westamerica Bank
SANTA MARIA
Hacienda Bank
SANTA ROSA
National Bank of the Redwoods
National Bank of the Redwoods
SONORA
Central California Bank
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
12/17/02
1.330
5,000,000.00
06/19/03
02/25/03
1.250
5,000,000.00
08/28/03
01/28/03
1.210
20,000,000.00
04/30/03
11/05/02
1.470
5,000,000.00
05/07/03
02/05/03
1.240
10,000,000.00
08/08/03
09/10/02
1.750
7,000,000.00
03/11 /03
09/24/02
1.690
5,000,000.00
03/26/03
02/11/03
1.210
6,000,000.00
05/14/03
09/05/02
1.650
1,000,000.00
03/04/03
10/10/02
1.600
2,500,000.00
04/08/03
12/10/02
1.310
1,000,000.00
06/12/03
01 /21 /03
1.260
1,000,000.00
07/23/03
09/10/02
1.700
35,000,000.00
03/11 /03
05/15/02
2.370
38,000,000.00
05/15/03
01/09/03
1.300
42,000,000.00
07/11/03
02/07/03
1.230
35,000,000.00
08/08/03
04/09/02
2.570
35,000,000.00
04/10/03
01/16/03
1.220
25,000,000.00
04/17/03
01/21/03
1.200
50,000,000.00
04/24/03
01/28/03
1.180
10,000,000.00
04/30/03
09/09/02
01 /22/03
02/11 /03
12/23/02
26
1.670 1,000,000.00 03/10/03
1.230 10,000,000.00 07/24/03
1.210 5,000,000.00 08/13/03
1.270 5,000,000.00 03/26/03
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
STOCKTON
Pacific State Bank
10/11 /02
1.590
1,000,000.00
04/09/03
Pacific State Bank
01/07/03
1.300
1,000,000.00
07/10/03
Union Safe Deposit Bank
09/04/02
1.680
15,000,000.00
03/06/03
Union Safe Deposit Bank
10/10/02
1.610
10,000,000.00
04/15/03
Union Safe Deposit Bank
11/04/02
1.460
5,000,000.00
05/07/03
Union Safe Deposit Bank
11/07/02
1.460
10,000,000.00
05/07/03
Union Safe Deposit Bank
12/11/02
1.320
10,000,000.00
06/13/03
Union Safe Deposit Bank
01 /23/03
1.260
15,000,000.00
07/25/03
Union Safe Deposit Bank
02/14/03
1.250
15,000,000.00
08/15/03
Washington Mutual Bank
12/16/02
1.310
45,000,000.00
06/18/03
Washington Mutual Bank
01/22/03
1.250
75,000,000.00
07/24/03
Washington Mutual Bank
02/19/03
1.230
60,000,000.00
08/21/03
TORRANCE
China Trust Bank (USA)
12/11/02
1.270
35,000,000.00
03/14/03
China Trust Bank (USA)
01/22/03
1.230
30,000,000.00
04/24/03
China Trust Bank (USA)
02/13/03
1.220
20,000,000.00
05/15/03
TRACY
Service 1st Bank
09/24/02
1.680
2,000,000.00
03/20/03
Service 1 st Bank
09/17/02
1.750
2,000,000.00
03/20/03
TUSTIN
Sunwest Bank
12/09/02
1.280
1,000,000.00
03/13/03
Sunwest Bank
01/13/03
1.260
6,000,000.00
04/16/03
Sunwest Bank
02/07/03
1.230
7,800,000.00
05/14/03
VACAVILLE
Travis Credit Union
02/25/03
1.240
40,000,000.00
05/30/03
WATSONVILLE
Monterey Bay Bank
09/06/02
1.650
6,000,000.00
03/04/03
Monterey Bay Bank
09/19/02
1.730
8,000,000.00
03/25/03
Monterey Bay Bank
10/10/02
1.600
3,000,000.00
04/10/03
Monterey Bay Bank
12/16/02
1.310
3,000,000.00
06/18/03
Monterey Bay Bank
01/14/03
1.290
8,000,000.00
07/16/03
27
NAME
WHITTIER
TIME DEPOSITS
DEPOSIT
DATE
Quaker City Bank 10/04/02
Quaker City Bank 12/03/02
Quaker City Bank 01 /14/03
TOTAL TIME DEPOSITS FEBRUARY 2003
28
PAR MATURITY
YIELD AMOUNT ($) DATE
1.610 16,000,000.00 04/02/03
1.300 25,000,000.00 06/04/03
1.270 24,000,000.00 07/16/03
5,469,095,000.00
BANK DEMAND DEPOSITS
FEBRUARY 2003
($ in thousands)
DAILY BALANCES
DAY OF
BALANCES
WARRANTS
MONTH
PER BANKS
OUTSTANDING
1 $
1,334,156
$ 6,051,415
2
1,334,156
6,051,415
3
1,319,526
5,391,727
4
718,932
5,346,372
5
774,493
5,291,746
6
695,841
5,158,487
7
926,056
5,670,207
8
926,056
5,670,207
9
926,056
5,670,207
10
934,657
5,370,668
11
1,181,140
5,115,350
12
1,339,684
5,115,350
13
1,081,236
4,376,162
14
1,266,719
4,740,633
15
1,266,719
4,740,633
16
1,266,719
4,744,984
17
1,266,719
4,744,984
18
1,562,420
5,694,858
19
1,187,200
5,664,096
20
1,234,305
5,460,039
21
1,443, 348
5,710,155
22
1,443,348
5,710,155
23
1,443,348
5,710,155
24
1,213,996
5,300,527
25
19068,627
5,756,113
26
926,206
5,641,198
27
718,055
5,544,103
28
527,621
5,421,114
AVERAGE DOLLAR DAYS $ 1,118,834 a/
a� The prescribed bank balance for February was $1,208,612. This consisted of
$949,857 in compensating balances for services, balances for uncollected
funds of $267,593 and a deduction of $8,838 for February delayed
deposit credit.
DESIGNATION BY POOLED MONEY INVESTMENT BOARD
OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS
No. 1644
In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its
meeting on February 19, 2003, has determined and designated the amount of money available for deposit and investment
under said sections. In accordance with sections 16480.1 and 16480.2 of the Government Code, it is the intent that the
money available for deposit or investment be deposited in bank accounts and savings and loan associations or invested in
securities in such a manner so as to realize the maximum return consistent with safe and prudent treasury management,
and the Board does hereby designate the amount of money available for deposit in bank accounts, savings and loan associ-
actions, and for investment in securities and the type of such deposits and investments as follows:
1. In accordance with law, for deposit in demand
bank accounts as Compensating Balance for Services
$ 949,857,000
The active noninterest-bearing bank accounts designation constitutes a calendar month average balance. For purposes of
computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as
a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any
deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount
provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in
the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection
periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in
such a manner as to realize the maximum return consistent with safe and prudent treasury management.
2. In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest -
bearing deposits in banks and savings and loan associations as follows:
From
To
Transactions
( 1)
2/17/2003
2/21/2003
$
289,300,000
(2)
2/24/2003
2/28/2003
$
(2,512,000,000)
(3)
3/3/2003
3/7/2003
$
(354,200,000)
(4)
3/10/2003
3/14/2003
$
(929,100,000)
(5)
3/17/2003
3/21/2003
$
1,206,200,000
(6)
3/24/2003
3/28/2003
$
(1,246,700,000)
(7)
3/31/2003
4/4/2003
$
(478,800,000)
(8)
4/7/2003
4/11/2003
$
(518,600,000)
(9)
4/14/2003
4/18/2003
$
2,427,100,000
Time Deposits in
Various Financial
Institutions
In Securities
(sections 16503a
Estimated
(section 16430)*
and 16602)*
Total
$ 51,301,205,000
$
5,464,095,000
$
56,765,300,000
$ 48,789,205,000
$
5,464,095,000
$
54,253,300,000
$ 48,435,005,000
$
5,464,095,000
$
53,899,100,000
$ 47,505,905,000
$
5,464,095,000
$
52,970,000,000
$ 48,712,105,000
$
5,464,095,000
$
54,176,200,000
$ 47,465,405,000
$
5,464,095,000
$
52,929,500,000
$ 46,986,605,000
$
5,464,095,000
$
52,450,700,000
$ 46,468,005,000 $ 5,464,095,000 $ 51,932,100,000
$ 48,895,105,000 $ 5,464,095,000 $ 54,359,200,000
From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested
in prime commercial paper under section 16430(e), Government Code.
Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the
amounts and for the same types of investments as specifically designated above.
Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by
which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance
of $ 949,857,000.
POOLED MONEY INVESTMENT BOARD:
Signature on file at STO & SCO
Chairperson
Member
Dated: February 19, 2003
* Government Code 30 Member
INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
May 14, 2003
Correspondence & Written
Material Item C
GASB 40 - New Rules Regarding Investment Disclosures
In the notes to the Financial Statements.
BACKGROUND:
GASB has recently released Statement No. 40 which involves new rules regarding
investment disclosures.
RECOMMENDATION:
Receive & File
, finance uirector
v
w lk...r 2
W
k4
00
N
n-mr.
12
O
W��
m
n
cd
P--4,A
�J
rA
a�
•� 03
b�A �
b�A
b�A
cd
4-j T I
O z
0 cd
•
•
'97
O
A
.4
C4
w
0u
0
.
0
I�
. rME4
tD
r
4�
AR
EMI
m
rwo
r
Cd
Kt
•
F
.
O
. 11
W
I lkl. -. 12
1- . 13
cn
0
•
•
14
d
a)
to
03
a�
ti
U
03
Q
�
N
cd
0 romo
0 TMmq
cd
'C
O
•�
N
�
�
W
0
0
15
4
IF
Statement No. 40 of the Governmental Accounting Standards Board
Deposit and Investment Risk Disclosures
an amendment of GASB Statement No. 3
March 2003
INTRODUCTION
1. State and local governments have deposits and investments that are subject
to various risks. The GASB previously addressed certain deposit and invest-
ment risk disclosures in Statement No. 3, Deposits with Financial Institutions,
Investments (including Repurchase Agreements), and Reverse Repurchase
Agreements, and to a limited extent in Statements No. 28, Accounting and
Financial Reporting for Securities Lending Transactions, and No. 31, Account-
ing and Financial Reporting for Certain Investments and for External Investment
Pools. Risk disclosures in Statement 3 focused on credit risk' including
custodial credit risk. The objective of this Statement is to update the custodial
credit risk disclosure requirements of Statement 3 and to establish more com-
prehensive disclosure requirements addressing other common risks of the
deposits and investments of state and local governments.
STANDARDS OF GOVERNMENTAL ACCOUNTING AND
FINANCIAL REPORTING
Scope and Applicability of This Statement
2. This Statement establishes and modifies disclosure requirements related to
investment risks: credit risk (including custodial credit risk and concentrations
of credit risk), interest rate risk, and foreign currency risk. This Statement
also establishes and modifies disclosure requirements for deposit risks: custo-
dial credit risk and foreign currency risk. This Statement applies to all state and
local governments.
'Terms that are defined in the Glossary are shown in boldface type the first time they appear
in this Statement.
%V
�� 16
U
3. This Statement supersedes the level of note disclosure detail requirements
in paragraph 64 of Statement 3. It also rescinds paragraphs 70, 71, 73, and 74
of Statement 3 and amends glossary paragraph 116 of that Statement. It also
supersedes the custodial credit risk disclosure requirements in paragraphs 67
through 69 of Statement 3 and paragraph 16 of Statement 28. In addition, it
supersedes paragraphs 32d and 41 c of Statement No. 25, Financial Reporting.
for Defined Benefit Pension Plans and Note Disclosures for Defined Contribu-
tion Plans.
General Disclosure Principles
4. Unless otherwise required, investment disclosures should be organized by
investment type, such as U.S. Treasuries, corporate bonds, or commercial
paper. Dissimilar investments, such as U.S. Treasury bills and U.S. Treasury
strips, should not be aggregated into a single investment type.
Level of Detail
5. Paragraph 64 of Statement 3 is superseded by the following: .
The disclosures required by this Statement generally should be made for
the primary government, including its blended component units. Risk
disclosures should also be made for governmental and business -type
activities, individual major funds, nonmajor funds in the aggregate, or
fiduciary fund types when the risk exposures are significantly greater than
the deposit and investment risks of the primary government. For example,
a primary government's total investments may not be exposed to con-
centration risk. However, if the government's capital projects fund has all
of its investments in one issuer of corporate bonds, disclosure should
be made for the capital projects fund's exposure to a concentration of
credit risk.
Deposit and Investment Policies
6. Governments should briefly describe their deposit or investment policies that
are related to the risks this Statement requires to be disclosed. For example, if
a government has an exposure to a concentration of credit risk, an investment
policy disclosure regarding concentration of credit risk is required. Likewise, if a
government has an investment denominated in a foreign currency, an invest-
ment policy disclosure regarding foreign investments is required. If a govern-
ment has no deposit or investment policy that addresses a specific type of risk
that it is exposed to, the disclosure should indicate that fact.
Disclosures for Specific Risks
Credit Risk
7. Governments should provide information about the credit risk associated
with their investments by disclosing the credit quality ratings of investments in
debt securities as described by nationally recognized statistical rating
organizations —rating agencies —as of the date of their financial statements (for
example, by aggregating the amount of investments by rating categories).
Unless there is information to the contrary, obligations of the U.S. government
or obligations explicitly guaranteed by the U.S. government are not considered
to have credit risk and do not require disclosure of credit quality. Governments
should disclose the credit quality ratings of external investment pools, money
market funds, bond mutual funds, and other pooled investments of fixed -income
securities in which they invest. If a credit quality disclosure Is required and the
investment is unrated, the disclosure should indicate that fact.
Additional Amendments to Statement 3
8. Paragraph 67 of Statement 3, with its related heading, is superseded by the
following:
Custodial Credit Risk
Deposits are exposed to custodial credit risk if they are not covered by
depository insurance and the deposits are:
a. Uncollateralized,
b. Collateralized with securities held by the pledging financial institution,
or
c. Collateralized with securities held by the pledging financial institution's
trust department or agent but not in the depositor -governments name.
If a government has deposits at the end of the'period that are exposed to
custodial credit risk, it should disclose the amount of those bank balances,
the fact that the balances are uninsured, and whether the balances are
exposed on the basis of either a, b, or c above.
r+1
9. Paragraphs 68 and 69 and their related footnotes are superseded by the
following:
Investment securities are exposed to custodial credit risk if the securities
are uninsured, are not registered in the name of the government, and are
held by either:
a. The counterparty or
b. The counterparty's trust department or agent but not in the govern-
ment's name.
If a government has investment securities at the end of the period that are
exposed to custodial credit risk, it should disclose the investments' type,
the reported amount, and how the in are held. Investments in
external investment pools and in open-end mutual funds are not exposed
to custodial credit risk because their existence is not evidenced by
securities that exist in physical or book entry form. Securities underlying
reverse repurchase agreements are not exposed to custodial credit risk
because they are held by the buyer -lender. The term securities as used in
this paragraph includes securities underlying repurchase agreements and
investment securities.
Amendment to Statement 28
10. Paragraph 16 of Statement 28 is superseded by the following:
Disclosures required by paragraph 9 of Statement No. 40, Deposit and
Investment Risk Disclosures, should be made for securities lending col-
lateral that is reported in the statement of net assets and for the under-
lying securities, as discussed in this paragraph. Therefore, the reported
amounts of these investments should be disclosed by type 3f investment
and amount, as required by paragraph 4 of Statement 40.
a. Collateral that is reported in the statement of net assets should follow
the custodial credit risk disclosure requirements of paragraph 9 of
Statement 40, unless it has been invested in a securities lending
collateral investment pool or another type of investment that is not
exposed to custodial credit, risk, as provided in that same paragraph.
b. Underlying securities are not subject to custodial credit risk disclosure
requirements if the collateral for those loans is reported in the state-
ment of net assets.
,..; 19
4
c. Underlying securities should follow the custodial credit risk disclosure
requirements of paragraph 9 of Statement 40 if the collateral for those
loans is not reported in the statement of net assets. This disclosure
should be based on the type of collateral and the custodial arrange-
ments for the collateral securities.
For the purposes of this Statement, the statement of net assets also refers to the balance
sheet.
13Cash collateral in deposit accounts with financial institutions is subject to the provisions
of paragraph 8 of Statement 40.
Concentration of Credit Risk
11. Governments should provide information about the concentration of credit
risk associated with their investments by disclosing, by amount and issuer,
investments in any one issuer that represent 5 percent or more of total invest-
ments based on the level of detail prescribed in paragraph 5. Investments
issued or explicitly guaranteed by the U.S. government and investments in
mutual funds, external investment pools, and other pooled investments are
excluded from this requirement.
12. Paragraph 32d of Statement 25 is superseded by the following:
d. Concentration of credit risk —Identification, by amount and issuer, of
investments in any one issuer that represent 5 percent or more of
plan net assets. Investments issued or explicitly guaranteed by the
U.S. government and investments in mutual funds, external invest-
ment pools, and other pooled investments are excluded from this
requirement.
13. Paragraph 41 c of Statement 25 is superseded by the following:
c. Concentration of credit risk —Identification, by amount and issuer, of
investments in any one issuer that represent 5 percent or more of
plan net assets. Investments issued or explicitly guaranteed by the
U.S. government and investments in mutual funds, external invest-
ment pools, and . other pooled investments are excluded from this
requirement.
i
2 0
5
Interest Rate Risk
14. Governments should disclose information about the interest rate risk of
their debt investments by using a disclosure method described in paragraph 15.
Governments also should disclose the terms of investments with fair values that
are highly sensitive to changes in interest rates.
15. Interest rate risk information should be organized by investment type and
amount using one of the following methods:
a. Segmented time distribution
b. Specific identification
c. Weighted average maturity
d. Duration
e. Simulation model.
Governments are encouraged to select the disclosure method that is most
consistent with the method they use to identify and manage interest rate risk. If
a method requires an assumption regarding timing of cash flows (for example,
whether an investment is or is not assumed to be called), interest rate changes,
or other factors that affect interest rate risk information, that assumption should
be disclosed. Governments with investments in mutual funds, external invest-
ment pools, or other pooled investments that do not meet the definition of a
20-like pool should disclose interest rate risk information according to one of
the methods above.
16. The terms of a debt investment may cause its fair value to be highly
sensitive to interest rate changes. To the extent investment terms are not
considered in the interest rate risk disclosure requirements of paragraph 159 the
terms and fair value of that investment should be disclosed. Terms include such
information as coupon multipliers, benchmark indexes, reset dates, and em-
bedded options. Disclosure information for similar investments may be aggre-
gated. Examples of highly sensitive investments and required disclosures are
as follows:
a. A variable -rate investment's coupon amount enhances or amplifies the
effects of interest rate changes by greater than a one-to-one basis, such as
1.25 times the three-month London Interbank Offered Rate (LIBOR). The
multiplier makes this investment's fair value highly sensitive to interest rate
changes. This investment's fair value, its coupon's multiplier and benchmark
0
index (1.25 ti
mes three-month LIBOR), and the frequency of the coupon's
reset date should be disclosed.
b. A variable -rate investments Coupon amount varies inversely with a bench-
mark index, such as 4 percent minus the three-month LIBOR with a floor of
percent. ercent. This investments fair value, its coupon's multiplier and benchmark
index (4 percent minus the three-month LIBOR with a floor of 1 percent), and
the frequency of the coupon's reset dates should be disclosed. ifi-
c. An asset -backed investment has repayments that are expected to sign
cantly vary with interest rate changes. The variance may present itself in
terms of variable repayment amounts, uncertain early or extended repay-
ments, or in some cases, the possibility of no repayments. Interest -only and
residual tranches of collateralized mortgage obligations are specific ex-
amples of such investments. This investment's fair value, the nature of its
underlying assets, and the existence of the repayment option should be
disclosed.
Foreign Currency Risk
17. If a government's deposits or investments are exposed to foreign currency
risk, the government should disclose the U.S. dollar balances of such deposits
or investments, organized by currency denomination and, if applicable, invest-
ment type.
EFFECTIVE DATE
18. The requirements of this Statement are effective for financial statements for
periods beginning after June 15, 2004. Earlier application is encouraged.
The provisions of this Statement need
not be applied to immaterial items.
7
1
This Statement was issued by unanimous vote of the seven members of the
Governmental Accounting Standards Board.,
Tom L. Allen, Chairman
Cynthia B. Green
William W. Holder
Edward J. Mazur
Paul R. Reilly
Richard C. Tracy
James M. Williams
GLOSSARY
19. * This paragraph contains definitions of certain terms as they are used in this
Statement; the terms may have different meanings in other contexts.
Concentration of credit risk
The risk of loss attributed to the magnitude of a government's investment
in a single issuer.
Counterparty
The party that pledges collateral or repurchase agreement securities
to the government or that sells investments to or buys them for the
government.
Credit risk
The risk that an issuer or other counterparty to an investment will not fulfill
its obligations.
Custodial credit risk
The custodial credit risk for deposits is the risk that, in the event of the
failure of a depository financial institution, a government will not be able to
recover deposits or will not be able to recover collateral securities that are
in the possession of an outside party. The custodial credit risk for invest-
ments is the risk that, in the event of the failure of the counterparty to a
transaction, a government will not be able to recover the value of invest-
ment or collateral securities that are in the possession of an outside party.
Depository insurance
Depository insurance includes:
a. Federal depository insurance funds, such as those maintained by the
Federal Deposit Insurance Corporation.
b. State depository insurance funds.
V
c. Multiple financial institution collateral pools that insure public deposits.
In such a pool, a group of financial institutions holding public funds
pledge collateral to a common pool.
9
4
Duration
A measure of a debt investments exposure to fair value changes arising
from changing interest rates. It uses the present value of cash flows,
g
wei hted for those cash flows as a percentage of the investment s full
price.
Embedded option
A provision or term in a financial instrument that allows one party, to
change the timing or amount of one or more cash flows associated with
that instrument. Examples include prepayment options on asset -backed
securities.
Federal Deposit Insurance Corporation nt that insures deposits in
A corporation created by the federal governme
banks and savings associations.
Foreign currency risk
The risk that changes in exchange rates will adversely affect the fair value
of an investment or a deposit.
Interest rate risk
The risk that changes in interest rates will adversely affect the fair value
of an investment.
Issuer
An issuer is the entity that has the authority to distribute a security or other
investment. A bond issuer is the entity that is legally obligated to make
PP
principal and interest payments to bond holders. In the case of mutual
funds, external investment pools, and other pooled investments, issuer
refers to the entity invested in, not the investment company manager or
pool sponsor.
Reset date
The time, frequently quarterly or semiannually, that a bond's variable
coupon is repriced to reflect changes in a benchmark index.
Segmented time distributions
Segmented time distributions group investment cash flows into sequential
time periods in tabular form.
Simulation models
Simulation models estimate changes in an investment's or a portfolio's
fair value, given hypothetical changes in interest rates. Various models or
techniques may be used, such as "shock tests" or value -at -risk.
Specific identification
In the context of interest rate risk disclosures, the specific identification
method does not compute a disclosure measure but presents a list of
each investment, its amount, its maturity date, and any call options.
Uncollateralized deposit
An uncollateralized deposit does not have securities pledged to the
depositor -government.
Variable -rate investment
An investment with terms that provide for the adjustment of its interest
rate on set dates (such as the last day of a month or calendar quarter) and
that, upon each adjustment until the final maturity of the instrument or the
period remaining until the principal amount can be recovered through
demand, can reasonably be expected to have a fair value that will be
unaffected by interest rate changes.
Weighted average maturity
A weighted average maturity measure expresses
horizons —the time when investments become du
years or months, weighted to reflect the dollar
investments within an investment type.
IU
e
investment time
and payable —in
size of individual
ry 6
11
Illustration 1
Credit Risk, Custodial Credit Risk, and Interest Rate Risk —Segmented Time
Distribution and Callable Bonds
Assumptions
As of December 31, 2004, a city had the following investments in its internal
investment pool. (Amounts are in thousands.)
Investment
Repurchase agreements
U.S. Treasury
U.S. Treasury
U.S. Treasury
U.S. agencies
U.S. agencies
Commercial paper
Corporate bonds
Corporate bonds
Corporate bonds
Mutual bond fund
Bankers' acceptances
Total
Maturities
January 2005
July 2005
January —July 2006
July 2011
Callable July 2005, scheduled
maturity July 2009
November 2011
March —September 2005
October 2006
July 2010-,July 2012
July 2016
Average maturity of the fund's
portfolio: 9.5 months
June 2005
Fair Value
$ 15,000
62,000
42,864
15,000
15,000
8,614
50,697
10,000
20,493
5,000
74,420
1,000
tQ,-in nQQ
As a means of limiting its exposure to fair value losses arising from rising
interest rates, the city's investment policy limits at least half of the city's
investment portfolio to maturities of less than one year. Investments with the
following maturities are limited as follows:
Maturity
One to five years
Six to ten years
More than ten years
Maximum Investment
35%
15%
5%
31
The city assumes that its callable investments will not be called. and
State law limits investments in commercial paper, corporate bonds,
mutual bond funds to the top two ratings issued by nationally recognizes
statistical rating organizations (NRSROs). It is the city's policy to limit
investments in these investment types to the top rating issued by NRSROs. All
investments met these requirements. The city's investments in U.S. agencies all
carry the explicit guarantee of the U.S. government.
Of the city's investments in repurchase agreements, underlying securities of
$2 million are held by the investment's counterparty, not in the name of the city.
The city's investment policy limits securities underlying repurchase agreements
to be held by counterparties to less than $5 million.
Disclosures
As of December 31,
2004, the city
had the
following
investments and
maturities. (Amounts are
in thousands.)
Investment Maturities (in Years)
Fair
Less
. More
Investment Type
Value Than 1
1-5
6-10 Than 10
Repurchase agreements
$ 159000 $
15,000
—
—
U.S. Treasuries
119,864
62,000
$42,864
$15,000
U.S. agencies
231614
—
159000*
89614 —
Commercial paper
50,697
50,697
10,0 00
20,493 $5,000
Corporate bonds
35,493
—
Mutual bond fund
749420
749420
—
Bankers' acceptances
1,000
$3209088 $2029117
1 000
$68,864
— —'
$449107 $5,000
Total
'These bonds mature July 2009, but are callable July 2005.
Interest Rate Risk. As a means of limiting its exposure to fair value losses
.
arising from rising interest rates, the city's investment policy limits at least ha
of the city's investment portfolio to maturities of less than one year. Investment
maturities are limited as follows:
Maturity Maximum Investment
One to five years 35%
Six to ten years 15%.
More than ten years 5%
41,1$
Because the mutual bond fund as of December 31, 2004, had a weighted
average maturity of 9.5 months, it was presented as an investment with a
maturity of less than one year.
Credit Risk. State law limits investments in commercial paper and corporate
bonds to the top two ratings issued by nationally recognized statistical rating
organizations (NRSROs). It is the city's policy to limit its investments in these
investment types to the top rating issued by NRSROs. As of December 319
2004, the city's investments in commercial paper were rated Al by Standard &
Poor's, F-1 by Fitch Ratings, and P-1 by Moody's Investors Service. The city's
investments in corporate bonds were rated AAA by Standard & Poor's and Fitch
Ratings, and Aaa by Moody's Investors Service. The city's mutual bond fund
investments were rated AAAf by Standard & Poor's and Aaa by Moody's
Investors Service.
Custodial Credit Risk. For an investment, custodial credit risk is the risk that,
in the event of the failure of the counterparty, the city will not be able to recover
of
the value of its investments or collateral securities that are in the possession
an outside party. Of the city's $15 million investment in repurchase agreements,
$2 million of underlying securities are held by the investments counterparty, not
in the name of the city. The city's investment policy limits holding of securities
by counterparties to no more than $5 million.
(N 9
4
33
3
Illustration 2
Credit Risk, Concentration of Credit Risk, and Interest Rate Risk —Specific
Identification, No Investment Policy
Assumptions
A school district has few investments and chooses to disclose its investments
by specifically identifying each. Except for its investments in LEF Corporation
bonds reported in the Capital Projects Fund, the districts investments are
internal) pooled. The district has not adopted a formal investment policy. As of
internally
December 319 2004, the district's investments were as follows.
Investment
Maturities
Fair Value
State investment pool
6.5 months average
$1,506,980
452,980
U.S. Treasury bills
Federal National Mortgage Association
1 /31 /2005
3/31/2005
282,230
ABC Corporation commercial paper
1 /31 /2005
350,000
50900.0
LEF Corporation bonds
3/31 /2009*
$2,6429190
Total
*March 1, 2006 is the bond's call date.
State law limits investments in commercial paper and corporate bonds to the
top two ratings issued by nationally recognized statistical rating organizations.
The district has no investment policy that would further limit its investment
choices. As of December 31, 2004, the district's investment in the state invest-
ment pool was rated AAAm by Standard & Poor's and Aaa by Moody s Investors
Service. The district's investment in ABC Corporation commercial paper was
rated F-1 by Fitch Ratings, Al by Standard & Poor's, and P-1 by Moody
Investors Service. The district's investments in Federal National Mortgage s
Association and LEF Corporation bonds were rated Aaa by Moody s Investor
Service and AAA by Standard & Poor's and Fitch Ratings.
30 ( )
Disclosures
As of December 31, 2004, the district had the following investments. Except
for the investment in LEF Corporation bonds, all investments are in an internal
investment pool.
Investment Maturities Fair Value
State investment pool 6.5 months average $1,506,980
U.S. Treasury bills 1/31/2005 452,980
Federal National Mortgage Association 3/31 /2005 282,230
ABC Corporation commercial paper 1 /31 /2005 3509000
LEF Corporation bonds 3/31/2009* 50,000
Total $2,642,190
*March 1, 2006 is the bond's call date.
Interest Rate Risk. The district does not have a formal investment policy that
limits investment maturities as a means of managing its exposure to fair value
losses arising from increasing interest rates.
Credit Risk. State law limits investments in commercial paper, corporate
bonds, and mutual bond funds to the top two ratings issued by nationally
recognized statistical rating organizations. The district has no investment policy
that would further limit its investment choices. As of December-31, 2004, the
district's investment in the state investment pool was rated AAAm by Standard
& Poor's and Aaa by Moody's Investors Service. The district's investment in
ABC Corporation commercial paper was rated F-1 by Fitch Ratings, Al by
Standard & Poor's, and P-1 by Moody's Investors Service. The district's invest-
ments in Federal National Mortgage Association and LEF Corporation bonds
were rated Aaa by Moody's Investors Service and AAA by Standard & Poor's
and Fitch Ratings.
Concentration of Credit Risk. The district places no limit on the amount the
district may invest in any one issuer. More than 5 percent of the district's
investments are in ABC commercial paper and the Federal National Mortgage
Association. These investments are 13.25% and 10.68%, respectively, of the
district's total investments. All of the investments reported in the district's Capital
Projects Fund are LEF Corporation bonds.
31
35
4
Illustration 3
Credit Risk; Interest Rate Risk —Weighted Average Maturity. and
Variable -Rate Coupons
The weighted average maturity (WAM) method expresses investment
time horizons the time when investments become due and payable —in
years or months, weighted to reflect the dollar size of individual invest-
ments within an investment type. In this illustration, WAMs are computed
for each investment type. The portfolio's WAM is derived by dollar -
weighting the WAM for each investment type.
Assumptions
As of December 31, 2004, a city had the following investments in its internal
investment pool:
Investment
Fair_ Value
Repurchase agreements
$215,000
U.S. Treasuries
1191864
U.S. agencies
239614
Commercial paper
559493
Corporate bonds
1609500
Total
$5741471
The city manages its investment time horizons by averaging investment
maturities and chooses to present its exposure to interest rate changes using
the weighted average maturity method. In accordance with its investment
policy, the city manages its interest rate risk by limiting the weighted average
maturity of its investment portfolio to less than ten months.
An illustrative calculation of weighted average maturity for its corporate bond
investments is as follows. Bond D carries a variable coupon that resets every
quarter. Although the bond has a stated maturity of December 31, 2006, the city
considers its maturity for interest rate risk purposes to be the length of time to
its next reset date, three months.
... 32
Time to
Maturity Maturity
Maturity
Bond Date (Years)
Amount Calculation
A 6/30/2007 2.50
$ 309000 0.47*
B 9/30/2008 3.75
15,000 0.35
C 12/31 /2009 5.00
15,500 0.48
D 3/31 /2005 0.25
1003000 0.16
Total
$160, 500 1.46
*Calculated: 2.50 x ($30,000/$160,500).
All of the city's investments in U.S. agencies carry the explicit guarantee of
the U.S. government. State law limits investments in corporate debt to the top
two ratings issued by nationally recognized statistical rating organizations. The
city's corporate debt at December 31, 2004, is
rated within the top ratings,
consistent with the city's investment policy.
Disclosure
As of December 31, 2004, the city had the following investments:
Weighted Average
Investment Type
Fair Value
Maturity (Years)
Repurchase agreements
$215,000
0.02
U.S. Treasuries
119,864
0.35
U.S. agencies
23,614
0.27
Commercial paper
55,493
0.52
Corporate bonds
160,500
1.46
Total fair value
$574,471
Portfolio weighted
average maturity
0.55
Interest Rate Risk. In accordance with its investment policy, the city manages
its exposure to declines in fair values by limiting the weighted average maturity
of its investment portfolio to Less than ten months.
Credit Risk. State law limits investments in corporate debt to the top two
ratings issued by nationally recognized statistical rating organizations. How-
ever, the city's investment policy limits its corporate debt investments to the top
rating. The city's corporate bonds at December 31, 2004, are rated AAA by Fitch
Ratings and Standard & Poor's, and .Aaa by Moody's Investors Service. Its
investments in commercial paper are rated P-1 by Moody's Investors Service,
F-1 by Fitch Ratings, and A-1 by Standard & Poor's.
37
Illustration 6
Custodial Credit Risk —Deposits
Assumptions
A special-purpose government had the following depository accounts. All
deposits are carried at cost plus accrued interest. The government does not
have a deposit policy.
Bank
Depository Account
Balance
Insured
$ 200,000
Collateralized:
Collateral held by city's agent in the city's name
3,015,000
Collateral held by pledging bank's trust department in the
city's name
4,380,000
Collateral held by pledging bank's trust department not in
the city's name
500,000
1,683,000
Uninsured and uncollateralized
Total deposits
$99778,000
Disclosure
Custodial Credit Risk —Deposits. Custodial credit risk is the risk that in the
event of a bank failure, the government's deposits may not be returned to it. The
government does not have a deposit policy for custodial credit risk. As of
December 31, 2004, $2,183,000 of the government's bank balance of
$9,778,000 was exposed to custodial credit risk as follows:
Uninsured and u ncol late ralized $1,6839000
Uninsured and collateral held by pledging bank's trust
department not in the city's name 5009000
Total $2,1839000
34