2005 02 09 IABgwav
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a.+
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„ P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLE TAMPICO A (760) 777-7000
LA QUINTA1�i VISORY BOARD FAX (760) 777-7101
1V V t Study Session Room
78-495 Calle Tampico- La Quinta, CA 92253
February 9, 2005 — 4:00 P.M.
I CALL TO ORDER
A. Pledge of Allegiance
B. Roll Call
11 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 January 12, 2005 for the Investment
Advisory Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for December, 2004
B. Request for Proposal for Portfolio Manager
C. Consideration of Fiscal Year 2005/06 Investment Policies
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - January 2004
B. Pooled Money Investment Board Reports - November, 2004
VII BOARD MEMBER ITEMS
Vill ADJOURNMENT
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: January 12, 2005
ITEM TITLE:
Transmittal of Treasury Report
for November 30, 2004
BACKGROUND:
Attached please find the Treasury Report November 30, 2004
RECOMMENDATION:
Review, Receive and File the Treasury Report for November 30, 2003
hn M. Falconer, Finance Director
f
4
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falcow, Finance Director/Treasurer
SUBJECT: Treasurers Report for November 30,2004
DATE: December 27, 2004
Attached is the Treasurers Report.for the month ending November 30, 2004. The report is submitted to
the 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
Beginning
Purchased
Notes
Sold/Matured
Other
Ending
Change
Cash (3)
$ 639,205
$ 481,011
(1)
$1,120,216
$481,011
LAIF
9,673,572
500,000
(800,000)
9,373,572
(300,000)
US Treasuries (2)
122,653,488
126,672
122,780,180
126,672
US Gov't Agencies (2)
27,347,457
-
(15,928)
27,331,529
(15,928)
Commercial Paper (2)
0
0
Corporate Notes
-
0
0
Mutual Funds
7,428,469
1
1 399 377
6,029 092
1 399 37T
Total
$ 167,742 191
1 $ 981,011
1 $ 2 199 377
$ 110,744
1 $ 166 634,569
1 i (1,107,622)1
I. certify that this report accurately reflects all pooled investments and is in compliance with the California
Goverment Code; and is in conformity with the City Investment Policy.
As Treasurer of the City of La Quinta, 1 hereby certify that sufficient investment liquidity and anticipated
revenues are available to meet the pools expenditure requirements for the next six months. The City of
La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York
Monthly Custodian Report to determine the fair market value of investments at month end.
/ . e
G
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.
f Z-L? Z•0 Ul(
Date
(3) The cash account may reflect a negative balance. This negative balance will be offset with transfers from other investments
before warrants are presented for payment by the payee at the bank.
0
d
Unrealized
Market
;t
Gain Loss
NIA $
Value
1,102,428 $
Bank
1,856,615
VIA
NIA
NIA
1.000
1,000
N/A
NIA
16 788
23,437
S
1,120,216 $
1,881,052
Par
Settlement
Maturity
Original Days
Meld to
Market Value
Source
d
Unrealized
Market
Days
Value
pate
Date
to Maturi
Maturi
st
Gain Loss
Value
to Maturit
382
1.269%
Bank d New York
583
(9,608 $
5,077,083
63 $
5,000,000
2,000,000
vlarzooa
tar�tnoat
2nr2oo5
tyt
411
1.471 %
Bank d New York
Bank d New York
167
2,434
2,040.542
15
45
2,000,000
U2=04
tn4rzoo5
�r7
441
1.231 %
1.T00%
Bank d New York
855
(5,779)
2.033,105
77
2,370,000
t?r!/2o03
y15r1oo6
396
1271 %
Bank d New York
961
(3,077
(2,480
2,380.739
1,016,200
84
1,000,�0
tns/toa
o1/23r2oo+
2122/1005
1rl/2oo5
350
1 262X
Bank d New YoAc
825
(59,904
4.933.622
5,000,000
7,500,000
1/2wmo4
v15/2o05
352
1.228%
Bank d New York
Bank d New York
(10,707
7.649,220
46
2,461,000
7I281Z0�4
7/2&2005
363
2.405%
,907
23.855
2,399340
238
S
2T,331,000
98
5112,976 S
27,429.851
Settlement
Maturity
Original Days
Meld to
Market Value
ed
Unn>aNzed
Market
Days
Par
Value
Date
Date
to Maturi
Maturi
Source
;st
Gain Loss
Value
to Maturi
368
1.745%
Bank d New York
(15,206
4.972,656
182
5,000,000
512e/2004
824 A"
5/31/2005
el3o/2005
371
2.093%
Bank d New York
i,643
(9,115
4,986,924
212
5'�'�
5,000,000
tat512003
&
716
1.776%
Bank of New York
Bank d New York
1,541
(44.978
4,974,691
304
335
4,000,000
tvt3r2oat
to/3tnoo5
718
731
2.008%
1.853%
Bank d New York
i,357
(22,233
3,969,437
4,961,778
335
5.000,000
1001/2003
10r3112005
V30r =
551
2.129X
Bank d New York
i,678
(55,090
(26,452
4,961,150
`
5,000,000
y 2004
Oel3o/2004
1
12r3ir2M
549
2.464%
Bank d New York
1,438
(5,910
3,996,278
396
4'000,000
5000,000
oe/o1/Za04
5/31 200e
729
2.464%
Bank d New York
(29.197
4.973,438
547
an nnn nnn
�ti55 : 321157 MIA
gss S ISZ1 1S7) NIA
Market
Days
Par
Settlement
Maturity
Date
Original Days
to Matu
Yield to
tiAa
mantel VBIU
Source
Accrued
Interest
UntLossll
GaiValue
to Maturi
Value
t 28,000 000
Date
0624/04
1y2y04
182
1.6767%
U.S.Bank
U.S.Bank
823 $
-
S
27,965,840
1,996,780
23
30
2.000,000
0929/04362
09/30/04
12/30/04
03131/05
92
182
1.6333%
1.9916%
U.S.Bank
9,926,500
121
10,000.000
45 000 000116
06/30/04
12/23/04
176
1.6808%
U.S.Bank
.983
-
44 945 100
23
S85,000,000,284
S
-
S
84,834.220
Unrealizable
Market
Days
Bond Issue
Managementp��Ned
Fees
Interest
Gain/ Loss
Value
maturity
1
1996 City Hall Revenue
% of Average Daily
40
WA
$ - • S
-
21
1
1996 City Hall Revenue
21
WA
1
s
1994 Series Bond -RDA 1
WA
1
995 Housing Bonds - RDA 1 & 2
-
WA
1
995 Housing Bonds - RDA 1 & 2
-
WA
100
1
2004 Financing Authority
10
WA
1
1998 Series Bonds - RDA 1
WA
1
1998 Series Bonds - RDA 2
WA
1
995 Housing Bonds - RDA 1 & 2
WA
1
1998 Series Bonds - RDA 2
WA
1
2001 Series Bonds- RDA 1
WA
1
2001 Series Bonds - RDA 1
-
WA
-
1
2002 Series Bonds - RDA 1
WA
1,500,364
1
2002 Series Bonds - RDA 1
J0,364
WA
1
2003 Series Bonds - RDA 1
-
WA
_
1
2003 Series Bonds - RDA 1
WA
1,354,326
1
2003 Series Bonds- RDA 1
54,326
54
WA
3,169,237
1
2004 Financing Authority
,326
WA
5 044
1
2004 Finance na
5 044
►29,092
WA
$
- $ - $
s,o2s,o92
1165 376
$
- S 22.064 S
80 >s63,312
634.569 s 291956 f 343 1
WA
,3�Day—s l
City of La Quinta
Summary of Investment Activities
City, Redevelopment Agency and Financing Authority
November 30, 2004
Investments Purchased
Name
Type
Principal
Date
Yield
to Maturity
Par
Checking & Savings - Net Change
Checking & Savings
N/A
N/A
N/A
LAIF - CITY
State Pool
500,000
11/22/2004
Mutual Funds -Net Change
U.S. Treasury Mutual Funds
481,011
N/A
N/A
N/A
Total Investments Purchased
981,011
Investments Sold/Matured Yield
Name Type Principal Date to Maturity Par
Checking & Savings - Net Change Checking & Savings -
LAIF - CITY State Pool 800,000 11/22/2004
Mutual Funds -Net Change U.S. Treasury Mutual Funds 1,399,377
Total Investments Sold/Matured 2,199,377
Unamortized Premium/Discount Change 1 $110,744 1 1 1 1
Investment Change
Prior Month Ending Balance $ 167,981,011
Plus: Investments Purchased 9 ,37
Less: Investments Sold (2,1,
Unamortized Premium/Discount change 110,74444
Month Ending Balance $ 166,634,569
C-
M
City of La Quinta
Distribution of Cash & Investments & Balances
November 30, 2004
Distribution of Cash & Investments
city
Totals
General Fund
$
28,272.019
Gas Tax Fund
412,088
Quimby Fund
481,588
Infrastructure Fund
661,216
Developer Impact fees
10,928,535
Art in Public Places
833,434
Special Revenue
539,894
Interest Fund
241,799
Capital Project Fund
221,585
AD 2000-1 Construction Fund
452,374
Equipment Replacement Fund
2,895,502
Information Technology Fund
776,796
Park Equipment & Facility
250,000
Landscape & Lighting Fund
(306,896)
SilverRock Resort
(79,721)
Trust & Aaency Funds
876.382
Subtotal
$
47,456,595
Redevelopment Agency
Totals
Project Area
1
Project
Area
2
Capital Improvement Funds
$
100,007,569
40,182,736
59,824,833
Debt Service Funds
9,569,901
4,970,855
14,540,756
Low & Moderate Income Funds
866,965
3754,523
4,621,488,
Subtotal
$ 50,619,602
1 $
68:550.211
$
119,169,813
Financing Authority
Totals
Project Funds
5,044
Debt Service Funds
3117
Subtotal
$
8,161
Total
$
166,634,569
Cash Balances
July 04
A t
Se ember
October November
December
January 04
February
March
April
May
June
Type
Cash & Investments
State Pool
U.S. Treasury Bills/Notes
U.S. Government Securities
$ (2,991,545)
21,553,263
132,380,612
27,396,298
8386876
9803263
132507373
27379840
$ 3,884,181
9,303,263
122,522,588
27,363,913
639,205
9.673,572
122,653,488
27,347,457
$1,120,216
9,373,572
122,780.160
27,331,529
Prime Commercial Paper
Corporate Notes
Mutuai Funds
6,073,884
184,412,512
0
0
4577404
182,654,756
-
7.925497
170,999,442
0
0
7,428 469
167 742191
-
6,029,0921
166,634,569
-
-
-
Total
July 03
$ (204,843)
August
$ (280,692)
September
$ (115,765)
October
$ 117,749
November
$ 171,712
December
$ 393,313
January 03
$ 240,310
F
$ 75,139
March
$ (102,723)
I
(1,178,885)
May
$ 372,199
June
$ 766,613
20,749.469
Type
Cash & Investments
State Pool
24,654,884
16,754,884
17,104,884
26,370,608
25,620,608
26,195,608
28,941,285
32,441,285
33,441.285
28,949,469
70,056,768
29,249,469
80,039,567
132,253,851
U.S. TreasuryBills/Notes
57,039,588
57,062,903
67,063,477
72,131,024
72,128,268
27,513,320
69,930,924
27,392.009
79,951,640
30,094,727
69,982,902
30,078,982
70,031,843
30,061,700
30,045,439
30,028,640
27,511,851
U.S. Government Securities
27,364,415
27.390,175
27,415,104
27.494,166
Prime Commercial Paper
Mutual Funds
-
1,016,899
109,870,943
-
7 405 448
108,332,718
-
16133 778
127.601478
-
1 372.093
126 640
-
1 372,987
125 806 895
2.497.7081
126 409 562
2,497,970,
141 725 932
7,131,996
139 710 304
2,392,507
135 824 612
2,393,434
130 266 225
2,394,290
142 084165
6,111.182
187 392 966
Total
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City of La Quinta
Cash Flow Analysis
r r viva
Beginning Cash Balance
Actual
Forecasted
Forecasted
Forecasted
Forecasted
Forecasted
Forecasted
Total
YTD Through 11/30/2004
December-04
Janua -05
Februa -05
March-05
A ril-05
Ma -05
187,392,966
166,634,569
163,976,691
170,356,877
151,983 387
1",272,732
139,538,718
187,392,966
Property Tax/ Tax Increment
Transient Occupancy Tax
Sales Tax
Other revenues
57,390
732,288
1,869,415
23,244,157
260,898
342,576
305,415
1 455 932
23,109,587
362,727
407,220
2,950,428
149,830
483,636
325,776
1,982.857
271,991
523,939
346,137
1,670,842
370,649
523,939
346,137
1,695.053
23,957,018
483,636
447,942
2.195.056
48,177,363
3,452,741
3,848,042
35194 325
Revenues
25,703,250
2,364,821
26,829,962
2,942,099
2,812,908
2,935,778
27,083,652
90,672,470
Expenditures
Salaries & Fringe Benefits
Redevelopment Agency
Other expenditures
Capital Projects
Debt Service (Principal/Interest/Pass Through)
2,483,550
2,094,601
15,707,137
13,754,664
9,276,811
824,894
108,797
1,594,812
2,327,000
167.195
571,081
149,282
2,305,422
9,017,000
8,406,991
571,081
107,254
2,414,163
9,930,000
8 293 091
571,081
123,861
2,514,096
6,968,000
346,525
571,081
128,516
2,188,000
1,617,000
3167 195
571,081
80,874
1,968,037
1,650,000
8.040.339
6,163,849
2,793,186
28,689,666
45,263,664
37,698,147
Total Expenditures
43,316,763
5,022,698
20,449,776
21,315 589
10,523,563
7,669,792
12,310,331
120,608,512
Net Revenues/Expenditures
17,613,513
2,657,877
6,380,186
18,373,490
7,710,655
4,734,015
14.773,321
29,936,042
Changes in Assets/Liabilities
(3,144,885)
(3,144,885)
Ending Cash Balance
166 634,569
163,976,691
170,356,877
161,983,387
1",272,732
139,538,718
154,312,039
164,312,039
Net Change in Cash before Maturing Investments
20,758,398
(2,657,877)
6,380,186
(18,373,490)
(7,710,655)
(4,734,015)
14,773,321
(33,080.9271
r1Y wU%wU tWw.VYi Vial v VYY•• - va • v v
LAW
MaturingInvestments - Pooled Cash(2,000,000)0
330,877
(15,397,186)
3,335,887
563,325
3,117,015
0
(16,423,321)
10 000 000
Total(1,669,123)(29,897
186
5 034 113
563 325
3117 015
26 423 321
f IY QV%vY VYY•Vva I- v -
Bond Money Market
2,327,000
9,017,000
9,930,000
6,968,000
1,617,000
1,650,000
Bond Sale Proceeds
0
0
0
0
0
0
Maturing Investments
(75,000,000)
0
0
(10,000,000)
0
0
Debt Service Money Market
0
0
5,107,603
179 330
0
0
Total(72,673,000)9,017,000
15 037 603(2,852,670)1,617,000
1 650 000
after Maturing Investments
P acted Li id C h B 1 es If no investm
rosnto
u as a anc
LAW Balance o
9,373,572
11,042,695
40,939,881
45,973,993
45,410,669
42,293,654
68,716,976
Bond Capital Project Money Market
6,029,071
1
78,702,071
69,685,071
59,755,071
62,787,071
61,170,071
59,520,071
Debt Service Money Market
21
21
21(5,107,582)5
286 912
5 286 912
5 286 912
Jalor Changes in Cash Flow Analysis from Prior Report
levenues: None
Expenditures: None
City of La Quinta
Historical Information
November 30, 2004
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
Six Month Treasury Bill Rate
Average Maturity (days)
LAIF Rate
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
Six Month Treasury Bill Rate
Average Maturity (days)
LAW Rate
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
Six Month Treasury Bill Rate
Average Maturity (days)
LAW Rate
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
Six Month Treasury Bill Rate
Average Maturity (days)
LAW Rate
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
Six Month Treasury Bill Rate
Average Maturity (days)
LAW Rate
July 04
August
Set
Oct
Nov
Dec
Jan 05
Feb
March
April
May
June
1.73%
1.73%
1.79%
1.79%
1.79%
0.50%
0.50%
1.07%
1.14%
1.43%
1.68%
1.57%
1.68%
1.72%
1.73%
1.740/6
1.78%
1.95%
2.040/6
2.37%
214
172
167
112
113
1.604%
1 1.672%
1 1.771 %
1 1.890%
1 2.003%
July 03
August
Set
Oct
Nov
Dec
Jan 04
Feb
March
April
May
June
1.66%
1.65%
1.65%
1.59%
1.64%
1.67%
1.58%
1.65%
1.50%
1.50%
1.54%
1.69%
0.52%
0.45%
0.49%
0.48%
0.48%
0.57%
0.30%
0.30%
0.50%
0.50%
0.50%
0.47%
1.43%
1.35%
1.26%
1.36%
1.38%
1.41 %
1.37%
1.38%
1.33%
1.33%
1.36%
1.62%
0.98%
1.06%
1.01 %
1.04%
1.03%
0.99%
1.00%
1.01 %
1.01 %
1.19%
1.38%
1.73%
131
110
80
121
98
117
140
120
155
137
137
209
1.650%
1 1.632%
1 1.640%
1 1.596%
1.572%
1 1.545%
1 1.528%
1 1.440%1
1.474%
1 1.445%1
1.426%1
1.426%
July 02
August
Set
Oct
Nov
Dec
Jan 03
Feb
March
April
May
June
2.46%
2.45%
2.46%
2.41 %
2.32%
2.23%
2.11 %
1.99%
2.01 %
1.98%
1.86%
1.73%
1.00%
1.27%
1.26%
1.00%
1.00%
1.00%
0.80%
0.59%
0.75%
0.72%
0.73%
0.49%
2.05%
2.07%
2.10%
2.08%
2.02%
1.80%
1.62%
1.74%
1.78%
1.76%
1.54%
1.40%
1.73%
1.64%
1.62%
1.55%
1.29%
1.27%
1.16%
1.20%
1.18%
1.17%
1.10%
0.86%
172
172
139
121
109
163
137
131
117
92
74
123
2.71%
2.59%
1 2.60%
1 2.49%
1 2.30%
1 2.31%
1 2.10%
1 1.95%
1 1.98%
1 1.86%
1 1.80%
1 1.70%
July 01
August
Set
Oct
Nov
Dec
Jan 02
Feb
March
April
May
June
4.79%
4.90%
4.63%
4.04%
3.05%
2.83%
2.37%
2.26%
2.25%
2.35%
2.59%
2.42%
3.40%
3.20%
3.20%
2.20%
1.70%
1.40%
1.60%
1.50%
1.50%
1.50%
1.00%
1.00%
4.58%
3.91 %
3.98%
3.57%
2.49%
2.34%
1.97%
1.95%
1.99%
2.05%
1.78%
1.93%
3.49%
3.39%
3.39%
2.01 %
1.99%
1.85%
1.83%
1.85%
2.16%
1.92%
1.89%
1.77%
48
51
43
27
62
44
27
53
35
79
122
132
4.64%
4.50%
1 4.29%
1 3.79%
3.53%
3.26%
1 3.07%
1 2.97%
1 2.86%
1 2.85%
1 2.85%
1 2.69%
July 00
Au ust
Set
Oct
Nov
Dec
Jan 01
Feb
March
April
May
June
6.37%
6.43%
6.34%
6.45%
6.46%
6.46%
6.36%
6.31 %
5.89%
5.86%
5.20%
4.98%
6.17%
6.11 %
6.23%
6.20%
6.20%
5.97%
5.03%
5.06%
4.82%
4.10%
3.60%
3.50%
6.31 %
6.35%
6.31 %
6.39%
6.40%
6.38%
6.04%
6.08%
5.75%
5.53%
4.96%
4.70%
6.28%
6.38%
6.26%
6.33%
6.32%
5.74%
5.03%
4.66%
4.27%
3.79%
3.55%
3.34%
220
232
231
202
181
158
124
110
101
80
76
65
6.44%
6.51 %
1 6.50%
1 6.52%
6.54%
6.35%
1 6.37%
1 6.17%
1 5.98%
1 5.76%
1 5.33%
1 4.96%
City of La Quinta
Chart of Interest Rates
July 2004 through November 2004
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
July 04 August Sept Oct Nov
Months
— - - — Annualized Earnings of Pooled Cash Investments --*--Annualized Earnings of Fiscal Agent Investments
■ Annualized Earnings of All Investments --*-Six Month Treasury Bill Rate
— 0 LAI F Rate
CITY OF LA QUINTA
CITY
FIXED
CITY
LONG TERM
RDA
FIXED
RDA
LONG TERM
FINANCING
FA
LONG TERM
GRAND
BALANCE SHEET 11/30/04
CITY
ASSETS
DEBT
RDA
ASSETS
DEBT
AUTHORITY
DEBT
TOTAL
ASSETS:
POOLED CASH
(17,799,810.11)
0.00
0.00
27,610,714.13
0.00
0.00
3.095.61
0.00
9.813,999.63
LQRP INVESTMENT IN POOLED CASH
0.00
0.00
0.00
662,000.00
0.00
0.00
0.00
0.00
662,000.00
INVESTMENT T-BILL/NOTES & OTHER
65,331,000.00
0.00
0.00
85,000,000.00
0.00
0.00
0.00
0.00
150,331,000.00
AUTO MALL CASH
0.00
0.00
0.00
0.00
0.00
0.00
0.00
16,788.18
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
16,788.18
LQRP CASH
BOND REDEMPTION CASH
0.00
0.00
0.00
100.55
0.00
0.00
21.40
0.00
121.95
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
6,023.927.12
0.00
0.00
5,043.50
0.00
6,028,970.62
BOND ESCROW CASH
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,000.00
PETTY CASH
CASH & INVESTMENT TOTAL
1,000.00
47,532,189.89
0.00
0.00
0.00 0.00
0.00 119,313,529.98
0.00
0.00
0.00
8,160.51
0.00 1
166,853,880.38
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
155,165.93
0.00
0.00
60,900.00
0.00
0.00
0.00
0.00
216,065.93
PREMIUM/DISCOUNT ON INVESTMENT
(75,596.41)
0.00
0.00
(143,715.45)
0.00
0.00
0.00
0.00
(219,311.86)
LORP-ACCOUNTS RECEIVABLE
0.00
0.00
0.00
85,493.59
0.00
0.00
0.00
0.00
85,493.59
INTEREST RECEIVABLE
(7,531.25)
0.00 .
0.00
0.00
0.00
0.00
0.00
0.00
(7,531.25)
LOAN/NOTES RECEIVABLE
0.00
0.00
0.00
12,741,527.47
0.00
0.00
90.000,000.00
0.00
102,741,527.47
DUE FROM OTHER AGENCIES
3,815.311.75
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3,815,311.75
DUE FROM OTHER AGENCIES-CVAG
879,096.69
0.00
0.00
0.00
0.00
0.00
0.00
0.00
879,096.69
CVAG ALLOWANCE
(879,096.69)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(879,096.69)
DUE FROM OTHER GOVERNMENTS
14,033.81
0.00
0.00
0.00
0.00
0.00
0.00
0.00
14,033.81
DUE FROM OTHER FUNDS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
ADVANCES TO OTHER FUNDS - PRINCIPAL
21,422,880.21
0.00
0.00
0.00
0.00
0.00
0.00
0.00
21,422,880.21
ADVANCES TO OTHER FUNDS - INTEREST
8,189,822.42
0.00
0.00
5,346,878.26
0.00
0.00
0.00
0.00
13,536.700.68
ADVANCES TO OTHER FUNDS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,964.00
NSF CHECKS RECEIVABLE
1,964.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
ACCRUED REVENUE
FIXED ASSETS
0.00 0.00
14,378,415.00 376,066.301.00
0.00
0.00
0.00
0.00
0.00
69,200,415.00
0.00
0.00
0.00
0.00
459.645,131.00
ACCUMULATED DEPRECIATION
(2,523,432.00) (58,159,116.00)
0.00
0.00
(234,000.00)
0.00
0.00
0.00
(60,916,548.00)
TRAVEL ADVANCES '
1,472.40
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,472.40
EMPLOYEE ADVANCES
13,015.70
0.00
0.00
0.00
0.00
0.00
0.00
0.00
13.015.70
PREPAID EXPENSES
527,461.87
0.00
0.00
0.00
0.00
0.00
0.00
0.00
527,461.87
RECEIVABLE TOTAL
45,912,983.43 317,907,185.00
0.00
18.091,083.87
68,966,415.00
0.00
90,000,000.00
0.00
540,877,667.30
0.00
0.00
0.00
WORKER COMPENSATION DEPOSIT
240.955.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
240.955.00
RENT DEPOSITS
4,830.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4,830.00
UTILITY DEPOSITS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
MISC. DEPOSITS
1,073.21
0.00
0.00
(540.00)
0.00
0.00
0.00
0.00
533.21
DEPOSITS TOTAL
246,858.21
0.00
0.00
(540.00)
0.00
0.00
0.00
0.00
246,318.21
GENERAL FIXED ASSETS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
ACCUMULATED DEPRECIATION
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
AMOUNT AVAILABLE TO RETIRE L/T DEBT
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
AMOUNT TO BE PROVIDED FOR LIT DEBT
0.00
0.00
1,970,552.85
0.00
0.00 247,549,965.00
0.00
94,814.343.00
344,334,860.85
TOTAL OTHER ASSETS
0.00
0.00
1,970,552.85
0.00
0.00 247,549,965.00
0.00
94,814.343.00
344,334,860.85
TOTAL ASSETS 93,692,031.53. 317,907,185.00 1,970,552.85 137 404 073.85 68 966 415.00 247 549 965.00 90,008,160.51 94,814,343.00 1,052,312,726.74
LIABILITIES:
ACCOUNTS PAYABLE
713,980.59
0.00
0.00
24,774.77
0.00
0.00
0.00
0.00
738.755.36
DUE TO OTHER AGENCIES
152,195.95
0.00
0.00
0.00
0.00
0.00
0.00
0.00
152,195.95
DUE TO OTHER FUNDS
0.00
0.00
0.00
0.00
0,00
0.00
0.00
0.00
0.00
ADVANCES FROM OTHER FUNDS - PRINCIPAL
5,372,208.26
0.00
0.00
21,397,550.21
0.00
0.00
0.00
0,00 .
26,769.758.47
ADVANCES FROM OTHER FUNDS - INTEREST
0.00
0.00
0.00
8,189,823.52
0.00
0.00
0.00
0.00
8,189,823.52
INTEREST PAYABLE
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
RETENTION PAYABLE
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
PAYROLL LIABILITIES
190,807.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
190,807.00
STRONG MOTION INSTRUMENTS
5,993.29
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5,993.29
FRINGE TOED LIZARD FEES
4.688.87
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4,688.87
SUSPENSE
126.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
126.20
DUE TO THE CITY OF LA QUINTA
0.00
0.00
10.00
0.00
0.00
0.00
0.00
0.00
0.00
PAYABLES TOTAL
6.440,000.16
0.00
0.00
29,612,148.50
0.00
0.00
0.00
0.00
36,052,148.66
ENGINEERING TRUST DEPOSITS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
SO. COAST AIR QUALITY DEPOSITS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
LQRP DEPOSITS
0.00
0.00
0.00
18,664.00
0.00
0.00
0.00
0.00
18,664.00
DEVELOPER DEPOSITS
1,492,823.10
0.00
0.00
2,835.00
0.00
0.00
0.00
0.00
1,495,658.10
MISC. DEPOSITS
647,154.64
0.00
0.00
25.000.00
0.00
0.00
0.00
0.00
672,154.64
AGENCY FUND DEPOSITS
876,382.13
0.00
0.00
0.00
0.00
0.00
0.00
0.00
876,382.13
TOTAL DEPOSITS
3.016,359.87
0.00
0.00
46,499.00
0.00
0.00
0.00
0.00
3,062.858.87
DEFERRED REVENUE
3,767,177.88
0.00
0.00
10,618,101.84
0.00
0.00
90.000.000.00
0.00
104,385,279.72
OTHER LIABILITIES TOTAL
3,767,177.88
0.00
0.00
10,618,101.84
0.00
0.00
90,000,000.00
0.00
104.385,279.72
COMPENSATED ABSENCES PAYABLE
0.00
0.00
531,553.26
0.00
0.00
0.00
0.00
0.00
531,553.26
DEVELOPER AGREEMENT
0.00
0.00
1,010,688.59
0.00
0.00
0.00
0.00
0.00
1.010.688.59
DUE TO THE CITY OF LA QUINTA
0.00
0.00
428,311.00
0.00
0.00
0.00
0.00
0.00
428,311.00
DUE TO COUNTY OF RIVERSIDE
0.00
0.00
0.00
0.00
0.00
2,050.000.00
0.00
0.00
2,050,000.00
DUE TO C.V. UNIFIED SCHOOL DIST.
0.00
0.00
0.00
0.00
0.00
6.667,336.00
0.00
0.00
6,667.336.00
DUE TO DESERT SANDS SCHOOL DIST.
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
LOANS PAYABLE
0.00
0.00
0.00
0.00
0.00
90,000,000.00
0.00
0.00
90,000,000.00
BONDS PAYABLE
0.00
0.00
0.00
0.00
0.00
148,832,629.00
0.00
94,814,343.00
243,646,972.00
TOTAL LONG TERM DEBT
0.00
0.00
1,970,552.85
0.00
0.00 247,549,965.00
0.00
94,814,343.00
344,334,860.85
TOTAL LIABILITIES 13,223,537.91 0.00 1,970,552.85 40,276.749.34 0.00 247,549,965.00 90,000,000.00 94,814,343.00 487,835,148.10
EQUITY -FUND BALANCE 80,468,493.62 317,907,185.00 0.00 97,127,324.51 68,966,415.00 0.00 8,160.51 0.00 564,477,578.64
TOTAL LIABILITY & EQUITY 93,692,031.53 317,907,185.00 1,970,552.85 137 404 073.85 68 966 415.00 247 549 965.00 90,008,160.51 94,814 343.00 1 052,312 726.74
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CASH & INVESTMENT TOTAL 166,853,880.38
PREMIUM/DISCOUNT ON INVESTMENT (219,311.86)
TOTAL 166.634,568.52
;...: 12
INVESTMENT ADVISORY BOARD Business Session: B
Meeting Date: January 12, 2005
ITEM TITLE:
Request for Proposal for Portfolio Manager
BACKGROUND:
In request to our CSMFO RFP inquiry the City received the following RFP's which
have been attached:
1. Frank Moore, California Debt & Investment Advisory Commission
2. Saboohi Currim, City of Torrance, CA
3. Michael Ferrara, J.P. Morgan
4. Darlene Blaney, Bond Logistix LLC
5. Anees Azad, Alameda County Transportation Authority
6. Elena Zaretsky, Public Financial Management
7. Monica Potter, City of Livermore, CA
8. Gran Eichhoff, MBIA Asset Management
9. Pamela Rogers, City of Pittsburg, CA
RECOMMENDATION:
ohn M. Falconer, Finance Director
ATTACHMENT 1
APPENDIX B
Request for Proposals
Investment Advisory Services
[Name of Public Agency]
The [Name of Public Agency] is soliciting Requests for Proposals (RFP) from
interested firms for the provision of investment management services for [Name of Public
Agency]. The average daily balance of the invested assets is approximately $
The investment of [Name of Public Agency]'s funds is guided by the applicable
State statutes and the [Name of Public Agency]'s investment policy. A copy of the
investment policy is attached for your information.
Questions regarding this RFP should be directed to:
Name
Title
Name of Public Agency
Address
City, State Zip Code
Phone Number
I. CRITERIA FOR SELECTION
II.
A. Understanding the scope of assignment.
B. Experience and qualifications of firm and individuals assigned.
C. Recommended approach to management of the [Name of Public Agency]'s
portfolio.
D. Familiarity with state and federal investment and reporting requirements [Note:
If Agency is seeking assistance for investment of bond proceeds, it may wish to
include familiarity with federal arbitrage restrictions].
E. Fees charged.
SELECTION TIMETABLE
A. [Month Day, Year]
B. [Month Day, Year]
C. [Month Day, Year]
approves
Proposals due by [Time] PST.
Proposals evaluated by the Treasurer and
Finance Staff/Interviews held.
[Name of Public Agency] [Board/Council]
selection and awards contract.
1
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
III. FORMAT FOR PROPOSALS
Please format your response to this RFP in the following manner:
A. Organization
1. Describe your organization, date founded, ownership and other business
affiliations. Provide number and location of affiliated offices. Specify the
number of years your organization has provided investment management
service.
2. Describe your firm's revenue sources (e.g., investment management,
institutional research, etc.) and comment on your firm's financial condition.
3. Within the past three years, have there been any significant developments in
your organization (e.g., changes in ownership, new business ventures)? Do
you expect any changes in the near future?
4. Describe any U.S. Securities and Exchange Commission (SEC) censures or
litigation involving your organization, any officer, or employee at any time.
5. Identify the types of accounts managed by your firm (e.g., government,
pension, corporate, high net worth, endowment/foundation).
6. Describe the firm's fiduciary liability and/or errors and omissions insurance
coverage. Include dollar amount of coverage.
B. Personnel
1. Identify the number of professionals employed by your firm by
classification.
2. Provide an organization chart showing function, positions, and titles of all
the professionals in your organization.
3. Provide biographical information on investment professionals that will be
involved in the decision -making process for our portfolio, including number
of years at your firm. Identify the person who will be the primary portfolio
manager assigned to the account.
4. Describe your firm's compensation policies for investment professionals.
2
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
C. Assets Under Management
1. Summarize your institutional investment management asset totals by
category for your latest reporting period in the following table:
Operating Funds Other Funds
(specify)
Governmental $ $
Other Institutional $
2. Provide the number of separate accounts whose portfolios consist of
operating funds. [Note: If Agency is issuing RFP for investment of bond
proceeds, it may wish to request the number of accounts whose portfolios
consist of bond proceeds.]
3. List in the following table the percentage by market value of aggregate
assets under management for your latest reporting period:
Type of Asset Percent by Market
Value
U.S. Treasury securities
Federal Agency obligations
Corporate securities rated AAA -AA
Corporate securities rated A
Corporate securities rated BBB or lower
Other
(specify )
4. Describe the procedures that your firm has in place to address the potential
or actual credit downgrade of an issuer and to disclose and advise a client of
the situation.
5. Provide data on account/asset growth over the past three years. Indicate the
number of accounts gained and the number of accounts lost.
6. List your five largest clients. Identify those that are exclusively operating
fund relationships and/or those that are other relationships (e.g., bond fund,
retirement fund).
3
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
7. Provide a copy of the firm's Form ADV, Parts I and II (including all
schedules).
8. Provide proof of State of California Registration, if your firm is not eligible
for SEC registration.
9. Provide a sample contract for services.
D. Philosophy/Approach
1. Describe your firm's investment philosophy for public clients, including
your firm's philosophy regarding average duration, maturity, investment
types, credit quality, and yield.
2. Describe in detail your investment process, as you would apply it to [Name
of Public Agency]'s portfolio.
3. What are the primary strategies for adding value to portfolios (e.g., market
timing, credit research, trading)?
4. Describe the process you would recommend for establishing the investment
objectives and constraints for this account.
5. Do you have or would you recommend there be policy restrictions with
respect to maturity, sector, quality, and coupon?
6. Describe in detail your process of credit risk management, including how
you analyze credit quality, monitor credits on an ongoing basis, and report
credit to [Name of Public Agency] .
7. Describe your firm's trading methodology.
8. Describe your firm's decision -making process in terms of structure,
committees, membership, meeting frequency, responsibilities, integration of
research ideas, and portfolio management.
9. Describe your research capabilities as they would pertain to the [Name of
Public Agency]'s portfolio. What types of technical analysis do you use?
[Note: If Agency is issuing RFP for investment of bond proceeds, it may
wish to inquire as to the firm's capabilities and experience for tracking and
reporting arbitrage]
10. Describe the firm's approach to managing relationships with the broker -
dealer community.
E. Portfolio Management
1. Are portfolios managed by teams or one individual?
4
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
2. What is the average number of accounts handled per manager?
3. Which professional staff member will be the primary client contact for
[Name of Public Agency]?
4. How frequently are you willing to meet with us?
5. Describe procedures used to ensure that portfolios comply with client
investment objectives, policies, and bond resolutions.
F. Fees Charged
1. Please include a copy of your firm's fee schedule applicable to this RFP.
2. Identify any expenses that would not be covered through this fee structure
and would be required in order to implement the firm's program.
3. Is there a minimum annual fee?
4. Please provide a statement of fees for such additional services as arbitrage
rebate related services.
5. Are fees charged when there is no activity in the account?
G. Performance Reporting
1. Please describe how you typically report performance.
2. Please provide performance history for the past five years for current
accounts comprised of securities with maturities, quality and sectors similar
to those of [Name of Public Agency]. Indicate whether your returns are
calculated and compiled in accordance with the Association for Investment
Management and Research (AIMR) standards. If not, how does the
performance presentation differ from AIMR standards?.
3. Do your reports conform to State reporting standards? Are you willing to
customize your reports to meet our specifications?
4. How will you notify us of investment transactions?
5. Are confirmation of investment transactions sent directly by the
broker/dealer to the client?
H. References
Provide a list of at least [Number] client references in California. References
should be public agencies with portfolio size and investment objectives similar
to [Name of Public Agency]. Include length of time managing the assets,
contact name, and phone number.
5
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
I. Insurance Requirements
Exhibit A defines the insurance requirements that will need to be met prior to
the [Board/Council]'s approval of any agreement for services.
J. Submittal of proposals
1. [Number] of copies of the proposal shall be submitted in a sealed envelope
bearing the caption "[RFP for (Name of Public Agency)] and addressed to:
Name of Public Agency
Address
City, State Zip Code
Attention: Name of Agency Contact
2. Proposal must be received no later than [Time] PST on [Month Day, Year].
3. Proposals should be verified before submission. The [Name of Public
Agency] shall not be responsible for errors or omissions on the part of the
respondent in preparation of a proposal. The [Name of Public Agency]
reserves the right to reject any and all proposals, to wave any irregularities,
or informalities in the proposals, and to negotiate modifications to any
proposal.
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
Sample Investment Management Agreement (Discretionary)
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
Investment Management Agreement
(Institutional Client, Non-ERISA)
(Client) hereby retains
(Adviser) as Investment Adviser on the terms and conditions set forth herein.
I. Term. The term of this Agreement shall commence upon the execution of
this Agreement and shall continue until this Agreement is terminated effective upon receipt
of notice of termination in writing delivered by the terminating party.
II. Fees. Client shall compensate Adviser monthly an amount calculated on the
average market value of Client's portfolio, in accordance with the following schedule:
Assets Under Management Annual Investment Management Fee
The fees expressed above do not include any custody fees that may be charged by Client's
bank or other third party custodian.
Fees shall be prorated to the effective date of termination on the basis of actual days
elapsed, and any unearned portion of prepaid fees shall be refunded. Client is not required
to pay any start-up or closing fees; there are no penalty fees.
Fees shall be deducted monthly in arrears from Client's custody account.
III. Client Representative. In its capacity as investment manager, Adviser shall
receive all instructions, directions and other communications on Client's behalf respecting
Client's account from (Representative). Adviser is hereby
authorized to rely and act upon all such instructions, directions and communications from
such Representative or any agent of such Representative.
IV. Investment Policy. In investing and reinvesting Client's assets, Adviser
shall comply with Client's Investment Policy, which is attached hereto as Exhibit A.
V. Authority of Adviser. Adviser is hereby granted full discretion to invest and
reinvest all assets under its management in any type of security it deems appropriate,
subject to the instructions given or guidelines set by Representative.
VI. Notice& Any notice shall be mailed to Client at the following address:
Client Name
Address
City, State Zip Code
and to Adviser at the following address:
Adviser Name
Address
E
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
City, State Zip Code
VII. Custody of Securides and Funds. Adviser shall not have custody or
possession of the funds or securities that Client has placed under its management. Client
may appoint a custodian to take and have possession of its assets.
VIII. Investment Advice. Client recognizes that the opinions, recommendations
and actions of Adviser will be based on information deemed by it to be reliable, but not
guaranteed to or by it. Provided that Adviser acts in good faith, Client agrees that Adviser
will not in any way be liable for any error in judgment or for any act or omission, except as
may otherwise be provided for under the Federal Securities laws or other applicable laws.
IX. Payment of Commission& Adviser may place buy and sell orders with or
through such brokers or dealers as it may select. It is the policy and practice of Adviser to
strive for the best price and execution and for commission and discounts that are
competitive in relation to the value of the transaction and which comply with Section 28(e)
of the Securities and Exchange Act of 1934. Nevertheless, it is understood that Adviser
may pay a commission on transactions in excess of the amount another broker or dealer
may charge, and that Adviser makes no warranty or representation regarding commissions
paid on transactions hereunder.
X. Other Client& It is further understood that Adviser may be acting in a
similar capacity for other institutional and individual clients, and that investments and
reinvestments for client's portfolio may differ from those made or recommended with
respect to other accounts and clients even though the investment objectives may be the
same or similar. Accordingly, it is agreed that Adviser will have no obligation to purchase
or sell for Client's account any securities that it may purchase or sell for other clients.
XI. No Assignment. This Agreement may not be assigned by Adviser without
Client's consent, but may be amended at any time by mutual agreement in writing.
XII. Governing Law. It is understood that this Agreement shall be governed by
and construed under and in accordance with the laws of the State of California.
XIII. Severability. Any provision of this Agreement that is prohibited or
unenforceable shall be ineffective only to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof.
XIV. Receipt of Brochure. Client has received the disclosure statement or
"brochure" required to be delivered pursuant to Rule 204-3 of the Investment Advisers Act
of 1940 (Brochure).
10
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
Client understands that it has the right to terminate this Agreement without penalty within
five (5) days after entering into this Agreement.
Client
By:
Adviser
By:
Date
Date
11
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(I)RAFT DOCUMENT)
APPENDIX B
12
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
Sample Investment Management Agreement (Non -Discretionary)
13
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
14
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
Investment Management Agreement
This Agreement, dated as of the _
"Agreement"), is by and between
the
day of
20_ (the
_ (the "Adviser") and
(the "Client"). The parties agree as follows:
1. Appointment
Client hereby appoints Adviser as the investment adviser of those assets designated by the
Client (the "Advisory Account").
2. Duties of Adviser
Adviser shall invest the assets of the Advisory Account as directed by the Client in
accordance with the written investment objectives, policies, and restrictions of the Client.
Client shall provide the Adviser with an initial Investment Policy or list of authorized
investments that shall be incorporated in Exhibit A.
The Adviser will provide the Client monthly a written report detailing transactions for the
period and an inventory of the investments in the Advisory Account. It is agreed that the
Adviser, in the maintenance of records, does not assume responsibility for the accuracy of
information furnished by the Client or any other person.
Any additional investment management services the Adviser shall provide to the Client are
listed in Exhibit B.
3. Non -Discretionary Authority
It is agreed that decisions concerning investments subject to this agreement shall be made
by the Client's authorized representative with the assistance of the Adviser. The approval
of the Client is required prior to the execution of any investment transaction for the
Advisory Account. The Adviser, when expressly instructed by the Client, will buy or sell
securities and place orders for the execution of such transactions with or through such
brokers, dealers, or issuers as the Adviser may select, subject to approval by the Client.
4. Changes in Investment Policies or Assets in the Account
The Client is required to notify Adviser promptly in writing of any modifications to the
investment objectives, policies or restrictions applicable to the Advisory Account. The
Client agrees to notify the Adviser promptly of any withdrawal of securities from the
Advisory Account initiated by the Client.
5. Allocation of Brokerage
When placing orders for the execution of transactions for the Advisory Account, the
Adviser will take into consideration not only the available prices but also other relevant
factors such as, without limitation, execution capabilities and safekeeping arrangements.
The Adviser will exercise good faith in obtaining the best price and execution for each
transaction for the Advisory Account.
15
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
6. Safekeeping and Custody
Adviser will not have custody or possession of assets in the Advisory Account of the
Client. The Client shall select and authorize a custodian bank or brokerage firm to hold the
assets of the Advisory Account in safekeeping for the Client. The Client shall be solely
responsible for all fees involved with any custodial arrangements.
7. Fees
The compensation of the Adviser for its services under this Agreement shall be calculated
and paid in accordance with the Fee Schedule in Exhibit C, as the same may be amended
from time to time by mutual agreement of the Client and the Adviser.
8. Limitation of Liability
The Adviser will not be liable for any error in judgment or any acts or omissions to act
except those resulting from the Adviser's gross negligence, willful misconduct or reckless
disregard of its duties and obligations under this Agreement. Nothing herein shall in any
way constitute a waiver or limitation of any right of any person under the federal and state
securities laws.
9. Services to Other Clients
It is understood that the Adviser performs investment advisory services for other clients.
The Client agrees that the Adviser may give advice and take action with respect to any of
its other clients that may differ from advice given, or the timing, or nature of action taken,
with respect to the Advisory Account.
10. Representations by Client
Client represents that the terms of this Agreement do not violate any obligation by which
Client is bound, whether arising by contract, operation of law, or otherwise, and that this
Agreement has been duly authorized by appropriate action and is binding upon Client in
accordance with its terms.
11. Acknowledgment of Receipt of Brochure (Form ADV Part II)
Client hereby acknowledges receipt of Adviser's Brochure (Form ADV Part II) at least 48
hours prior to the date of execution of this Agreement in compliance with Rule 204-3 of the
Investment Advisers Act of 1940 ("Act").
12. Notice
All notices and other communications shall be deemed effective when received, in writing,
at the address appearing below. Receipt of written notice shall be presumed if mailed
postpaid by registered or certified mail, return receipt requested. Each party shall be
entitled to presume the correctness of such address until notified in writing to the contrary.
13. Termination; Assignment; Amendment
This Agreement may be terminated at any time by either party giving to the other at least
thirty days prior notice of such termination confirmed in writing. If any fees have been
paid in advance, the Adviser will refund to the Client a prorata share of the fee. No
16
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
assignment, as that term is defined in the Act, of this Agreement shall be made by either
party without the consent of the other. This Agreement may be amended or modified at any
time by mutual agreement in writing.
14. Counterparts
This Agreement may be executed in two or more counterparts, each one of which shall be
deemed to be an original.
15. Governing Law
To the extent federal law does not apply, this Agreement shall be construed in accordance
with and governed by the laws of the State of
16. Entire Agreement
This Agreement constitutes the entire agreement of the parties with respect to the
management of the Advisory Account. The Exhibits referenced herein are incorporated
into the Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective representatives as of the date first above written.
CLIENT NAME
APPROVED BY:
ATTESTED TO BY:
REVIEWED BY:
ADDRESS:
ADVISER NAME
17
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
M
ADDRESS:
Exhibit A
Authorized Investments
(Insert a copy of public agency's investment policy)
18
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
the
Exhibit B
Work to be Performed
(the "Adviser") will provide the following services to
as the Client's investment adviser:
• Provide full-time non -discretionary management of the portion of the investment
portfolio under advisement.
• Develop and implement investment strategies that will enhance portfolio performance
under current and future market conditions within the parameters of the Client's
investment policy and cash flow needs.
• Provide technical and fundamental market research including yield curve analysis.
• Obtain and document competitive prices for securities transactions.
• Assist with trade settlements.
• Review and update the Client's investment policy and written investment procedures.
• Perform due diligence reviews of current and proposed broker/dealers.
• Evaluate safekeeping and custodial procedures and agreements.
• Monitor the creditworthiness of the Client's depository and custodian bank and
investments in the portfolio.
• Work with the Client to develop and update cash flow projections.
• Provide monthly investment reports for the portfolio detailing securities holdings,
daily activity reconciliation, portfolio composition and sector analyses, portfolio
return, and weighted average maturities.
• Provide separate semi-annual and annual portfolio performance reports.
• Provide training to staff on cash, treasury and investment management subjects.
• Attend meetings with investment staff, management, and the Client's governing
body.
19
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
APPENDIX B
Exhibit C
Fee Schedule for Investment Advisory Services
The annual fee for providing investment advisory services for the
is basis points per year. The fee for investment
advisory services is based on the average value (cost basis) of assets under management.
A prorata portion of the annual fee (1 / 12) is billed each month based on the average asset
value of the portfolio for the month. The fee shall be payable upon receipt of billing from
the Adviser.
20
CALIFORNIA DEBT & INVESTMENT ADVISORY COMMISSION
(DRAFT DOCUMENT)
ATTACHMENT 2
Response to Request for Proposal:
0
-11114) 1 rm I � LA.. a
Enhanced Cash & Low Duration Strategies
January a, 200E
333 South Grand Avenue * Los Angeles, CA 90071
Response for Proposal - Enhanced Cash & Low Duration
Formatted: Bullets and Numbering )
I. COMPANY, _ Deleted: Cover Letter
1. Provide a brief overview of your company (history, executive team, locations of
headquarters and branch offices)
Payden & Rygel was founded in 1983 under the Investment Advisers Act of 1940 and is a
California corporation focusing on investment management services. Income is derived only
from such services. The firm has ten shareholders, all active members of the firm. Employees of
the firm total 140 including investment professionals and support staff.
We invest in domestic and offshore taxable and tax-exempt securities and provide investment
advisory services to corporations and individuals. Current assets under management total $52
billion, with approximately 260 institutional clients in the United States, Europe, the Middle and
Far East, and Latin America. A family of 30 no-load, low expense mutual funds is offered totaling
over $3 billion.
Half of our assets under management represent corporate pension, operating and excess cash
funds. The founders of our firm pioneered the concept of active management of cash over 20
years ago. They identified opportunity in the U.S. fixed -income market that was not previously a
focus for investors. Corporate client assets that were needed to meet current liabilities were left
in demand accounts at the bank, earning a relatively low level of interest. We showed clients
how we could take a portion of these assets and invest in slightly longer, but still "short -maturity"
securities (0.5 — 2.0 years) and pick up significant return with little added volatility, while meeting
their risk objective. This portion of our business strategies now comprises $28 billion of the $52
billion we manage. We are experts at all facets of managing short -duration portfolios. Our
twenty-year history of excess returns comes from our portfolio construction, sector management,
duration decisions, structured product, risk management, and credit analysis.
In 1986-87, the firm made a major commitment to expand its presence in global fixed income.
The effort gained momentum and at the present time Payden & Rygel is one of the largest global
fixed income managers. The firm also focuses in the municipal bond market with mandates for
corporate operating funds, trusts and high net worth individuals.
In 1992, the Payden & Rygel Investment Group was formed, with an outside Board of Directors,
to sponsor the family of funds known as "Paydenfunds". The mutual fund mandates replicate the
disciplines employed in the firm's separate account management.
In 1994, the firm began to manage balanced mandates. The first dedicated equity mandates
commenced in 1996 and small cap equities were introduced in 1997.
In 1998, Metzler/Payden LLC, registered as a 1940 Act company, was formed as a 50/50 joint
venture between Payden & Rygel and Metzler Bank of Frankfurt, the oldest private bank in
Germany. The mandates include global fixed income, U.S. and European fixed income, and both
U.S. and European equities.
In 1999, Payden & Rygel Global Ltd. was established in London to service institutional clients in
the United Kingdom, Continental Europe and the Middle East. The strategies managed by these
offices include a full range of global and country specific mandates.
Investment Management
Payden & Rygel
Parent company/
Headquarters
Los Angeles, Ca.
Strategy, Client Service,
Operations, Business
Development, Administration
Investment Management
Strategy, Client Service,
Payden & Rygel
Wholly -owned
London, England
Operations, Business
Development, and
Global Ltd.
subsidiary
Administration for the United
Kingdom and Continental
Europe
Investment Management,
Metzler/Payden LLC
50/50 Joint Venture
Los Angles, Ca. &
Client Service, Operations,
with Metzler Bank
Frankfurt, Germany
Business Development,
Administration
2. Describe the ownership structure of your firm, particularly with respect to and the specific
entities with which we - would be dealing with in connection with the proposed
engagement (including the parent company,, subsidiaries, partnerships, affiliations, etc.). Deleted: companies which you are
Please disclose any structural changes planned in the future. the parent of, any wholl"vimiod
We are 100% employee owned. Currently, ten managing principals, who are active in the day-
to-day operations of the firm, are shareholders. These individuals constitute the internal Board,
representing the management of the company:
Joan Payden, CFA, President
Edward Garlock, Esq.
Asha Joshi, CFA
Brian Matthews, CFA
Christopher Omdorff, CFA
James Sami, CFA
Mary Beth Syal, CFA
Scott Weiner, PhD
Laura Zimmerman, CFA
Robin Creswell
Since our founding, we have been an independent, employee -owned firm, and there are no plans
to change this. At the present time, we are the largest independently owned bond manager in
the United States.
If the need for offshore investment arises, we manage separate accounts and have offshore
funds available out of Dublin.
3. Provide an organizational chart that describes the reporting structure of the unit within
your organization that is responsible for providing fixed income corporate investment
management.
The Global Policy Committee sets overall investment policy for portfolios. Portfolio managers and
portfolio strategists implement the policy within the context of individual client guidelines. Portfolio
managers do not have discretion over major decisions such as duration or portfolio sector weights.
Sector specialists have the authority to pick individual securities within the authorized allocations.
All portfolio holdings are reviewed by portfolio managers and strategists on a regular basis.
Strategy and Implementation
Investment
Industry
Tenure
Policy Committee _ _..._._
Experience
at P&R
Joan A. Payden
33 years
21 years
Brian W. Matthews
22 years
18 years
Christopher N. Omdorff
19 years
14 years
James P. Sami
21 years
14 years
Mary Beth Syal
19 years
13 years
Scott J. Weiner
20 years
11 years
Laura K. Zimmerman
17 years
13 years
Sector Strateaists and Traders
• Mortgage -Backed Securities
Governments
• Emerging Markets
High Yield
• Asset -Backed Securities
Derivatives
• Corporate Bonds
Municipal Bonds
• U.S. and International Equities
Non -Dollar
4. Describe your firm's capital structure, assets under cash management and number of
accounts as well as co -mingled funds. Please include the returns for each co -mingled account
and the credit policies (breakdown of investments by credit rating) for each.
Payden & Rygel is a C Corporation that was formed in 1983. The only capital placed into the firm
was by the founder; there has been no subsequent investment by outside sources or existing
shareholders. This privately held ownership structure makes us one of the few remaining privately
held investment management companies in the U.S.
Assets and accounts under cash management at March 31, 2004
Enhanced Cash
Assets
Accounts
Separate Accounts
$10.9 billion
86
Mutual Funds:
Payden Bunker Hill Money
Market Fund
$306 million
Payden Limited Maturity Fund
$274 million
Low Duration
Separate Accounts
$15.4 billion
57
Mutual Funds:
Payden Short Bond Fund
$344 million
Payden Global Short Bond Fund
$160 million
4
Returns
endedYears 00.
Enhanced Cash
year
Years
Years
Years
Inception
Enhanced Cash Composite
1.51
2.93
4.35
5.11
6.98
Mutual Funds:
Payden Bunker Hill Money Market Fund
net
0 89
1.82
3.39
N/A
3.75
Payden Limited Maturity Fund (net)
1.26
2.68
4.14
1 N/A
4.81
Low Duration
Low Duration Composite
2.72
5.43
6.04
6.41
8.07
Low Duration Plus Composite
3.71
6.12
6.50
7.03
6.97
Mutual Funds:
Payden Short Bond Fund (net)
2.87
5.12
5.80
5.77
5.57
Payden Global Short Bond Fund (net)
1 5.43
5.93
5.67
N/A
6.15
Credit breakdown
At 0'
Enhanced Cash
BBB
Below
---
--.
Enhanced Cash Composite
33
34
9
14
10
7-7
Mutual Funds:
Payden Bunker Hill Money Market
Fund
100
0
0
0
0
Payden Limited Maturity Fund
18
47
9
15
11
0
Low Duration
Low Duration Composite
68
3
5
12
12
0
Mutual Funds:
Payden Short Bond Fund
49
11
8
17
1 11
4
Payden Global Short Bond Fund
22
5
4
12
40
17
5. Please show thp..breakdown of all your separately managed corporate investment
accounts over the past 5 years,..by median account size, largest account, smallest i
account, highest return and lowes&returrV.
k.
Enhanced Cash
Account Size (Stnillions)
Median` Largest Smallest""
Returns
Highest
Lowest
Deleted: at
Inserted: at breakdown of all your
Deleted: outsourced intone
management account (such as we
are proposing)
Inserted: outsourced income
management account (such as we
are proposing) by
Deleted: investment
Inserted: investment
Deleted: amount and % of total
accounts for each.
Inserted: amount and % of total
accounts for each.
Deleted: Up to^$100M.:::r.
( Inserted: Up to $100M
j Deleted: Up to $200M
j Inserted: Up to $200M
Low Duration
Median'
Account Size (Smillions)
Largest SIrallest"
Returns
Highest
Lowcst
', tt
*The median account size for Enhanced Cash is $65 - $75 million; the median account size for
Low Duration is $75 - $85 million.
**Our minimum account size has been $25 Million, and as of 2004, is $50 million.
Return dispersion is directly related to different client guidelines, which include sector limits,
minimum credit quality for an issue, minimum average quality for the portfolio,
minimum/maximum duration constraints, etc.
6. What is your fixed income client turnover (gains and losses) for the last three (3) years?
Provide explanations for client losses.
2002
2003
'Clients Gained
31
35
31
:Assets Gained
$7,028
$6,900
.............................
:Clients Lost
3
8
7
:Assets Lost ($ mil)
$843
$1,572
$1,229
leted: Up to $100M ................ __.......... __.... _........... _.... ....._............_...................
' Inserted: Up to $100M
Deleted: Up to $200M
\' Inserter!: Up to $200M
The majority of our lost clients are from company mergers and asset reallocation. _...._....._._ ........ ._... _.......... .........................................................
Deleted: Provide an organizational
_ _ _ _ _ _ chart that describe: the reporting
PERSONNEL
structure of the unit within your
1. Who will make the final investment decision for the portfolio? Describe the decision organization that is responsible for
making process. providing pin services you are
g.
Decision Making Process
Inserted: Provide an
We incorporate a top -down approach in managing fixed income portfolios. The Global organizational chart that describes
Policy Committee, consisting of seven senior Payden & Rygel officers, is responsible for the reporting structure of the unit
the formulation of broad strategic themes, sector allocations, duration/yleld curve within your organization that is
decisions and portfolio risk management. responsible for providing the
services you are proposing.t
Our top -down approach to managing fixed income relies heavily on. current PERSONNEL ¶
macroeconomic data. This key decision -making process also incorporates in-depth
knowledge of relative value among sectors, analysis of yield curve characteristics and
market technicals provided by the various sector strategists. Once the top -down view is
determined, the credit group formulates an industry outlook (i.e., positive, negative or
stable) and ultimately generates bottom -up investment ideas.
The Global Policy Committee relies upon two internal groups when formulating its
investment policy. The first group, or the investment strategy group, is comprised of
strategists and investment traders. Their primary goal is to develop portfolio structures that
reflect both the macro mandates of our Global Policy Committee and the securities that
are available in the market. A team of traders carries out implementation of the portfolio
policy. This group transacts with 50-60 brokers across the globe. The trading desk is
responsible for tracking dealers' inventory, competitive pricing and security selection. All
transactions are placed on a competitive basis to confirm best price execution.
The second group involved in the portfolio decision making process is the portfolio
management group comprised of professionals who have earned the CFA designation
and/or have significant strategy and trading experience. It is this group that focuses on
client -related issues when structuring portfolios. As such, our portfolio managers are the
main contact with the client. The portfolio manager's goal is to identify and communicate
our clients' objectives/constraints, risk tolerances and time horizons to the strategy group.
Because we believe that client issues are as important as market issues, the interchange
between portfolio managers and portfolio strategists is critical. Together, our Global Policy
Committee, supported by both the strategy and portfolio management groups, comprise
the heart of the investment process.
The final step in the process is that of review and control. It is at this level that portfolios
are routinely checked for adherence to guidelines, consistency of structure, and return
attribution. Although we do not move portfolios in lock -step, portfolios with similar
mandates will have similar portfolio structures and returns. Exceptions are quickly
identified and subsequently reviewed at the policy committee level.
2. Who were the individual managers for each of your cash management funds over the
last five years? How did each fund perform relative to your benchmark rate?
All of our accounts are team managed.
Enhanced Cash
9
Enhanced Cash Composite
1.57
2.85
6.23
7.12
4.75
Payden Bunker Hill Money
Market Fund net
0.95
1.69
4.08
6.25
5.06
3-month Treasury Bill
1.10
1.76
4.45
6.03
4.85
Payden Limited Maturity Fund
net
1.22
2.40
6.21
7.00
4.69
Lipper Money Market Average
0.44
1.00
3.44
5.64
4.46
Low Duration
Low Duration Composite
2.33
6.84
8.99
8.54
3.21
Low Duration Plus Composite
3.09
8.03
8.80
1 8.81
3.13
Payden Short Bond Fund (net)
2.38
6.24
8.70
8.51
2.68
Payden Global Short Bond Fund
net
5.01
7.20
6.17
6.94
2.27
Merrill Lynch 1-3 Treasury Index
1.90
5.76
8.30
7.99
3.06
3. Describe the compensation structure for your firm's professional staff as it may relate
to the proposed engagement, Please..be specific........................................................................ ; Deleted: , , promotions policy, etc.
In addition to highly competitive base salaries, each employee receives annual cash Inserted: , , promotions policy,
n merit and corporate profitability. Bonuses are extended to all members of etc. Please be specific.
bonuses based o e rpo p ty
the firm.
Key personnel receive either a deferred compensation plan or equity ownership in the
company. Incentive compensation is based partially on individual performance and partially
on the firm's performance. Bonuses are not based on asset growth or returns. The
percentage of compensation, which is base salary plus bonus, or equity incentives, varies
between individual investment professionals.
4. ,iow often_would the.portfoiio. manager, chief investment officer and/or firm president
Deleted: <#>Describe yourfirrn's
be available for client meetings?
back-up procedures in the event
the key investment professional
All team members (portfolio managers, portfolio strategists, portfolio accountants, and
assigned to this account should
traders) are available for client meetings, conference calls, etc., on a quarterly basis or at the
leave the firm, traveling or
otherwise unavailable.11
client's request. In addition, the President, the Global Policy Committee members, senior
strategists and research personnel are available for client meetings as requested. We also
welcome clients to visit our office when they are in the area.
,III. INVESTMENT STRATEGY
1. Describe your firm's investment strategy and ongoing management of fixed income
corporate investment%
......................................................................................................................................................
Investment Philosophy
The cornerstone of our investment philosophy is that active management of fixed income
investments should focus on managing risk consistent with the spirit of the investment
guidelines. Payden & Rygel's portfolio managers work closely with clients to structure
investment guidelines that will capture a client's overall objective, what we term the "spirit"
of the guideline. Once we have helped determine the objectives and constraints, we then
are able to manage the portfolio in a manner that will deliver a "no surprises" performance.
We strive to build long-term client relationships based upon the trust that what we deliver
to our clients is what they expect.
Payden & Rygel's investment philosophy is based on providing above benchmark
investment returns, while minimizing the risks taken in a portfolio. Risks can be defined
many ways, and those to which we refer are credit risk, event risk, structure risk and
interest rate risk. Our investment strategy involves fundamental economic analysis to
provide a framework for establishing portfolio structure. We determine the targeted
duration of an account relative to its performance benchmark and overlay sectors and
yield curve positioning. The various elements of the portfolio are changed as our
fundamental outlook on economic growth and the direction of interest rates change.
Extensive modeling and scenario analysis using internal proprietary systems allows us to
gauge the upside potential and the downside risk that results from any portfolio we
structure. We rely on these prudent portfolio management techniques to produce
reasonable investment returns commensurate with the risk tolerances of our clients. Our
objective is to provide competitive returns relative to the prevailing investment
environment.
Because portfolio management is a dynamic process, with ever changing markets and
products, we incorporate the opportunity for change into our investment philosophy. These
changes incorporate new ideas in research and investment products, and are not a
change to the manner in which we make our portfolio decisions. A systematic approach
and process will produce consistent returns for our clients over time.
We believe that our philosophy will be successful in the future precisely because we
commit our resources to understanding the client's fundamental objectives and manage
the changing investment landscape to consistently capture opportunities that will achieve
those objectives. Our communication of the strategies we employ and our fundamental
economic outlook help to ensure that our clients do not receive any negative surprises,
and are able to benefit from positive events in the market.
Strategy
Payden & Rygel's objective in managing short and intermediate maturity mandates for
taxable clients is maximization of after-tax total return, as well as preservation of capital,
and liquidity. We achieve these goals by carefully monitoring the portfolio with regard to
credit quality, controlling risk, managing the realization of capital gains/ losses, and any
other unique requirements of our client.
Deleted: State the name, address,
telephone number, and e-mail
address of the individual within your
organization to whom questions
relating to your proposal can be
directed¶
Executive Summary¶
The executive summary should be no
more than two pages. It is to be
provided as an introduction describing
the essential components of your
services and any corresponding
products. Describe the three most
important strengths that differentiate
your organization from the
competition.¶
Organization Profilell
The purpose of this section is to
provide a description of each
organization supplying hardware,
software and services as part of your
response.11
Please state for each organization:11
Corporate office address¶
Corporate executives¶
Location of the office providing the
proposed services to EA¶
Company Profile¶
Number of locations (by Region:
North America, Europe, Asia -Pacific)
Number of employees
Number of years of experience in
providing proposed products and
services¶
Financial Viability¶
Brief summary of the history,
structure, and ownership of your
company (including the parent
company, companies which you are
the parent of, any wholly -owned
subsidiaries, and venture capital)¶
Deleted: the investment
management on our behalf
Inserted: the investment
management on our behalf.
A broad range of fixed income securities are evaluated, so that market opportunities,
particularly for cross -over trades, defined as investments that capture relative value
between asset class sectors of the market, can be fully exploited.
We use a variety of techniques when structuring portfolios, including yield curve
positioning, credit over- or under -weights relative to a neutral position and duration
management.
Our sell discipline is similar to our buy discipline in that fundamental research forms the
basis for the recommendation. Three main factors come into consideration when we
approach a possible buy or sell:
■ Our fundamental evaluation of the security
■ The market valuation of the security
■ Our assessment of the liquidity
A sell recommendation results when we believe that the bond is rich relative to our
fundamental analysis. This process is conducted daily, and no bond is exempt unless
unusual issues exist relating to liquidity. When liquidity is a factor, it is usually because
thin liquidity results in lower prices being quoted than would be in a "normal" market.
These cases are evaluated on a case -by -case -basis.
In certain cases, the Global Policy Committee, as the ultimate risk management body
within the firm, may get involved on an issue -by -issue basis. This occurs when
quantitative factors are outweighed by other qualitative issues. In some cases a bond may
be sold for "non-traditional" reasons.
2. Describe your research approach including the primary sources of information and
the role of internal analysts in the process. How do the portfolio managers and
analysts Interact/communicate?
Our research process is carried out by our strategy group and is a combination of original
data and information accumulation, as well as quantitative modeling, with its subsequent
application to the portfolio management and investment process. Our strategy group
conducts approximately 80% of our research internally in our Los Angeles office. The
other 20% is obtained from external sources and evaluated in-house. We have never had
a credit default in portfolios in our 20-year history. Because the strategy group is
responsible for the portfolio construction, the research they perform is directly
incorporated into the portfolio, without the potential dilution or misunderstanding that may
occur if this information needed to be relayed to other individuals who were then
responsible for portfolio construction.
Outside resources utilized in the research process include the online SEC database of
corporate filings, the IBES database of company financial statistics, MultexNet, the
Compustat financial statement database; Moody's, Standard & Poor's, and Fitch research
reports, and Wall Street broker publications.
Our credit analysts have 200 to 300 face-to-face discussions with company management
during the year. In addition, our investment strategists make approximately 25 trips each
year to meet with bank presidents, government ministers, CEO's and other significant
leaders in order to develop our own view of regional, national and global political and
economic issues.
Over the years, our firm has developed an extensive network of contacts in foreign
governments and corporations, as well as multi -national corporations with offices abroad.
These serve as very valuable sources for us to get the "story behind the numbers."
3. How are you managing investments In this extremely low rate environment? Will
your investment strategy change if rates begin to rise?
The investment objective of Payden & Rygel's low duration portfolio in any environment is
to generate a high level of total return, consistent with preservation of capital by avoiding
the volatility of longer maturity bonds. The strategy includes the use of a combination of
duration/yield curve, sector selection and issue selection strategies.
We utilize a number of tools in implementing these strategies, such as proprietary
systems that allow us to stress test portfolios by changing various factors such as interest
rates, the shape of the yield curve, yield spreads, implied volatilities, pre- payment
speeds, and liquidity. We use different securities and portfolio structures depending on
the market environment. Our current strategies involve overweighting yield -producing
instruments versus instruments whose return profile depends more upon interest rate
movements. For instance, we have added mortgage -backed securities to portfolios for the
additional yield they produce. Callable bond structures are also evaluated for their
risk/reward characteristics, and are frequently added to portfolios. Other yield enhancing
strategies include market sectors that have less liquidity and therefore attractive relative
yields. These include bonds subject to the alternative minimum tax and at present the
insured airport sector of the municipal bond market. We assess the client's
liquidity/tax/accounting situation to determine the appropriateness of any of these
strategies and evaluate relative value in that context.
4. What is the process for monitoring the investment strategy's success?
The time horizon of our decisions is typically three to six months. Our systems allow us to
monitor each decision on a daily basis. The Global Policy Committee evaluates the
overall risks of the decision from a broad market and business prospective. The
strategists evaluate each sector and the portfolio manager evaluates the decision within
the context of client -specific risk tolerances, tax considerations and liquidity needs.
5. What do you consider the appropriate benchmark for the portfolio?
Enhanced Cash (Excess operating funds): 3-month Treasury Bill
Low Duration (Reserves): Merrill Lynch 1-3 Year Treasury Index
6. How do you stay current on the credit ratings of the issuers with the credit rating
agencies? How do you garner any additional insights to the credit worthiness of the
potential issues?
While we track and report credit ratings of our holdings assigned by the major credit rating
agencies, we do not rely on credit rating agencies alone when making investment
decisions. Our credit research is fundamentally based and incorporates a top -down
investment process. The credit research group incorporates the economic assessment
formulated by the Global Policy Committee. Ultimately, a comprehensive analysis and
outlook of the various industries is compiled and published twice a year. The outlooks
assigned to these industries provide a base from which the individual credit research
begins. In addition to the fundamental analysis (e.g., profitability, leverage, capital and
interest coverage) performed on each credit, qualitative measures such as business
strategy, product differentiation and management depth are considered. The credit is
assigned a Payden & Rygel internal rating (e.g., high single -A). This internal rating is
compared to the rating agency ratings, and relative value is determined based on market
prices.
Credits are continuously reviewed with regard to credit fundamentals and market pricing,
as well as to their suitability to each portfolio. The credit research group and account
consultant work together to ensure that the credits purchased into a portfolio are
considered within the context of the client's guidelines and risk tolerance. Certain single -A
credits, for example, have the risk profile of a triple-B credit, and would not be held in a
portfolio with a single -A minimum rating requirement.
10
This process is depicted in the following chart:
CORPORATE CREDIT ANALYSIS PROCESS
FUNDAMENTAL ANALYSIS
Management
Expertise credibility
Proper incentiveS
Credit fundamentals
Stable, improving or
declining?
Intangibles
Franchise value
brand equity
Event risk
Negative or positive?
Shareholder disposition
Implications for bondholders
SECURITY EVALUATION
Bond covenants
Change of control
Downgrade provisions
Cross -default events
Additional debt restrictions
Other
Security structure
Callable
Zero coupon
Pay-in-kind
Other
T. Describe the internal compliance process. How do you ensure the investments in the
account are In compliance with the Investment policy?
The ongoing monitoring of portfolio compliance with client guidelines is accomplished at four
different levels:
■ The Global Policy Committee meets on a weekly basis to ensure that the overall investment
philosophy and processes are adhered to. It is during these meetings that basic internal
guidelines are determined, adjusted if deemed appropriate, and communicated to all
investment professionals to ensure that general boundaries are understood. New research is
also discussed during these meetings.
■ Strategists, traders and portfolio managers all review daily position reports for updated
transactions, pricing and guideline compliance. Members of the strategy group and portfolio
team members review each portfolio on a regular basis. At these reviews, the portfolio's
objective and guidelines are reviewed in light of economic circumstances to determine if the
portfolio is property structured. Any relevant recent portfolio changes and the client's
circumstances are also discussed. This review process is another important part of our
quality control plan.
■ In addition to the daily review process, our compliance team is responsible for assuring that
the firm complies with all regulatory requirements, that procedures are in place to assure
compliance, and that these procedures are being followed.
■ Compliance checks occur on a daily, weekly, and monthly basis. The compliance team also
regularly reviews existing policies and procedures to insure that the compliance function
remains up to date, as the firm and the regulatory environment evolve. Our automated
trading system, the Bloomberg Trade Omer Management System (TOMS) includes a
compliance function that determines whether a trade is in compliance with the accounts
investment guidelines. This occurs prior to the trade. Each trade is entered into the "front
end " of the system and tested for compliance tolerances and restrictions. If passed, the
trade is then automatically processed into our portfolio accounting system. If the trade does
not pass the compliance front end, the trade is halted, reallocated or not executed.
11
Deleted: ¶
8. How would you explain unrealized losses, resulting from rising rates, to our
Who will make the final investment
management?
decision for our portfolio?¶
<#>What is the process for
When interest rates rise, even as bond prices fall, reinvestment rates rise. As a result, a
monitoring the investment strategy's
portfolio of short term bonds can benefit from rising interest rates in certain cases. Clearly a
success?¶
<#>Des. the internal compliance
portfolio with long duration will be subject to unrealized losses as interest rates rise.
Process. To what extent are the
To
However, over time the reinvestment of coupon and maturity on higher -yielding instruments
Portfolio managers allowed to deviate
helps to make u for earlier losses. Unrealized losses become a concern if portfolios are
p p P
from the investment strategy? How do
invested beyond a client's time horizon. Therefore, it is important to understand the client's
you ensure that they do not overstep
objectives, time horizon and liquidity needs before investing. if liquidity needs more or less
the limits?A
match pre -investment expectations, the unrealized losses in bond portfolios should not be a
<#>Describe your policy on client
major concern over a market cycle.
indemnification with respect to
investments that do not comply with
specified investment guidelines
9. Describe the advantages and disadvantages of outsourcing the investment
settreed bent.
#>How ooften does ¶your firin's
management function.
investment management practice
been analyzed by independent
Advantages:
investment consulting firms? Provide
■ An outside investment management firm such as Payden & Rygel has
analysis and risk/reward profiles
dedicated resources to conduct more extensive credit research and to analyze
produced by these consulting firms.
complex markets such as asset -backed and mortgaged -backed securities.
Include the frequency and the names
of the firms conducting the analysis. If
IIIWe have the infrastructure necessary to offer superior investment
<#>Do you recommend Frio hold
management services, including research and reporting, to our clients.
securities at its custodian or at your
■ We can act as an extension of the treasurydepartment and are available to
custodian? If no, why? If yes, what
help with special projects at no additional cost.
obligations or liabilities with respect to
■ Our fiduciary liability insurance provides additional protection to the client.
the custodial arrangements exist? if
<#>RESEARCH j ... 1
Disadvantages: Typically, additional cost to the client and loss of control are perceived to
Inserted:
be disadvantages of outsourcing:
Who will make the final investment
■ Regarding cost, we believe our trading capability, based on over $50 billion in
decision for our portfolio?¶
assets, provides economies of scale and efficiency of execution. In fact, we
<#>What is the process for
have seen cases where the savings to the client in transaction costs alone pay
monitoring the investment strategy's
for the management fees.
■ If the process is managed properly, more control is given to management.
success?l
<#>Describe the Internal compliance
For example, third -party custody provides independent reporting and a system
process. To what extent are the
Portfolio managers allowed to deviate
Of reconciliation. The monitoring of guideline compliance is also enhanced.
from the investment strategy? How do
you ensure that they do not overstep
JV. LEGAL. ....... .. ....................... _..... .... .... .... .... ... ... .._ _.... ... .... ... ... ... ... ... ...... ....... ...
............ .................. ............ ...........
the Describe your policy on client
1. Over the last seven years, has your firm, any of its affiliates or any officer or
indemnification with respect to
investments that do not comply with
principal been involved in any business litigation or other legal proceedings related
specified investment guideline...f 2
to your investment activities? If so, provide explanation and indicate the current
status.
Deleted: <#>Describe the dollar
amounts of coverage for SEC
No.
required fidelity bonds, errors and
omissions coverage and any other
fiduciary coverage that your firm
2. ,3escribe any. potential conflicts of interest_ your firm may have_.in the management
.. ........
carries. List the Insurance carriers
supplying the coverage. Have there
of this account. Please include any other pertinent information that we should
been any claims in the last five
know.
years?t
inserted: <#>Describe the dollar
amounts of coverage for SEC
We have always been a privately held corporation where senior managers own 100% of the
shares and are active in the day-to-day operations of the firm. We feel that this independence
required fidelity bonds, errors and
enables us to avoid conflicts of interest and offer superior products and services to our clients.
omissions coverage and any other
We do not have any relationships with board members or executive officers of Electronic Arts
fiduciary coverage that your firm
Inc
carries. List the insurance carriers
supplying the coverage. Have there
Payden & Rygel subscribes to the AIMR CFA Code of Ethics and Standards of Practice. We
been any claims in the last five
have a comprehensive internal eontrollcompliance plan, which provides strict guidelines for
years?t
Describe any potential conflicts of
personal investing by our investment professionals. Highlights of the firm's strong internal
interest your flan may have in the
specific reference to traders, include:
controls, with s peC
management of this account.
12
• pre -approving employee transactions to prevent front -running
• quarterly review by Director of Compliance of all personal transactions
The AIMR CFA Code of Ethics and our internal compliance policy are attached as Exhibit L
Payden & Rygel does not transact in soft dollars, as such could be construed as a conflict of
interest. We do not receive soft dollars as a method of payment in relationship to any
advisory or management related services and we pay hand dollars for research and all other
services. In addition, the firm is not related to any broker/dealers.
3. j3escribe _your poiicy on client indemnification with respect to .investments that do
not comply with specified investment guidelines setlagreed by client.
The Global Policy Committee sets many firm -wide portfolio constraints that are tighter than
those requested by the client. Thus internally imposed restrictions are normally spotted and
corrected long before client guidelines are exceeded.
Compliance is reviewed in two areas. The strategy team responsible for the account reviews
each portfolio daily to ensure that guidelines are met. In addition, proprietary software and
systems monitor each portfolio taking into consideration not only client specific guideline
limitations, but the tighter limitations established by the Global Policy Committee and our
sector specialists. The Bloomberg TOMS system compares all portfolios against their
guidelines each night and produces a report, which is reviewed by the firm's Risk Manager.
Please note that should guideline violations occur, the client is covered by insurance against
damages resulting from investments made outside the guidelines, as detailed in response to
Question 2.4.6 below.
4. Do your performance disclosures conform to Association for Investment
Management and Research (AIMR) performance presentation standards?
Yes.
5. Has your firm's investment management practice been analyzed by independent
investment consulting firms? Provide analysis and riskireward profiles produced by
these consulting firms. Include the frequency and the names of the firms
conducting the analysis.
We are regularly visited and reviewed by all the major consulting firms such as Callan,
KPMG, Mercer, etc. Our information is posted in major databases including E-PIPER,
Morningstar, Nelsons, Effron-PSN, and Mobius.
6. Describe the dollar amounts of coverage for SEC required fidelity bonds, errors and
omissions coverage and any other fiduciary coverage that your firm carries. List
the insurance carriers supplying the coverage. Have there been any claims in the
last five years?
We maintain ERISA bonding in addition to the coverage required by SEC 17g-1 fidelity
bonds. Our fiduciary liability insurance is as follows, per occurrence:
Fidelity Blanket Bond: $20,000,000 - National Union Fire Ins. Co.
$20,000,000 - Federal Insurance Co.
Errors & Omissions: $15,000,000 - A.I.G. Co.
$15,000,000 - Gulf Insurance Group
$10,000,000 - Chubb Insurance Group
ERISA Bonds: 10% or maximum $500,000 per bond annual
limit - Hartford or Zurich
13
Deleted: Over the last seven
years, has your firm, any of Its
affiliates or any officer or principal
been involved in any business
litigation or other legal
proceedings related to your
Investment activities? If so,
provide explanation and indicate
the current status.
There have been no claims in the last five years.
14
Y. REPO.RTIN.G-
1. List your standard package of reports with its frequency and description. List any
fees associated with reports if applicable.
The monthly performance report provides detailed information on the portfolio including:
❖ Portfolio summary — Holdings
❖ Performance summary for the period end
❖ Detail of transactions detailing all cash flows and security transactions
❖ Interest income statement
❖ Realized Gain/Loss statement from Cost
Realized Gain/Loss statement from Amortized Cost (if applicable)
❖ Current Holdings statement providing the current market value of all securities
❖ Amortization schedule (if applicable)
Our quarterly report provides clients with an extensive. review of the investment
strategies and environment during the quarter, along with portfolio performance versus the
benchmarks.
A sample monthly report is provided as Exhibit H and a sample quarterly report is provided
as Exhibit lll. There are no fees associated with any of our reports.
2. Do you have web -reporting capability? List the reports that are available online.
Clients have access to their portfolios via the Internet through a secure connection.
Juneau, our proprietary on-line access system, contains portfolio summary reports of
market values, unrealized gains, and analytics as well as detailed reports of security
holdings, transactions for the trailing two months, and calculations of realized gains and,
losses. Our senior information systems and operations managers work with each client to
determine the most effective and efficient methods for delivery of portfolio data.
3. How quickly is the reporting package, available. after fiscal month end?
Monthly performance reports are available 24 hours after the last day of the month.
An electronic download of the monthly accounting report can be provided by E-mail in an
Excel format by the first business day after the fiscal quarter end and by the 3rd business
day after other fiscal month ends.
As noted above, all transactions and the entire portfolio holdings (buys, sells, coupon
payments, foreign exchange transactions, corporate actions, etc.) are available to the
client 24 hours a day on the Internet through our proprietary system.
4. ,Tease include a sample monthly account statement. Can this be customized to
meet our specific needs without additional cost to us? \ \
As noted above, a sample monthly report is provided as Exhibit A Our flexible reporting
platform allows us to customize our monthly reports, at no additional cost.
5. Can you provide customized reports as needed? List fees for any customized
reports if applicable. What is the turn -around time to produce these reports?
Internally developed systems give us the flexibility to accommodate specific client
accounting needs. Payden & Rygel assigns to each client a dedicated reporting
professional responsible for all aspects of the reporting process, including month end
reconciliation, return tabulations and client communication regarding any accounting
issues. Customized reports may include items such as a top ten holdings report, an
account review, a summary of specific strategies employed in the portfolio, and
performance attribution.
15
Deleted: ¶
<#>CLIENTSI
<#>List the firm's top five fixed
income clients (of similar industry and
size as EA's) using the following
format Does EA have permission to
contact these clients?(
Company AccountTvpe Account
Value Annualized Retum Contact
Name Phone # L n f
Relationship¶
<#>What is your fixed income client
turnover (gains and losses) for the
last three (3) years? Provide
explanations for client losses. Include
three (3) companies, preferably in the
Bay Area and/or similar size of EA's,
contact name, address, phone
number, and duration of contract
Does EA have permission to contact
these companies? ¶
Deleted: MANAGEMENT
REPORTS
Inserted. I
<#>CLIENTS-1
<#>List the firm's top five fixed
income clients (of similar industry and
size as EA's) using the following
format Does EA have permission to
contact these clients?¶
Company Account T= Account
Value Annualized Return Contact
Name Phone # Lenath of
Relationship¶
<#>What is your fixed income client
turnover (gains and losses) for the
last three (3) years? Provide
explanations for client losses. Include
three (3) companies, preferably in the
Bay Area and/or similar size of EA's,
contact name, address, phone
number, and duration of contract
Does EA have permission to contact
these companies? ¶
Inserted: MANAGEMENT
REPORTST
List your standard
Deleted: statement J
Inserted: statement available after
fiscal month end?
Deleted: <#>I
Inserted:<#>I
Please include a sample monthly
account statement. Can this be
customized to meet
1I
There are no additional fees for this service. Tum-around time would depend upon the
complexity of the report.
6. What other communication is provided to clients? Include a description and/or
sample of newsletters, seminars, etc.
Education:
Senior portfolio managers, strategists, and the Global Policy Committee members are
available to give seminars on issues including not only investment and strategy
discussions, but also reporting issues and accounting topics.
Research:
We keep our clients abreast of issues in the markets and the investment management
industry by regularly sending the following research pieces, available both electronically
and hard copy (attached as Exhibit 11):
Weekly Market Update
(e-mailed every Friday afternoon)
Quarterly Review
(published quarterly)
Global Credit Outlook
(published semi-annually)
Economic Review & Outlook
(published monthly)
Reviews domestic and global markets as
well as key economic releases.
Discusses four -to -five topics of interest,
which affect the global financial markets.
Provides a comprehensive analysis of
corporate sector outlook focused on
economic and credit risks.
Shows an overview of both domestic and
global economies for the month.
7. Do you recommend we hold securities at its custodian or at your custodian?
Please explain why and describe any obligations or liabilities with respect to
holding securities at your custodian, if applicable.
We believe extra protection, as well as third -party reporting, is provided to the client
through a third party custodian.
FEES
1. Provide a complete fee schedule with respect to the services to be provided under
this proposal.
Our annual fee is billed on a quarterly basis in arrears. It is based on each month's
average daily market value. The following fee schedule takes into consideration total
assets:
Proposed Separate AccOUnt Fee Schedule
Enhanced Cash
0.20 of 1% on the first $50 million of assets
0.175 of 1 % thereafter
Low Duration
0.25 of 1 % on the first $50 million of assets
0.20 of 1 % thereafter
16
2. Explain how,pften the fee schedule is reviewed and/or adjusted? often)
Deleted: (and how o
Our fee schedule is designed to cover a broad range of portfolio sizes for a given
mandate. Reasons to review and consider changing a fee schedule would include the
portfolio size going outside that range and/or a change in the mandate.
3. Describe your ability to maintain a competitive fee structure and to what degree the _
fees are negotiable..
. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Deleted: market cost
competitiveness
As pioneers in active cash management, we have been a leader in providing competitive -ed......_...._......._.___....._......................._ ........._..
fees while producing superior performance. There are firms which offer to provide these inserted. market cost
P 9 Pe Inserted:
services "for free" (e.g., brokers) and other also will do this for a very small fee, such as
banks. In both cases, you "get what you pay for." Brokers make their money from the
bid/offer spread on their inventory so you pay without knowing what the cost is. For
banks, this is not their primary business — they cross sell products and this is the "loss
leader". In the world of active cash management firms, we strive to be competitive and
always have been.
4. J)o you have a performance -based fee structure? _ Deleted: 4>How will you validate,
to EA's satisfaction, that all
As a general rule, we do not recommend incentive fee arrangements. We believe that charges are accurete?1I
such arrangements can set up a conflict of interest for the client.
.............................................................................. Deleted. To what degree are es
S. Has the firm ever provided investment management services for no fees as a negotiable?
compensation for problems resulting from the management of portfolios? inserted: To what degree are fees
No.
x....................................................................................................................._...........................................................................................
6. Describe your firm's policies with respect to softdollar commissions.
The firm does not and never has transacted in soft dollars, as any such arrangement
could be construed as a conflict of .interest. We do not receive soft dollars as a method of
payment in relationship to any advisory or management related services and we pay hard
dollars for research and all other services. in addition, the firm is not related to any
broker/dealers.
7. Why should we hire your firm against all your competitors?
■ Our independence differentiates us from our peers. In contrast to most money
managers in the industry, we remain independently owned. This allows us to stay
focused on meeting the needs of our clients, not pushing a given product as directed by
a parent company. We can make investment and business decisions quickly and can
direct resources within the firm to deliver our service effectively and efficiently.
■ We are fixed income specialists and are pioneers in active cash management.
Within each of our major strategies we have dedicated strategy teams that focus
exclusively on specific portfolio types. This focus results in our adding extra return in
more subtle ways.
■ We feel we spend more time than our competitors truly understanding the spirit of our
clients' guidelines. This is critical for appreciating the risk profile of each individual
portfolio. We work closely with our clients to provide a better understanding of
performance and the trade-off between performance tracking error and volatility. To
access this, we have proprietary software models, used in a "hands-on" fashion with the
client.
17
negotiable?)
Has the firm ever provided
investment management services
for no fees as a compensation for
problems resulting from the
management of portfolios?
..._._..._....__..__._ ..__......_.__._ _._._....__.............._...........
Deleted: Please explain.
Inserted: Please explain.T
Describe your firm's policies with
respect to soft dollar commissions.
■ Risk Management. One of our strengths is identifying and managing risks, many of
which are not obvious in today's changing financial environment. This is where we draw
on both our extensive experience in fixed income and our proprietary risk management
software. Philosophically, our approach to risk management is to deliver "no surprises" to
the client. Our risk management process incorporates our clients' unique tolerances✓
sensitivities rather than the use of a "cookie -cutter" approach.
L (Formatted: Bullets and Numbering
18
.... _.............. _..................... .................. ........... ...................
Page 12: [1] Deleted Bill 2/6/200411:24 AM
Who will make the final investment decision for our portfolio?
What is the process for monitoring the investment strategy's success?
Describe the internal compliance process. To what extent are the portfolio managers
allowed to deviate from the investment strategy? How do you ensure that they do not
overstep the limits?
Describe your policy on client indemnification with respect to investments that do not
comply with specified investment guidelines set/agreed by client.
How often does your firm's investment management practice been analyzed by
independent investment consulting firms? Provide analysis and risk/reward profiles
produced by these consulting firms. Include the frequency and the names of the firms
conducting the analysis.
Do you recommend EA hold securities at its custodian or at your custodian? If no, why? If
yes, what obligations or liabilities with respect to the custodial arrangements exist?
RESEARCH
Describe your research approach including reliance on external and internal sources.
What percentage of research is internal vs. external?
If you have internal research capability, state the locations(s) where such research is
carried out and what specific research is conducted at each location. Who is primarily
responsible for conducting research (and what type), the role of the research director.
What are the primary sources of information/data, the role and importance of internal
analysts in the process? How does research and portfolio management
interact/communicate?
How is your firm's research methodology different from your competitors?
PERFORMANCE
How would you structure EA's portfolio and what is the reasonable performance goals for
EA? What should we expect and over what time frame?
Provide performance data for comparable accounts currently under your management,
annually and over the last 3 to 5 years. Provide a sample tracking document and
spreadsheet if possible.
Do your returns conform to Association for Investment Management and Research (AIMR)
performance presentation standards? If yes, at which level? If not, why? At what date did
compliance begin? Please include an AIMR Performance Disclosures/Descriptions.
Please state the benchmark and guidelines of your five largest clients' portfolios.
What do you consider the appropriate benchmark for our portfolio? Why?
Bill/Alicia — any other performance matrix you would like to add here as our expectations?
..................... .......... _....... .................... .............
Page 12: [2] Inserted ydepoy 1/28/200410:33 AM
Who will make the final investment decision for our portfolio?
What is the process for monitoring the investment strategy's success?
Describe the internal compliance process. To what extent are the portfolio managers
allowed to deviate from the investment strategy? How do you ensure that they do not
overstep the limits?
Describe your policy on client indemnification with respect to investments that do not
comply with specified investment guidelines set/agreed by client.
How often does your firm's investment management practice been analyzed by
independent investment consulting firms? Provide analysis and risk/reward profiles
produced by these consulting firms. Include the frequency and the names of the firms
conducting the analysis.
Do you recommend EA hold securities at its custodian or at your custodian? If no, why?
yes, what obligations or liabilities with respect to the custodial arrangements exist?
RESEARCH
Describe your research approach including reliance on external and internal sources.
What percentage of research is internal vs. external?
If you have internal research capability, state the locations(s) where such research is
carried out and what specific research is conducted at each location. Who is primarily
responsible for conducting research (and what type), the role of the research director.
What are the primary sources of information/data, the role and importance of internal
analysts in the process? How does research and portfolio management
interact/communicate?
How is your firm's research methodology different from your competitors?
PERFORMANCE
How would you structure EA's portfolio and what is the reasonable performance goals for
EA? What should we expect and over what time frame?
Provide performance data for comparable accounts currently under your management,
annually and over the last 3 to 5 years. Provide a sample tracking document and
spreadsheet if possible.
Do your returns conform to Association for Investment Management and Research (AIMR)
performance presentation standards? If yes, at which level? If not, why? At what date did
compliance begin? Please include an AIMR Performance Disclosures/Descriptions.
Please state the benchmark and guidelines of your five largest clients' portfolios.
What do you consider the appropriate benchmark for our portfolio? Why?
Bill/Alicia — any other performance matrix you would like to add here as our expectations?
ATTACHMENT 3
Corporate Cash Investment Management
Request for Proposal
I. Company and Personnel Information
A. Please provide the following information:
1. Company Name
2. Parent Company
3. Contact Person
4. Mailing Address
5. E-mail Address
6. Telephone Number
7. Fax Number
II. Fixed Income Expertise
A. For how many years has the company been managing fixed income assets? For how many
years has the company been managing corporate liquidity assets?
B. Show the total market value of the fixed income assets managed by the company for the
past five years? How is this total distributed between corporate portfolios and non -
corporate portfolios?
C. Also, provide a breakout of accounts that the company manages by asset size:
Number of Accounts % of Total Accounts
$0-25MM
$25-50MM
$50-100MM
>$ l OOMM
D. How many fixed income professionals are employed by the firm? How many of these
managers are dedicated to corporate cash portfolios?
E. How many fixed income professionals have left the company during the past 5 years?
How many fixed income professionals have been added during the past 5 years?
F. How many credit analysts, sector analysts and other specialized professionals are
employed by your firm?
G. Are portfolios managed by a team or by an individual portfolio manager? If by individual
manager, what is the average number of accounts per manager? What is the average asset
value per manager? What is the average number of accounts per manager that are
specifically corporate cash portfolios?
1
H. What is the minimum account value that the company will manage?
I. What is the average size of each portfolio managed? Corporate portfolio?
J. How many clients has the company lost over the past 3 years and why? Please provide
names of clients lost in the past 3 years. May we contact these former clients if requested?
K. Please provide resumes of key personnel (up to three) that may manage a prospective
account. Resumes should include, but not be limited to the following information:
1. Title
2. Number of years with the company
3. Total number of years with investment experience
4. Education, certifications, etc.
5. Present duties with the company
M. What best describes your firm?
1. Independent Registered Investment Advisor
2. Bank - affiliated asset manager
3. Broker - affiliated asset manager
4. Insurance Co. - affiliated asset manager
5. Broker/Dealer manager
N. What regulatory agencies are you governed by as an investment manager. Please describe
their oversight function.
III. Investment Strategy and Research
A. Summarize the goals, objectives and investment strategies that you feel best describe your
investment philosophy in the management of fixed income assets and corporate cash.
B. Discuss your use of portfolio duration to manage interest rate risk.
C. Discuss how investment decisions are made (i.e. individually, by team or committee, etc.).
D. What is the firm's average annual portfolio turnover rate?
E. Discuss the firm's credit selection process.
F. Discuss how investments are screened to ensure they meet credit and liquidity
requirements.
G. Discuss how the portfolio is monitored on an ongoing basis to ensure it continues to meet
credit requirements.
H. Do you maintain a staff of in-house investment analysts? If so, (excluding clerical
assistants) how many and how many cover the proposed investment style? How many of
these are CFA's?
I. Describe the process by which an investment idea, either to buy or sell, is originated,
researched, evaluated, and ultimately becomes an investment decision.
2
III. Performance
A. Include the firm's annual short duration composite total return for the past 5 years.
Compare the short duration composite to the Lehman Brothers 1-3 Year Government
Index. Describe the short duration composite parameters relative to:
i. Duration (average, min & max)
ii. Credit rating limitations (min & max)
iii. Sectors included (Corp, Tsy, Agcy, ABS, MBS, auctions, etc.)
B. Are these performance results in compliance with AIMR standards? If not, state why.
C. In the past five years, how many negative monthly and quarterly performance results has
the composite produced?
Negative Negative
Monthly_ Quarterl
D. Please list the top five instruments (by percentage) held in the short duration strategy.
Include quality (AAA, AA, etc.), duration and sector information for each instrument.
E. How will you provide returns on a risk -adjusted basis?
F. Describe the firms strategic reliance on the following sectors/products:
1. Securities with embedded options (calls, puts, sink, etc.), e.g. callable agencies
2. Auction rate products and other specials purpose entities including debt and preferred
structures
3. Illiquid positions with an amount outstanding of less than $250 million including
Medium Term Notes
4. Asset Backed Securities
5. Mortgage Backed Securities
IV. Client Information
A. How many clients does the company serve? How many of these are corporate fixed
income clients? How many fixed income clients are off -shore?
B. List your five largest fixed income clients (exclude client name if you prefer) as of
September 30, 2004. Please include account type, account value and annualized return.
Also include contact person and number for each client we have permission to contact.
Account Account Annualized Contact Phone
Name TM Value Return Person Number
C. List your five largest corporate cash clients in the proposed investment style (exclude
client name if you prefer) as of September 30, 2004. Please include account type, account
value and annualized return. Also include contact person and number for each client we
have permission to contact.
Account Account Annualized Contact Phone
Name Type Value Return Person Number
D. If not listed above, furnish three references, including contact person and telephone
numbers.
V. Compliance with Company Guidelines/Indemnification/Litigation
A. Describe your screening process for ensuring that investments meet the guidelines and
requirements set forth by the client.
B. Please discuss your policy on client indemnification with respect to investments that do
not comply with specified investment guidelines.
C. What type of protection do we have (Insurance coverage, etc.) in the event of unauthorized
trading losses, error and omissions, fraud, embezzlement, etc.?
VI. Manager Requirements
A. The Manager will be required to sign the Company's investment agreement
B. Counterparty and Risk reporting requirements
1. Monthly breakdown of trading counterparties including individual trade value.
2. Monthly, year-to-date and since inception total return (not annualized) figure for the
portfolio and benchmark.
3. Monthly breakdown of portfolio concentration versus the benchmark by sector, rating
and structure (i.e. securities with embedded options).
4. Monthly breakdown of individual security and aggregate portfolio pre-tax Yield -to -
Maturity, Yield -to -Worst and Option Adjusted basis.
5. Signed monthly compliance confirmation.
C. Accounting reporting requirements:
a. Month end statements the first business day after month end close and available
via the Internet.
b. FAS 115 reporting.
c. Weekly custodial reconciliation of cash, positions, income received/accrued,
realized gains/losses, amortization and market value including a weekly exception
report.
d. Amortization schedule of securities to the first par option (call, put, sink) date.
4
e. Security holding report including security cusip, description, GICS industry code,
Moody's and S&P ratings, effective duration, modified duration, yield to worst,
amortized cost and market price.
VI. Fees
A. Please provide a fee schedule for a portfolio of $20 million, $50 million and greater than
$100 million.
B. Are there special or unique services that you would charge for that are not included in your
fees? If yes, for what and how much?
C. Is the firm compensated by any other means other than fixed income investment
management fees?
D. Does the firm receive compensation via direct brokerage transaction costs or commissions
of any sort? Does the firm have soft dollar arrangements with any client? Will this be
audited?
VII. Reporting
A. Can the account statements be received by the client in electronic format?
B. Can the client access its account online at any time? If so, how often is the information
updated?
C. Please include a sample account statement. Can the account statement be customized to
meet the client's specific reporting needs?
VIII. Additional Services
A. Does your firm offer any other additional services or programs that may benefit the client?
If so, please describe.
B. Please include any additional information about your firm that you feel is pertinent.
ATTACHMENT 4
Sample
Request for Proposal
for
Investment Advisory Services
I. Background and Overview
Provide a brief description of your organization and state that your organization is
conducting a request for proposal for investment advisory services. This section is
intended to give the reader a general understanding of the portfolio's characteristics.
The organization's current portfolio management structure should also be described.
The following areas should be disclosed in this section:
• type of jurisdiction
• current portfolio size
• fluctuations in portfolio size throughout year
• characteristics of the funds, i.e., operating funds versus bond proceeds
• current investment management procedures/staffing within the organization
I1. Requirements for Selection
This section defines the broad qualifications required of the investment advisor.
Prospective advisors can easily review these requirements for selection to ascertain
whether they are qualified to submit a response to the RFP. Areas to consider include
experience providing investment advisory services to public sector entities,
independence from other financial institutions, assets under management, and
registration. Sample requirements follow.
1. Advisor shall be a registered Investment Advisor as defined and regulated by the
Securities and Exchange Commission (SEC) and be registered in the State, or have
a pending registration.
The SEC requires that investment advisors complete and update the
Form ADV, Parts I and IL Request a copy of the ADV and
review it for information pertaining to client base, assets
under management, and regulatory censure.
2. Advisor shall be either completely independent of any financial institution or
securities brokerage firm or shall fully and continuously disclose any such
relationships with such financial institution and/or securities brokerage firm relevant
to the firm's relationship with the City.
Independence from brokerage firms and financial institutions ensures
unbiased advice and reduces conflicts of interest.
Independence also eliminates the threat of transaction
driven investment recommendations.
Page 1
3. Advisor shall have a minimum of five years experience in managing state/local
government operating and bond funds.
The public sector has unique needs and constraints and it is paramount
that the advisor have extensive experience in this area.
4. Advisor shall have a minimum of one billion dollars in assets under ongoing and
continuous active management.
Funds under continuous and direct management are not the same as
"placed funds" Examine the Form ADV, Part 1, submitted
by the advisor, assets under management are disclosed in
items 18 and 19 of the ADV.
5. Advisor shall have a minimum of five million dollars coverage in errors and
omissions insurance or investment advisor professional liability insurance.
Errors and omissions insurance and investment advisor
professional liability coverage provide an additional degree
of safety in the investment program.
III. Services Requested
Provide a description of the services requested. This section should provide the reader
with an understanding of the services which the selected firm will be responsible for
providing. There should be. a specific question in the RFP relating to each of the
services requested. Although services requested will vary among organizations, areas
for consideration include the following:
• discretionary versus non -discretionary portfolio management
• on -going portfolio management versus advisory services only
• investment policy and internal procedures
• reporting capabilities
• custodial and safekeeping review
• broker/dealer due diligence and relations
• credit analysis
• staff training and education
IV. Term of Engagement
Define the length of the engagement. A multi -year contract may be more cost effective
due to the significant startup costs.
Page 2
V. Criteria for Evaluation and Selection
This section defines how the proposals will be judged. Sample criteria and weightings
follow.
10%: Responsiveness to the proposal, communicating an understanding of the overall
program and services required.
25%: Experience of the firm in providing services to public sector entities of similar size
and with similar investment objectives.
25%: Professional experience and qualifications of the individuals assigned to the
account.
15%: Portfolio management resources, investment philosophy and approach.
15%: Reporting capabilities.
10%: Fees.
VI. Time Frame for Selection and Implementation
Disclose if any interviews will be conducted prior to selection of the advisor. State the
anticipated time frame for interviews, selection of the advisor, and commencement of
services.
VII. Format for Proposals
Please format your response to this request in the following order to facilitate
comparisons between respondents.
A. Organization
1. Describe your organization, including date founded, ownership, and any subsidiary
relationships or relationships with other financial institutions.
2. Describe any SEC regulatory censure or litigation related to services the firm
provides.
3. State the dollar value of the assets and the number of portfolios the firm -has under
direct and continuous management, categorized between public sector and other
clients.
4. Describe experience of the firm in providing investment management services to the
public sector.
5. Provide a list of relevant client references (prefer public sector), including contact
persons and telephone numbers. Relevant would include clients with similar types
of jurisdictions, portfolio size, and investment objectives.
Page 3
6. How many portfolios has the firm added in the last. two years? How many portfolios
has the firm lost in the past two years, and why?
7. Describe the type and amount of insurance coverage the firm maintains with respect
to investment management activities.
B. Personnel
1. Identify the firm's commitment to the public sector. Identify by job classification the
number of individuals providing investment management related services. Specify
the average number of portfolios handled by each portfolio manager.
2. Identify the key personnel who would be directly involved in providing services under
the engagement. Describe their relationship with the firm, the role they would play in
this engagement, their experience in the investment business, and specifically with
public sector cash management and investments, and their years of service to the
firm.
3. Describe efforts the firm makes to keep its investment professionals informed of
developments relevant to government investment managers.
4. State whether there has been any turnover of key personnel in the firm or additions
to staff in the past year.
C. Investment Management Approach and Discipline
1. Describe the firm's approach to fulfilling the requirements of this RFP.
2. Describe the types of investment research the firm utilizes and the methodology
used to recommend investment decisions (including maturity and sector selection).
3. Describe the primary strategies for adding value to a portfolio.
4. Describe the firm's daily procedures for portfolio review, investment management
and client contact.
5. How will the firm accommodate fluctuating cash flows and the cash forecasting
process?
D. Reporting Capabilities
1. Submit samples of reports which would be provided and describe their frequency.
Include methods and formulas used to calculate return and performance.
2. Describe the process the firm would go through to assist in identifying appropriate
industry benchmarks.
3. Describe the types of benchmarks which would be included with the performance
reports.
Page 4
E. Fees
1. Provide the fee schedule that would apply to this account.
2. Identify any expenses that would not be covered through this fee structure and
would be required in order to implement the firm's program.
F. Other Considerations
1. Describe the firm's experience in developing investment policies and internal
procedures for public sector clients.
2. Describe the firm's approach to managing relationships with the broker/dealer
community.
3. Describe any assistance the firm would provide in reviewing custodial and
safekeeping arrangements.
4. Describe the type and frequency of credit analysis that would be provided on
security issuers and financial institutions.
5. Describe the firm's experience in providing assistance in obtaining a rating for the
portfolio.
6. Describe the firm's ability to provide full documentation of competitive pricing for the
purpose of arbitrage rebate compliance and provide a sample of the your
documentation. Describe the firm's ability to calculate the arbitrage rebate and
provide a sample report of the calculations.
7. Describe the training and education services that would be provided to staff.
8. Describe the nature and frequency of meetings the firm would recommend to keep
staff informed.
G. Other Information
1. Provide a copy of the firm's Form ADV, Parts I and II, as on file with the SEC.
2. Provide proof of state registration.
3. Provide a sample or proposed contract for services.
Page 5
ATTACHMENT 5
DRAFT # 3
Alameda County Transportation Autho*
Alameda County Transportation Improvement Authority
Request for Proposal
Investment Advisory Services
March 8, 2004
A. Introduction and Backeround
The Alameda County Transportation Authority ("ACTA") and the Alameda County
Transportation Improvement Authority ("ACTIA", collectively the "Authority") are seeking
proposals from firms interested in providing investment advisoryservices.
Each Authority was established to administer a voter -approved a half -cent sales tax to fund a
set list of transportation capital projects and programs. ACTIA will be collecting the half cent
sales tax until March 31, 2022 and is anticipated to generate over $3 billion in transporation
improvements. A formal 20-year Transportation Expenditure Plan was adopted in July 2000.
Sixty percent of all receipts are disbursed to local jurisdictions for various programs. The
remaining forty percent fund capital projects which includes a mix of transit, state highway, and
local roadway improvements.
ACTA currently has approximately $230 million of cash and invested assets. These funds,
which are earmarked for projects, are expected to be expended over a 10-year period. ACTIA
currently has approximately $51 million in cash and invested assets and continues to collect
sales tax receipt. Estimated receipts are expected to exceed estimated project expenditure in
the near term. Currently, these funds are invested in LAIF, the Alameda County Pool and in
Money Market accounts. The Authority desires to optimize its investment yield within the
framework of its Investment Policy. The following information is provided as additional
background information:
Attachment A: Authority's Investment Policy
Attachment B: Schedule of the current asset allocation
Attachment C: ACTA's planned capital expenditure
The objective of this Request for Proposal ("RFP") is to identify one or more firms that can
provide investment advisory services to the Authority that is financial sound, cost-effective and
meet the following prioritized objectives:
1. Safety of Capital
2. Liquidity of Funds
3. Return of Yield of Investments
Please visit our website at www.actia2022.com for more information.
DRAFT #3
B. Proposal Terms and Condition
Written proposal are due prior to 4 p.m., Monday, March 29, 2004. Proposals postmarked or
hand -delivered after 4 p.m., Monday, March 29, 2004 will be automatically disqualified and
returned unopened.
Please submit four bound (4) copies and one (1) unbound copy to:
Anees Azad
Finance and Administration Manager
Alameda County Transportation Authority/
Alameda County Transportation Improvement Authority
426 17t' Street, Suite 100
Oakland, CA 94612
(510) 267-6101
Two (2) copies to the Authority's financial advisor to:
Lisa Liang Siemsen
Causeway Financial Consulting
2386 Leimert Boulevard
Oakland, CA 94602
(510) 530-5798
Firms are encouraged to propose alternatives to the listed requirements that will reduce cost
and enhance services. The Authority will evaluate these alternatives on an individual basis.
Alternative services should be listed and priced separately.
In addition to the General Required Information requested in Section D below, please refer to
Attachment D for the Authority's additional requirements on affirmative action and Levine Act.
During the evaluation process, the Authority reserves the right, where it may serve the best
interest of the Authority, to request additional information and clarification from proposers. At
the discretion of the Authority, proposers submitting proposal may be requested to make oral
presentation as part of the evaluation process.
The Authority reserves the right to waive non -substantial irregularities in any proposal or to
reject any or all proposals. All costs incurred in the preparation and presentation of this
proposal shall be wholly absorbed by the firm.
C. Evaluation Criteria and Process
Proposals submitted will be evaluated based on the following criteria:
• Quality and responsiveness of the proposal
• Ability of the firm to meet service requirements
° Related experience of the firm and the personnel who will advise the Authority
• References
° Cost of required services, as valued by the Authority
° Availability and price of optional and additional services
2
DRAFT #3
The award of the contract will be based on a combination of all the above factors and the overall
capability to provide investment advisory services and not exclusively upon cost of services.
The proposed time frame for the selection process is as outlined below:
RFP mailed to prospective fines
March 8, 2004
Responses to RFP due to the Authority
March 29, 2004
Oral Presentations, if necessary
April 14, 2004
Recommendation of Award to the Authority's
Committee Finance Committees
May 12, 2004
Approval by the Authority's Boards
May 27, 2004
Announcement of award of contract
May 28, 2004
D. General Required Information
(1) Provide a summary of your firm, firm's capitalization and describe the overall financial
strength of your company and/or parent company. Include the location of your
organization's headquarters, depth of professional and support staff that provide
investment advisory services, year formed, ownership structure, primary contact
person for this relationship, revenues generated from consulting services, and
subsidiary or affiliate relationships
(2) A summary of the firm's experience providing public fund advisory services to other
similar municipal clients. Provide a complete list of public sector clients and the
amounts of asset under management.
(3) Identify the professional staff who will be directly involved in servicing this account,
including name, title, and location. Describe each assigned professional's experience
working with municipal clients and their specific areas of expertise.
(4) Describe your experience in formulating investment policies for public agencies. What
changes to the Authority's Investment Policy, if any, would your firm recommend? A
copy of the Policy is provided as Attachment A.
(5) Under current market conditions and given the Authority's Investment Policy, please
outline your recommended investment strategy. Do you recommend that the Authority
establish additional investment accounts? If so, why?
(6) Describe your overall approach to this engagement. What specific products would you
recommend at this time? Please provide a detailed description, proposed amounts,
indicative yields and terms for each product.
(7) Provide the compensation schedule you would require for the services proposed.
Please express your proposed fee in terms of both (1) basis points multiplied by assets
under management and (2) dollars. If dollar amounts are time -based, please provide
an hourly rate for all professionals. For the comparison purpose, please assume that a
portfolio size of $100 million.
(8) Provide three (3) references most comparable to the Authority, including a brief
description of services provided.
DRAFT #3
(9) Describe in detail the investment advisory, management and reporting services your
firm will provide. Indicate the frequency in which you provide investment performance
measurement reports. Include sample reports or recommendation in an appendix.
(10) Is your firm a registered investment advisor under the Investment Advisors Act of
1940? Please also include a copy of your most recent Form ADV filing, if applicable.
(11) Is your firm presently being, or has it within the past five years been either a party to
arbitration and/or sued in a court of law for breach of fiduciary responsibility or for
errors and omissions in the handling of client affairs? If so, please list the cases and/or
lawsuits and explain.
Firms are encouraged to propose alternatives to the listed requirements that will reduce cost
and enhance services. The Authority will evaluate these alternatives on an individual basis.
Alternative services should be listed and priced separately.
E. Inquiries
Inquiries concerning this RFP should be directed to:
Anees Azad
Finance and Administration Manager
Alameda'County Transportation Authority/
Alameda County Transportation Improvement Authority
426 17t' Street, Suite 100
Oakland, CA 94612
(510) 267-6101
or to the Authority's financial advisor
Lisa Liang Siemsen
Causeway Financial Consulting
2386 Leimert Boulevard
Oakland, CA 94602
(510) 530-5798
4
DRAFT #3
Attachment A
Alameda County Transportation Authority
Alameda County Transportation Improvement Authority
Investment Policy
ose: To ensure adequate protection, liquidity and accounting of the investments of the Authority's
sales tax receipts.
Funds are to be invested in securities which meet the following prioritized objective:
1. Safety of Capital
2. Liquidity of Funds
3. Return or Yield of Investments
The County and LAIF investment policies override the ACTA/ACTL4 investment policy as it applies to
funds invested in the County pool or LAIF, unless the policies contradict Authority's objectives shown
above.
The Authority shall review its cash flow needs in relation to its current cash position and its most current
expenditures budget and determine the level of cash needed on hand to meet its obligations. The amount
of cash on hand shall be no less than the expenditures forecasted and budgeted for the following budget
cycle.
For investments managed by ACTA/ACTL4, cash in excess of the amount to cover the following budget
cycle are to be invested in securities with maturities of no more than two (2) years or not longer than the
funding needs as reflected in the current plan, whichever is shorter. Securities are to be held to their
maturity date.
For investments managed by the Authority, the Authority shall comply with the County's Annual
Investment Policy (attached, adopted October 31, 2000) except where the Authority's termination date
and primary mission makes it impractical. Investments can be made in any of the following securities:
Obligations of the U.S. Treasury, its agencies and instrumentalities, Certificates of Deposits, Federal
Agency Issues and/or commercial papers rated A-1 by Standards and Poor or P-1 by Moody's
Commercial Paper Record, Bankers' Acceptances, medium -term corporate bonds, Guaranteed Investment
Contracts, Repurchase Agreements, the County common investment pool and the State Treasurer's
investment pool (LAIF).
Analysis and selection of securities to be purchased shall be coordinated with and executed through the
County Treasurer's Office. To take advantage of market conditions, purchases of investments are to be
approved by the Authority's Executive Director and Finance Manager. The executed transactions shall be
reported to the Authority each month. The size of any one investment transaction shall be limited to not
more than $50 million or 25% of the Authority's cash and/or invested assets, whichever is lower. A
quarterly report of the Authority's investments shall be prepared and provided to the Authority. The
investment report shall show the investment number, type of investment, purchase date, face value,
purchase price, interest rate, accrued interest, payment and maturity dates.
DRAFT #3
Attachment B
Summary of Current Asset Allocation
ACTMACTIA
Investment Report
As of December 31, 2003
Notes:
(1) ACTIXs Overall Interest Rate is low due to the gradual ramp -up of the cash balance
(2) Discount value not included.
(3) County interest rates included a one time boost from AIG and PG&E transactions in FY 2002/2003
DRAFT #3
Attachment C
ACTA Planned Capital Expenditure
Fiscal Year Ending
(x $1,000)
30-Jun-04
$ 34,684
30-Jun-05
52,825
30-Jun-06
31,163
30-Jun-07
11,000
30-Jun-08
7,663
30-Jun-09
21,600
30-Jun-10
32,000
30-Jun-11
30,000
30-Jun-12
12,000
30-Jun-13
7,000
$ 239,935
DRAFT #3
Attachment D
Additional Authority Requirements
AFFIRMATIVE ACTION
The Alameda County Transportation Authority has a Professionals Services Contract Program
for all contracts exceeding $50,000. This program establishes goals for awarding Professional
Services Contracts to firms located within Alameda County. In addition, the Program prescribes
certain employment practices for Authority consultants.
There is a 70 percent goal for LBE participation and a 30 percent goal for SLBE (Alameda
County) participation. A company that is certified as a small local business will also count
toward the LBE goals.
The Authority's Affirmative Action Consultant is available to assist firms in meeting the program
goals. The Affirmative Action Consultant is:
Mason Tillman Associates, Ltd.
1111 Broadway, Suite 2130
Oakland, CA 94607
Contact Person: Tommy Smith.
Telephone Number: (510) 238-4677
Email: tsmith@mtaltd.com
All questions regarding certification should be directed to Mason Tillman Associates, Ltd. The
Authority, upon the recommendation of its Affirmative Action Consultant, determines if the
applicant meets the certification requirements. Certification applications should be submitted to
Mason Tillman Associates at the above address. All firms used towards meeting the LBE
and/or SLBE goal must be certified by the time of proposal submission. Applications for LBE
and/or SLBE certification will not be accepted with the proposal.
The Authority accepts reciprocal certification from the following agencies:
Agency
Local Business Enterprise
Small Local Business
Enterprise
City of Oakland
Proof of Local Business
Proof of Small Local Business
Enter rise Certification
Enterprise Certification
Port of Oakland
Proof of Local Area Business
Proof of LIABE Certification
Enterprise (LABE)
and Small Business
Certification and an Alameda
Certification
County Business Tax
Certificate*
Proof of LIABE Certification
and Very Small Business
Proof of Local Impact Area
Certification
Business Enterprise (LIABE)
Certification
* The Port of Oakland certifies firms from Alameda and Contra Costa County as LABEs. A firm must have an Alameda County ottice started on
a full time basis to be certified as an LBE by the Authority.
DRAFT # 3
Please note that if your firm does not have an Alameda County office staffed on a full-time,
permanent basis, your firm does not meet the criteria for certification as an LBE and/or SLBE.
Refer to our website for the LBE and SLBE certification criteria.
LEVINE ACT
The Levine Act (Government Code 84308) is part of the Fair Political Practices Act that applies
to elected officials who serve on appointed Boards such as the Alameda County Transportation
Authority. The Levine Act prohibits any Authority Member who has received $250.00 or more
form an applicant for a contract with the Authority within the previous twelve months from
participating in or influencing the decision on awarding that contract. The Levine Act also
requires a member of the Authority who has received such a contribution to disclose the
contribution on the record of the proceeding. In addition, Authority Members are prohibited from
soliciting or accepting a contribution from a party applying for a contract while the matter of
awarding the contract is pending before the Authority or for three months following the date a
final decision concerning the contract has been made.
Each applicant team must disclose on the record any contribution of $250.00 or more which
they have made to an Authority Member or Alternate within the twelve-month period proceeding
submission of their application. This duty applies to your company, any member of your team,
any agents for you or other team members and to the major shareholders of any closed
corporation which is part of your team. If you have made a contribution which needs to be
disclosed, you must provide written notice of the date, amount, and receipt of the contribution(s)
in writing to the Authority's Executive Director. This information must accompany your
proposal and may be included as an appendix.
ATTACHMENT 6
REQUEST FOR PROPOSALS
INVESTMENT MANAGEMENT SERVICES
[Name of Public Entity]
The [Name of Public Entity] is soliciting proposals from interested firms for the provision of
investment management services for the [ ] funds. The average daily balance
of the invested assets is approximately $
The [Name of Public Entity] is a general law [public entity], and the investment of [Name of
Public Entity] funds is guided by the applicable State statutes and the [Name of Public Entity]'s
investment policy. A copy of the [Name of Public Entity]'s Investment Policy is attached for
your information.
Questions regarding this Request For Proposals should be directed to:
Name
Title
[Name of Public Entity]
Address
Address
Phone Number
CRITERIA FOR SELECTION
1. Understanding of scope of assignment.
2. Experience and qualifications of firm and individuals assigned.
3. Recommended approach to management of the [Name of Public Entity]'s portfolio.
4. Familiarity with Federal arbitrage restrictions and state investment and reporting
requirements. [OMIT IF FOR OPERATING FUNDS ONLY]
5. Fees.
SELECTION TIMETABLE
Date Proposals due by 5:00 p.m.
Date Interviews
Date [Name of Public Entity] [Board/Council] approves selection of
investment manager
FORMAT FOR PROPOSALS
Please format your response to this RFP in the following manner:
I. Organization
A. Describe organization, date founded, ownership and other business affiliations.
Specify the number of years your organization has provided investment management
services.
B. Describe your firm's revenue sources (e.g., investment management, institutional
research, etc.) and comment on your firm's financial condition.
C. Within the past three years have there been any significant developments in your
organization (changes in ownership, new business ventures). Do you expect any
changes in the near future?
D. Describe any SEC censure or litigation involving your organization, any officer, or
employee at any time.
E. Please identify the types of accounts managed by your firm (government, non-profit,
pension, endowment/foundation, corporate, etc.).
F. State the amount of professional/errors and omissions insurance coverage your firm
carries.
II. Personnel
A. Identify the number of professionals employed by your firm, by classification.
B. Provide an organization chart showing function, positions and titles of the investment
professionals in your organization.
C. Provide biographical information on investment professionals, including number of
years at your firm that will be involved in the decision -making process for our
portfolio. Identify the person who will be the primary portfolio manager assigned to
the [Name of Public Entity]'s account.
D. Please describe your firm's compensation policies for investment professionals.
2
IV.
Assets Under Management
A. Summarize your institutional investment management asset totals by category for
your latest reporting period in the following table:
Operating
Funds
Governmental
Other Institutional
Pension
Funds
B. Provide the number of accounts whose portfolios consist of bond proceeds.
C. List in the following table the percentage by market value of aggregate assets under
management for your latest reporting period.
U.S. Treasury securities
%
Federal Agency obligations
%
Corporate securities rated AAA -AA
%
Corporate securities rated A
%
Corporate securities rated BBB or lower
%
Other
%
D. Has your firm ever purchased or held any corporate security that was subsequently
downgraded, during the period while it was held, to below the minimum credit rating
standards required for purchase under the California Government Code? If so, please
list the credits involved and explain each such circumstance.
E. Provide data on account/asset growth and other performance statistics over the past
three years. Indicate the number of accounts gained and the number of accounts lost.
F. List your five largest clients. Identify those that are exclusively retirement fund
relationships and/or those that are operating fund relationships along with contact
names for each.
Philosophy/Approach
A. Describe your firm's investment philosophy for public clients. Briefly describe your
firm's investment management philosophy regarding average duration, maturity,
investment types, credit quality and yield.
B. Please describe the maturity concentration, quality and sectors of current accounts
similar to the [Name of Public Entity].
3
C. What are the primary strategies for adding value to portfolios (e.g., market timing,
credit research, trading)?
D. Describe the process you would recommend for establishing the investment
objectives and constraints for this account.
E. Do you have or would you recommend there be policy restrictions with respect to
maturity, sector, quality and coupon?
F. Describe your firm's trading methodology.
G. Describe your firm's decision -making process in terms of structure, such as
committees, membership, meeting frequency, responsibilities, integration of research
ideas and portfolio management.
H. Provide your list of approved brokers/dealers. How are brokers/dealers selected?
What process(es) do you have in place to monitor brokers/dealers after they have been
approved?
I. Describe your capabilities for tracking and reporting arbitrage in compliance with the
Tax Act of 1986, including computer systems and experience. [OMIT QUESTION IF
FOR OPERATING FUNDS ONLY]
X V. Portfolio Management
A. Are portfolios managed by teams or one individual?
B. What is the average number of accounts handled per manager?
C. Primary client contact is delegated to which of your firm's professionals?
D. How frequently are you willing to meet with us?
E. Describe procedures used to ensure that portfolios comply with client investment
objectives, policies and bond resolutions.
VL Fees
All information regarding fees must be submitted in a separate sealed envelope. No
mention of fees is to be made in the body of the proposal.
A. Please include a copy of your firm's fee schedule.
1. Please indicate whether they include custodial fees.
4
2. Is there a minimum annual fee?
B. Please provide a statement of fees for such additional services as arbitrage rebate
related services.
C. Are fees charged when there is no activity in the account?
VII. References
Please provide three client references, including length of time managing their assets, client
name, address and phone number.
VIII. Performance Reporting
A. Please describe how you typically report performance.
B. Please provide performance history for the past five years, for current accounts
comprised of securities with maturities, quality and sectors similar to the [Name of
Public Entity]'s.
C. Are you willing to develop reporting procedures in line with our needs and objectives
(i.e., monthly, so as to conform with State reporting requirements to management and
governing bodies)?
D. Are confirmation of investment transactions sent directly by the broker/dealer to the
client?
IX. Insurance Requirements
Exhibit `B: defines the insurance requirements that will need to be met prior to the
[Board/Council]'s approval of any agreement for services.
X. Submittal of Proposals
[Number] (#) copies of your proposal shall be submitted in a sealed envelope bearing the
caption: ["Name of RFP"] and addressed to:
Name
Title
[Name of Public Entity]
Address
Address
Address
s
Proposals may be filed in person or by mail. The deadline cannot be extended for failure on
the part of a delivery or messenger service or for delays in the U.S. Mail. Any proposal
received after the deadline will not be accepted. The [Name of Public Entity] reserves the
right to extend the deadline and reserves the right to determine the timeliness of all
submissions.
Proposals should be verified before submission. The [Name of Public Entity] will not be
responsible for errors or omissions on the part of the respondent in preparation of a proposal.
The [Name of Public Entity] reserves the right to reject any and all proposals, to waive any
irregularities, or informalities in the proposals, and to negotiate modifications to any
proposal.
6
ATTACHMENT 7
REQUEST FOR PROPOSAL
FOR
INVESTMENT MANAGEMENT SERVICES
FOR
City of Livermore, California
RETURN PROPOSALS TO:
Ms. Pamela S. Dias
Finance Department
City of Livermore
1052 So. Livermore Avenue
Livermore, CA 94550-4899
DEADLINE FOR FILING:
December 29, 2004
REQUEST FOR PROPOSAL
FOR
INVESTMENT MANAGEMENT SERVICES
FOR
City of Livermore, California
TABLE OF CONTENTS
I. INTRODUCTION..................................................................................................
II. SCOPE OF SERVICES..........................................................................................
III. PROPOSAL REQUIREMENTS............................................................................ 2-4
IV. INSURANCE REQUIREMENTS......................................................................... 5-6
V. SELECTION PROCESS........................................................................................ 7
City of Livermore
Request for Proposal Dated November 27, 2004
Investment Management Services
I. INTRODUCTION
The City of Livermore is seeking proposals from qualified firms for professional services to
provide investment management services for city funds. As of October 31, 2004, the city's
invested portfolio totaled $147 million in cash and investments. The average daily invested
balance for the preceding 12 months was approximately $152 million. It is anticipated that an
amount up to $50 million will remain invested in LAIF under city management.
The City of Livermore was incorporated as a General Law city on April l , 1876. As a general
law city, it has the power to make and enforce ordinances and regulations with respect to
municipal affairs to the extent expressly permitted or implied by the California constitution or
specific legislation. The city government is organized under the council-manager format that
provides for a five -member elected City Council, including an elected Mayor. The council
appoints the Treasurer, City Attorney and City Manager to carry out its adopted policies.
The investment of the City of Livermore's general funds is guided by applicable State statutes
and the locally adopted investment policy. A copy of the city's Investment Policy is attached for
your information. As of October 31, 2004 funds were invested as follows: LAIF--$38.7 million,
Federal Agency Issues-Coupon--$69.8 million, Treasuries--$38.6 million.
II. SCOPE OF SERVICES
The firm selected will be required to provide the following services:
1. Investment of Funds
The firm must effectively invest City of Livermore funds pursuant to the approved
investment policy.
2. Evaluation of Investment Policy
The firm must annually assist in the review of the city's investment policy. The
investment policy is presented to the City Council in late October of each year.
3. Monthly Reporting
The firm must prepare the monthly investment report encompassing all city funds.
Prospectively, the firm must be prepared to implement GASB 40, Deposit and Investment
Risk Disclosures -an Amendment of GASB Statement No. 3.
4. Annual Reporting
The firm must prepare the annual GASB 31, Accounting and Financial Reporting for
Certain Investments and for External Investment Pools report encompassing all city funds
that is used for preparation of the Comprehensive Annual Financial Statement (CAFR).
City of Livermore
Request for Proposal Dated November 27, 2004
Investment Management Services
III. PROPOSAL REQUIREMENTS
Proposals will be evaluated based on the following criteria:
1. Understanding the scope of assignment,
2. Experience and qualifications of firm and individuals assigned,
3. Recommended approach to management of the city's portfolio,
4. Familiarity with State investment and reporting requirements,
5. Performance history, and
6. Fees.
Please format your response to this Request for Proposal in the following manner:
I. Organization
A. Describe your firm, the date founded, ownership, and other business affiliations.
(Please provide number and location of affiliated offices.)
B. Describe your firm's revenue sources (e.g., investment management, institutional
research, etc.) and comment on your firm's financial condition.
C. Describe any SEC censure or litigation involving your organization at any time.
D. Identify the types of accounts primarily sought after by your firm.
E. Provide information regarding the bonding and insurance your firm has in place.
H. Personnel
A. Identify the number of professionals employed by your firm, by classification.
B. Provide biographical information on investment professionals that will be involved in
the decision making process for our portfolio.
C. Describe your firm's compensation policies for investment professionals.
III. Assets Under Management
A. Provide the number and types of accounts, total asset value, and composition of
portfolios currently being managed by your firm.
B. Provide data on account/asset growth and other performance statistics over the past 5
K
City of Livermore
Request for Proposal Dated November 27, 2004
Investment Management Services
years.
C. List in the following table the percentage by market value of aggregate assets under
management for your latest reporting period.
U.S. Treasury securities
Federal Agency obligations
Corporate securities rated AAA -AA
Corporate securities rated AA
Corporate securities rated A
Corporate securities rated BBB or lower
Other
D. In the past five years, has your firm purchased and held any security that was
subsequently downgraded below the minimum credit ratings required for purchase
under the California Government Code?
IV. Philosophy/Ap rp oach
A. Describe your firm's investment philosophy.
1. Indicate whether it has changed during the past five years.
2. Indicate what is distinctive about your philosophy.
B. Describe the maturity concentration, quality, and sectors of current accounts similar to
the City of Livermore.
C. In connection with our investment policy, would you recommend there be any policy
restrictions or other changes.
D. Describe your firm's decision -making process in terms of structure, committees,
membership, meeting frequency, responsibilities, integration of research ideas, and
portfolio management.
E. Describe your research capabilities, as they would pertain to the City of Livermore's
portfolio.
V. Portfolio Management
A. Describe whether portfolios are managed by teams or by one individual.
3
City of Livermore
Request for Proposal Dated November 27, 2004
Investment Management Services
B. Describe the average number of accounts and table assets handled per manager.
C. Indicate which of your firm's professionals would be delegated as the primary client
contact.
D. Indicate how frequently you are willing to meet with us.
E. Describe procedures used to ensure that portfolios comply with organizational policy
and client investment objectives and guidelines.
VI. Fees
A. Include a copy of your firm's fee schedule.
1. Indicate whether the fees include custodial fees.
2. Indicate whether there is a minimum annual fee.
B. Indicate whether fees would be charged when there is no activity in the account.
C. Indicate whether fees would be charged if management is requested of the funds held in
the Local Agency Investment Fund.
VII. References
Provide three references (preferably California cities or other public agencies), including
length of time managing their assets and client name, address, and phone number.
VIII. Performance Reporting
A. Describe how you typically report performance (enclose an example of a typical
monthly statement).
B. Indicate whether you are willing to develop reporting procedures in line with our needs
and objectives (i.e., monthly, so as to conform with State reporting requirements to
management and governing bodies).
C. Indicate whether confirmations of investment transactions are sent directly. by the
broker -dealer to the client.
El
City of Livermore
Request for Proposal Dated November 27, 2004
Investment Management Services
IV. INSURANCE REQUIREMENTS
Proposer shall procure and maintain for the duration of the contract insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the
performance of the work hereunder by the consultant, his agents, representatives, or employees.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG
0001).
2. Insurance Services Office form number CA 0001 covering Automobile Liability, code 1
(any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's
Liability Insurance.
4. Errors and Omissions . Liability Insurance appropriate to the consultant's profession.
Architects' and engineers' coverage is to be endorsed to include contractual liability.
Minimum Limits of Insurance
Consultant shall maintain limits no less than:
1. General Liability, including operations, products and completed operations, as applicable:
$1,000,000 per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability Insurance or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability:
$1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability:
$1,000,000 per accident for bodily injury or disease.
4. Errors and Omissions Liability:
$1,000,000 per occurrence.
Deductibles and Self -Insured Retention
Any deductibles or self -insured retention must be declared to and approved by the City of
Livermore. At the option of the City of Livermore, either: the insurer shall reduce or eliminate
such deductibles or self -insured retention as respects the City of Livermore, its officers, officials,
employees and volunteers; or the Consultant shall provide a financial guarantee satisfactory to
the City of Livermore guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain,
the following provisions:
1. The City of Livermore, its officers, officials, employees and volunteers are to be covered
5
City of Livermore
Request for Proposal Dated November 27, 2004
Investment Management Services
as insureds as respects: liability arising out of activities performed by or on behalf of the
Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage
shall contain no special limitations on the scope of protection afforded to the City of Livermore,
its officers, officials, employees or volunteers.
2. For any claims related to this project, the Consultant's insurance coverage shall be
primary insurance as respects the City of Livermore, its officers, officials, employees and
volunteers. Any insurance or self-insurance maintained by the City of Livermore, its officers,
officials, employees or volunteers shall be excess of the Consultant's insurance and shall not
contribute with it.
3. Any failure to comply with reporting or other provisions of the policy including breaches
of warranties shall not affect coverage provided to the City of Livermore, its officers, officials,
employees or volunteers.
4. The Consultant's insurance shall apply separately to each insured against whom claim is
made or suit is brought, except with respect to the limits of the insurer's liability.
5. Each insurance policy required by this clause shall be endorsed to state that coverage
shall not be canceled by either party, except after thirty (30) days' prior written notice by certified
mail, return receipt requested, has been given to the City of Livermore.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A: VII,
unless otherwise acceptable to the City of Livermore.
Verification of Coverage
Consultant shall furnish the City of Livermore certificates of insurance and endorsement(s)
effecting coverage to the City of Livermore for approval. The endorsements shall be on forms
acceptable to the City of Livermore. All certificates and endorsements are to be received and
approved by the City of Livermore before work commences. The City of Livermore reserves the
right to require complete, certified copies of all insurance policies required by this section.
31
City of Livermore
Request for Proposal Dated November 27, 2004
Investment Management Services
V. SELECTION PROCESS
Upon receipt of the proposal, city staff will review each firm's response to this Request for
Proposal. Failure to properly address all the items set forth above may disqualify the
prospective manager's proposal. City reserves the right to reject any or all proposals at its sole
discretion. At their discretion, staff may interview one or more consultants to further assist in
the review process. City reserves the right to award the contract to consultant at its discretion
depending upon multiple areas of criteria.
All proposals must be received in our office by 5:00 p.m. on Wednesday, December 29, 2004.
Late proposals will be rejected. Please send five (5) copies of your proposal and correspondence
to:
Ms. Pamela S. Dias, Finance Department
City of Livermore
1052 So. Livermore Avenue
Livermore, CA 94550-4899
Questions concerning this Request for Proposal should be addressed to:
Monica T. Potter, Director of Finance/Treasurer
City of Livermore Finance Department
925-460-4303
mtpotter(a,ci.livermore. ca.us
The following is the selection timetable:
November 22, 2004
December 29, 2004 (Wednesday)
January 1-14, 2005
January 18, 2005
January 25, 2005 (Tuesday)
February 28, 2005
RFP mailed
Proposals due by 5:00 p.m.
Review proposals
Notify selected firms for interview
Interviews of selected firms
If a selection is made, City Council approval
City of Livermore reserves the right to cancel and/or modify the above dates at anytime or to
make a dual appointment.
VA
City of Livermore
Request for Proposal Dated November 27, 2004
Investment Management Services
LISTING OF PROPOSERS FOR INVESTMENT MANAGEMENT SERVICES
Ms. Nancy Jones
California Asset Management Program
50 California Street, Suite 2300
San Francisco, CA 94111
(800) 729-7665
Ms. Kay Chandler
Chandler Asset Management
9255 Towne Center Drive, Suite 350
San Diego, CA 92121
(800) 317-4747
Mr. Dan Calabrese
Pillar Point Capital Management
428 J Street, Suite 410
Sacramento, CA 95814
(916) 444-1314
Ms. Janice Salvato
Bond Logistix, LLC
1454 Cherrywood Drive
San Mateo, CA 94403
(650) 577-8067
Ms. Gay Eichhoff
MBIA
11460 Grassy Trail Drive
San Diego, CA 92127
(888) 982-2250
Mr. Kevin Aguilera
UBS Financial Services, Inc.
2800 W. March Lane, Suite 110
Stockton, CA 95219-8218
(800) 545-7173
ATTACHMENT 8
Sample Request for Proposal
For Investment Management and Reporting Services
I. Background and Overview
Provide a brief description of your organization. This section is intended to give the reader a
general understanding of the portfolio's characteristics. The following information can be
included in this section:
■ Type of jurisdiction
• Current portfolio size
■ Fluctuations in portfolio size throughout year
■ Characteristics of the funds; i.e., operating funds, reserve funds, etc.
The organization's current portfolio management (style, current use of advisor, etc.) can be
included in this section as well.
II. Requirements for Selection
This section defines the broad qualifications required of the investment advisor. Prospective
advisors can easily review these requirements for selection to ascertain whether they are
qualified to submit a response to the RFP. Areas to consider include experience providing
investment management services to public sector entities, independence from other financial
institutions, assets under management, and SEC and state registration. Sample requirements
follow:
1. Advisor shall be a registered Investment Advisor as defined and regulated by the Securities
and Exchange Commission (SEC) and be registered in the state or have a pending
registration.
Investment advisors who manage more than $25 million must register
with the SEC and complete the SEC's Form ADV, Parts I and IL Part I of
the Form ADV contains information about the advisor's education,
business and regulatory censure. Part ll outlines the advisor's services,
fees and management strategies. The SEC recommends reviewing both
parts of the Form ADV before hiring an advisor.
Investment advisors managing less than $25 million must register with
the state securities agency in the state where they have their principal
place of business. Many investment advisors who register with the SEC
also submit a notice filing in states where they do business. The state
securities regulator can provide information on complaints about the
advisor.
2. Advisor shall be either independent of any financial institution or securities brokerage firm or
shall fully disclose any relationships with such financial institution and/or securities
brokerage firm relevant to the firm's relationship with the entity.
Page 1
Independence from brokerage firms and financial institutions ensures
unbiased advice and reduces conflicts of interest. Independence also
eliminates the threat of transaction driven investment recommendations.
3. Advisor shall have a minimum of ten years of experience in managing state/local
government operating and bond funds.
The public sector has unique needs and constraints, and it is paramount
that the advisor has extensive experience in this area.
4. Advisor shall have a minimum of $2 billion in public sector assets under ongoing and
continuous active management.
Funds under continuous and direct management are not the same as
"placed funds."Advisors should have adequate experience in managing
public sector assets.
5. Advisor shall have a minimum of $10 million coverage in errors and omissions insurance or
investment advisor professional liability insurance along with a minimum of $10 million in
additional coverage through a fidelity bond and umbrella insurance.
Errors and omissions insurance, investment advisor professional liability
coverage, fidelity bonds and umbrella coverage provide an additional
degree of safety in the investment program.
III. Services Requested
Provide a description of the services requested. This section should provide the reader with an
understanding of the services the selected firm will be responsible for providing. There should
be a specific question in the RFP relating to each of the services requested. Although services
requested will, vary among organizations, areas for consideration include the following:
■ Discretionary or non -discretionary portfolio management
■ Reporting capabilities
■ Custodial and safekeeping review
■ Broker/dealer due diligence and relations
■ Credit analysis of security issuers and financial institutions
■ Development of cash flow projections
■ Meetings with investment committees and governing bodies
■ Development and review of investment policy and internal investment procedures
■ Staff training and education
IV. Term of Engagement
Define the length of the engagement. A multi -year contract may be more cost effective due to
initial startup costs.
Page 2
V. Criteria for Evaluation and Selection
This section defines how the proposal will be judged. Sample criteria and weightings follow:
10%: Responsiveness to the RFP, communicating an understanding of the overall program
and services required
25%: Experience of the firm in providing services to public sector entities of similar size and
with similar investment objectives
25%: Professional experience and qualifications of the individuals assigned to the account
15%: Portfolio management resources, investment philosophy and approach
15%: Reporting capabilities
10%: Fees
VI. Time Frame for Selection and Implementation
Disclose if interviews will be conducted prior to selection of the advisor. State the anticipated
time frame for interviews, selection of the advisor and commencement of services.
VII. Other Information
State where responses should be sent, including the recipient's name, street address and
telephone number, and indicate the number of copies required. Also include a due date. Specify
where questions concerning the RFP should be directed and how questions will be handled.
Vill. Format for Proposals
Please format your response to this request in the following order to facilitate comparisons
between respondents.
A. Organization
1. Describe your organization, including date founded, ownership, and any subsidiary and
affiliate relationships relevant to this account.
2. Describe any SEC regulatory censure or litigation related to services the firm provides.
3. Identify the types of accounts primarily sought by your firm.
4. State the dollar value of the assets and the number of portfolios the firm has under direct
and continuous management, categorized between public sector and other clients.
Page 3
5. List five of your most representative governmental clients. Include contact name and phone
number for each.
6. How many portfolios has the firm added in the past year? How many accounts have been
discontinued in the past year?
7. Describe the type and amount of insurance coverage the firm maintains with respect to
investment management activities.
8. Provide a copy of the firm's most recent audited financial statement.
B. Personnel
1. Identify the firm's commitment to the public sector.
2. Describe efforts the firm makes to keep its investment professionals informed of
developments relevant to government investment managers.
3. Identify the key personnel of the firm who are involved in providing services to public sector
entities. Describe their relationship with the firm, their experience in the investment
business, and specifically with public sector cash management and investments, and their
years of service to the firm. Identify the role they would play in this engagement.
4. State whether there has been any turnover of professional staff in the firm in the past year
or any additions to professional staff in the past year.
C. Investment Management Approach and Discipline
1. Describe the firm's investment philosophy.
2. Describe the types of investment research the firm uses and the methodology used to
recommend investment decisions (including maturity and sector selection).
3. Describe the primary strategies for adding value to a portfolio.
4. Describe the firm's daily procedures for portfolio review, investment management and client
contact.
5. Outline the steps that would be taken to ensure the (entity's) objectives of safety, liquidity
and yield.
6. How will the firm accommodate fluctuating cash flows and the cash forecasting process?
D. Reporting Capabilities
1. Submit samples of reports that would be provided and describe their frequency. Reports
must be prepared in accordance with generally accepted accounting principles (GAAP) and
Page 4
in compliance with Governmental Accounting Standards Board (GASB) pronouncements,
including GASB Statement 31.
2. Describe the types of benchmarks that would be appropriate for this portfolio.
3. Describe the frequency and format of performance reports that would be provided.
E. Other Considerations
1. Provide a list of relevant client references (prefer public sector), including contact persons,
telephone numbers and length of time the firm has managed their assets. Relevant would
include clients with similar types of jurisdictions, portfolio size and investment objectives.
2. Describe the firm's experience in developing investment policies and internal investment
procedures for public sector clients.
3. Describe the firm's approach to managing relationships with the broker/dealer community.
4. Describe any assistance the firm would provide in reviewing custodial and safekeeping
arrangements.
5. Describe the type and frequency of credit analysis that would be provided on security
issuers and financial institutions.
6. Describe the nature and frequency of meetings the firm would recommend to keep staff
informed.
7. Describe the training and education services that would be provided to staff.
F. Scope of Services
1. Describe the services proposed to meet the terms of the RFP and the proposed fee for
services.
2. Identify any expenses that would not be covered by the proposed fee and would be required
to implement the firm's program.
G. Other Information
1. Provide a copy of the firm's Form ADV, Parts I and II, as on file with the SEC.
2. Provide proof of state registration.
3. Provide a sample or proposed contract for services.
Page 5
ATTACHMENT 9
CITY OF PITTSBURG
Request for Proposal (RFP)
for
Independent Investment Management Services
Proposals will be received until 5:OOPM (PST), Tuesday, August 24, 2004.
Return to: City of Pittsburg, Finance Department, 65 Civic Avenue, Pittsburg, CA 94565-3814
POSTMARKS AND FACSIMILES WILL NOT BE ACCEPTED
CITY OF PITTSBURG
REQUEST FOR PROPOSAL
FOR
INDEPENDENT INVESTMENT MANAGEMENT SERVICES
GENERAL INFORMATION
The City of Pittsburg is soliciting proposals from interested firms for the provision of
independent investment management services for a portion of its operating and capital
funds. The average daily balance of the invested assets is approximately
$100,000,000. However, because of the size of the City 's operating budget and capital
requirements, a significant portion of these funds must have short term liquidity.
The City of Pittsburg is a general law city in California. The investment of the City of
Pittsburg's operating and capital funds is guided by the applicable State statutes. A
copy of the City of Pittsburg's Statement of Investment Policy is attached for your
information. The City of Pittsburg invests its funds with LAIF (Local Agency Investment
Fund) and Bank of the West, and has several trust accounts. Please see the attached
Cash and Investments Monthly Summary for the month of May, 2004 (cover
memorandum dated June 21, 2004), and the quarterly Investment Reports dated March
31, 2004 and June 30, 2004 (Fiscal Year 2003-2004). To achieve diversification, and
meet the City's due diligence requirements the City will accept proposals from
independent investment management companies (banks and investment brokers do
not qualify as independent investment advisors).
There is no expressed or implied obligation for the City of Pittsburg to reimburse
responding firms for any expenses incurred in preparing proposals in response to this
request.
During the evaluation process the City of Pittsburg reserves the right, where it may
serve the City of Pittsburg's best interest, to request additional information or
clarifications from proposing firms, or to allow corrections of errors or omissions. At the
discretion of the City of Pittsburg, firms submitting proposals may be requested to make
oral presentations as part of the evaluation process.
The City of Pittsburg reserves the right to retain all proposals submitted and to use any
ideas in a proposal regardless of whether that proposal is selected. Submission of a
proposal is acceptance by the firm of the conditions contained in this request for
proposals, unless clearly and specifically noted in the proposal submitted and
confirmed in the contract between the City of Pittsburg and the firm selected.
It is anticipated the selection of a firm will be completed by September 21, 2004.
PAI
BACKGROUND OF THE CITY OF PITTSBURG
The City of Pittsburg was incorporated in 1903 and is located in Contra Costa County
with an estimated population of 61,000 and an area of approximately 16 square miles.
The City currently employs approximately 285 employees on a permanent basis and
over 150 part-time employees. The City Council is comprised of five elected citizens.
The City Manager is the administrative and executive head of the City.
The City's total operating budget for Fiscal Year 2003-2004 is $109,227,787, and total
estimated operating revenue is $104,133,134 (including the City of Pittsburg
Redevelopment Agency). The City of Pittsburg provides a broad range of services,
including police protection, affordable housing and development, water treatment and
sewer line maintenance, streets and parks construction and maintenance, planning,
engineering, code enforcement, recreation, waste reduction and recycling, and general
city administration and support services. In addition, the City operates a golf course,
marina and the Mare Island electric and gas distribution system.
The City of Pittsburg also maintains accounting records for the following entities:
Housinq Authority
The Housing Authority (Authority) was established to account for Federal funds for low
income housing under both certificate and voucher programs. The Authority is reported
in the Special Revenue Funds of the City.
Public Infrastructure Financing Authority
The Public Infrastructure Financing Authority (PIFA) was established by a Joint
Exercise of Power Agreement dated December 5, 1994 by and among the City of
Pittsburg and the Agency, and is qualified to issue bonds under the Mello -Roos Local
Bond Pooling Act of 1985. The PIFA was formed to finance the acquisition of certain
public improvements and refinance prior outstanding special assessment district debt
with City commitment.
Miscellaneous Employees Retirement System of 1962
The Miscellaneous Employees' Retirement System (Retirement System) of 1962 of the
City of Pittsburg, California, was established to become effective July 1, 1962 for
employees who entered the City's service on or after July 1, 1962, or who transferred
from the Retirement System of 1948. The City of Pittsburg and employees both
contributed to the establishment of a reserve for the purpose of paying an annuity at
age sixty-five of one -one hundred fortieth of the final compensation for each year of
service after entry into the system.
3
CRITERIA FOR SELECTION
Proposals will be evaluated and weighted by the following criteria:
10% Responsiveness to the Request for Proposal (RFP), communicating and
understanding of the overall program and services required.
25% Experience of the firm in providing services to public sector entities of similar size
and with similar investment objectives.
25% Professional experience and qualifications of the individuals assigned to the
account.
15% Portfolio management resources, investment philosophy and approach.
15% Reporting capabilities.
10% Fees
SELECTION TIMETABLE
• August 24, 2004 - Proposals due by 5:00 p.m.
• August 25-31,2004 - Evaluation of Proposals
• September 1-8, 2004 - Tentative schedule of interviews.
• September 20, 2004 - Pittsburg City Council, approves the selection of an
Independent Investment Advisor.
FORMAT FOR PROPOSALS
Please format your response to this RFP in the following manner:
I. Organization
A. Describe your organization, date founded, ownership and other business
affiliations (please provide number and location of affiliated offices). Specify
the number of years your organization has provided independent investment
management services.
B. Is your firm a registered investment advisor under the Investment Advisors
Act of 1940? Please also include a copy of your most recent Form ADV
filing, if applicable.
4
C. Describe your firm's revenue sources (i.e., investment management,
institutional research, etc.) and comment on your firm's financial condition.
D. Within the past three years have there been any significant developments in
your organization (changes in ownership, new business ventures). Do you
expect any changes in the near future?
E. Describe any Securities Exchange Commission censure or litigation involving
your organization, any officer or employee at any time.
F. Please identify the types of separate accounts managed by your firm
(corporate, pension, endowment/foundation, government).
G. Describe your firm's professional/errors and omissions insurance coverage.
II. Personnel
A. Identify the number of professionals employed by your firm, by classification.
B. Provide an organization chart reflecting function, positions and titles of all the
professionals in your organization.
C. Provide biographical information on investment professionals (including the
number of years at your firm) that will be involved in the decision -making
process for our portfolio. Identify the person who will be the primary portfolio
manager assigned to the City of Pittsburg's account.
D. Please describe your firm's compensation policies for investment
professionals.
III. Assets Under Management
A. Summarize your institutional investment management asset totals by
category for your latest reporting period in the following table:
Operating Funds
Pension Funds
Governmental
$
$
Other Institutional
$
$
TOTAL:
$
$
B. Provide the number of separate accounts whose portfolios consist of general
operating funds and bond proceeds.
1. Provide data on account/asset growth and other performance statistics
over the past three years. Indicate the number of accounts gained and
the number of accounts lost.-
5
2. List five of your most representative governmental clients. Include contact
name and telephone number for each.
IV. Philosophy/Approach
A. Please describe your firm's investment philosophy for investment
management of governmental operating funds.
B. Briefly describe your firm's investment management philosophy for public
clients, including your firm's philosophy of average duration, maturity and
yield.
C. Please describe the maturity concentration, quality and sectors of current
accounts similar to the City of Pittsburg.
D. What are the primary strategies for adding value to portfolios (i.e., market
timing, credit research, trading)?
E. Describe the process you would recommend for establishing the investment
objectives and constraints for this account.
F. Do you have or would you recommend there be policy restrictions with
respect to maturity, sector, quality and/or coupon?
G. Describe your firm's trading methodology.
H. Provide your list of approved brokers/dealers; how are brokers/dealers
monitored?
I. Describe your firm's decision -making process in terms of structure,
responsibilities and integration of research ideas and portfolio management.
J. Describe your research capabilities as they would pertain to the City of
Pittsburg's portfolio.
K. What technical analysis (if any) do you use?
L. How will the firm accommodate fluctuating cash flows and the cash
forecasting process?
V. Portfolio Manag e q_ment
A. Are portfolio's managed by teams or one individual?
B. What is the average number of accounts handled per manager?
C'
C. Primary client contact is delegated to which of your firm's professionals?
D. How frequently are you willing to meet with us?
E. Describe procedures used to ensure that portfolios comply with client
investment objectives and policies.
F. In the past 10 years, has anything happened to a portfolio that you were
responsible for that required disclosure to the governing board?
G. Within the past 10 years, has your firm purchased or held any corporate
security that was subsequently downgraded during the period it was held, to
below the minimum credit rating standards required for purchase under the
California Government Code? If so, please list the credits involved and
explain each such circumstances.
VI. Fees
A. Describe the services proposed to meet the terms of the Request for
Proposal and the proposed fee for services.
B. Identify any expenses that would not be covered by the proposed fee and
would be required to implement the proposed program.
C. Is there a minimum annual fee?
VII. Performance Reporting
A. Please describe how you typically report performance.
B. Please provide performance history, net of fees, for the past five years, for
current accounts comprised of securities with maturities, quality and sectors
similar to the City of Pittsburg's.
C. Are you willing to develop reporting procedures in line with our needs and
objectives (i.e., monthly, so as to conform to State reporting requirements to
management and governing bodies)?
D. Is confirmation of investment transactions sent directly by the broker/dealer to
the client?
7
VIII. Other Information Required in Proposal
A. Firms submitting proposals shall make a positive statement that it has the
required insurance policies in force in amounts of coverage for not less than
$5,000,000 for Professional Liability, Workers Compensation, Comprehensive
General Liability and Auto (Owned and Non -Owned). Prior to any
commencement of services, the firm selected will be required to provide
certificates of insurance coverage to the City of Pittsburg. (In the future,
depending on the portfolio size managed by the Investment Advisor, the City
may need to require more than $5,000,000 in Professional Liability Insurance.)
B. Provide proof of state registration.
C. Provide a sample or proposed contract for services.
To be considered please send five (5) copies of your proposal to the following
address, on or before 5:00 p.m. on Tuesday, August 24, 2004 (facsimiles will not
be accepted):
Pamela R. Rogers, Administrative Assistant to the Director
City of Pittsburg
Finance Department — 2"d Floor
65 Civic Avenue
Pittsburg, CA 94565-3814
Firms are encouraged to contact Marie Simons, Director of Finance at telephone (925)
252-4848 with any questions relating to this RFP. Please note Marie will be on vacation
beginning August 16 through August 23, 2004.
The City of Pittsburg reserves the right to reject any and all proposals.
Attachments: 1. Statement of Investment Policy for the City of Pittsburg
2. Cash and Investments Monthly Summary; May, 2004
3. Investment Report; March 31, 2004
4. Investment Report; June 30, 2004
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item A
Meeting Date: January 12, 2005
TITLE:
Month End Cash Report for December 2004 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.
*ohnFalconer, Finance Director
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FRB: H.15--Selected Interest Rates, Web -Only Daily Update --December 29, 2004
Page 1 of 4
Federal. Reserve Statistical Release
Ht15
Selected Interest Rates (Daily)
"kip to Content
Release Date: December 29, 2004
Weekly...release._ dates._ and announcements ( 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 through Friday
H.15 DAILY UPDATE: WEB RELEASE ONLY
For immediate release
SELECTED INTEREST RATES
December 29,
2004
Yields in percent per annum
2004
2004 2004
2004
Dec
Dec Dec
Dec
Instruments
27
28 29
30
Federal funds (effective) 1 2 3
2.24
2.24
Commercial paper 3 4 5
Nonfinancial
1-month
2.29
2-month
3-month
Financial
1-month
2.27
2.32
2-month
2.37
2.38
3-month
2.44
2.41
CDs (secondary market) 3 6
1-month
2.36
2.36
3-month
2.50
2.50
6-month
2.72
2.73
Eurodollar deposits (London) 3 7
1-month
2.35
2.35
3-month
2.47
2.47
6-month
2.70
2.70
Bank prime loan 2 3 8
5.25
5.25
Discount window primary credit 2 9
3.25
3.25
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
1.82
1.84
3-month
2.24
2.22
6-month
2.56
2.55
Treasury constant maturities
Nominal 10
1-month
1.90
1.88
3-month
2.26
2.25
6-month
2.63
2.62
1-year
2.78
2.77
2-year
3.07
3.08
3-year
3.26
3.27
5-year
3.65
3.66
7-year
3.99
4.00
10-year
4.30
4.31
http://www.federalreserve.gov/Releases/H 15/update/ 12/30/2004
FRB: H.15--Selected Interest Rates, Web -Only Daily Update --December 29, 2004
Page 2 of 4
20-year 11
Inflation -indexed
5-year
7-year
10-year
20-year
Inflation -indexed
long-term average
Interest rate swaps 14
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
Corporate bonds
Moody's seasoned
Aaa 15
Baa
State & local bonds 16
Conventional mortgages 17
12
13
See overleaf for footnotes
4.95 4.94
0.94 0.95
1.29 1.31
1.67 1.69
1.98 2.00
1.95 1.97
3.10 3.12
3.45 3.48
3.67 3.71
3.87 3.91
4.05 4.10
4.36 4.41
4.70 4.76
5.31 5.35
5.54 5.53
6.20 6.21
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). 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
(www.federalreserve.gov/releases/cp).
6. An average of dealer offering rates on nationally traded certificates of deposit.
7. Bid rates for Eurodollar deposits collected around 9:30
a.m. Eastern time.
8. 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.
9. The rate charged for discounts made and advances extended under
the Federal Reserve's primary credit discount window program, which
became effective January 9, 2003. This rate replaces that for
adjustment credit, which was discontinued after January 8, 2003. For
further information, see
4
hftp://www.federalreserve.gov/Releases/Hl 5/update/ 12/30/2004
FRB: H.15--Selected Interest Rates, Web -Only Daily Update --December 29, 2004
Page 3 of 4
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.
10. Yields on actively traded non -inflation -index issues adjusted to
constant maturities. Source: U.S. Treasury.
11. A factor for adjusting the daily nominal 20-year constant maturity in
order to estimate a 30-year rate can be found at
www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ltcompositeindey
12. Yields on Treasury inflation protected securities (TIPS)
adjusted to constant maturities. Source: U.S. Treasury.
Additional information on both nominal and inflation -indexed
yields may be found at
www.treas.gov/offices/domestic-finance/debt-management/interest-rate/index.html.
13. Based on the unweighted average bid yields for all Inflation
Protected Securities with remaining terms to maturity of more than
10 years.
14. International Swaps and Derivatives Association (ISDA(R)) 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. Eastern time by Garban Intercapital plc and published
on Reuters Page ISDAFIX(R)l. ISDAFIX is a registered service mark
of ISDA. 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 NOMINAL AND INFLATION -INDEXED
CONSTANT MATURITY SERIES
Yields on Treasury nominal securities at "constant maturity" are
interpolated by the U.S. Treasury from the daily yield curve for
non -inflation -indexed Treasury securities. 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. Similarly, yields on inflation -indexed securities at
"constant maturity" are interpolated from the daily yield curve for
Treasury inflation protected securities in the over-the-counter market.
The inflation -indexed constant maturity yields are read from this yield
curve at fixed maturities, currently 5, 7, 10, and 20 years.
Weekly...._release._ dates.._ and announcements I Historical.._ data I About
Daily update Other formats: Screen reader I ASCII
Statistical releases
Home I Economic research acid data
Accessibility I Contact__C7s
�%.... 5
http://www.federalreserve.gov/Releases/Hl 5/update/ 12/30/2004
FRB: H.15--Selected Interest Rates, Web -Only Daily Update --December 29, 2004 Page 4 of
Last update: December 29, 2004
http://www.federalreserve.gov/Releases/H 15/update/ 12/30/2004
Phil Angelides, State Treasurer Inside the State Treasurer's Office
Local Agency Investment Fund (LAIF)
PMIA Performance Report
LAIF Performance Report
Quarter Ending 09/30/04
Apportionment Rate: 1.67%
Earnings Ratio: .00004580259912957
Fair Value Factor: .998736821
PMIA Average Monthly Effective Yields
September 2004 1.771 %
October 2004 1.890%
November 2004 2.003%
Pooled Money Investment Account
Portfolio Composition
$51.4 Billion
11 /30/04
Loans Reverses
#n C^nrle 8.80% -0.19%
Corpori'
3.
Commercial Paper
17.98%
Tore De
12.3,
Treasuries
11.980/0
CD's/BNs
22.35%
;ages
14%
Agencies
22.80%
■ Treasuries
* Nlortgages
® Agencies
■ C['sBNs
O Time Depos its
® Bankers Acceptances
■ Repo
■ Commercial Paper
0 Corporate Bonds
0 Loans
■ Reverses
Recent Treasury Bill Auction Results
Pagel of 2
TreasuryDirect
Recent Treasury Bill Auction Results
Term
Issue Maturity Discount Investment
Date Date Rate % Rate %
bureow Of the
ra ��1��
PU b
28-DAY
12-30-2004 01-27-2005
1.840
1.868
91-DAY
12-30-2004 03-31-2005
2.225
2.269
182-DAY
12-30-2004 06-30-2005
2.560
2.630
Savings Bonds
28-DAY
12-23-2004 01-20-2005
1.880
1.909
•
TreasuryDrect
91-DAY
12-23-2004 03-24-2005
2.180
2.223
Accounts and
182-DAY
12-23-2004 06-23-2005
2.465
2.531
Information
28-DAY
12-16-2004 01-13-2005
1.960
1.990
Savin s Bonds
91-DAY
12-16-2004 03-17-2005
2.200
2.243
Tools
182-DAY
12-16-2004 06-16-2005
2.425
2.489
Treasury Bills,
28-DAY
12-09-2004 01-06-2005
2.050
2.082
Notes
91-DAY
12-09-2004 03-10-2005
2.210
2.253
and Bonds
182-DAY
12-09-2004 06-09-2005
2.380
2.442
Auction
8-DAY
12-07-2004 12-15-2004
1.980
2.008
Information
12-DAY
12-03-2004 12-15-2004
1.960
1.989
Electronic Services
28-DAY
12-02-2004 12-30-2004
2.035
2.067
91-DAY
12-02-2004 03-03-2005
2.195
2.238
The Public_ Debt.
182-DAY
12-02-2004 06-02-2005
2.395
2.458
14-DAY
12-01-2004 12-15-2004
1.950
1.979
SLG S
----
27-DAY
11-26-2004 12-23-2004
1.950
1.980
90-DAY
11-26-2004 02-24-2005
2.155
2.197
Government
Securities
181-DAY
11-26-2004 05-26-2005
2.365
2.427
........................... �--................
Market Regulation
23-DAY
11-23-2004 12-16-2004
1.925
1.954
5-DAY
11-18-2004 11-23-2004
1.890
1.917
Resources
................................................ -
91-DAY
11-18-2004 02-17-2005
2.075
2.115
Site Map
182-DAY
11-18-2004 05-19-2005
2.280
2.339
Search
27-DAY
11-12-2004 12-09-2004
1.900
1.929
Forms
90-DAY
11-12-2004 02-10-2005
2.045
2.084
FAQs
181-DAY
11-12-2004 05-12-2005
2.260
2.318
Contact Us
28-DAY
11-04-2004 12-02-2004
1.835
1.863
Mailing._Lists
91-DAY
11-04-2004 02-03-2005
1.950
1.987
About Us
182-DAY
11-04-2004 05-05-2005
2.140
2.193
Law and Guidance
29-DAY
10-28-2004 11-26-2004
1.760
1.787
FOIA
91-DAY
10-28-2004 01-27-2005
1.855
1.890
Privacy and Leal
182-DAY
10-28-2004 04-28-2005
2.040
2.090
Notices.
28-DAY
10-21-2004 11-18-2004
1.570
1.594
91-DAY
10-21-2004 01-20-2005
1.770
1.803
182-DAY
10-21-2004 04-21-2005
1.990
2.038
Price
Per CUSIP
$100
99.856889 912795RX1
99.437569 912795SG7
98.705778 912795SV4
99.853778 912795RW3
99.448944 912795SF9
98.753806 912795SU6
99.847556 912795RV5
99.443889 912795SE2
98.774028 912795ST9
99.840556 912795RU7
99.441361 912795SD4
98.796778 912795SS1
99.956000 912795TF8
99.934667 912795TF8
99.841722 912795RTO
99.445153 912795SC6
98.789194 912795SR3
99.924167 912795TF8
99.853750 912795RS2
99.461250 912795SB8
98.810931 912795SQ5
99.877014 912795RR4
99.973750 912795TE1
99.475486 912795SAO
98.847333 912795SP7
99.857500 912795RQ6
99.488750 912795RZ6
98.863722 912795SN2
99.857278 912795RP8
99.507083 912795RY9
98.918111 912795SM4
99.858222 912795RN3
99.531097 912795RX1
98.968667 912795SL6
99.877889 912795RM5
99.552583 912795RW3
98.993944 912795SK8
http://wwws.publicdebt.treas.gov/AI/OFBills http://wwws.publicdebt.treas.gov/AI/OFBills 12/30/2004
Recent Treasury Bill Auction Results
Page 2 of 2
29-DAY 10-14-2004 11-12-2004 1.555 1.579 99.874736 912795RL7
91-DAY 10-14-2004 01-13-2005 1.680 1.711 99.575333 912795RV5
182-DAY 10-14-2004 04-14-2005 1.955 2.002 99.011639 912795SJ1
Effective with the 11 /2/98 auction, all bills are auctioned using the single -priced
method.
Return to Auction Information Page
Updated December 30, 2004 1:00:24 PM EST
I'll": 9
http://wwws.publicdebt.treas.gov/AI/0FBills 12/30/2004
FRB:Commercial Paper Rates and Outstandings
Pagel of 4
Federal.Reserve Release
Commercial Paper
Release I About I Outstandings I Historical discount rates I Historical outstandings I Year End
-------------------------
Data as of December 29, 2004
Because of the Federal holiday on December 31, 2004, the Commercial Paper data will not be
updated again until January 3, 2005.
Commercial Paper Rates and Outstandings
Derived from data supplied by The Depository Trust Company
Trade data insufficient to support calculation of the 30-day AA nonfinancial, 60-day AA nonfinancial and 90-day AA nonfinancial rate(s) for December 29, 2004 .
Posted December 30, 2004
Discount rates
AA
AA
A2/P2
Term
financial
nonfinancial
nonfinancial
1-day 2.23 2.22 2.31
7-day 235 2.23 2.50
15-day 2.29 2.28 2.44
30-day IL2.30 ND 2.52
60-day. 2.35 ND 2.56
90.day 2.41 ND 2.66
Yield curve
http://www.federalreserve.gov/Releases/CP/
.. 10
12/30/2004
FRB:Commercial Paper Rates and Outstandings
Toney market basis
Financial
— — — Nonfinancial
........... A2
■
1 7 15 30
Days to Matunty
Discount rate spread
Percent
- n 3.0
2.�
2.6
2.4
2.2
Basis points 124
100
80
60
40
20
0
2001 2002 2003 22004
Discount rate history
Page 2 of 4
http://www.federalreserve.gov/Releases/CP/.
12/30/2004
FRB:Commercial Paper Rates and Outstandings
Page 3 of 4
Thirty -day commercial paper (daily)
2001 2002
Outstandings
Weekly (Wednesday), seasonally adjusted
Billions of dollars
1.280
1260
1240
1.220
11.700
1180
1160
1140
2001 2002
Percent
Financial
Non.t'inancral.
....Y...... A2/i Y
2003 2 D4
4
3
2
1
0
Billions of doll
290
250
21.0
1'70
130
90
2003 2004
The daily commercial paper release will usually be available before 11:00am EST. However, the Federal Reserve
makes no guarantee regarding the timing of the daily commercial paper release. When the Federal Reserve is
closed on a business day, yields for the previous business day will appear in the historical discount rates table.
This policy is subject to change at any time without notice.
Commercial paper outstanding
Commercial paper outstanding miscellaneous categories
.: 12
http://www.federalreserve.gov/Releases/CP/ 12/30/2004
FRB:Commercial Paper Rates and Outstandings
Page 4 of 4
Volume Statistics 2004 :Q3
Release I About I Outstandings I Historical discount rates I Historical outstandings I Year End
Home I Statistical releases
Accessibilitvl Contact Us
Last update: December 30, 2004
.. 13
http://www.federalreserve.gov/Releases/CP/ 12/30/2004
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�� 14
INVESTMENT ADVISORY BOARD
Meeting Date: January 12, 2005
TITLE:
Pooled Money Investment Board Report
for October 2004
BACKGROUND:
Correspondence
& Written Material Item B
The Pooled Money Investment Board Report for October 2004 is included in the
agenda packet.
RECOMMENDATION:
Receive & File
i
ohn M. Falcorier, Finance Director
Phil Angelides
October 2004
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
POOLED MONEY INVESTMENT BOARD REPORT
October 2004
TABLE OF CONTENTS
SUMMARY................................................................. 01
SELECTED INVESTMENT DATA .................................... 02
PORTFOLIO COMPOSITION ........................................ 03
INVESTMENT TRANSACTIONS ..................................... 04
TIMEDEPOSITS........................................................ 17
BANK DEMAND DEPOSITS .......................................... 28
POOLED MONEY INVESTMENT BOARD DESIGNATION... 29
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF OCTOBER 2004 WITH OCTOBER 2003
(DOLLARS IN THOUSANDS)
OCTOBER 2004 OCTOBER 2003 CHANGE
Average Daily Portfolio
$ 51,789,742 $
52,606,021 $
-816,279
Accrued Earnings
$ 83,129
71,093
+12,036
Effective Yield
1.890
1.596
+0.294
Average Life -Month End (in Days) 189 212 .23
Total Security Transactions
Amount
$
21,612,852
$
16,525,552
$
+5,087,300
Number
454
357
+97
Total Time Deposit Transactions
Amount
$
3,470,690
$
3,055,600
$
+415,090
Number
146
141
+5
Average Workday Investment Activity
$
1,254,177
$
890,052
$
+364,125
Prescribed Demand Account Balances
For Services
$
733,616
$
1,172,895
$
-439,279
For Uncollected Funds
$
129,895
$
132,732
$
-2,837
1
PHIL ANGELIDES
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
October 31, 2004
DIFFERENCE IN
PERCENT OF
PERCENT OF PORTFOLIO FROM
TYPE OF SECURITY AMOUNT PORTFOLIO PRIOR MONTH
Government
Bills $ 2,064,394 3.98 -0.88
Bonds 0 0.00 0.00
Notes 5,297,381 10.20 +1.11
Strips 0 0.00 0.00
Total Government $ 7,361,775 14.18 +0.23
Federal Agency Coupons
$ 5,009,922
9.65
+0.08
Certificates of Deposit
9,600,043
18.50
+3.03
Bank Notes
649,991
1.25
+0.86
Bankers' Acceptances
0
0.00
0
Repurchases
0
0.00
0
Federal Agency Discount Notes
7,828,653
15.08
-2.60
Time Deposits
6,291,795
12.12
-0.16
GNMAs
365
0.00
0
Commercial Paper
8,721,710
16.80
+1.32
FHLMC/Remics
341,445
0.66
-0.04
Corporate Bonds
1,657,360
3.20
-0.04
AB 55 Loans
4,444,252
8.56
-0.60
GF Loans
0
0.00
-2.08
Reversed Repurchases
0
0.00
0.00
Total (Ail Types)
$ 51,907,311
100.00
INVESTMENT ACTIVITY
Pooled Money
Other
Time Deposits
Totals
PMIA Monthly Average Effective Yield
Year to Date Yield Last Day of Month
OCTOBER 2004
NUMBER AMOUNT
454 $ 21,612,852
21 138,218
146 3,470,690
621 $ 25,221,760
1.890
1.733
K,
SEPTEMBER 2004
NUMBER AMOUNT
263 $ 12,164,106
14 59,111
176 2,885,000
453 $ 15,108,217
1.771
1.679
Commercial
Paper
16.80%
Time
Depos
12.12'
Pooled Money Investment Account
Portfolio Composition
$51.9 Billion
10/31 /04
Loans
8.56% Treasuries
Corporate 14.18%
CD's/BN's
19.75%
ages
i%o
Agencies
24.73%
Treasuries
Mortgages
Agencies
■ CD's/BN's
Time Deposits
l Bankers Acceptances
■ Repo
■ Commercial Paper
Corporate Bonds
El Loans
■ Reverses
10/01/04 SALES
FNMA 3.125% 07/15/06 2.810 50,000 65 474,373.00 5.299
10/01/04 REDEMPTIONS
CD
BNP PARIBAS
1.725%
10/01/04
1.725
50,000
7
16,770.83
1.749
CD
BNP PARIBAS
1.725%
10/01/04
1.725
50,000
7
16,770.83
1.749
CD
W/F
1.670%
10/01/04
1.670
50,000
15
34,791.67
1.693
CD
W/F
1.670%
10/01/04
1.670
50,000
15
34,791.67
1.693
CD
W/F
1.670%
10/01/04
1.670
50,000
15
34,791.67
1.693
CD
W/F
1.670%
10/01/04
1.670
50,000
15
34,791.67
1.693
CD
RB CANADA
1.330%
10/01/04
1.325
50,000
122
224,517.68
1.343
CD
RB CANADA
1.330%
10/01/04
1.325
50,000
122
224,517.68
1.343
CD
RABO
1.300%
10/01/04
1.295
50,000
129
232,024.97
1.313
CD
RABO
1.300%
10/01/04
1.295
50,000
129
232,024.97
1.313
CP
SARA LEE
10/01/04
1.770
20,000
8
7,866.67
1.795
CP
SRAC
10/01/04
1.780
25,000
10
12,361.11
1.806
CP
GECC
10/01/04
1.650
50,000
15
34,375.00
1.674
CP
GECC
10/01/04
1.650
50,000
15
34,375.00
1.674
CP
GECC
10/01/04
1.650
50,000
15
34,375.00
1.674
CP
GECC
10/01/04
1.650
50,000
15
34,375.00
1.674
CP
GECC
10/01/04
1.650
50,000
15
34,375.00
1.674
CP
GECC
10/01/04
1.650
50,000
15
34,375.00
1.674
CP
GECC
10/01/04
1.650
50,000
15
34,375.00
1.674
CP
GECC
10/01/04
1.650
50,000
15
34,375.00
1.674
CP
CHEVRON
10/01/04
1.550
50,000
16
34,444.44
1.573
CP
CHEVRON
10/01/04
1.550
50,000
16
34,444.44
1.573
CP
CHEVRON
10/01/04
1.550
50,000
16
34,444.44
1.573
CP
CHEVRON
10/01/04
1.550
50,000
16
34,444.44
1.573
CP
GMAC
10/01/04
1.660
50,000
42
96,833.33
1.686
CP
CITI GLOBAL
10/01/04
1.250
50,000
126
218,750.00
1.273
CP
CITI GLOBAL
10/01/04
1.250
50,000
126
218,750.00
1.273
CP
NCAT
10/01/04
1.280
10,000
129
45,866.67
1.304
CP
NCAT
10/01/04
1.280
50,000
129
229,333.33
1.304
CP
NCAT
10/01/04
1.280
50,000
129
229,333.33
1.304
CP
B/A
10/01/04
1.340
50,000
143
266,138.89
1.366
CP
B/A
10/01/04
1.340
50,000
143
266,138.89
1.366
CP
B/A
10/01/04
1.340
50,000
143
266,138.89
1.366
CP
B/A
10/01/04
1.340
50,000
143
266,138.89
1.366
CP
B/A
10/01/04
1.340
50,000
143
266,138.89
1.366
CP
B/A
10/01/04
1.340
50,000
143
266,138.89
1.366
CP
B/A
10/01/04
1.340
50,000
143
266,138.89
1.366
CP
B/A
10/01/04
1.340
50,000
143
266,138.89
1.366
CP
B/A
10/01/04
1.340
50,000
143
266,138.89
1.366
CP
B/A
10/01/04
1.340
50,000
143
266,138.89
1.366
DISC NOTE
FNMA
10/01/04
1.720
50,000
8
19,111.11
1.745
DISC NOTE
FNMA
10/01/04
1.720
50,000
8
19,111.11
1.745
DISC NOTE
FHLMC
10/01/04
1.500
38,162
94
149,467.83
1.527
DISC NOTE
FHLMC
10/01/04
1.500
50,000
94
195,833.33
1.527
DISC NOTE
FNMA
10/01/04
1.290
30,000
120
129,000.00
1.314
4
10/01/04 PURCHASES
FHLB
3.500%
05/15/07
3.093
50,000
10/04/04
REDEMPTIONS
CP
CITICORP
10/04/04
1.700
50,000
5
11,805.56
1.724
CP
CITICORP
10/04/04
1.700
50,000
5
11,805.56
1.724
CP
GECC
10/04/04
1.250
50,000
157
272,569.44
1.274
CP
GECC
10/04/04
1.250
50,000
157
272,569.44
1.274
CP
GECC
10/04/04
1.250
50,000
158
274,305.56
1.274
CP
GECC
10/04/04
1.250
50,000
158
274,305.56
1.274
CP
GECC
10/04/04
1.250
50,000
158
274,305.56
1.274
CP
GECC
10/04/04
1.250
50,000
158
274,305.56
1.274
10/04/04
NO PURCHASES
10/05/04
REDEMPTIONS
CP
CITI GLOBAL
10/05/04
1.750
50,000
12
29,166.67
1.775
CP
CITI GLOBAL
10/05/04
1.750
50,000
12
29,166.67
1.775
10/06/04
PURCHASES
CD
CIBC
2.050%
03/11/05
2.050
10,000
CD
CIBC
2.050%
03/11/05
2.050
50,000
CD
BNP PARIBAS
2.075%
03/14/05
2.075
50,000
CD
BNP PARIBAS
2.075%
03/14/05
2.075
50,000
CP
TEXT FIN
12/01/04
1.900
25,000
CP
TEXT FIN
12/02/04
1.920
15,000
CP
SARA LEE
12/20/04
1.930
50,000
CP
SARA LEE
12/20/04
1.930
50,000
10/06/04
NO REDEMPTIONS
10/06/04
PURCHASES
BN
B/A
1.900%
12/20/04
1.900
50,000
BN
B/A
1.900%
12/20/04
1.900
50,000
BN
B/A
1.900%
12/20/04
1.900
50,000
BN
B/A
1.950%
01/03/05
1.950
50,000
BN
B/A
1.950%
01/03/05
1.950
50,000
BN
B/A
1.950%
01/03/05
1.950
50,000
BN
WORLD
1.930%
01/03/05
1.950
50,000
BN
WORLD
1.930%
01/03/05
1.950
50,000
BN
WORLD
1.930%
01/03/05
1.950
50,000
CD
UBS
1.875%
12/10/04
1.875
50,000
CD
UBS
1.875%
12/10/04
1.875
50,000
CD
UBS
1.875%
12/10/04
1.875
50,000
CD
HSBC
1.860%
12/13/04
1.860
50,000
CD
HSBC
1.860%
12/13/04
1.860
50,000
CD
W/F
1.870%
12/13/04
1.870
50,000
5
10/06/04 PURCHASES (continued)
CD
W/F
1.870%
12/13/04
1.870
50,000
CD
RB SCOT
1.860%
12/14/04
1.860
50,000
CD
RB SCOT
1.860%
12/14/04
1.860
50,000
CD
CIBC
1.880%
12/20/04
1.880
50,000
CD
CIBC
1.880%
12/20/04
1.880
50,000
CD
MONTREAL
1.890%
12/20/04
1.890
50,000
CD
MONTREAL
1.890%
12/20/04
1.890
50,000
CD
MONTREAL
1.890%
12/20/04
1.890
50,000
CD
CALYON
1.890%
12/20/04
1.890
50,000
CD
CALYON
1.890%
12/20/04
1.890
50,000
CD
CALYON
1.890%
12/20/04
1.890
50,000
CD
US BANK
1.890%
12/29/04
1.890
50,000
CD
US BANK
1.890%
12/29/04
1.890
50,000
CD
US BANK
1.890%
12/29/04
1.890
50,000
CD
U/B CALIF
1.890%
12/29/04
1.890
50,000
CD
U/B CALIF
1.890%
12/29/04
1.890
50,000
CD
DANSKE
1.900%
12/29/04
1.900
50,000
CD
DANSKE
1.900%
12/29/04
1.900
50,000
CD
CIBC
1.910%
12/29/04
1.910
50,000
CD
CIBC
1.910%
12/29/04
1.910
50,000
CD
STNRD CH
1.910%
01/03/05
1.910
50,000
CD
WASHINGTON
2.030%
02/01/05
2.030
50,000
CD
WASHINGTON
2.030%
02/01/05
2.030
50,000
CD
TORONTO
2.020%
02/01/05
2.020
50,000
CD
TORONTO
2.020%
02/01/05
2.020
50,000
CD
BARCLAYS
2.040%
03/07/05
2.035
50,000
CD
BARCLAYS
2.040%
03/07/05
2.035
50,000
CD
RABOBANK
2.040%
03/08/05
2.035
50,000
CD
RABOBANK
2.040%
03/08/05
2.035
50,000
CD
RABOBANK
2.040%
03/08/05
2.035
50,000
CD
RABOBANK
2.040%
03/08/05
2.035
50,000
CD
LLOYDS
2.060%
03/14/05
2.060
50,000
CD
LLOYDS
2.060%
03/14/05
2.060
50,000
CD
CALYON
2.070%
03/14/05
2.070
50,000
CD
CALYON
2.070%
03/14/05
2.070
50,000
CD
FORTIS
2.055%
03/18/05
2.050
50,000
CD
FORTIS
2.055%
03/18/05
2.050
50,000
CD
RB SCOT
2.060%
03/21/05
2.060
50,000
CD
RB SCOT
2.060%
03/21/05
2.060
50,000
CD
SVENSKA
2.103%
03/28/05
2.100
50,000
CD
SVENSKA
2.103%
03/28/05
2.100
50,000
CD
SVENSKA
2.103%
03/28/05
2.100
50,000
CD
SVENSKA
2.103%
03/28/05
2.100
50,000
CID
LEHMAN
10/12/04
1.750
50,000
CID
LEHMAN
10/12/04
1.750
50,000
CID
LEHMAN
10/12/04
1.750
50,000
CID
LEHMAN
10/12/04
1.750
50,000
CP
CITI GLOBAL
03/01/05
2.000
50,000
CID
CITI GLOBAL
03/01/05
2.000
50,000
CID
CITI GLOBAL
03/01/05
2.000
50,000
6
10/06/04 PURCHASES (continued)
CP
CITI GLOBAL
03/01/05
2.000
50,000
CID
CITI GLOBAL
03/02/05
2.000
50,000
CID
CITI GLOBAL
03/02/05
2.000
50,000
CID
PFIZER
03/03/05
2.030
30,500
DISC NOTE
FHLB
03/28/05
1.960
25,000
DISC NOTE
FHLB
03/28/05
1.960
50,000
TREAS
BILL
03/31/05
1.935
50,000
TREAS
BILL
03/31/05
1.935
50,000
TREAS
BILL
03/31/05
1.935
50,000
TREAS
BILL
03/31/05
1.935
50,000
TREAS
BILL
03/31/05
1.938
50,000
TREAS
BILL
03/31/05
1.938
50,000
TREAS
BILL
03/31/05
1.938
50,000
TREAS
BILL
03/31/05
1.938
50,000
TREAS
BILL
03/31/05
1.945
50,000
TREAS
BILL
03/31/05
1.945
50,000
TREAS
BILL
03/31/05
1.945
50,000
TREAS
BILL
03/31/05
1.945
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
TREAS
NOTES
2.500%
09/30/06
2.650
50,000
FHLB
3.000%
05/15/06
2.730
50,000
FHLB
3.000%
05/15/06
2.730
50,000
FHLB
3.500%
05/15/07
3.110
48,700
FHLB
3.500%
05/15/07
3.110
50,000
FHLB
3.500%
05/15/07
3.110
50,000
FHLB
3.500%
05/15/07
3.110
50,000
10/07/04 NO REDEMPTIONS
10/07/04 PURCHASES
CID
NCAT
10/08/04
1.760
50,000
CID
NCAT
10/08/04
1.760
50,000
CID
NCAT
10/08/04
1.760
50,000
CID
NCAT
10/08/04
1.760
50,000
DISC NOTE
FHLB
03/28/05
2.040
50,000
DISC NOTE
FHLB
03/28/05
2.040
50,000
7
10/08/04 REDEMPTIONS
CD
MONTREAL
1.310%
10/08/04
1.310
50,000
150
272,916.67
1.328
CD
MONTREAL
1.310%
10/08/04
1.310
50,000
150
272,916.67
1.328
CD
MONTREAL
1.310%
10/08/04
1.310
50,000
150
272,916.67
1.328
CD
NOVA SCOT
1.310%
10/08/04
1.310
50,000
150
272,916.67
1.328
CD
NOVA SCOT
1.310%
10/08/04
1.310
50,000
150
272,916.67
1.328
CD
NOVA SCOT
1.310%
10/08/04
1.310
50,000
150
272,916.67
1.328
CD
SOC GEN
1.310%
10/08/04
1.310
50,000
150
272,916.67
1.328
CD
SOC GEN
1.310%
10/08/04
1.310
50,000
150
272,916.67
1.328
CD
SOC GEN
1.310%
10/08/04
1.310
50,000
150
272,916.67
1.328
CP
NCAT
10/08/04
1.760
50,000
1
2,444.44
1.785
CP
NCAT
10/08/04
1.760
50,000
1
2,444.44
1.785
CP
NCAT
10/08/04
1.760
50,000
1
2,444.44
1.785
CP
NCAT
10/08/04
1.760
50,000
1
2,444.44
1.785
CP
GECC
10/08/04
1.330
50,000
150
277,083.33
1.356
CP
GECC
10/08/04
1.330
50,000
150
277,083.33
1.356
CP
GECC
10/08/04
1.330
50,000
150
277,083.33
1.356
CP
GECC
10/08/04
1.330
50,000
150
277,083.33
1.356
10/08/04 PURCHASES
CP
W/F
10/12/04
1.710
50,000
CP
W/F
10/12/04
1.710
50,000
CP
W/F
10/12/04
1.710
50,000
CP
W/F
10/12/04
1.710
50,000
CP
W/F
10/13/04
1.710
50,000
CP
W/F
10/13/04
1.710
50,000
CP
SARA LEE
10/20/04
1.780
30,000
CP
GECC
10/20/04
1.740
40,000
DISC NOTE
FHLB
10/20/04
1.710
29,762
10/12/04 REDEMPTIONS
CP
W/F
10/12/04
1.710
50,000
4
9,500.00
1.734
CP
W/F
10/12/04
1.710
50,000
4
9,500.00
1.734
CP
W/F
10/12/04
1.710
50,000
4
9,500.00
1.734
CP
W/F
10/12/04
1.710
50,000
4
9,500.00
1.734
CP
LEHMAN
10/12/04
1.750
50,000
6
14,583.33
1.775
CP
LEHMAN
10/12/04
1.750
50,000
6
14,583.33
1.775
CP
LEHMAN
10/12/04
1.750
50,000
6
14,583.33
1.775
CP
LEHMAN
10/12/04
1.750
50,000
6
14,583.33
1.775
DISC NOTE
FHLMC
10/12/04
1.295
25,000
137
123,204.86
1.319
10/12/04 PURCHASES
CP
BEAR
03/01/05
2.040
50,000
CP
BEAR
03/01/05
2.040
50,000
CP
BEAR
03/01/05
2.040
50,000
CP
BEAR
03/01/05
2.040
50,000
CP
HOUSEHOLD
03/14/05
2.060
50,000
CP
HOUSEHOLD
03/14/05
2.060
50,000
8
10/12/04 PURCHASES (continued)
CID
HOUSEHOLD
03/14/05
2.060
50,000
CID
HOUSEHOLD
03/14/05
2.060
50,000
10/13/04
REDEMPTIONS
CID
W/F
10/13/04
1.710
50,000
5
11,875.00
1.734
CID
W/F
10/13/04
1.710
50,000
5
11,875.00
1.734
CID
GECC
10/13/04
1.330
50,000
155
286,319.44
1.356
CID
GECC
10/13/04
1.330
50,000
155
286,319.44
1.356
DISC NOTE
FNMA
10/13/04
1.320
25,000
142
130,166.67
1.345
DISC NOTE
FNMA
10/13/04
1.320
50,000
142
260,333.33
1.345
DISC NOTE
FNMA
10/13/04
1.320
50,000
142
260,333.33
1.345
DISC NOTE
FNMA
10/13/04
1.320
50,000
142
260,333.33
1.345
10/13/04
PURCHASES
CID
BEAR
12/14/04
1.890
50,000
CID
BEAR
12/14/04
1.890
50,000
CID
BEAR
12/14/04
1.890
50,000
10/14/04
NO REDEMPTIONS
10/14/04
PURCHASES
CID
SARA LEE
12/01/04
1.870
26,000
CID
CITI GLOBAL
12/01/04
1.850
35,000
CID
CITI GLOBAL
12/01/04
1.850
50,000
FHLB
3.000%
05/15/06
2.750
9,715
FHLB
2.750%
05/15/06
2.750
27,950
FHLB
3.000%
05/15/06
2.750
50,000
10/16/04
REDEMPTIONS
FHLB
3.625%
10/15/04
3.689
20,000
1107
2,233,752.78
3.699
FHLB
3.625%
10/15/04
3.689
20,000
1107
2,233,752.78
3.699
FHLB
3.625%
10/15/04
3.675
50,000
1107
5,565,881.94
3.686
FHLB
3.625%
10/15/04
3.675
50,000
1107
5,565,881.94
3.686
FHLB
3.625%
10/15/04
3.689
50,000
1107
5,584,381.94
3.699
FHLB
3.625%
10/15/04
3.689
50,000
1107
5,584,381.94
3.699
FHLB
3.625%
10/15/04
3.689
50,000
1107
5,584,381.94
3.699
10/15/04
PURCHASES
BN
WORLD
1.850%
12/01/04
1.860
50,000
BN
WORLD
1.850%
12/01/04
1.860
50,000
CD
W/F
1.870%
12/01/04
1.870
50,000
CD
W/F
1.870%
12/01/04
1.870
50,000
CD
W/F
1.870%
12/01/04
1.870
50,000
CD
W/F
1.870%
12/01/04
1.870
50,000
CID
HOUSEHOLD
10/20/04
1.810
50,000
9
10/15/04 PURCHASES (continued)
CID HOUSEHOLD 10/20/04 1.810 50,000
CID HOUSEHOLD 12/02/04 1.850 50,000
10/18/04 REDEMPTIONS
CID
GECC
10/18/04
1.330
50,000
160
295,555.56
1.356
CID
GECC
10/18/04
1.330
50,000
160
295,555.56
1.356
DISC NOTE
FHLMC
10/18/04
1.315
48,000
143
250,726.67
1.340
DISC NOTE
FHLMC
10/18/04
1.315
50,000
143
261,173.61
1.340
10/18/04 NO PURCHASES
10/19/04 NO REDEMPTIONS
10/19/04 NO PURCHASES
10/20/04 REDEMPTIONS
CID
HOUSEHOLD
10/20/04
1.810
50,000
5
12,569.44
1.836
CID
HOUSEHOLD
10/20/04
1.810
50,000
5
12,569.44
1.836
CID
SARA LEE
10/20/04
1.780
30,000
12
17,800.00
1.806
CID
GECC
10/20/04
1.740
40,000
12
23,200.00
1.765
CID
NCAT
10/20/04
1.390
10,000
141
54,441.67
1.417
CID
NCAT
10/20/04
1.390
50,000
141
272,208.33
1.417
CID
GECC
10/20/04
1.330
50,000
162
299,250.00
1.357
CID
GECC
10/20/04
1.330
50,000
.162
299,250.00
1.357
CID
GECC
10/20/04
1.330
50,000
162
299,250.00
1.357
CID
GECC
10/20/04
1.330
50,000
162
299,250.00
1.357
DISC NOTE
FHLB
10/20/04
1.710
29,762
12
16,964.34
1.734
DISC NOTE
FHLMC
10/20/04
1.330
40,000
141
208,366.67
1.355
DISC NOTE
FHLMC
10/20/04
1.330
50,000
141
260,458.33
1.355
DISC NOTE
FNMA
10/20/04
1.295
45,000
161
260,618.75
1.321
DISC NOTE
FHLMC
10/20/04
1.260
50,000
161
281,750.00
1.285
DISC NOTE
FHLMC
10/20/04
1.260
50,000
161
281,750.00
1.285
DISC NOTE
FNMA
10/20/04
1.295
50,000
161
289,576.39
1.321
DISC NOTE
FNMA
10/20/04
1.305
5,000
163
29,543.75
1.331
DISC NOTE
FNMA
10/20/04
1.305
50,000
163
295,437.50
1.331
DISC NOTE
FNMA
10/20/04
1.305
50,000
163
295,437.50
1.331
10/20/04 PURCHASES
CB
PROCTOR
4.750% 06/15/07 .
3.000
25,000
CID
CITICORP
11/01/04
1.780
24,000
CID
CITICORP
11/01/04
1.780
50,000
CID
W/F
11/01/04
1.760
50,000
CID
W/F
11/01/04
1.760
50,000
CID
W/F
11/02/04
1.760
50,000
CID
W/F
11 /02/04
1.760
50,000
10
10/21/04 NO REDEMPTIONS
10/21/04 PURCHASES
CD
ABN AMRO
2.070%
03/28/05
2.070
50,000
CD
ABN AMRO
2.070%
03/28/05
2.070
50,000
CD
WASHINGTON
2.130%
03/28/05
2.130
50,000
CD
WASHINGTON
2.130%
03/28/05
2.130
50,000
CD
RABO
2.080%
03/28/05
2.070
50,000
CD
RABO
2.080%
03/28/05
2.070
50,000
CD
UBS
2.090%
03/30/05
2.080
50,000
CD
UBS
2.090%
03/30/05
2.080
50,000
CD
ANZ
2.100%
03/30/05
2.100
50,000
CD
ANZ
2.100%
03/30/05
2.100
50,000
CD
SOC GEN
2.070%
03/30/05
2.070
50,000
CD
SOC GEN
2.070%
03/30/05
2.070
50,000
CD
SOC GEN
2.070%
03/30/05
2.070
50,000
CD
SOC GEN
2.070%
03/30/05
2.070
50,000
CP
NCAT
11/01/04
1.730
50,000
CP
NCAT
11/01/04
1.730
50,000
CP
NCAT
11/01/04
1.730
50,000
CP
NCAT
11/01/04
1.730
50,000
CP
NCAT
11/02/04
1.730
50,000
CP
NCAT
11/02/04
1.730
50,000
CP
NCAT
11/02/04
1.730
50,000
CP
NCAT
11/02/04
1.730
50,000
CP
CITICORP
11/08/04
1.780
50,000
CP
CITICORP
11/08/04
1.780
50,000
10/22/04 NO REDEMPTIONS
10/22/04 NO PURCHASES
10/26/04 NO REDEMPTIONS
10/25/04 PURCHASES
CP
NCAT
10/27/04
1.750
50,000
CP
NCAT
10/27/04
1.750
50,000
CP
CITI GLOBAL
10/29/04
1.750
50,000
CP
CITI GLOBAL
10/29/04
1.750
50,000
CP
CITI GLOBAL
10/29/04
1.750
50,000
CP
CITI GLOBAL
10/29/04
1.750
50,000
10/26/04 NO REDEMPTIONS
10/26/04 PURCHASES
CP
GECC
10/27/04
1.750
25,000
CP
COUNTRY
10/27/04
1.770
50,000
CP
COUNTRY
10/27/04
1.770
50,000
CP
GECC
10/27/04
1.750
50,000
11
10/26/04 PURCHASES (continued)
CID GECC
CID NCAT
CID NCAT
10/27/04 REDEMPTIONS
10/27/04 1.750 50,000
10/27/04 1.740 50,000
10/27/04 1.740 50,000
CD
ABN AMRO
1.235%
10/27/04
1.230
50,000
181
309,216.06
1.247
CD
ABN AMRO
1.235%
10/27/04
1.230
50,000
181
309,216.06
1.247
CD
ANZ
1.240%
10/27/04
1.240
50,000
181
311,722.22
1.257
CD
ANZ
1.240%
10/27/04
1.240
50,000
181
311,722.22
1.257
CD
DEXIA
1.250%
10/27/04
1.245
50,000
181
312,986.98
1.262
CD
DEXIA
1.250%
10/27/04
1.245
50,000
181
312,986.98
1.262
CD
HSBC
1.260%
10/27/04
1.255
50,000
181
315,500.94
1.272
CD
HSBC
1.260%
10/27/04
1.255
50,000
181
315,500.94
1.272
CD
LLOYDS
1.240%
10/27/04
1.240
50,000
181
311,722.22
1.257
CD
LLOYDS
1.240%
10/27/04
1.240
50,000
181
311,722.22
1.257
CD
LLOYDS
1.240%
10/27/04
1.240
50,000
181
311,722.22
1.257
CD
LLOYDS
1.240%
10/27/04
1.240
50,000
181
311,722.22
1.257
CD
MONTREAL
1.220%
10/27/04
1.220
50,000
181
306,694.44
1.237
CD
MONTREAL
1.220%
10/27/04
1.220
50,000
181
306,694.44
1.237
CD
MONTREAL
1.220%
10/27/04
1.220
50,000
181
306,694.44
1.237
CD
RB CANADA
1.220%
10/27/04
1.215
50,000
181
305,445.13
1.232
CD
RB CANADA
1.220%
10/27/04
1.215
50,000
181
305,445.13
1.232
CD
RB CANADA
1.220%
10/27/04
1.215
50,000
181
305,445.13
1.232
CD
RB SCOT
1.245%
10/27/04
1.240
50,000
181
311,730.01
1.257
CD
RB SCOT
1.245%
10/27/04
1.240
50,000
181
311,730.01
1.257
CD
ABN AMRO
1.220%
10/27/04
1.210
50,000
183
307,557.33
1.227
CD
ABN AMRO
1.220%
10/27/04
1.210
50,000
183
307,557.33
1.227
CD
CIBC
1.220%
10/27/04
1.220
50,000
183
310,083.33
1.237
CD
CIBC
1.220%
10/27/04
1.220
50,000
183
310,083.33
1.237
CD
RABO
1.220%
10/27/04
1.210
50,000
183
307,557.33
1.227
CD
RABO
1.220%
10/27/04
1.210
50,000
183
307,557.33
1.227
CD
RB CANADA
1.220%
10/27/04
1.215
50,000
183
308,820.30
1.232
CD
RB CANADA
1.220%
10/27/04
1.215
50,000
183
308,820.30
1.232
CID
COUNTRY
10/27/04
1.770
50,000
1
2,458.33
1.795
CID
COUNTRY
10/27/04
1.770
50,000
1
2,458.33
1.795
CID
GECC
10/27/04
1.750
25,000
1
1,215.28
1.774
CID
GECC
10/27/04
1.750
50,000
1
2,430.56
1.774
CID
GECC
10/27/04
1.750
50,000
1
2,430.56
1.774
CID
NCAT
10/27/04
1.740
25,000
1
1,208.33
1.764
CID
NCAT
10/27/04
1.740
50,000
1
2,416.67
1.764
CID
NCAT
10/27/04
1.750
50,000
2
4,861.11
1.774
CID
NCAT
10/27/04
1.750
50,000
2
4,861.11
1.774
DISC NOTE
FNMA
10/27/04
1.300
50,000
159
287,083.33
1.326
DISC NOTE
FNMA
10/27/04
1.225
50,000
181
307,951.39
1.250
DISC NOTE
FNMA
10/27/04
1.225
50,000
181
307,951.39
1.250
DISC NOTE
FNMA
10/27/04
1.225
50,000
181
307,951.39
1.250
DISC NOTE
FNMA
10/27/04
1.225
50,000
181
307,951.39
1.250
DISC NOTE
FNMA
10/27/04
1.225
50,000
181
307,951.39
1.250
DISC NOTE
FNMA
10/27/04
1.225
11,887
181
73,212.36
1.250
12
10/27/04 REDEMPTIONS (continued)
DISC NOTE
FNMA
10/27/04
1.220
50,000
182
308,388.89
1.245
DISC NOTE
FNMA
10/27/04
1.220
50,000
182
308,388.89
1.245
DISC NOTE
FNMA
10/27/04
1.220
50,000
182
308,388.89
1.245
DISC NOTE
FNMA
10/27/04
1.220
50,000
182
308,388.89
1.245
10/27/04 NO PURCHASES
10/28/04 REDEMPTIONS
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
TREAS
BILL
10/28/04
1.130
50,000
182
285,638.89
1.152
10/28/04 PURCHASES
CD
LLOYDS
2.060%
01/27/05
2.060
50,000
CD
LLOYDS
2.060%
01/27/05
2.060
50,000
CD
RB SCOT
2.060%
01/27/05
2.060
50,000
CD
RB SCOT
2.060%
01/27/05
2.060
50,000
CD
BARCLAYS
2.175%
03/28/05
2.170
50,000
CD
BARCLAYS
2.175%
03/28/05
2.170
50,000
CD
BARCLAYS
2.175%
03/28/05
2.170
50,000
CD
BARCLAYS
2.175%
03/28/05
2.170
50,000
CD
WASHINGTON
2.170%
03/28/05
2.170
50,000
CD
WASHINGTON
2.170%
03/28/05
2.170
50,000
CID
BEAR
01/27/05
2.070
50,000
CID
BEAR
01/27/05
2.070
50,000
CID
FCAR
02/16/05
2.100
35,000
CID
FCAR
02/16/05
2.100
50,000
CID
B/A
03/01/05
2.130
50,000
CID
B/A
03/01/05
2.130
50,000
CID
B/A
03/01/05
2.130
50,000
CID
B/A
03/01/05
2.130
50,000
13
10/28/04 PURCHASES (continued)
CID
CITI GLOBAL
03/01/05
2.150
50,000
CP
CITI GLOBAL
03/01/05
2.150
50,000
CID
FCAR
03/02/05
2.120
50,000
CID
FCAR
03/02/05
2.120
50,000
CID
FCAR
03/02/05
2.120
50,000
CID
FCAR
03/02/05
2.120
50,000
DISC NOTE
FHLMC
03/01/05
2.060
1,000
DISC NOTE
FHLMC
03/01/05
2.060
50,000
DISC NOTE
FHLMC
03/01/05
2.060
50,000
FR
SBA
2.050% 10/25/29
2.050
15,955
10/28/04 PURCHASES c/
DISC NOTE
FNMA
04/06/05
1.780
6,085
DISC NOTE
FNMA
04/06/05
1.780
50,000
DISC NOTE
FNMA
04/06/05
1.780
50,000
DISC NOTE
FNMA
04/06/05
1.780
50,000
DISC NOTE
FNMA
04/06/05
1.780
50,000
10/29/04 REDEMPTIONS
BN
BANC ONE
1.260% 10/29/04
1.260
50,000
183
320,250.00
1.278
BN
BANC ONE
1.260% 10/29/04
1.260
50,000
183
320,250.00
1.278
CID
CITI GLOBAL
10/29/04
1.750
50,000
4
9,722.22
1.775
CID
CITI GLOBAL
10/29/04
1.750
50,000
4
9,722.22
1.775
CID
CITI GLOBAL
10/29/04
1.750
50,000
4
9,722.22
1.775
CID
CITI GLOBAL
10/29/04
1.750
50,000
4
9,722.22
1.775
10/29/04 SALES c/
DISC NOTE
FNMA
04/06/05
1.780
6,085
1
292.12
1.804
DISC NOTE
FNMA
04/06/05
1.780
50,000
1
2,399.19
1.804
DISC NOTE
FNMA
04/06/05
1.780
50,000
1
2,399.19
1.804
DISC NOTE
FNMA
04/06/05
1.780
50,000
1
2,399.19
1.804
DISC NOTE
FNMA
04/06/05
1.780
50,000
1
2,399.19
1.804
10/29/04 PURCHASES
FHLB
2.750% 12/15/06
2.820
50,000
CID
GECC
11/01/04
1.830
50,000
CID
GECC
11/01/04
1.830
50,000
CID
GECC
11/01/04
1.830
50,000
CID
GECC
11/01/04
1.830
50,000
CID
GECC
11/01/04
1.830
50,000
CID
GECC
11/01/04
1.830
50,000
CID
GECC
11/01/04
1.830
50,000
CID
W/F
11/01/04
1.810
50,000
CID
W/F
11/01/04
1.810
50,000
CID
W/F
11/01/04
1.810
50,000
CID
W/F
11/01/04
1.810
50,000
14
10/29/04 PURCHASES (continued)
CP
W/F
11/01/04
1.810
50,000
CP
CITI GLOBAL
11/02/04
1.820
50,000
CP
CITI GLOBAL
11/02/04
1.820
50,000
CP
CITI GLOBAL
11/02/04
1.820
50,000
CP
CITI GLOBAL
11/02/04
1.820
50,000
CD
CIBC
2.160% 03/30/05
2.160
50,000
CD
CIBC
2.160% 03/30/05
2.160
50,000
10/31/04 REDEMPTIONS
TREAS
NOTES
2.125%
10/31/04
2.060
50,000
706
1,990,731.43
2.060
TREAS
NOTES
2.125%
10/31/04
2.030
50,000
709
1,970,584.43
2.030
TREAS
NOTES
2.125%
10/31/04
2.030
50,000
709
1,970,584.43
2.030
TREAS
NOTES
2.125%
10/31/04
1.851
50,000
724
1,838,829.42
1.850
TREAS
NOTES
2.125%
10/31/04
1.851
50,000
724
1,838,829.42
1.850
15
a/ The abbreviations indicate the type of security purchased or sold;
i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes
and Participation Certificates: Federal National Mortgage Association
(FNMA), Farmers Home Administration Notes (FHA), Student Loan
Marketing Association (SLMA), Small Business Association (SBA),
Negotiable Certificates of Deposit (CD), Negotiable Certificates of
Deposit Floating Rate (CD FR), Export Import Notes (EXIM),
Bankers Acceptances (BA), Commercial Paper (CP), Government
National Mortgage Association (GNMA), Federal Home Loan Bank
Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan
Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC),
Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount
Notes (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.
e/ Securities were purchased and sold as of the same date.
f/ Repurchase Agreement against Reverse Repurchase Agreement.
g/ Outright purchase against Reverse Repurchase Agreement.
h/ Security "SWAP" transactions.
it Buy back agreement.
RRS Reverse Repurchase Agreement.
RRP Termination of Reverse Repurchase Agreement.
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
ALHAMBRA
The Bank of East Asia (USA)
08/11/04
1.750
3,000,000.00
02/09/05
The Bank of East Asia (USA)
08/18/04
1.820
6,000,000.00
02/16/05
The Bank of East Asia (USA)
10/14/04
2.050
3,095,000.00
04/14/05
Omni Bank
08/13/04
1.490
2,000,000.00
11/12/04
Omni Bank
08/20/04
1.520
4,000,000.00
11/19/04
Omni Bank
05/27/04
1.450
2,000,000.00
11/23/04
Omni Bank
08/25/04
1.560
2,000,000.00
12/01/04
Omni Bank
09/03/04
1.640
6,000,000.00
12/10/04
Omni Bank
09/15/04
1.710
2,000,000.00
12/17/04
Omni Bank
10/01/04
1.770
2,000,000.00
01/07/05
ARROYO GRANDE
Mid State Bank and Trust
05/19/04
1.380
5,000,000.00
11/17/04
Mid State Bank and Trust
06/11/04
1.670
5,000,000.00
12/10/04
Mid State Bank and Trust
07/15/04
1.740
5,000,000.00
01/13/05
Mid State Bank and Trust
08/11/04
1.730
5,000,000.00
02/09/05
Mid State Bank and Trust
09/09/04
1.930
5,000,000.00
03/10/05
Mid State Bank and Trust
10/13/04
2.050
5,000,000.00
04/13/05
BREA
Jackson Federal Bank
08/18/04
1.510
10,000,000.00
11/18/04
Pacific Western National'Bank
08/04/04
1.080
4,000,000.00
02/02/05
CALABASAS
First Bank of Beverly Hills FSB
05106/04
1.230
10,000,000.00
11/04/04
First Bank of Beverly Hills FSB
06/16/04
1.770
10,000,000.00
12/15/04
First Bank of Beverly Hills FSB
09/02/04
1.850
10,000,000.00
03/03/05
CAMARILLO
First California Bank
06/09/04
1.570
2,000,000.00
12/03/04
First California Bank
06/04/04
1.500
2,000,000.00
12/03/04
First California Bank
07/28/04
1.810
6,000,000.00
01/26/05
First California Bank
09/22/04
1.960
6,000,000.00
03/23/05
CAMERON PARK
Western Sierra National Bank
07/14/04
1.660
7,000,000.00
01/12/05
Western Sierra National Bank
10/06/04
2.030
10,000,000.00
04/06/05
17
NAME
CHATSWORTH
Premier America Credit Union
Premier America Credit Union
Premier America Credit Union
CHICO
Tri Counties Bank
CITY OF INDUSTRY
EverTrust Bank
EverTrust Bank
CONCORD
Bank of the West
Bank of the West
Bank of the West
Bank of the West
DUBLIN
Operating Engineers Local #3 FCU
Operating Engineers Local #3 FCU
Operating Engineers Local #3 FCU
EL CENTRO
Valley Independent Bank
Valley Independent Bank
Valley Independent Bank
Valley Independent Bank
EL SEGUNDO
First Coastal Bank, N.A.
First Coastal Bank, N.A.
First Coastal Bank, N.A.
Xerox Federal Credit Union
Xerox Federal Credit Union
Xerox Federal Credit Union
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
05/12/04 1.360 10,000,000.00 11 /10/04
09/22/04 1.770 10,000,000.00 01/06/05
10/20/04 1.820 10,000,000.00 01/19/05
09/16/04 1.700 20,000,000.00 12/16/04
09/10/04 1.710 6,000,000.00 12/10/04
10/28/04 2.120 6,000,000.00 04/28/05
08/20/04
1.520
242,000,000.00
11/19/04
09/16/04
1.710
82,000,000.00
12/16/04
10/08/04
1.780
134,000,000.00
01/14/05
10/29/04
1.950
176,500,000.00
01/28/05
06/11 /04
1.650
10,000,000.00
12/10/04
08/11/04
1.710
5,000,000.00
02/09/05
10/06/04
2.030
5,000,000.00
04/06/05
09/29/04
1.800
20,000,000.00
01/07/05
10/15/04
1.790
20,000,000.00
01/14/05
10/15/04
1.790
27,500,000.00
01/14/05
10/22/04
1.890
32,500,000.00
01/21/05
09/01/04
1.620
2,000,000.00
12/01/04
09/17/04
1.720
5,000,000.00
12/17/04
07/21/04
1.720
2,000,000.00
01/20/05
05/20/04
1.400
20,000,000.00
11/17/04
09/02/04
1.670
20,000,000.00
12/02/04
09/09/04
1.940
7,000,000.00
03/14/05
18
NAME
FAIRFIELD
WestAmerica Bank
WestAmerica Bank
WestAmerica Bank
FRESNO
United Security Bank
FULLERTON
Fullerton Community Bank
Fullerton Community Bank
GOLETA
Pacific Capital Bank, N.A.
Pacific Capital Bank, N.A.
Pacific Capital Bank, N.A.
Pacific Capital Bank, N.A.
GRANADA HILLS
First State Bank of California
First State Bank of California
IRVINE
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
LA JOLLA
Silvergate Bank
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
08/16/04
1.490
50,000,000.00
11/17/04
10/08/04
1.750
60,000,000.00
01/06/05
10/14/04
1.730
65,000,000.00
01/14/05
10/20/04
2.070
40,000,000.00
04/20/05
05/19/04
1.390
9,000,000.00
11/17/04
07/23/04
1.770
8,000,000.00
01/21/05
06/09/04
1.560
85,000,000.00
08/13/04
1.750
11,000,000.00
08/13/04
1.750
61,000,000.00
10/01/04
2.040
78,000,000.00
09/17/04
1.930
2,000,000.00
10/21/04
2.100
3,000,000.00
07/29/04
08/05/04
07/30/04
08/18/04
09/15/04
08/26/04
08/19/04
09/29/04
10/14/04
09/10/04
19
1.560
10,000,000.00
1.540
15,000,000.00
1.560
20,000,000.00
1.470
45,000,000.00
1.680
10,000,000.00
1.550
14,000,000.00
1.590
15,000,000.00
1.780
60,000,000.00
1.730
105,000,000.00
12/08/04
02/11 /05
02/11 /05
04/01 /05
03/18/05
04/21 /05
11/17/04
11/17/04
11/17/04
11/17/04
12/15/04
12/15/04
12/15/04
01 /07/05
01/14/05
1.740 5,000,000.00 12/10/04
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
O
Bank of Lodi, N.A.
06/17/04
1.760
5,000,000.00
12/16/04
Bank of Lodi, N.A.
09/22/04
1.960
5,000,000.00
03/23/05
Farmers & Merchants Bk Cen CA
06/23/04
1.720
25,000,000.00
12/22/04
Farmers & Merchants Bk Cen CA
09/22/04
1.770
25,000,000.00
01/06/05
Farmers & Merchants Bk Cen CA
10/07/04
1.800
10,000,000.00
01/13/05
LOS ANGELES
Broadway Federal Bank, FSB
07/09/04
1.680
2,500,000.00
01/07/05
Broadway Federal Bank, FSB
09/10/04
1.940
3,000,000.00
103/11/05
Cathay Bank
05/12/04
1.370
25,000,000.00
11/10/04
Cathay Bank
08/18/04
1.540
15,000,000.00
11/18/04
Cathay Bank
09/01/04
1.620
17,000,000.00
12/01/04
Cathay Bank
09/09/04
1.700
25,000,000.00
12/09/04
Cathay Bank
09/09/04
1.700
30,000,000.00
12/09/04
Cathay Bank
10/07/04
2.090
38,000,000.00
04/07/05
Cedars Bank
09/10/04
1.710
4,500,000.00
12/10/04
Cedars Bank
09/29/04
1.780
4,000,000.00
01/07/05
Cedars Bank
10/06/04
1.800
5,000,000.00
01/12/05
Cedars Bank
09/22/04
1.950
5,000,000.00
03/23/05
Center Bank
06/23/04
1.720
5,000,000.00
12/22/04
Center Bank
09/15/04
1.710
20,000,000.00
12/22/04
Center Bank
07/21/04
1.710
5,000,000.00
01/20/05
Center Bank
10/07/04
1.800
10,000,000.00
01/20/05
Center Bank
09/15/04
1.920
20,000,000.00
03/16/05
CHB America Bank
08/20/04
1.780
4,000,000.00
02/18/05
CHB America Bank
09/01/04
1.850
4,000,000.00
03/02/05
CHB America Bank
10/14/04
2.040
4,300,000.00
04/14/05
Eastern International Bank
05/05/04
1.210
900,000.00
11/03/04
Eastern International Bank
06/10/04
1.600
1,000,000.00
12/09/04
Hanmi Bank
08/05/04
1.540
25,000,000.00
11/04/04
Hanmi Bank
09/02/04
1.660
25,000,000.00
12/02/04
Hanmi Bank
06/17/04
1.710
25,000,000.00
12/15/04
Hanmi Bank
10/07/04
1.800
10,000,000.00
01/13/05
Hanmi Bank
10/15/04
1.770
25,000,000.00
01/14/05
Hanmi Bank
09/02/04
1.850
20,000,000.00
03/03/05
Hanmi Bank
09/15/04
1.920
20,000,000.00
03/16/05
Hanmi Bank
10/29/04
2.140
10,000,000.00
04/29/05
Mellon First Business Bank, N.A.
09/16/04
1.700
50,000,000.00
12/16/04
Mellon First Business Bank, N.A.
10/08/04
1.780
50,000,000.00
01/14/05
Mirae Bank
09/23/04
1.800
2,500,000.00
03/24/05
Mirae Bank
10/15/04
2.060
4,000,000.00
04/15/05
m
NAME
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
Nara Bank, N.A.
08/18/04
1.510
5,000,000.00
11/18/04
Nara Bank, N.A.
10/07/04
1.800
5,000,000.00
01/13/05
Nara Bank, N.A.
07/22/04
1.730
10,000,000.00
01/20/05
Nara Bank, N.A.
10/21/04
1.860
15,000,000.00
01/21/05
Nara Bank, N.A.
08/04/04
1.800
10,000,000.00
02/02/05
Nara Bank, N.A.
08/12/04
1.760
5,000,000.00
02/10/05
Nara Bank, N.A.
09/10/04
1.940
10,000,000.00
03/11/05
One United Bank
09/08/04
1.700
10,000,000.00
12/08/04
One United Bank
10/13/04
1.750
5,000,000.00
01/12/05
Preferred Bank
08/06/04
1.530
4,000,000.00
11/05/04
Preferred Bank
09/17/04
1.710
15,000,000.00
12/17/04
Preferred Bank
09/17/04
1.930
16,000,000.00
03/18/05
Saehan Bank
08/20/04
1.500
2,000,000.00
11/19/04
State Bank of India (California)
05/20/04
1.440
2,000,000.00
11/18/04
State Bank of India (California)
10/06/04
2.060
3,000,000.00
04/06/05
State Bank of India (California)
10/28/04
2.150
3,000,000.00
04/28/05
Western Federal Credit Union
10/22/04
1.890
30,000,000.00
01/21/05
Wilshire State Bank
08/12/04
1.540
8,000,000.00
11/10/04
Wilshire State Bank
08/25/04
1.560
7,000,000.00
11/30/04
Wilshire State Bank
07/30/04
1.060
8,000,000.00
11/30/04
Wilshire State Bank
09/03/04
1.640
15,000,000.00
12/03/04
Wilshire State Bank
09/17/04
1.710
8,000,000.00
12/17/04
Wilshire State Bank
10/08/04
1.780
19,000,000.00
01/14/05
MERCED
County Bank
09/03/04
1.650
5,000,000.00
12/03/04
County Bank
10/15/04
1.780
10,000,000.00
01/14/05
County Bank
09/09/04
1.940
10,000,000.00
03/10/05
NEWPORT BEACH
Orange County Business Bank, N.A.
09/23/04
1.780
4,000,000.00
01/06/05
Orange County Business Bank, N.A.
09/22/04
1.960
4,000,000.00
03/23/05
NORTH HIGHLANDS
Safe Credit Union
08/13/04
1.490
20,000,000.00
11/12/04
Safe Credit Union
10/15/04
1.770
5,000,000.00
01/14/05
OAKDALE
Oak Valley Community Bank
09/16/04
1.680
3,500,000.00
12/16/04
Oak Valley Community Bank
10/15/04
1.750
2,500,000.00
01/14/05
21
NAME
OAKLAND
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMO NT ($) DATE
Metropolitian Bank
06/03/04
1.450
500,000.00
12/02/04
Metropolitian Bank
06/03/04
1.450
1,000,000.00
12/02/04
Metropolitian Bank
07/23/04
1.760
1,000,000.00
01/21/05
Metropolitian Bank
07/29/04
1.830
1,500,000.00
01/27/05
Metropolitian Bank
08/26/04
1.860
1,000,000.00
02/24/05
Metropolitian Bank
09/22/04
1.950
2,000,000.00
03/23/05
ONTARIO
Citizens
Business
Bank
08/06/04
1.530
30,000,000.00
11/05/04
Citizens
Business
Bank
05/20/04
1.420
30,000,000.00
11/18/04
Citizens
Business
Bank
09/03/04
1.840
25:000,000.00
03/04/05
Citizens
Business
Bank
09/22/04
1.950
30,000,000.00
03/23/05
Citizens
Business
Bank
10/01/04
2.040
25,000,000.00
04/01/05
PALO ALTO
Mid -Peninsula Bank
07/14/04
1.680
15,000,000.00
01/12/05
Mid -Peninsula Bank
07/29/04
1.830
95,000,000.00
01/27/05
Mid -Peninsula Bank
08/18/04
1.790
30,000,000.00
02/16/05
Mid -Peninsula Bank
08/19/04
1.800
63,500,000.00
02/16/05
Mid -Peninsula Bank
08/20/04
1.780
49,000,000.00
02/18/05
Mid -Peninsula Bank
09/09/04
1.920
42,000,000.00
03/10/05
PALOS VERDES ESTATE
Malaga Bank, SSB
05/13/04
1.370
7,000,000.00
11/10/04
Malaga Bank, SSB
06/16/04
1.750
9,000,000.00
12/15/04
Malaga Bank, SSB
08/20/04
1.780
10,000,000.00
02/18/05
Malaga Bank, SSB
09/03/04
. 1.840
4,000,000.00
03/04/05
Malaga Bank, SSB
10/07/04
2.080
5,000,000.00
04/07/05
PASADENA
Community Bank
05/06/04
1.230
15,000,000.00
11/04/04
Community Bank
06/16/04
1.770
10,000,000.00
12/15/04
Community Bank
07/09/04
1.680
10,000,000.00
01/07/05
Community Bank
08/04/04
1.800
25,000,000.00
02/02/05
Community Bank
09/15/04
1.920
10,000,000.00
03/16/05
Community Bank
10/07/04
2.080
10,000,000.00
04/07/05
Community Bank
10/13/04
2.050
15,000,000.00
04/13/05
22
NAME
Wescom Credit Union
Wescom Credit Union
Wescom Credit Union
Wescom Credit Union
Wescom Credit Union
Wescom Credit Union
PLACERVILLE
El Dorado Savings Bank
El Dorado Savings Bank
PLEASANTON
Valley Community Bank
POMONA
PFF Bank and Trust
PFF Bank and Trust
PFF Bank and Trust
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
La Jolla Bank, FSB
La Jolla Bank, FSB
La Jolla Bank, FSB
p o r'
North Valley Bank
REDWOOD CITY
Provident Central Credit Union
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
DATE
YIELD
AMO NT ($)
DATE
08/18/04
1.520
10,000,000.00
11 /18/04
08/18/04
1.520
25,000,000.00
11/18/04
09/22/04
1.760
25,000,000.00
12/22/04
09/22/04
1.760
25,000,000.00
12/22/04
10/13/04
1.760
25,000,000.00
01/12/05
07/29/04
1.840
25,000,000.00
01/27/05
04/30/04 1.560 5,000,000.00 04/29/05
06/04/04 1.920 20,000,000.00 06/03/05
09/17/04 1.940 6,000,000.00 03/18/05
07/01/04
1.610
20,000,000.00
11/04/04
06/09/04
1.560
20,000,000.00
12/08/04
08/27/04
1.830
8,000,000.00
02/25/05
08/30/04
1.830
12,000,000.00
02/25/05
10/21/04 2.100 10,000,000.00 04/21/05
08/04/04
1.490
25,000,000.00
11/03/04
08/13/04
1.470
15,000, 000.00
11 /12/04
09/02/04
1.640
10, 000, 000.00
12/02/04
06/17/04
1.720
10, 000, 000.00
12/16/04
08/18/04
1.770
25,000,000.00
02/16/05
09/02/04
1.830
10,000,000.00
03/03/05
09/23/04
1.960
5,000,000.00
03/24/05
06/11/04
1.670
3,000,000.00
12/10/04
06/03/04
1.430
20,000,000.00
12/02/04
23
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
Provident Central Credit Union
16/28/04
2.120
20,000,000.00
04/28/05
ROCKLIN
Five Star Bank
07/28/04
1.780
2,000,000.00
01/26/05
Five Star Bank
09/29/04
2.010
2,000,000.00
03/30/05
RICHMOND
The Mechanics Bank
11/07/03
1.380
10,000,000.00
11/05/04
The Mechanics Bank
03/03/04
1.260
10,000,000.00
03/03/05
The Mechanics Bank
04/01/04
1.260
10,000,000.00
04/01/05
The Mechanics Bank
04/21/04
1.450
10,000,000.00
04/21/05
The Mechanics Bank
06/09/04
1.960
10,000,000.00
06/09/05
The Mechanics Bank
07/08/04
2.070
10,000,000.00
07/08/05
The Mechanics Bank
08/04/04
2.180
10,000,000.00
08/04/05
The Mechanics Bank
09/10/04
2.180
10,000,000.00
09/14/05
The Mechanics Bank
10/15/04
2.250
10,000,000.00
10/14/05
The Mechanics Bank
10/29/04
2.320
10,000,000.00
10/28/05
RIVERSIDE
Provident Savings Bank
Provident Savings Bank
SACRAMENTO
09/23/04 1.980 25,000,000.00 03/24/05
10/07/04 2.080 25,000,000.00 04/07/05
American River Bank
06/18/04
1.720
1,000,000.00
12/16/04
American River Bank
06/17/04
1.720
1,250,000.00
12/16/04
American River Bank
07/09/04
1.660
1,000,000.00
01 /07/05
American River Bank
07/29/04
1.810
1,500,000.00
01/27/05
American River Bank
08/27/04
1.840
2,000,000.00
02/25/05
American River Bank
09/17/04
1.910
1,250,000.00
03/18/05
American River Bank
09/23/04
1.960
2,000,000.00
03/24/05
American River Bank
10/06/04
2.030
1,500,000.00
04/06/05
Bank of Sacramento
08/11/04
1.520
1,500,000.00
11/10/04
Bank of Sacramento
09/01/04
1.610
2,000,000.00
12/01/04
Bank of Sacramento
06/18/04
1.740
2,000,000.00
12/17/04
Merchants National Bank of Sacramen
07/21/04
1.710
2,000,000.00
01/02/05
Merchants National Bank of Sacramen
10/13/04
2.050
2,000,000.00
04/13/05
River City Bank
07/30/04
1.850
3,000,000.00
01/28/05
River City Bank
08/25/04
1.820
2,000,000.00
02/24/05
River City Bank
10/06/04
2.060
2,000,000.00
04/06/05
U.S. Bank
07/08/04
1.650
100,000,000.00
01/06/05
24
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMO NT ($)
DATE
U.S. Bank
08/04/04
1.800
25,000,000.00
02/02/05
U.S. Bank
08/11/04
1.740
50,000,000.00
02/09/05
U.S. Bank
08/11/04
1.740
50,000,000.00
02/09/05
U.S. Bank
08/20/04
1.800
50,000,000.00
02/18/05
U.S. Bank
08/20/04
1.800
50,000,000.00
02/18/05
Union Bank of California, N.A.
08/05/04
1.540
150,000,000.00
11/04/04
Union Bank of California, N.A..
09/16/04
1.700
150,000,000.00
12/16/04
Union Bank of California, N.A.
10/15/04
1.780
175,000,000.00
01/14/05
SAN DIEGO
First Future Credit Union
08/27/04
1.830
5,000,000.00
02/25/05
First Future Credit Union
08/27/04
1.830
10,000,000.00
02/25/05
First Future Credit Union
09/03/04
1.840
15,000,000.00
03/04/05
First Future Credit Union
09/15/04
1.920
8,000,000.00
03/16/05
First United Bank
08/13/04
1.770
1,000,000.00
02/11/05
First United Bank
10/14/04
2.040
2,000,000.00
04/14/05
Mission Federal Credit Union
07/15/04
1.750
10,000,000.00
01/13/05
Mission Federal Credit Union
09/01/04
1.850
10,000,000.00
03/02/05
Neighborhood National Bank
08/20/04
1.710
2,000,000.00
01/21/05
Neighborhood National Bank
08/04/04
1.820
2,000,000.00
02/02/05
SAN FRANCISCO
America California Bank
09/03/04
1.640
2,000,000.00
12/03/04
America California Bank
07/08/04
1.650
4,000,000.00
01/06/05
America California Bank
09/29/04
1.780
2,000,000.00
01/07/05
Citibank (West) FSB
07/08/04
1.700
150,000,000.00
01/06/05
Citibank (West) FSB
07/15/04
1.750
100,000,000.00
01/13/05
Citibank (West) FSB
07/21/04
1.750
100,000,000.00
01/20/05
Citibank (West) FSB
07/28/04
1.800
25,000,000.00
01/26/05
Citibank (West) FSB
07/15/04
1.750
25,000,000.00
01/26/05
Oceanic Bank
09/10/04
2.160
4,000,000.00
09/13/05
Trans Pacific National Bank
06/23/04
1.730
1,000,000.00
12/22/04
Trans Pacific National Bank
08/05/04
1.830
1,000,000.00
02/03/05
Trans Pacific National Bank
09/23/04
1.980
1,000,000.00
03/24/05
Trans Pacific National Bank
10/13/04
2.050
1,000,000.00
04/13/05
United Commercial Bank
08/25/04
1.570
20,000,000.00
11/24/04
United Commercial Bank
09/01/04
1.620
50,000,000.00
12/01/04
United Commercial Bank
09/03/04
1.620
25,000,000.00
12/03/04
United Commercial Bank
09/10/04
1.720
25,000,000.00
12/10/04
United Commercial Bank
09/17/04
1.710
65,000,000.00
12/17/04
United Commercial Bank
10/07/04
1.800
40,000,000.00
01/13/05
United Commercial Bank
10/08/04
1.800
55,000,000.00
01/13/05
25
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME DATE
YIELD AMOUNT ($)
DATE
United Commercial Bank 10/14/04
1.730 50,000,000.00
01/14/05
United Commercial Bank 10/27/04
2.110 40,000,000.00
04/27/05
SANJOSE
Comerica Bank
10/01/04
1.770
25,000,000.00
01/07/05
Comerica Bank
09/23/04
1.800
25,000,000.00
01/07/05
Heritage Bank of Commerce
08/11/04
1.740
4,000,000.00
02/09/05
Meriwest Credit Union
07/21/04
1.690
5,000,000.00
01/20/05
Meriwest Credit Union
09/15/04
1.900
5,000,000.00
03/16/05
Meriwest Credit Union
10/13/04
2.050
10,000,000.00
04/13/05
Santa Clara Co. Federal Credit Union
05/07/04
1.230
5,000,000.00
11/05/04
Santa Clara Co. Federal Credit Union
08/06/04
1.560
10,000,000.00
11/05/04
SAN LUIS OBISPO
First Bank Of San Luis Obispo
06/04/04
1.500
4,500,000.00
12/03/04
First Bank Of San Luis Obispo
08/11/04
1.740
6,000,000.00
02/09/05
First Bank Of San Luis Obispo
09/15/04
1.930
7,000,000.00
03/16/05
First Bank Of San Luis Obispo
09/24/04
1.970
5,000,000.00
03/25/05
Mission Community Bank
06/10/04
1.600
1,000,000.00
12/09/04
Mission Community Bank
09/02/04
1.850
1,000,000.00
03/03/05
Mission Community Bank
10/06/04
2.050
2,500,000.00
04/06/05
Mission Community Bank
10/27/04
2.110
2,500,000.00
04/27/05
San Luis Trust Bank
10/20/04
2.000
1,700,000.00
04/20/05
SAN MARINO
East West Bank
08/06/04
1.530
35,000,000.00
11/05/04
East West Bank
08/18/04
1.530
38,000,000.00
11/18/04
East West Bank
09/10/04
1.710
85,000,000.00
12/10/04
East West Bank
10/06/04
1.740
3,000,000.00
01/07/05
East West Bank
10/01/04
1.770
5,000,000.00
01/07/05
East West Bank
10/08/04
-1.740
42,000,000.00
01/07/05
SANTA ROSA
National Bank of the Redwoods
07/21/04
1.710
10,000,000.00
01/20/05
National Bank of the Redwoods
08/11/04
1.730
5,000,000.00
02/09/05
National Bank of the Redwoods
10/28/04
2.140
5,000,000.00
04/28/05
SONORA
26
TIME DEPOSITS
DEPOSIT
NAM DATE
Central California Bank 09/24/04
STOCKTON
Pacific State Bank
07/08/04
Pacific State Bank
10/06/04
Union Safe Deposit Bank
08/05/04
Union Safe Deposit Bank
08/13/04
Union Safe Deposit Bank
09/02/04
Union Safe Deposit Bank
09/10/04
Union Safe Deposit Bank
10/15/04
Union Safe Deposit Bank
10/22/04
Washington Mutual Bank, FA
06/16/04
Washington Mutual Bank, FA
07/21/04
Washington Mutual Bank, FA
08/20/04
TORRANCE
China Trust Bank (USA)
08/13/04
China Trust Bank (USA)
09/10/04
China Trust Bank (USA)
10/15/04
China Trust Bank (USA)
10/22/04
TRACY
Service 1 st Bank
06/17/04
TUSTIN
Sunwest Bank
08/12/04
Sunwest Bank
09/08/04
Sunwest Bank
10/15/04
VACAVILLE
Travis Credit Union
06/02/04
WHITTIER
Quaker City Bank
06/04/04
Quaker City Bank
07/14/04
Quaker City Bank
09/29/04
TOTAL TIME DEPOSITS OCTOBER 2004
27
PAR
YIELD AMOUNT ($)
1.970 5,000,000.00
MATURITY
DATE
03/25/05
1.630
1,000,000.00
01/06/05
2.030
1,000,000.00
04/06/05
1.550
15,000,000.00
11 /04/04
1.500
15, 000, 000.00
11 / 12/04
1.670
15, 000, 000.00
12/02/04
1.720
10,000,000.00
12/10/04
1.780
10,000,000.00
01/14/05
1.880
15,000,000.00
01/21/05
1.780
45,000,000.00
12/15/04
1.720
75,000,000.00
01/20/05
1.790
60,000,000.00
02/18/05
1.500
20,000,000.00
11/12/04
1.720
35,000,000.00
12/10/04
1.770
40,000,000.00
01/14/05
2.090
30,000,000.00
04/22/05
1.750 2,000,000.00 12/16/04
1.540 7,800,000.00 11/10/04
1.690 1,000,000.00 12/08/04
1.770 6,000,000.00 01/14/05
1.410 40,000,000.00 12/01/04
1.490 25,000,000.00 12/03/04
1.680 24,000,000.00 01/12/05
1.850 16,000,000.00 01/28/05
6,291,796,000.00
BANK DEMAND DEPOSITS
October 2004
($ in thousands)
DAILY BALANCES
DAY OF
BALANCES
WARRANTS
MONTH
PER BANKS
OUTSTANDING
1
$ 893,586
$ 3,291,503
2
893,586
3,291,503
3
893,586
3,291,503
4
698,730
2,689,714
5
233,666
2,487,785
6
1,078,646
2,469,541
7
952,094
2,495,778
8
1,065,297
2,902,141
9
1,065,297
2,902,141
10
1,065,297
2,902,141
11
1,065,297
2,902,141
12
916,875
2,711,969
13
643,944
2,490,026
14
787,023
2,382,276
15
791,307
2,658,373
16
791,307
2,658,373
17
791,307
2,658,373
18
874,988
2,472,896
19
718,397
2,366,451
20
847,793
1,876,401
21
709,770
1,854,344
22
986,660
1,826,297
23
986,660
1,826,297
24
986,660
1,826,297
25
901,242
1,609,083
26
615,629
1,862,849
27
308,370
1,842,821
28
1,065,336
2,017,844
29
1,294,760
2,082,247
30
1,294,760
2,082,247
31
19294,760
2,086,881
AVERAGE DOLLAR DAYS
$ 887,501 a/
a/ The prescribed bank balance for October was $863,511. This consisted of
$733,616 in compensating balances for services, balances for uncollected
funds of $134,669 and a deduction of $4,774 for October delayed
deposit credit.
28
DESIGNATION BY POOLED MONEY INVESTMENT BOARD
OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS
No. 1664
In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its
meeting on October 20 ,2004, 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
$ 733,616,000
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 -
Dearing oeposits in DanKs ana
savings ana loan associations as tonows:
Time Deposits in
Various Financial
Institutions
In Securities
(sections 16503a
Estimated
From
To
Transactions
(section 16430)*
and 16602)*
Total
( 1)
10/18/04
10/22/04
$
859,200,000
$
49,502,405,000
$
6,288,795,000
$
55,791,200,000
(2)
10/25/04
10/29/04
$
(1,571,000,000)
$
47,931,405,000
$
6,288,795,000
$
54,220,200,000
(3)
11/01/04
11/05/04
$
784,900,000
$
48,716,305,000
$
6,288,795,000
$
55,005,100,000
(4)
11/08/04
11/12/04
$
391,500,000
$
49,107,805,000
$
6,288,795,000
$
55,396,600,000
(5)
11/15/04
11/19/04
$
453,700,000
$
49,561,505,000
$
6,288,795,000
$
55,850,300,000
(6)
11/22/04
11/26/04
$
(149,900,000)
$
49,411,605,000
$
6,288,795,000
$
55,700,400,000
(7)
11/29/04
12/03/04
$
(291,300,000)
$
49,120,305,000
$
6,288,795,000
$
55,409,100,000
(8)
12/06/04
12/10/04
$
1,174,700,000
$
50,295,005,000
$
6,288,795,000
$
56,583,800,000
(9)
12/13/04
12/17/04
$
2,862,600,000
$
53,157,605,000
$
6,288,795,000
$
59,446,400,000
From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested
in prime commercial paper under section 16430(e), Government Code.
Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the
amounts and for the same types of investments as specifically designated above.
Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by
which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance
of $ 733,616,000.
POOLED MONEY INVESTMENT BOARD:
Chairperson
Member
Dated: October 20 ,2004
* Government Code
Member
BOARD MEMBER ITEMS