2005 07 13 IABP.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLE TAMPICO (760) 7 7 7 - 7 0 0 0
LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101
AGENDA
INVESTMENT ADVISORY BOARD
Study Session Room
78-495 Calle Tampico- La O.uinta, CA 92253
July 13, 2005 - 5:30 P.M.
I CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
II APPOINTMENT OF OFFICERS
A. Appointment of Investment Advisory Board Chairperson
B. Appointment of Investment Advisory Board Vice -Chairperson
III PUBLIC COMMENT - (This is the time set aside for public comment on any matter
not scheduled on the agenda.)
IV CONFIRMATION OF AGENDA
V CONSENT CALENDAR
A. Approval of Minutes of Meeting on May 11, 2005 for the Investment
Advisory Board.
VI BUSINESS SESSION
A. Transmittal of Treasury Report for April and May 2005
B. FY 2005/2006 Meeting Schedule
C. Consideration of Approval of Investment Advisory Board 2005/2006 Work
Plan
D. LAIF Conference
VII CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - June 2005
B. Pooled Money Investment Board Reports - April 2005
C. Distribution of Investment Policies for Fiscal Year 2005/2006.
Vill BOARD MEMBER ITEMS
IX ADJOURNMENT
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: July 13, 2005
ITEM TITLE:
Transmittal of Treasury Report
For April and May 31, 2005
BACKGROUND:
Attached please find the Treasury Report for April and May 31, 2005.
RECOMMENDATION:
Review, Receive and File the Treasury Report for April and May 31, 2005.
John M. Falconer', Finance Director
(&4 4 64� Quiaraj
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falconer, Finance Director/Treasurer
SUBJECT: Treasurer's Report for April 30,2005
DATE: May 31, 2005
Attached is the Treasurer's Report for the month ending April 30, 2005. 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
Chan e
Cash (3)
$ (391,648)
(1)
$ (3,417,414)
($3,809,062)
($3,417,414)
LAIF
24,756,755
2,206,693
(1,500,000)
25,463,448
706,693
US Treasuries (2)
120,158,854
(2)
-
191,260
120,350,114
191,260
US Gov't Agencies (2)
23,664,612
(2)
(18,363)
23,646,249
(18,363)
Commercial Paper (2)
-
0
0
Corporate Notes
Mutual Funds
-
6,092,339
171,189
1
-
0
5,921,150
0
171,189
Total
$ 174,280,912
$ 2,035,504
$ 4,917,414
$ 172,897
1 $ 171,571,899
$ 2,709,013
I certify that this report accurately reflects all pooled investments and is in compliance with the California
Government Code; and is in conformity with the City Investment Policy.
As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated
revenues are available to meet the pools expenditure requirements for the next six months. The City of
La 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.
2-0
Datfa
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.
(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.
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II
City of La Quints
Reconciliation of Actual and Surplus Funds
City, Redevelopment Agency and Financing Authority
April 30, 2005
Balance of Actual Funds 171,571,899
Less Petty cash Funds (1 •�)
Less Non -Surplus Funds (4,872,059)
Balance of Surplus Funds $166.898,840
City Cash & Investments
Bank Accounts
Name - Availability
Su lus
TV
Book
Wells Fargo - Demand
No
Checking
$ (3,837,314)
Petty Cash - Demand
No
N/A
1.000
Wells Fa olHousi - Demand
Yes
Checking
27.252
Total - Bank Accounts
$ 3,809,062
U. S. Treasury
Amortized
Custodian - Availabili
Surplus
Issuerrrype
Value
Bank of New York - Demand
Yes
U.S. Treasury Note
4,997.933
Bank of New York - Demand
Yes
U.S. Treasury Note
4.992,057
Bank of New York - Demand
Yes
U.S. Treasury Note
5,003,084
Bank of New York - Demand
Yes
U.S. Treasury Note
3,992,483
Bank of New York - Demand
Yes
U.S. Treasury Note
5,005,597
Bank of New York - Demand
Yes
U.S. Treasury Note
4,992,731
Bank of New York - Demand
Yes
U.S. Treasury Note
3,981.903
Bank of New York - Demand
Yes
I U.S. Treasury Note
5,001 907
Total- U.S. Treasury
37,967,695
U.S. Government Securities
Custodian - Availabili
Surplus
issuerfType
Amortized
Value
Bank of New York - Demand
Yes
FNMA
5,091,588
Bank of New York - Demand
Yes
FHLB
1,995,120
Bank of New York - Demand
Yes
FHLB
1,995,576
Bank of New York - Demand
Yes
FHLB
2,546,819
Bank of New York - Demand
Yes
FNMA -Discount
1,959,607
Bank of New York - Demand
Yes
FreddieMac
7,610,358
Bank of New York - Demand
Yes
FreddieMac - Discount
2 447 101
Total - U.S. Government Securities
i
i
1 23,648,249
Local Agency Investment Fund
Name - Availabili
Surplus
Type
Boo]'74
LAIF- City -Demand
Yes
State Pool
21,850
LAIF - RDA - Demand
Yes
State Pool
3 612Total-
State Pool
25,463
Total City Investments
Total City Cash & Investments
Fiscal Agent Investments
Surplus
Surplus
Yes
Ad
Yes
27.252
27,252
$ 27.252
$ -
$ 27.252
Surplus
Ad'
Yes
r4997,933
4,997,933
4,992,057
5,003,084
3,992,483
,,
5,005,597
4,992,731
4,992,731
3,981,903
3,961,903
001 907
51001,907
45
%,7,895
37,967,695
Surplus
surplus
No
AdJ
No
$(3,837,314)
$ 8,709,373
$ 4,872.059
1,000
1,000
3,836,3114
$ 8,709,373
$ 4,873,059
All Funds Surplus
Actual % Yes
-2.2201% 0.0163%
All Funds Surplus
Actual % Yes
22,1293% 22.7762%
Surplus
Surplus
Surplus
Surplus
All Funds
Surplus
Yes
Ad'
Yes
No
Ad'
No
Actual %
Yes
5,091,588
5,091,588
1,995.120
1,995,120
1.995,576
1,995,576
2,546,819
2,546,819
-
1,959,607
1,959.607
7,610,358
7,610,358
2 447,181
2,447 181
-
-
23,846,249
23,646,249
13.7821%
14.1850%
Surplus
Ad'
Yes
E
(8,709,373)
13,141,101
3,612974
8,709.373
16.754.075
Surplus Surplus
No Ad' No
All Funds Surplus
Actual % Yes
141S413% 10.0505%
87,077,392 87,077,392 8,709,373 78,368,019 1 50.7527%1 47.0117%
83,268,330 87,104,644 8,709,373 78,395,271 3,836,314 8,709,373 4,873,059 48.5328X 47.0281%
Portfolio - City Investments
Custodian - Availability
Surplus
Issuer/Type,
Amortized
Value
2002 RDA U.S. Bank-CIP
Yes
U.S.Treasury Bill
27,664,637
2D04 Finance Authority -CIP
2004 Finance Authority -CIP
Yes
Yes
U.S.Treasury Bill
U.S.Treasury Bill
9,878,225
44.839,557
Yes
Total - U.S. Treasury
82,382,419
Portfolio - Mutual Funds
Trustee - Availability
Surplus
Money Market
Mutual Fund
Book
Value
Civic Center U.S.Bank - Project
YES
1st American
Civic Center U.S.Bank - Debt Svc
YES
1st American
31
1994 RDA U.S. Bank -Debt Svc
YES
1st American
1995 RDA U.S.Bank -CIP
YES
1stAmerican
1995 RDA U.S.Bank - Special Fund
YES
1st American
2004 Fin Auth - 1995 US Bank - Escrow
YES
1 st American
101
1998 RDA U.S.Bank - CIP
YES
1st American
1998 RDA U.S.Bank- Dbt Svc
YES
1st American
1998 RDA U.S.Bank- Specal Fund
YES
1st American
1998 RDA U.S.Bank - CIP
YES
1st American
2001 RDA U.S. Bank - Dbt Svc
YES
1 st American
2001 RDA U.S. Bank - CIP
YES
1stAmerican
2002 RDA U.S. Bank - Dbt Svc
YES
1st American
2002 RDA U.S. Bank - CIP
YES
1st American
2,083.068
2003 Taxable RDA U.S. Bank - DS
YES
1st American
2003 Taxable RDA U. S. Bank -COI
YES
1 st American
2003 Taxable RDA U. S. Bank-CIP
YES
1stAmerican
2004 Fin Auth US Bank • CIP
YES
1st American
3.832,873
2004 Fin Auth US Bank - C01
YES
1st American
5,077
Subtotal - Mutual Fund
5,921,150
Surplus
Surplus
Yes
Yes
—Adj
27,664,637
27,664,637
9,878,225
9.878.225
44,839,557
44,839,557
82,382,419
82,382,419
Surplus
Yes
Ad'
Surplus
Yes
31
31
101
101
2.083,068
2,083,068
3,832,873
3,832,873
5,077
5,077
5,921,150
5,921,150
Surplus Surplus
No Adi No
- Surplus
No
Ad
Surplus
No
All Funds Surplus
Actual % Yes
48.0163% 49.4199%
All Funds Surplus
Actual % Yes
3.4511% 3.5520%
Total Fiscal Agent Investments 88,303,5891 88,303,569 88,303,569 1 51.4674% 1 52.9719%
Grand Total 171,571,899 175,408,213 8,709,373 186,898,840 3,836,314 8,709,373 4,873,059 100.000OX 100.0000%
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T4ht 4 4 Qu&&
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falconer, Finance Director/Treasurer
SUBJECT: Treasurer's Report for May 31,2005
DATE: June 30, 2005
Attached is the Treasurer's Report for the month ending May 31, 2005. 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:
nvestment
$1,073,658
$4,882,720
$ (3,809,062) $
4.882,720
(1)
4 700,000) 38,963,448
('
13,500,000
(4,802,365;
Cash (3)
LAIF
25,463,448
18,200,000
(2)
(5,000,000) 197,635 115,547,749
28,543,877
4,897,628
US Treasuries (2)
120,350,114
23,646,249
5,000,000
(2)
(102,372)
0
0
US Gov't Agencies (2)
0
0
Commercial Paper (2)
_
5,931,380
10,230
Corporate Notes
5.921.150
10,230
1
nnn� ¢ s5.263 $ 190,060,112 $
18,488,213
I certify that this report accurately reflects all pooled investments and is in compliance with the California
Government Code; and is in conformity with the City Investment Policy.
fy that sufficient investment
dity and
As T are avah able to meet the poolseIexpendi expenditure requirements for the next lsix 'months. The anticipated
of
revenues
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.
zvo�
Date
M. Falconer
ce Director/Treasurer
Footnote
nts the net increase (decrease) of deposits and withdrawals from
(1) The amount reported represe
the previous month. hr column
month hon US Treasury, CommerciaePaper and Agency t investmes the nts.
of premium/discount for the
s.
negative balance. This negative balance will be offset with transfers from other investments
(3) The cash account may reflect a
before warrants are presented for payment by the payee at the bank.
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17
City of La Ouinta
Reconciliation of Actual and Surplus Funds
City, Redevelopment Agency and Financing Authority
May 31, 2005
Balance of Actual Funds 190,060,112
Less Petty cash Funds (I,000)
Less Non -Surplus Funds (1,233,024)
Balance of Surplus Funds $188,826,088
City Cash & Investments
Bank Accounts
Name - Availabili
Surplus
Type
Book
Wells Fargo - Demand
No
Checking
$ 1.045,406
Petty Cash - Demand
No
N/A
1,000
Wells Fargo/Housing - Demand
Yes
Checkina
27,252
Total - Bank Accounts
$ 110731658
U. S. Treasury
Amortized
Custodian - Availabili
Surplus
issuer/Type
Value
Bank of New York - Demand
Yes
U.S. Treasury Note
4,996,093
Bank of New York - Demand
Yes
U.S. Treasury Note
5,D02,459
Bank of New York - Demand
Yes
U.S. Treasury Note
3,993,749
Bank of New York - Demand
Yes
U.S. Treasury Note
5,004,654
Bank of New York - Demand
Yes
U.S. Treasury Note
4,993.784
Bank of New York - Demand
Yes
U.S. Treasury Note
3,984,193
Bank of New York - Demand
Yes
U.S. Treasury Note
5,001,758
Total- U.S. Treasu
32,976,690
U.S. Government Securities
Custodian - Availability
Surplus
Issuer/Type
Amortized
Value
Bank of New York - Demand
Yes
FNMA
5,081,832
Bank of New York - Demand
Yes
FHLB
1,995.780
Bank of New York - Demand
Yes
FHLB
1,996,175
Bank of New York - Demand
Yes
FHLB
2,539,525
Bank of New York - Demand
Yes
FNMA -Discount
1,964,657
Bank of New York - Demand
Yes
FHLB
7.597,200
Bank of New York - Demand
Yes
FreddieMac - Discount
2,452,10.5
Total - U.S. Government Securities
I
I23,627,274
Local Agency Investment Fund
Name - Availability
Surplus
Ty
Book
LAIF - City -Demand
Yes
State Pool
35.350,474
LAIF - RDA - Demand
Yes
State Pool
3,612,974
Total - State Pool
38,963.448
Total City Investments
Total City Cash & Investments
Fiscal Agent Investments
Surplus
Surplus
Yes
Ad'
Yes
27,252
27,252
$ 27,252
$ -
$ 27,252
Surplus
Surplus
Yes
Ad'
Yes
4.996,093
4,996,093
5,002,459
5,002,459
3.993,749
3,993,749
5.004,654
5,004.654
4,993,784
4,993,784
3,984,193
3,984.193
5,001,758
5,001,758
32,976,690
32,976,690
Surplus
Surplus
No
Ad'
No
$ 1,045.406
$ 187,618
$ 1,233,024
1,000
1,000
$ 1,046,406
$ 187,618
$ 1,234,024
All Funds Surplus
Actual % Yes
0.5799% 0.0148%
All Funds Surplus
Actual % Yes
17.8114% 17.9309%
Surplus
Surplus
Surplus
Surplus
All Funds
Surplus
Yes
Ad'
Yes
No
Ad'
No
Actual %
Yes
5,081,832
5,081,832
1,995,780
1,995,780
-
1,996,175
1,996,175
-
2,539,525
2,539,525
-
1,964,657
1,964,657
-
7,597,200
7,597,200
-
2,452,105
2.452,105
-
23,627,274
23.627,274 1
8472%
Surplus
Surplus
Yes
Ad'
Yes
35,350.474
(187,616)
35,162,856
3,612.974
3,612,974
38,963.448
(187,618)
38,775,830
Surplus Surplus All Funds Surplus
No Ad' No Actual % Yes
21.0450% 21.0842 %
95,567,412 95,667.412 1 51.6180%1 51.8624%
98,841,070 95,594,684 187,618 95,407,048 1 1,046,408 1 187,618 1,234,024 52.1979% 51.8772%
Portfolio - City Investments
Custodian - Availability
Surplus
Issuer/Type
Amortized
Value
2002 RDA U.S. Bank-CIP
Yes
U.S.Treasury Bill
27,736,335
2004 Finance Authority -CIP
Yes
U.S.Treasury Bill
9,903,061
2004 Finance Authority -CIP
Yes
U.S.Treasury Bill
44,931,663
Yes
Total - U.S. Treasury
82,571.059
Portfolio - Mutual Funds
Trustee - Availabili
Surplus
Money Market
Mutual Fund
Book
Value
Civic Center U.S.Bank- Project
YES
1st American
-
Civic Center U.S.Bank - Debt Svc
YES
1st American
62
1994 RDA U.S. Bank -Debt Svc
YES
1 st American
1995 RDA U.S.Bank -CIP
YES
1stAmerican
-
1995RDA U.S.Bank-Special Fund
YES
1stAmerican
-
2004 Fin Auth - 1995 US Bank - Escrow
YES
1st American
101
1998 RDA U.S.Bank - CIP
YES
1st American
-
1998 RDA U.S.Bank - Dbt Svc
YES
1st American
1998 RDA U.S.Bank - Special Fund
YES
1st American
1998 RDA U.S.Bank - CIP
YES
1stAmerican
2001 RDA U.S. Bank - Dbt Svc
YES
1st American
2001 RDA U.S. Bank - CIP
YES
1st American
-
2002 RDA U.S. Bank - Dbt Svc
YES
1 st American
2002 RDA U.S. Bank - CIP
YES
1st American
2,086,656
2003 Taxable RDA U.S. Bank - IDS
YES
1st American
2003 Taxable RDA U. S. Bank -COI
YES
1st American
2003 Taxable RDA U. S. Bank-CIP
YES
1st American
-
2004 Fin Auth US Bank - CIP
YES
1st American
3,839,475
2004 Fin Auth US Bank • COI
YES
1stAmerican
5,086
Subtotal - Mutual Fund
i
5.931,380
Surplus
Surplus
Yes
Ad'
Yes
27.738,335
27,736,335
9,903,061
9,903,061
44,931,663
44,931,663
82,571,059
8215711059
Surplus
Yes
Ad
Surplus
Yes
62
62
101
101
2,086.656
2,086,656
3,839,475
3,839,475
5,086
5,086
5,931.380
i 5,931,380
Surplus Surplus
No Ad No
Surplus
No
Adi
Surplus
No
All Funds Surplus
Actual % Yes
44.5984% 44.8977%
All Funds Surplus
Actual % Yes
3 2037% 3.22529/6
Total Fiscal Agent Investments 88,502,439 1 88,502,439 88,502,439 47.8021% 48.1228X
Grand Total 185,143,509 184,097,103 1 (187,818 183,909,485 1,048,408 187,618 1,234,024 100.0000X 100.00OOX
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21
INVESTMENT ADVISORY BOARD MEETING BUSINESS SESSION: B
Meeting Date: July 13, 2005
ITEM TITLE
Meeting Schedule for Fiscal Year
2005/2006
BACKGROUND:
Attached find a list of meeting dates for Fiscal Year 2005/2006.
RECOMMENDATION:
Approve the meeting schedule of the Investment Advisory Board for Fiscal Year
2005/0006.
hn M. Falconer, Finance Director
TO: Investment Advisory Board Members
FROM: John M. Falconer, Finance Director
DATE: July 13, 2005
RE: Schedule of Investment Advisory Board Meeting Schedule
The City Ordinance specifies that the Investment Advisory Board usually will meet
monthly unless the Board with Council concurrence believes less frequent meetings
are considered necessary. In the past, the Board has met monthly except for the
Month of August. Listed below are meeting dates for the Boards review.
Monthly
July 13, 2005
August 10, 2005
September 14, 2005
October 12, 2005
November 9, 2005
December 14, 2005
January 11, 2006
February 8, 2006
March 8, 2006
April 12, 2006
May 10, 2006
June 14, 2006
Quarterly
September 14, 2005
December 14, 2005
March 8, 2006
June 14, 2006
Please consider the schedules for Fiscal Year 2005/2006 and give Staff direction.
INVESTMENT ADVISORY BOARD Business Session: C
Meeting Date: July 13, 2005
ITFNI TITI F-
Fiscal Year 2005/06 Work Plan
BACKGROUND:
Each year the Investment Advisory Board adopts a work plan, which is
subsequently forwarded to the City Council for approval.
In addition to the responsibilities listed in the ordinance, the Board may want to
consider additional items to address during FY 05/06.
Last year the work plan included a review of GSE's, LAIF, Commercial Paper and
development of a request for proposal regarding portfolio managers.
In Fiscal Year 2005/2006, the Board has previously discussed meeting with City
Council to determine if the RFP would be released and interviewing the finalist,
subject to City Council approval.
RECOMMENDATION:
Review and approval of work plan items as deemed appropriate, for consideration
by the City Council.
n M. Falconer, Finance Director
INVESTMENT ADVISORY BOARD Business Session: D
Meeting Date: July 13, 2005
TITLE:
LAIF Conference - Sacramento, CA
October 6" and 7th, 2005
BACKGROUND:
The LAIF Conference Agenda has not been printed yet but will be held in Sacramento,
California on October 6th and 7', 2005.
LAIF Staff has sent the conference agenda to the printer and are not yet available.
Staff will provide the agenda to the Board as soon as it is available.
Last year no Board members attended the LAIF Conference.
RECOMMENDATION:
Select up to two Board members to attend the LAIF Conference.
Le eka-L'--
n M. Falconer, "finance Director
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item A
Meeting Date: July 13, 2005
TITLE:
Month End Cash Report - June 2005
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.
hn M. Falconer, Finance Director
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2
FRB: H.15--Selected Interest Rates, Web -Only Daily Update --June 30, 2005
Page I of 4
Federal Reserve Statistical Release
H.15
Selected Interest Rates (Daily)
, kip to
Release Date: June 30, 2005
Weeklv release dates and_announceinents I Historical data I About
Daily update Other formats: Screen reader I ASCII
The weekly release is posted on Monday. Daily updates of the weekly release are posted Tuesday through Friday
H.15 DAILY UPDATE: WEB RELEASE ONLY
SELECTED INTEREST RATES
Yields in percent per annum
Instruments
Federal funds (effective) 1 2 3
Commercial paper 3 4 5
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
CDs (secondary market) 3 6
1-month
3-month
6-month
Eurodollar deposits (London) 3 7
1-month
3-month
6-month
Bank prime loan 2 3 8
Discount window primary credit 2 9
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
3-month
6-month
Treasury constant maturities
Nominal 10
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
For immediate release
June 30, 2005
2005 2005 2005
Jun Jun Jun
27 28 29
3.17 3.17 3.20
3.20
3.23
3.22
3.25
3.27
3.27
3.33
3.35
3.27
3.26
3.22
3.27
3.30
3.31
3.37
3.36
3.34
3.29
3.29
3.30
3.43
3.45
3.47
3.61
3.62
3.65
3.26
3.29
3.28
3.41
3.44
3.44
3.58
3.60
3.62
6.00
6.00
6.00
4.00
4.00
4.00
2.77
2.94
2.90
3.09
3.08
3.06
3.23
3.25
3.23
2.85
2.99
2.95
3.15
3.14
3.13
3.33
3.35
3.33
3.42
3.46
3.44
3.60
3.65
3.65
3.62
3.68
3.69
3.69
3.76
3.77
3.77
3.84
3.85
3.90
3.97
3.99
2005
Jun
30
3
http://www.federalreserve.gov/Releases/H 15/update/ 7/1 /2005
FRB: H. 1 5--Selected Interest Rates, Web -Only Daily Update --June 30, 2005
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
4.25 4.30 4.33
1.34
1.40
1.42
1.44
1.50
1.52
1.62
1.67
1.69
1.77
1.81
1.83
1.74 1.77 1.79
3.82
3.86
3.86
3.92
3.98
3.96
3.98
4.04
4.03
4.03
4.09
4.08
4.08
4.15
4.13
4.17
4.24
4.23
4.30
4.36
4.35
4.62
4.66
4.65
4.86
4.91
4.96
5.79
5.84
5.86
FOOTNOTES
5.53
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 bid rates on nationally traded certificates of
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
deposit.
adjustment credit, which was discontinued after January 8, 2003. For
further information, see
4
http://www.federalreserve.gov/Releases/H15/update/ 7/1 /2005
FRB: H.15--Selected Interest Rates, Web -Only Daily Update --June 30, 2005
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)1. 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
Homc I Economic research and data
Accessibility Cntact_L_s
5
http://www.federalreserve.gov/Releases/H 15/update/ 7/l /2005
FRB: H. 1 5--Selected Interest Rates, Web -Only Daily Update --June 30, 2005 Page 4 of 4
Last update: June 30, 2005
6
http://www.federalreserve.gov/Releases/H 15/update/ 7/1 /2005
Phil Angelides, State Treasurer
Inside the State Treasurer's Office
Local Agency Investment Fund (LAIF)
PMIA Performance Report
2.96
2.83
166
6/15/2005
6/16/2005
2.97
2.83
164
6/17/2005
2.98
2.83
166
6/18/2005
2.98
2.83
166
6/19/2005
2.98
2.83
166
6/20/2005
2.98
2.84
163
6/21 /2005
2.98
2.84
162
6/22/2005
2.98
2.84
160
6/23/2005
2.99
2.84
157
6/24/2005
2.99
2.84
155
6/25/2005
2.99
2.84
155
6/26/2005
2.99
2.85
155
6/27/2005
2.99
2.85
153
6/28/2005
2.99
2.85
151
LAIF Performance Report
Quarter Ending 3/31/05
Apportionment Rate: 2.38%
Earnings Ratio: .00006516177802079
Fair Value Factor: .996466418
PMIA Average Monthly Effective Yields
May 2006 2.856%
April2005 2.724%
March 2005 2.542%
Pooled Money Investment Account
Portfolio Composition
$62.2 Billion
5/31 /05
Loans Reverses
8.16% -1.04%
Corpora+� R����
2.
Commercial Pape
16.84%
Time Depo:
11.26%
CDs/BNs
26.39%
Treasuries
1320%
ages
Agencies
22.09%
7
Bureau of the Public Debt: Recent Treasury Bill Auction Results Page 1 of 2
Recent Treasury Bill Auction Results
Price
Term
Issue
Maturity
Discount
Investment
Per
CUSIP
Date
Date
Rate %
Rate %
$100
14-DAY
07-01-2005
07-15-2005
3.165
3.213
99.876917
912795TN1
28-DAY
06-30-2005
07-28-2005
2.925
2.972
99.772500
912795VJ7
91-DAY
06-30-2005
09-29-2005
3.080
3.147
99.221444
912795VT5
182-DAY
06-30-2005
12-29-2005
3.220
3.319
98.372111
912795WG2
28-DAY
06-23-2005
07-21-2005
2.780
2.825
99.783778
912795VH1
91-DAY
06-23-2005
09-22-2005
2.965
3.029
99.250514
912795VS7
182-DAY
06-23-2005
12-22-2005
3.175
3.272
98.394861
912795WF4
28-DAY
06-16-2005
07-14-2005
2.735
2.779
99.787278
912795VG3
91-DAY
06-16-2005
09-15-2005
2.975
3.039
99.247986
912795VR9
182-DAY
06-16-2005
12-15-2005
3.120
3.214
98.422667
912795WE7
28-DAY
06-09-2005
07-07-2005
2.775
2.820
99.784167
912795VF5
91-DAY
06-09-2005
09-08-2005
2.965
3.029
99.250514
912795VQ1
182-DAY
06-09-2005
12-08-2005
3.060
3.151
98.453000
912795WD9
8-DAY
06-07-2005
06-15-2005
2.940
2.983
99.934667
912795TM3
12-DAY
06-03-2005
06-15-2005
2.935
2.979
99.902167
912795TM3
28-DAY
06-02-2005
06-30-2005
2.740
2.784
99.786889
912795SV4
91-DAY
06-02-2005
09-01-2005
2.935
2.998
99.258097
912795VP3
182-DAY
06-02-2005
12-01-2005
3.080
3.172
98.442889
912795WC1
14-DAY
06-01-2005
06-15-2005
2.895
2.939
99.887417
912795TM3
28-DAY
05-26-2005
06-23-2005
2.765
2.809
99.784944
912795SU6
91-DAY
05-26-2005
08-25-2005
2.895
2.957
99.268208
912795VN8
183-DAY
05-26-2005
11-25-2005
3.110
3.204
98.419083
912795WB3
28-DAY
05-19-2005
06-16-2005
2.550
2.591
99.801667
912795ST9
91-DAY
05-19-2005
08-18-2005
2.800
2.859
99.292222
912795VMO
182-DAY
05-19-2005
11-17-2005
3.070
3.162
98.447944
912795WA5
28-DAY
05-12-2005
06-09-2005
2.575
2.616
99.799722
912795SS1
91-DAY
05-12-2005
08-11-2005
2.850
2.911
99.279583
912795VL2
182-DAY
05-12-2005
11-10-2005
3.120
3.214
98.422667
912795VZ1
28-DAY
05-05-2005
06-02-2005
2.605
2.647
99.797389
912795SR3
91-DAY
05-05-2005
08-04-2005
2.870
2.931
99.274528
912795VK4
182-DAY
05-05-2005
11-03-2005
3.085
3.177
98.440361
912795VY4
28-DAY
04-28-2005
05-26-2005
2.690
2.733
99.790778
912795SQ5
91-DAY
04-28-2005
07-28-2005
2.880
2.941
99.272000
912795VJ7
182-DAY
04-28-2005
10-27-2005
3.090
3.183
98.437833
912795VX6
28-DAY
04-21-2005
05-19-2005
2.690
2.733
99.790778
912795SP7
91-DAY
04-21-2005
07-21-2005
2.805
2.864
99.290958
912795VH1
182-DAY
04-21-2005
10-20-2005
3.040
3.130
98.463111
912795VW8
4-DAY
04-14-2005
04-18-2005
2.640
2.677
99.970667
912795TL5
8
http://wwws.publicdebt.treas.gov/AI/OFBills 7/1 /2005
Bureau of the Public Debt: Recent Treasury Bill Auction Results Page 2 of 2
28-DAY 04-14-2005 05-12-2005 2.555 2.596 99.801278 912795SN2
91-DAY 04-14-2005 07-14-2005 2.710 2.767 99.314972 912795VG3
Effective with the 11 /2/98 auction, all bills are auctioned using the single -priced method.
Return to Auction Information Page
Privacy & Security Notices I Terms & Conditions I Accessibility I Data Quality
Last Updated July 1, 2005 1:56:20 PM EDT
9
http://wwws.publicdebt.treas.gov/AI/OFBills 7/l /2005
FRB:Commercial Paper Rates and Outstandings
Page 1 of 3
r . •
Release I About I Out
standngs I Historical discount rates (Historical outstandings
............
Data as of June 30, 2005
Commercial Paper Rates and Outstandings
Derived from data supplied by The Depository Trust Company
Trade data insufficient to support calculation of the 60-day AA nonfinancial and 90-day AA nonfinancial rate(s) for June 30, 2005 .
Posted July 1, 2005
Discount rates
A2/P2
nonfinancial
1-day 3.37 3.34
3.43
7-day 3.25 3.25 3.37
15-day 3.24 3.22 3.38
30-day 3.25 3.24 3.45
60-day 3.32 ND 3.55
90-day 3.40 ND:::] 3.63
Yield curve
Money market. basis
Financial
... -- ._ Nonfinancial
--.-....-.. A2/P2
1 fi 15 30
Days to Maturity
E
3.7
3.5
3.3
3.1
90
10
7/1/2005
http://www.federalreserve.gov/Releases/CP/
FRB:Commercial Paper Rates and Outstandings
Page 2 of 3
Discount rate spread
Basis points
1?0
100
80
60
40
20
0
2001 2002 2003 2004 2005
Discount rate history
Thirty -day commercial paper (daily)
'Financial
— — — 40nfinaricial
A"JP2
2001 2002 2M3 2004
Outstandings
Weekly (Wednesday), seasonally adjusted
Percent
.�...�.-- . 5
4
3
2
----1 0
2005
11
http://www.federalreserve.gov/Releases/CP/ 7/1 /2005
FRB:Commercial Paper Rates and Outstandings
Page 3 of 3
1420
1390
1360
1330
1300
1270
1240
1210
1190
1150
Billions of dollars
Billions of dollars
Uinuncia) ticlt scab:)
Nonriinancial (right cwale)
N
1
ttlj �� t
i
1�
/"\
\"t w
2001 2002 2003 2004
- 250
210
170
- 130
�j/�
2005
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 _Da ear outstandin .
Commercial gaper outstanding, miscellaneous categories
Volume Statistics 2005 :Q2
Release I About I Outstandinas I Historical discount rates I Historical outstandinl?s
Home I Statistical releases
Accessibility Contact Us
Last update: July 1, 2005
12
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13
INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
July 13, 2005
Pooled Money Investment Board Report
for April 2005
BACKGROUND:
Correspondence & Written
Material Item B
The Pooled Money Investment Board Report for April 2005 is included in the
agenda packet.
RECOMMENDATION:
Receive & File
ohn M. Falco er, Finance Director
Phil Angelides
April 2005
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
POOLED MONEY INVESTMENT BOARD REPORT
April 2005
TABLE OF CONTENTS
SUMMARY................................................................. 01
SELECTED INVESTMENT DATA .................................... 02
PORTFOLIO COMPOSITION ........................................ 03
INVESTMENT TRANSACTIONS ..................................... 04
TIMEDEPOSITS........................................................ 16
BANK DEMAND DEPOSITS .......................................... 27
POOLED MONEY INVESTMENT BOARD DESIGNATION... 28
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF APRIL 2005 WITH APRIL 2004
(DOLLARS IN THOUSANDS)
CAPRIL 2005 APRIL 2004 CHANGE
Average Daily Portfolio
$ 54,857,398 $
53,669,110 $
+1,188,288
Accrued Earnings
$ 122,837 $
63,556 $
+59,281
Effective Yield
2.724
1.445
+1.279
Average Life -Month End (In Days) 183 145 +38
Total Security Transactions
Amount
$ 20,443,505
$
19,603,000
$
+840,505
Number
426
406
+20
Total Time Deposit Transactions
Amount
$ 4,296,190
$
3,619,000
$
+677,190
Number
162
147
+15
Average Workday Investment Activity
$ 1,178,081
$
1,055,545
$
+122,536
Prescribed Demand Account Balances
For Services
$ 407,679
$
1,265,964
$
-858,285
For Uncollected Funds
$ 293,748
$
271,396
$
+22,352
1
PHIL ANGELIDES
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
April 30, 2005
DIFFERENCE IN
PERCENT OF
PERCENT OF
PORTFOLIO FROM
TYPE OF SECURITY
AMOUNT
PORTFOLIO
PRIOR MONTH
Government
Bills
$
2,203,089
3.64
-0.65
Bonds
0
0.00
0.00
Notes
6,025,729
9.97
-2.18
Strips
0
0.00
0.00
Total Government
$
8,228,818
13.61
-2.83
Federal Agency Coupons
$
7,336,592
12.13
-2.62
Certificates of Deposit
12,327,056
20.39
+2.80
Bank Notes
1,425,246
2.36
+1.48
Bankers' Acceptances
0
0.00
0
Repurchases
0
0.00
0
Federal Agency Discount Notes
8,070,901
13.35
+0.52
Time Deposits
6,833,495
11.30
-1.85
GNMAs
329
0.00
0
Commercial Paper
8,975,075
14.85
+6.18
FHLMC/Remics
573,764
0.95
-0.21
Corporate Bonds
1,444,104
2.39
-0.62
AB 55 Loans
5,242,413
8.67
-2.48
GF Loans
0
0.00
-0.37
Reversed Repurchases
0
0.00
0
Total (All Types)
$
60,457,793
100.00
INVESTMENT ACTIVITY
Pooled Money
Other
Time Deposits
Totals
PMIA Monthly Average Effective Yield
Year to Date Yield Last Day of Month
APRIL 2005
NUMBER
AMOUNT
426
$ 20,443,505
58
892,975
162
4,296,190
646
$ 25,632,670
2.724
2.099
2
MARCH 2O05
NUMBER
AMOUNT
487
$ 23,585,002
33
1,122,811
139
2,115,500
659
$ 26,823,313
2.542
2.027
Pooled Money Investment Account
Portfolio Composition
$60.4 Billion
Corpo
2
Commercial Pape
14.85%
Time Deposi'
11.30%
4/30/05
Loans Treasuries
8.67% , „
CDs/BNs
22.75%
3
ages
5%
Agencies
25.48%
4/1/2005 REDEMPTIONS
CD
W/F
2.710%
4/1/2005
2.710
$50,000
15
$56,458.33
2.748
CD
W/F
2.710%
4/1/2005
2.710
50,000
15
56,458.33
2.748
CD
W/F
2.710%
4/1/2005
2.710
50,000
15
56,458.33
2.748
CD
W/F
2.710%
4/1/2005
2.710
50,000
15
56,458.33
2.748
CD
CS/1ST BOSTON
2.620%
4/1/2005
2.610
16,000
35
40,600.40
2.646
CD
CS/1ST BOSTON
2.620%
4/1/2005
2.610
50,000
35
126,876.23
2.646
CD
CS/1ST BOSTON
2.620%
4/1/2005
2.610
50,000
35
126,876.23
2.646
CD
US BANK
2.630%
4/1/2005
2.630
50,000
35
127,847.22
2.667
CD
US BANK
2.630%
4/1/2005
2.630
50,000
35
127,847.22
2.667
CD
CALYON
2.460%
4/1/2005
2.460
50,000
99
338,250.00
2.494
CD
CALYON
2.460%
4/1/2005
2.460
50,000
99
338,250.00
2.494
CD
CALYON
2.460%
4/1/2005
2.460
50,000
99
338,250.00
2.494
CD
WA MU, FA
2.490%
4/1/2005
2.490
50,000
99
342,375.00
2.524
CD
WA MU, FA
2.490%
4/1/2005
2.490
50,000
99
342,375.00
2.524
CD
WA MU, FA
2.490%
4/1/2005
2.490
50,000
99
342,375.00
2.524
CD
WA MU, FA
2.490%
4/1/2005
2.490
50,000
99
342,375.00
2.524
CD
FORTIS
2.410%
4/1/2005
2.410
50,000
123
411,708.33
2.443
CD
FORTIS
2.410%
4/1/2005
2.410
50,000
123
411,708.33
2.443
CD
FORTIS
2.410%
4/1/2005
2.410
50,000
123
411,708.33
2.443
CD
FORTIS
2.410%
4/1/2005
2.410
50,000
123
'411,708.33
2.443
CP
CITICORP
4/1/2005
2.750
50,000
11
42,013.89
2.791
CP
CITICORP
4/1/2005
2.750
50,000
11
42,013.89
2.791
CP
CITICORP
4/1/2005
2.750
50,000
11
42,013.89
2.791
CP
CITICORP
4/1/2005
2.750
50,000
11
42,013.89
2.791
CP
NCAT
4/1/2005
2.550
44,000
37
115,316.67
2.592
CP
NCAT
4/1/2005
2.550
50,000
37
131,041.67
2.592
CP
CITI GLOBAL
4/1/2005
2.420
50,000
102
342,833.33
2.471
CP
CITI GLOBAL
4/1/2005
2.420
50,000
102
342,833.33
2.471
CP
CITI GLOBAL
4/1/2005
2.420
50,000
102
342,833.33
2.471
CP
CITI GLOBAL
4/1/2005
2.420
50,000
102
342,833.33
2.471
CP
GECC
4/1/2005
2.430
50,000
106
357,750.00
2.482
CP
GECC
4/1/2005
2.430
50,000
106
357,750.00
2.482
CP
GECC
4/1/2005
2.430
50,000
106
357,750.00
2.482
CP
GECC
4/1/2005
2.380
50,000
123
406,583.33
2.433
CP
GECC
4/1/2005
2.380
50,000
123
406,583.33
2.433
CP
GECC
4/1/2005
2.380
50,000
123
406,583.33
2.433
CP
GECC
4/1/2005
2.380
50,000
123
406,583.33
2.433
CP
CITI GLOBAL
4/1/2005
2.300
50,000
130
415,277.78
2.351
CP
CITI GLOBAL
4/1/2005
2.300
50,000
130
415,277.78
2.351
CP
CITI GLOBAL
4/1/2005
2.300
50,000
130
415,277.78
2.351
CP
CITI GLOBAL
4/1/2005
2.300
50,000
130
415,277.78
2.351
4/1/2005 PURCHASES
CD
STNRD CH
3.030%
7/6/2005
3.030
50,000
CD
STNRD CH
3.030%
7/6/2005
3.030
50,000
CD
STNRD CH
3.030%
7/6/2005
3.030
50,000
CD
STNRD CH
3.030%
7/6/2005
3.030
50,000
CD
RABO
3.100%
8/29/2005
3.100
50,000
CD
RABO
3.100%
8/29/2005
3.100
50,000
4
4/1/2005 PURCHASES (continued)
CD
RB CANADA
3.160%
8/29/2005
3.150
50,000
CD
RB CANADA
3.160%
8/29/2005
3.150
50,000
CD
SVENSKA
3.170%
8/29/2005
3.170
50,000
CD
SVENSKA
3.170%
8/29/2005
3.170
50,000
CD
SOC GEN
3.160%
8/29/2005
3.160
50,000
CD
SOC GEN
3.160%
8/29/2005
3.160
50,000
CID
CITI GLOBAL
7/5/2005
2.980
50,000
CID
CITI GLOBAL
7/5/2005
2.980
50,000
CID
CITI GLOBAL
7/5/2005
2.980
50,000
CID
MORG STAN
7/5/2005
3.000
50,000
CID
MORG STAN
7/5/2005
3.000
50,000
CID
CITI GLOBAL
7/6/2005
2.980
50,000
CID
CITI GLOBAL
7/6/2005
2.980
50,000
CID
CITI GLOBAL
7/6/2005
2.980
50,000
CID
TOYOTA
8/29/2005
3.160
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
DISC NOTE
FHLMC
8/29/2005
3.060
50,000
4/4/2005 REDEMPTIONS
CD
W/F
2.720% 4/4/2005
2.720
50,000
18
68,000.00
2.758
CD
W/F
2.720% 4/4/2005
2.720
50,000
18
68,000.00
2.758
CID
GECC
4/4/2005
2.760
50,000
14
53,666.67
2.801
CID
GECC
4/4/2005
2.760
50,000
14
53,666.67
2.801
CID
MORG STAN
4/4/2005
2.730
50,000
20
75,833.33
2.772
4/4/2005 PURCHASES
CID
NCAT
4/5/2005
2.750
50,000
CID
NCAT
4/5/2005
2.750
50,000
CID
COUNTRY
5/2/2005
2.825
50,000
CID
TOYOTA
7/5/2005
3.000
50,000
CID
TOYOTA
7/5/2005
3.000
50,000
4/4/2005 PURCHASES (continued)
CP
FCAR
CP
FCAR
4/5/2005 REDEMPTIONS
CP
NCAT
CP
NCAT
CP
GECC
CP
GECC
4/5/2005 PURCHASES
BN
B/A
BN
B/A
BN
B/A
BN
B/A
BN
B/A
BN
B/A
BN
B/A
BN
B/A
BN
B/A
4/6/2005 NO REDEMPTIONS
4/6/2005 PURCHASES
CD
ABN AMRO
CD
ABN AMRO
CD
CIBC
CD
CIBC
CP
GECC
CP
GECC
CP
BEAR
CP
BEAR
4/7/2005 NO REDEMPTIONS
4/7/2005 PURCHASES
BN
WORLD
BN
WORLD
BN
WORLD
BN
WORLD
CP
B/A
CP
B/A
CP
B/A
CP
B/A
CP
B/A
CP
B/A
CP
B/A
7/6/2005 3.020 50,000
7/6/2005 3.020 50,000
4/5/2005
2.750
50,000
1
3,819.44
2.788
4/5/2005
2.750
50,000
1
3,819.44
2.788
4/5/2005
2.760
50,000
15
57,500.00
2.802
4/5/2005
2.760
50,000
15
57,500.00
2.802
3.030%
7/5/2005
3.030
3.030%
7/5/2005
3.030
3.030%
7/5/2005
3.030
3.030%
7/5/2005
3.030
3.030%
7/6/2005
3.030
3.030%
7/6/2005
3.030
3.030%
7/6/2005
3.030
3.030%
7/6/2005
3.030
3.030%
7/6/2005
3.030
3.065%
8/3/2005
3.060
3.065%
8/3/2005
3.060
3.070%
8/8/2005
3.070
3.070%
8/8/2005
3.070
8/17/2005
3.090
8/17/2005
3.090
8/2/2005
3.020
8/2/2005
3.020
3.090%
8/2/2005
3.090
3.090%
8/2/2005
3.090
3.090%
8/2/2005
3.090
3.090%
8/2/2005
3.090
8/5/2005
3.090
8/5/2005
3.090
8/5/2005
3.090
8/8/2005
3.090
8/8/2005
3.090
8/9/2005
3.090
8/9/2005
3.090
6
50,000
50,000
50,000
50,000
25,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
20,000
50,000
50,000
50,000
50,000
50,000
50,000
4/7/2005 PURCHASES (continued)
CP NCAT 8/17/2005 3.090 30,000
4/8/2005 REDEMPTIONS
CD
SOC GEN
2.720%
4/8/2005
2.720
50,000
22
83,111.11
2.758
CD
SOC GEN
2.720%
4/8/2005
2.720
50,000
22
83,111.11
2.758
CD
WA MU, FA
2.760%
4/8/2005
2.670
40,000
23
70,560.61
2.798
CD
FORTIS
2.300%
4/8/2005
2.300
50,000
154
491,944.44
2.332
CD
FORTIS
2.300%
4/8/2005
2.300
50,000
154
491,944.44
2.332
DISC NOTE
FHLB
4/8/2005
2.660
25,000
22
40,638.89
2.701
DISC NOTE
FHLB
4/8/2005
2.660
50,000
22
81,277.78
2.701
4/8/2005 PURCHASES
CP NCAT 4/11/2005 2.730 50,000
4/11/2005 SALES
TREAS
NOTE
1.625%
4/30/2005
2.871
50,000
711
1,739,140.01
1.771
TREAS
NOTE
1.625%
4/30/2005
2.871
50,000
711
1,739,140.01
1.771
TREAS
NOTE
1.625%
4/30/2005
2.871
50,000
711
1,739,140.01
1.771
TREAS
NOTE
1.625%
4/30/2005
2.871
50,000
711
1,739,140.01
1.771
TREAS
NOTE
1.625%
4/30/2005
2.871
50,000
711
1,739,140.01
1.771
TREAS
NOTE
1.625%
4/30/2005
2.871
50,000
711
1,739,140.01
1.771
4/11/2005 REDEMPTIONS
CD
TORONTO
2.330%
4/11/2005
2.320
20,000
157
202,364.29
2.352
CD
TORONTO
2.330%
4/11/2005
2.320
50,000
157
505,910.73
2.352
CD
FORTIS
2.215%
4/11/2005
2.215
50,000
159
489,145.83
2.246
CD
FORTIS
2.215%
4/11/2005
2.215
50,000
159
489,145.83
2.246
CP
NCAT
4/11/2005
2.730
50,000
3
11,375.00
2.769
4/11/2005 PURCHASES
CP
W/F
5/2/2005
2.750
50,000
CP
W/F
5/2/2005
2.750
50,000
CP
W/F
5/2/2005
2.750
50,000
4/12/2005 NO REDEMPTIONS
4/12/2005 PURCHASES
CP
B/A
6/27/2005
2.970
2,000
CP
B/A
6/27/2005
2.970
50,000
CP
B/A
6/27/2005
2.970
50,000
CP
B/A
6/27/2005
2.970
50,000
CP
B/A
6/27/2005
2.970
50,000
CP
B/A
6/27/2005
2.970
50,000
CP
B/A
6/27/2005
2.970
50,000
7
4/12/2005 PURCHASES (continued)
CD
CALYON
2.930%
6/l/2005
2.930
50,000
CD
CALYON
2.930%
6/l/2005
2.930
50,000
CD
SOC GEN
2.930%
6/l/2005
2.930
50,000
CD
SOC GEN
2.930%
6/l/2005
2.930
50,000
4/13/2005 NO REDEMPTIONS
4/13/2005 PURCHASES
CP
MORG STAN
6/6/2005
2.960
41,000
CP
MORG STAN
6/7/2005
2.960
50,000
CP
MORG STAN
6/7/2005
2.960
50,000
CP
MORG STAN
6/8/2005
2.960
50,000
CP
MORG STAN
6/8/2005
2.960
50,000
CP
GECC
6/13/2005
2.970
10,000
CP
GECC
6/13/2005
2.970
50,000
CP
GECC
6/13/2005
2.970
50,000
CP
GECC
6/13/2005
2.970
50,000
CP
GECC
6/13/2005
2.970
50,000
4/14/2005 NO REDEMPTIONS
4/14/2005 PURCHASES
BN
B/A
3.150%
8/29/2005
3.150
50,000
BN
B/A
3.150%
8/29/2005
3.150
50,000
BN
B/A
3.150%
8/31/2005
3.150
50,000
BN
B/A
3.150%
8/31/2005
3.150
50,000
CD
RB CANADA
3.155%
8/29/2005
3.140
50,000
CD
RB CANADA
3.155%
8/29/2005
3.140
50,000
CD
BNP PARIBAS
3.155%
8/29/2005
3.155
50,000
CD
BNP PARIBAS
3.155%
8/29/2005
3.155
50,000
CD
RB SCOT
3.160%
8/29/2005
3.160
50,000
CD
RB SCOT
3.160%
8/29/2005
3.160
50,000
CD
RB SCOT
3.160%
8/29/2005
3.160
50,000
CD
RB SCOT
3.160%
8/29/2005
3.160
50,000
CD
HSBC
3.170%
8/29/2005
3.170
50,000
CD
HSBC
3.170%
8/29/2005
3.170
50,000
CD
UBS
3.170%
8/29/2005
3.170
50,000
CD
UBS
3.170%
8/29/2005
3.170
50,000
CD
UBS
3.170%
8/29/2005
3.170
50,000
CD
UBS
3.170%
8/29/2005
3.170
50,000
CD
RB CANADA
3.155%
8/31/2005
3.140
50,000
CD
RB CANADA
3.155%
8/31/2005
3.140
50,000
CD
HSBC
3.170%
8/31/2005
3.170
50,000
CD
HSBC
3.170%
8/31/2005
3.170
50,000
CD
US BANK
3.180%
8/31/2005
3.180
50,000
CD
US BANK
3.180%
8/31/2005
3.180
50,000
CP
BEAR
8/17/2005
3.110
50,000
CP
BEAR
8/17/2005
3.110
50,000
8
4/14/2005 PURCHASES (continued)
CP
BEAR
8/17/2005
3.110
50,000
CP
BEAR
8/17/2005
3.110
50,000
CP
GECC
8/17/2005
3.110
50,000
CP
GECC
8/17/2005
3.110
50,000
CP
GECC
8/17/2005
3.110
50,000
CP
GECC
8/17/2005
3.110
50,000
CP
GECC
8/22/2005
3.110
50,000
CP
GECC
8/22/2005
3.110
50,000
CP
GECC
8/26/2005
3.110
50,000
CP
GECC
8/26/2005
3.110
50,000
4/15/2005 REDEMPTIONS
MTN B/A
7.625%
4/15/2005
3.200
14,913
955
1,332,414.73
3.084
FFCB
4.375%
4/15/2005
4.600
50,000
1121
7,025,383.33
4.617
FHLB
4.625%
4/15/2005
3.600
50,000
1026
5,140,770.83
3.571
FHLB
4.625%
4/15/2005
3.600
50,000
1026
5,140,770.83
3.571
FHLB
4.625%
4/15/2005
4.330
50,000
1094
6,517,152.78
4.325
FHLB
4.625%
4/15/2005
4.330
50,000
1094
6,517,152.78
4.325
4/15/2005 PURCHASES
CD
CIBC
2.760%
5/2/2005
2.760
50,000
CD
CIBC
2.760%
5/2/2005
2.760
50,000
CD
RABO
2.790%
5/2/2005
2.790
50,000
CD
RABO
2.790%
5/2/2005
2.790
50,000
CD
RABO
2.790%
5/2/2005
2.790
50,000
CP
GECC
4/18/2005
2.820
50,000
CP
GECC
4/18/2005
2.820
50,000
CP
GECC
4/18/2005
2.820
50,000
CP
GECC
4/18/2005
2.820
50,000
CP
GECC
4/18/2005
2.820
50,000
CP
GECC
4/18/2005
2.820
50,000
CP
GECC
4/18/2005
2.820
50,000
CP
GECC
4/18/2005
2.820
50,000
CP
GECC
4/18/2005
2.820
50,000
CP
GECC
4/18/2005
2.820
50,000
CP
W/F
4/20/2005
2.750
50,000
CP
W/F
4/20/2005
2.750
50,000
CP
W/F
4/20/2005
2.750
50,000
CP
CITICORP
5/2/2005
2.750
50,000
CP
CITICORP
5/2/2005
2.750
50,000
CP
CITICORP
5/2/2005
2.750
50,000
CP
CITICORP
5/2/2005
2.750
50,000
CP
CITICORP
5/2/2005
2.750
50,000
CP
CITICORP
5/2/2005
2.750
50,000
4/18/2005 REDEMPTIONS
CP GECC 4/18/2005 2.820 50,000 3 11,750.00 2.860
-41
4/18/2005 REDEMPTIONS (continued)
CP
GECC
4/18/2005
2.820
50,000
3
11,750.00
2.860
CP
GECC
4/18/2005
2.820
50,000
3
11,750.00
2.860
CP
GECC
4/18/2005
2.820
50,000
3
11,750.00
2.860
CP
GECC
4/18/2005
2.820
50,000
3
11,750.00
2.860
CP
GECC
4/18/2005
2.820
50,000
3
11,750.00
2.860
CP
GECC
4/18/2005
2.820
50,000
3
11,750.00
2.860
CP
GECC
4/18/2005
2.820
50,000
3
11,750.00
2.860
CP
GECC
4/18/2005
2.820
50,000
3
11,750.00
2.860
CP
GECC
4/18/2005
2.820
50,000
3
11,750.00
2.860
4/18/2005 PURCHASES
CP
GECC
4/19/2005
2.720
50,000
CP
GECC
4/19/2005
2.720
50,000
CP
GECC
4/20/2005
2.720
50,000
CP
GECC
4/20/2005
2.720
50,000
CP
GECC
4/20/2005
2.720
50,000
CP
GECC
4/20/2005
2.720
50,000
CP
NCAT
4/20/2005
2.720
50,000
CP
NCAT
4/20/2005
2.720
50,000
CP
NCAT
4/20/2005
2.720
50,000
TREAS
NOTE
1.265% 9/30/2005
3.046
50,000
TREAS
NOTE
1.265% 9/30/2005
3.046
50,000
4/19/2005 REDEMPTIONS
CP GECC 4/19/2005 2.720 50,000 1 3,777.78 2.758
CP GECC 4/19/2005 2.720 50,000 1 3,777.78 2.758
4/19/2005 PURCHASES
CD
UBS
3.200%
9/28/2005
3.200
50,000
CD
UBS
3.200%
9/28/2005
3.200
50,000
CD
ABN AMRO
3.200%
9/28/2005
3.200
50,000
CD
ABN AMRO
3.200%
9/28/2005
3.200
50,000
CD
STNRD CH
3.200%
9/28/2005
3.200
50,000
CD
STNRD CH
3.200%
9/28/2005
3.200
50,000
CD
STNRD CH
3.200%
9/28/2005
3.200
50,000
CD
SVENSKA
3.193%
9/28/2005
3.190
50,000
CD
SVENSKA
3.193%
9/28/2005
3.190
50,000
CD
SVENSKA
3.193%
9/28/2005
3.190
50,000
CD
SVENSKA
3.193%
9/28/2005
3.190
50,000
CP
MORG STAN
5/6/2005
2.860
50,000
CP
MORG STAN
7/5/2005
3.050
50,000
CP
MORG STAN
7/5/2005
3.050
50,000
CP
BEAR
7/25/2005
3.050
50,000
CP
BEAR
7/25/2005
3.050
50,000
CP
GECC
8/2/2005
3.050
50,000
CP
GECC
8/2/2005
3.050
50,000
CP
GECC
8/2/2005
3.050
50,000
10
4/19/2005 PURCHASES (continued)
CP GECC 8/2/2005 3.050 50,000
TREAS NOTE 1.625% 9/30/2005 3.063 50,000
TREAS NOTE 1.625% 9/30/2005 3.063 50,000
4/20/2005 REDEMPTIONS
CP
NCAT
4/20/2005
2.720
50,000
2
7,555.56
2.758
CP
NCAT
4/20/2005
2.720
50,000
2
7,555.56
2.758
CP
NCAT
4/20/2005
2.720
50,000
2
7,555.56
2.758
CP
GECC
4/20/2005
2.720
50,000
2
7,555.56
2.758
CP
GECC
4/20/2005
2.720
50,000
2
7,555.56
2.758
CP
GECC
4/20/2005
2.720
50,000
2
7,555.56
2.758
CP
GECC
4/20/2005
2.720
50,000
2
7,555.56
2.758
CP
W/F
4/20/2005
2.750
50,000
5
19,097.22
2.789
CP
W/F
4/20/2005
2.750
50,000
5
19,097.22
2.789
CP
W/F
4/20/2005
2.750
50,000
5
19,097.22
2.789
4/20/2005 PURCHASES
CD
HSBC
3.060%
7/18/2005
3.060
50,000
CD
HSBC
3.060%
7/18/2005
3.060
50,000
CD
BARCLAYS
3.070%
7/26/2005
3.070
50,000
CD
BARCLAYS
3.070%
7/26/2005
3.070
50,000
CD
LLOYDS
3.210%
9/28/2005
3.200
50,000
CD
LLOYDS
3.210%
9/28/2005
3.200
50,000
CP
W/F
5/4/2005
2.780
50,000
CP
W/F
5/4/2005
2.780
50,000
CP
W/F
5/5/2005
2.780
50,000
CP
W/F
5/5/2005
2.780
50,000
4/21/2005 NO REDEMPTIONS
4/21/2005 PURCHASES
CD
CS/1 ST BOSTON
3.070%
7/27/2005
3.070
50,000
CD
LLOYDS
3.140%
8/29/2005
3.140
50,000
CD
LLOYDS
3.140%
8/29/2005
3.140
50,000
CD
LLOYDS
3.215%
9/28/2005
3.205
50,000
CD
LLOYDS
3.215%
9/28/2005
3.205
50,000
CD
MONTREAL
3.205%
9/30/2005
3.205
50,000
CD
MONTREAL
3.205%
9/30/2005
3.205
50,000
CP
HSBC
5/2/2005
2.730
10,000
CP
HSBC
5/2/2005
2.730
50,000
CP
KITTY HAWK
5/23/2005
2.940
42,095
CP
KITTY HAWK
5/23/2005
2.940
50,000
CP
GECC
5/26/2005
2.930
50,000
CP
GECC
5/26/2005
2.930
50,000
CP
GECC
5/26/2005
2.930
50,000
CP
GECC
5/26/2005
2.930
50,000
11
4/22/2005 NO REDEMPTIONS
4/22/2005 PURCHASES
CD
TORONTO
3.090%
7/25/2005
3.080
50,000
CD
RB SCOT
3.220%
9/28/2005
3.220
25,000
CD
RB SCOT
3.220%
9/28/2005
3.220
50,000
CD
RB SCOT
3.220%
9/28/2005
3.220
50,000
CD
RB SCOT
3.220%
9/28/2005
3.220
50,000
CD
MONTREAL
3.208%
9/29/2005
3.208
50,000
CD
MONTREAL
3.208%
9/29/2005
3.208
50,000
CID
W/F
5/11/2005
2.870
25,000
CID
W/F
5/11/2005
2.870
50,000
4/25/2005 NO REDEMPTIONS
4/25/2005 PURCHASES
BN
WORLD
2.950%
7/l/2005
3.000
50,000
BN
WORLD
2.950%
7/l/2005
3.000
50,000
CD
FORTIS
2.980%
6/8/2005
2.980
50,000
CD
FORTIS
2.980%
6/8/2005
2.980
50,000
CD
DEXIA
3.155%
8/29/2005
3.155
50,000
CD
DEXIA
3.155%
8/29/2005
3.155
50,000
CD
HSBC
3.145%
8/29/2005
3.145
50,000
CD
HSBC
3.145%
8/29/2005
3.145
50,000
CD
S-E BANK
3.235%
9/27/2005
3.230
50,000
CD
S-E BANK
3.235%
9/27/2005
3.230
50,000
CID
GECC
4/27/2005
2.760
50,000
CID
GECC
4/27/2005
2.760
50,000
CID
GECC
4/27/2005
2.760
50,000
CID
GECC
4/27/2005
2.760
50,000
CID
W/F
5/12/2005
2.880
50,000
CID
W/F
5/12/2005
2.880
50,000
CID
SARA LEE
5/26/2005
2.970
9,000
CID
NCAT
5/26/2005
2.960
45,000
CID
SARA LEE
5/26/2005
2.970
50,000
CP
SARA LEE
6/6/2005
2.990
40,000
CID
CITI GLOBAL
6/7/2005
2.960
50,000
CID
CITI GLOBAL
6/7/2005
2.960
50,000
CID
CITI GLOBAL
6/8/2005
2.960
50,000
CID
COUNTRY
6/10/2005
3.010
50,000
CID
DEERE
6/13/2005
3.040
30,000
DISC NOTE
FHLMC
9/6/2005
3.080
31,000
DISC NOTE
FHLMC
9/6/2005
3.080
50,000
DISC NOTE
FHLMC
9/6/2005
3.080
50,000
4/26/2005 NO REDEMPTIONS
4/26/2005 PURCHASES
FR SBA 3.050% 3/25/1930 3.050 20,111
12
4/27/2005 REDEMPTIONS
CD
DANSKE
2.245% 4/27/2005
2.240
50,000
175
544,457.53
2.271
CD
DANSKE
2.245% 4/27/2005
2.240
50,000
175
544,457.53
2.271
CP
GECC
4/27/2005
2.760
50,000
2
7,666.67
2.799
CP
GECC
4/27/2005
2.760
50,000
2
7,666.67
2.799
CP
GECC
4/27/2005
2.760
50,000
2
7,666.67
2.799
CP
GECC
4/27/2005
2.760
50,000
2
7,666.67
2.799
4/27/2005 NO PURCHASES
4/28/2005 NO REDEMPTIONS
4/28/2005 PURCHASES
BN
WORLD
3.100%
8/2/2005
3.100
50,000
CD
WA MU, FA
3.130%
8/3/2005
3.130
50,000
CD
WA MU, FA
3.130%
8/3/2005
3.130
50,000
CD
FORTIS
3.240%
9/29/2005
3.240
50,000
CD
FORTIS
3.240%
9/29/2005
3.240
50,000
CP
CITICORP
5/2/2005
2.880
50,000
CP
CITICORP
5/2/2005
2.880
50,000
CP
CITICORP
5/2/2005
2.880
50,000
CP
CITICORP
5/2/2005
2.880
50,000
CP
CITIGLOBAL
5/10/2005
2.930
50,000
CP
CITIGLOBAL
5/10/2005
2.930
50,000
CP
CITIGLOBAL
5/11/2005
2.930
15,000
CP
CITIGLOBAL
5/11/2005
2.930
50,000
CP
CITIGLOBAL
5/11/2005
2.930
50,000
CP
CITIGLOBAL
5/11/2005
2.930
50,000
CP
SARA LEE
6/27/2005
3.040
25,000
CP
SARA LEE
6/27/2005
3.040
50,000
FR
SBA
3.050%
5/25/1930
3.050
9,354
4/29/2005 NO REDEMPTIONS
4/29/2005 PURCHASES
CD
MONTREAL
3.040%
7/l/2005
3.040
50,000
CD
MONTREAL
3.040%
7/l/2005
3.040
50,000
CD
BARCLAYS
3.040%
7/l/2005
3.040
50,000
CD
BARCLAYS
3.040%
7/l/2005
3.040
50,000
CD
SVENSKA
3.050%
7/5/2005
3.040
50,000
CD
SVENSKA
3.050%
7/5/2005
3.040
50,000
CD
TORONTO
3.175%
9/2/2005
3.180
50,000
CD
TORONTO
3.175%
9/2/2005
3.180
50,000
CD
TORONTO
3.230%
9/29/2005
3.230
50,000
CD
TORONTO
3.230%
9/29/2005
3.230
50,000
CP
CHEVRON
5/9/2005
2.950
50,000
CP
CHEVRON
5/9/2005
2.950
50,000
CP
CITIGLOBAL
5/9/2005
2.960
50,000
CP
CITIGLOBAL
5/9/2005
2.960
50,000
13
4/29/2005 PURCHASES (continued)
CP
CITIGLOBAL
5/9/2005
2.960
50,000
CP
CITIGLOBAL
5/9/2005
2.960
50,000
CP
GECC
6/l/2005
3.000
50,000
CP
GECC
6/l/2005
3.000
50,000
CP
GECC
6/l/2005
3.000
50,000
CP
GECC
6/l/2005
3.000
50,000
CP
GECC
6/l/2005
3.000
50,000
CP
GECC
6/l/2005
3.000
50,000
CP
GECC
6/6/2005
3.000
50,000
CP
GECC
6/6/2005
3.000
50,000
DISC NOTE
FHLMC
9/19/2005
3.090
50,000
DISC NOTE
FHLMC
9/19/2005
3.090
50,000
DISC NOTE
FHLMC
9/19/2005
3.090
50,000
DISC NOTE
FHLMC
9/19/2005
3.090
50,000
DISC NOTE
FHLMC
9/30/2005
3.100
50,000
DISC NOTE
FHLMC
9/30/2005
3.100
50,000
DISC NOTE
FHLMC
9/30/2005
3.100
50,000
DISC NOTE
FHLMC
9/30/2005
3.100
50,000
DISC NOTE
FHLMC
9/30/2005
3.100
50,000
DISC NOTE
FHLMC
9/30/2005
3.100
50,000
TREAS
NOTE
1.625%
9/30/2005
3.013
50,000
TREAS
NOTE
1.625%
9/30/2005
3.013
50,000
TREAS
NOTE
1.625%
9/30/2005
3.013
50,000
TREAS
NOTE
1.625%
9/30/2005
3.013
50,000
4/30/2005 REDEMPTIONS
MTN
PROCTOR
4.000%
4/30/2005
1.920
10,000
815
441,544.44
1.897
MTN
PROCTOR
4.000%
4/30/2005
2.193
15,000
941
871,366.66
2.162
MTN
PROCTOR
4.000%
4/30/2005
2.752
8,000
997
613,492.64
2.719
MTN
PROCTOR
4.000%
4/30/2005
2.844
9,000
998
713,189.03
2.821
MTN
PROCTOR
4.000%
4/30/2005
4.250
37,637
1107
4,832,574.97
4.276
TREAS
NOTE
1.625%
4/30/2005
1.449
50,000
730
1,450,917.12
1.449
TREAS
NOTE
1.625%
4/30/2005
1.449
50,000
730
1,450,917.12
1.449
TREAS
NOTE
1.625%
4/30/2005
1.449
50,000
730
1,450,917.12
1.449
TREAS
NOTE
1.625%
4/30/2005
1.449
50,000
730
1,450,917.12
1.449
TREAS
NOTE
1.625%
4/30/2005
1.449
50,000
730
1,450,917.12
1.449
TREAS
NOTE
1.625%
4/30/2005
1.449
50,000
730
1,450,917.12
1.449
14
a/ The abbreviations indicate the type of security purchased or sold;
i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes
and Participation Certificates: Federal National Mortgage Association
(FNMA), Farmers Home Administration Notes (FHA), Student Loan
Marketing Association (SLMA), Small Business Association (SBA),
Negotiable Certificates of Deposit (CD), Negotiable Certificates of
Deposit Floating Rate (CD FR), Export Import Notes (EXIM),
Bankers Acceptances (BA), Commercial Paper (CP), Government
National Mortgage Association (GNMA), Federal Home Loan Bank
Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan
Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC),
Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount
Notes (FFC), Corporate Securities (CB), US Ship Financing Bonds
(TITLE XI'S), International Bank of Redevelopment (IBRD), Tennessee
Valley Authority (TVA), Medium Term Notes (MTN), Real Estate
Mortgage Investment Conduit (REMIC).
b/ Purchase or sold yield based on 360 day calculation for discount
obligations and Repurchase Agreements.
c/ Repurchase Agreement.
d/ Par amount of securities purchased, sold or redeemed.
e/ Securities were purchased and sold as of the same date.
f/ Repurchase Agreement against Reverse Repurchase Agreement.
c/ Outright purchase against Reverse Repurchase Agreement.
h/ Security "SWAP" transactions.
1 Buy back agreement.
RRS Reverse Repurchase Agreement.
RRP Termination of Reverse Repurchase Agreement.
15
NAME
ALAMO
Diablo Valley Bank
ALHAMBRA
TIME DEPOSITS
DEPOSIT
DATE YIELD
04/08/2005 3.170
PAR MATURITY
AMOUNT ($) DATE
4,500, 000.00 10/07/2005
Omni Bank, N.A.
11/12/2004
2.350
2,000,000.00
05/13/2005
Omni Bank, N.A.
02/18/2005
2.630
4,000,000.00
05/20/2005
Omni Bank, N.A.
12/01/2004
2.450
2,000,000.00
06/01/2005
Omni Bank, N.A.
12/17/2004
2.480
2,000,000.00
06/01/2005
Omni Bank, N.A.
03/11/2005
2.800
6,000,000.00
06/10/2005
Omni Bank, N.A.
04/08/2005
2.800
4,000,000.00
07/08/2005
The Bank of East Asia (USA), N.A.
02/09/2005
2.540
3,000,000.00
05/12/2005
The Bank of East Asia (USA), N.A.
04/14/2005
2.830
3,095,000.00
07/14/2005
The Bank of East Asia (USA), N.A.
02/16/2005
2.880
6,000,000.00
08/17/2005
ARROYO GRANDE
Mid State Bank and Trust
11/17/2004
2.350
5,000,000.00
05/18/2005
Mid State Bank and Trust
12/10/2004
2.470
5,000,000.00
06/10/2005
Mid State Bank and Trust
01/13/2005
2.710
5,000,000.00
07/14/2005
Mid State Bank and Trust
02/09/2005
2.810
5,000,000.00
08/10/2005
Mid State Bank and Trust
03/10/2005
3.070
5,000,000.00
09/08/2005
Mid State Bank and Trust
04/13/2005
3.170
5,000,000.00
10/12/2005
BREA
Pacific Western National Bank
02/02/2005
2.770
4,000,000.00
08/03/2005
CALABASAS
First Bank of Beverly Hills, FSB
11/04/2004
2.230
10,000,000.00
05/05/2005
First Bank of Beverly Hills, FSB
12/01/2004
2.450
10,000,000.00
06/01/2005 .
First Bank of Beverly Hills, FSB
12/15/2004
2.510
10,000,000.00
06/15/2005
First Bank of Beverly Hills, FSB
03/03/2005
3.050
10,000,000.00
09/01/2005
CAMARILLO
First California Bank
12/03/2004
2.470
4,000,000.00
06/03/2005
First California Bank
02/04/2005
2.650
2,000,000.00
06/03/2005
First California Bank
03/23/2005
2.870
6,000,000.00
06/22/2005
First California Bank
01/26/2005
2.720
6,000,000.00
07/27/2005
16
NAME
CAMERON PARK
Western Sierra National Bank
Western Sierra National Bank
CHATSWORTH
Premier America Credit Union
Premier America Credit Union
Premier America Credit Union
Premier America Credit Union
Premier America Credit Union
CHICO
Tri Counties Bank
CITY OF INDUSTRY
EverTrust Bank
EverTrust Bank
EverTrust Bank
CONCORD
Cal State 9 Credit Union
DUBLIN
Operating Engineers Local # 3 FCU
Operating Engineers Local # 3 FCU
Operating Engineers Local # 3 FCU
EL CENTRO
Rabobank
Rabobank
Valley Independent Bank
Valley Independent Bank
Valley Independent Bank
EL SEGUNDO
First Coastal Bank, N.A.
First Coastal Bank, N.A.
TIME DEPOSITS
DEPOSIT
DATE YIELD
01/12/2005 2.670
04/06/2005 3.130
01/19/2005 2.440
02/09/2005 2.550
02/09/2005 2.550
04/07/2005 2.850
04/07/2005 2.850
PAR MATURITY
AMOUNT ($) DATE
7,000,000.00 07/13/2005
8,000,000.00 10/05/2005
10,000,000.00
05/06/2005
10,000,000.00
05/12/2005
10,000,000.00
05/12/2005
10,000,000.00
07/07/2005
10,000,000.00
07/07/2005
03/17/2005 2.850 20,000,000.00 06/16/2005
02/02/2005 2.500 5,000,000.00 05/04/2005
03/11/2005 2.780 6,000,000.00 06/10/2005
04/28/2005 2.980 6,000,000.00 07/28/2005
02/23/2005 2.670 10,000,000.00 05/25/2005
12/10/2004 2.450 10,000,000.00 06/10/2005
02/09/2005 2.790 5,000,000.00 08/11/2005
04/06/2005 3.160 5,000,000.00 10/05/2005
04/15/2005
2.840
47,500,000.00
07/15/2005
04/22/2005
2.940
32,500,000.00
07/22/2005
02/04/2005
2.590
25,000,000.00
05/06/2005
03/02/2005
2.820
25,000,000.00
06/02/2005
04/08/2005
2.810
20,000,000.00
07/08/2005
12/01 /2004 2.460 2,000,000.00 06/01 /2005
03/18/2005 3.140 5,000,000.00 09/16/2005
17
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
EL SEGUNDO (continued
First Coastal Bank, N.A.
04/21/2005
3.180
2,000,000.00
10/20/2005
Xerox Federal Credit Union
11/17/2004
2.370
20,000,000.00
05/18/2005
Xerox Federal Credit Union
12/02/2004
2.500
20,000,000.00
06/02/2005
Xerox Federal Credit Union
03/14/2005
3.090
7,000,000.00
09/14/2005
FAIRFIELD
WestAmerica
Bank
02/15/2005
2.580
25,000,000.00
05/18/2005
WestAmerica
Bank
02/16/2005
2.580
50,000,000.00
05/18/2005
WestAmerica
Bank
04/07/2005
2.840
60,000,000.00
07/07/2005
WestAmerica
Bank
04/15/2005
2.830
65,000,000.00
07/15/2005
WestAmerica
Bank
04/21/2005
2.950
10,000,000.00
07/20/2005
WestAmerica
Bank
04/28/2005
2.980
5,000,000.00
07/28/2005
FRESNO
United Security Bank
FULLERTON
Fullerton Community Bank, FSB
Fullerton Community Bank, FSB
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
04/20/2005 3.170 40,000,000.00 10/19/2005
11/17/2004 2.360 9,000,000.00 05/18/2005
01/21/2005 2.760 8,000,000.00 07/22/2005
12/08/2004
2.440
85,000,000.00
06/08/2005
02/11/2005
2.820
72,000,000.00
08/12/2005
03/09/2005
3.040
20,000,000.00
09/08/2005
04/01/2005
3.210
78,000,000.00
09/30/2005
03/18/2005 2.820 2,000,000.00 06/17/2005
04/21/2005 2.950 3,000,000.00 07/20/2005
02/16/2005
2.580
90,000,000.00
05/18/2005
03/17/2005
2.850
39,000,000.00
06/16/2005
04/08/2005
2.800
60,000,000.00
07/08/2005
04/15/2005
2.830
105,000,000.00
07/15/2005
18
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
LA JOLLA
Silvergate Bank 03/11/2005 2.830 5,000,000.00 06/10/2005
LIVERMORE
Valley Community Bank 03/18/2005 3.130 6,000,000.00 09/16/2005
LODI
Farmers & Merchants Bk Cen CA 01/06/2005 2.660 25,000,000.00 07/07/2005
Farmers & Merchants Bk Cen CA 04/14/2005 2.820 35,000,000.00 07/14/2005
LOS ANGELES
Broadway Federal Bank, FSB
01/07/2005
2.670
2,500,000.00
07/08/2005
Broadway Federal Bank, FSB
03/11/2005
3.080
3,000,000.00
09/09/2005
California National Bank
02/02/2005
2.530
10,000,000.00
05/04/2005
Cathay Bank
11/10/2004
2.320
25,000,000.00
05/11/2005
Cathay Bank
11/18/2004
2.400
15,000,000.00
05/19/2005
Cathay Bank
12/01/2004
2.460
17,000,000.00
06/01/2005
Cathay Bank
12/09/2004
2.490
55,000,000.00
06/09/2005
Cathay Bank
02/28/2005
2.990
25,000,000.00
08/31/2005
Cathay Bank
04/07/2005
3.180
38,000,000.00
10/06/2005
Cathay Bank
04/21/2005
3.170
25,000,000.00
10/20/2005
Cedars Bank
03/30/2005
2.900
10,000,000.00
06/29/2005
Center Bank
12/22/2004
2.520
25,000,000.00
06/22/2005
Center Bank
01/20/2005
2.720
15,000,000.00
07/21/2005
Center Bank
03/16/2005
3.110
20,000,000.00
09/14/2005
CHB America Bank
02/18/2005
2.900
4,000,000.00
08/19/2005
CHB America Bank
03/02/2005
3.030
4,000,000.00
08/31/2005
CHB America Bank
03/11/2005
3.080
8,000,000.00
09/09/2005
CHB America Bank
04/14/2005
3.190
4,300,000.00
10/13/2005
Eastern International Bank
11/03/2004
2.210
900,000.00
05/04/2005
Eastern International Bank
12/09/2004
2.480
1,000,000.00
06/09/2005
Far East National Bank
02/08/2005
2.550
25,000,000.00
05/11/2005
Hanmi Bank
11/04/2004
2.210
25,000,000.00
05/05/2005
Hanmi Bank
12/02/2004
2.480
25,000,000.00
06/02/2005
Hanmi Bank
12/15/2004
2.500
25,000,000.00
06/15/2005
Hanmi Bank
01/13/2005
2.710
10,000,000.00
07/14/2005
Hanmi Bank
04/14/2005
2.820
25,000,000.00
07/14/2005
Hanmi Bank
04/29/2005
2.950
10,000,000.00
07/29/2005
Hanmi Bank
02/03/2005
2.830
40,000,000.00
08/04/2005
Hanmi Bank
03/03/2005
3.040
20,000,000.00
09/01/2005
Hanmi Bank
03/16/2005
3.110
20,000,000.00
09/14/2005
19
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
LOS ANGELES (continued)
Manufacturer's Bank
03/23/2005
2.860
25,000,000.00
06/22/2005
Mellon First Business Bank, N.A.
03/17/2005
2.860
50,000,000.00
06/16/2005
Mellon First Business Bank, N.A.
04/15/2005
2.840
50,000,000.00
07/15/2005
Mirae Bank
02/22/2005
2.900
2,500,000.00
08/24/2005
Mirae Bank
03/24/2005
3.150
2,500,000.00
09/22/2005
Mirae Bank
04/15/2005
3.200
4,000,000.00
10/14/2005
Nara Bank, N.A.
02/10/2005
2.570
5,000,000.00
05/12/2005
Nara Bank, N.A.
11/18/2004
2.390
5,000,000.00
05/19/2005
Nara Bank, N.A.
11/18/2004
2.390
5,000,000.00
05/19/2005
Nara Bank, N.A.
03/11/2005
2.800
10,000,000.00
06/10/2005
Nara Bank, N.A.
04/14/2005
2.820
5,000,000.00
07/14/2005
Nara Bank, N.A.
02/02/2005
2.770
10,000,000.00
08/03/2005
Nara Bank, N.A.
02/02/2005
2.770
10,000,000.00
08/03/2005
Nara Bank, N.A.
04/21/2005
3.170
25,000,000.00
10/20/2005
One United Bank
12/08/2004
2.450
10,000,000.00
06/08/2005
One United Bank
04/14/2005
2.830
5,000,000.00
07/14/2005
One United Bank
03/24/2005
3.160
5,000,000.00
09/22/2005
Preferred Bank
03/18/2005
2.840
15,000,000.00
06/17/2005
Preferred Bank
03/18/2005
2.840
16,000,000.00
06/17/2005
Preferred Bank
02/04/2005
2.810
4,000,000.00
08/05/2005
Saehan Bank
02/18/2005
2.880
2,000,000.00
08/19/2005
Saehan Bank
02/18/2005
2.880
5,000,000.00
08/19/2005
Saehan Bank
03/15/2005
2.990
9,000,000.00
08/19/2005
State Bank of India (California)
11/18/2004
2.400
2,000,000.00
05/19/2005
State Bank of India (California)
04/06/2005
2.800
3,000,000.00
07/07/2005
State Bank of India (California)
04/28/2005
3.240
3,000,000.00
10/27/2005
Western Federal Credit Union
04/22/2005
2.940
30,000,000.00
07/22/2005
Wilshire State Bank
12/01/2004
2.440
22,000,000.00
06/01/2005
Wilshire State Bank
03/18/2005
2.840
8,000,000.00
06/17/2005
Wilshire State Bank
04/15/2005
2.830
19,000,000.00
07/15/2005
Wilshire State Bank
02/09/2005
2.810
8,000,000.00
08/11/2005
Wilshire State Bank
03/02/2005
3.030
30,000,000.00
08/31/2005
Wilshire State Bank
03/04/2005
3.040
6,000,000.00
08/31/2005
MERCED
County Bank
03/04/2005
2.810
5,000,000.00
06/03/2005
County Bank
03/10/2005
2.810
10,000,000.00
06/09/2005
County Bank
04/15/2005
2.840
10,000,000.00
07/15/2005
NEWPORT BEACH
Orange County Business Bank, N.A.
03/23/2005
2.840
4,000,000.00
06/24/2005
20
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
NEWPORT BEACH (continued)
Orange County Business Bank, N.A.
04/07/2005
2.840
4,000,000.00
07/14/2005
Orange County Business Bank, N.A.
04/28/2005
2.960
4,000,000.00
07/28/2005
NORTH HIGHLANDS
SAFE Credit Union
02/11/2005
2.580
20,000,000.00
05/13/2005
SAFE Credit Union
04/15/2005
2.840
5,000,000.00
07/15/2005
OAKDALE
Oak Valley Community Bank
12/16/2004
2.540
3,500,000.00
06/16/2005
Oak Valley Community Bank
01/14/2005
2.710
2,500,000.00
07/15/2005
OAKLAND
Metropolitian
Bank
12/02/2004
2.480
1,500,000.00
06/02/2005
Metropolitian
Bank
01/21/2005
2.750
1,000,000.00
07/22/2005
Metropolitian
Bank
01/27/2005
2.750
1,500,000.00
07/28/2005
Metropolitian
Bank
02/24/2005
2.930
1,000,000.00
08/25/2005
Metropolitian
Bank
03/23/2005
3.160
2,000,000.00
09/21/2005
ONTARIO
Citizens
Business
Bank
11/05/2004
2.230
30,000,000.00
05/06/2005
Citizens
Business
Bank
11/18/2004
2.390
30,000,000.00
05/19/2005
Citizens
Business
Bank
03/04/2005
3.040
25,000,000.00
09/02/2005
Citizens
Business
Bank
03/23/2005
3.160
30,000,000.00
09/21/2005
Citizens
Business
Bank
04/01/2005
3.210
25,000,000.00
09/30/2005
PALO ALTO
Greater Bay
Bank, NA
02/16/2005
2.580
33,500,000.00
05/18/2005
Greater Bay
Bank, NA
02/18/2005
2.640
25,000,000.00
05/25/2005
Greater Bay
Bank, NA
02/16/2005
2.620
30,000,000.00
06/01/2005
Greater Bay
Bank, NA
03/02/2005
2.800
25,000,000.00
06/02/2005
Greater Bay
Bank, NA
02/18/2005
2.680
24,000,000.00
06/08/2005
Greater Bay
Bank, NA
03/10/2005
2.800
22,000,000.00
06/09/2005
Greater Bay
Bank, NA
02/16/2005
2.660
30,000,000.00
06/14/2005
Greater Bay
Bank, NA
01/12/2005
2.690
15,000,000.00
07/13/2005
Greater Bay
Bank, NA
03/02/2005
3.030
25,000,000.00
08/31/2005
Greater Bay
Bank, NA
03/10/2005
3.070
20,000,000.00
09/08/2005
Greater Bay
Bank, NA
04/20/2005
3.160
50,000,000.00
10/19/2005
21
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
PALOS VERDES ESTATES
Malaga Bank, SSB
11/10/2004
2.350
7,000,000.00
05/11/2005
Malaga Bank, SSB
12/15/2004
2.500
9,000,000.00
06/15/2005
Malaga Bank, SSB
02/18/2005
2.900
10,000,000.00
08/19/2005
Malaga Bank, SSB
03/04/2005
3.040
4,000,000.00
09/02/2005
Malaga Bank, SSB
04/07/2005
3.180
5,000,000.00
10/06/2005
PASADENA
Community Bank
11/04/2004
2.230
15,000,000.00
05/05/2005
Community Bank
12/15/2004
2.500
10,000,000.00
06/15/2005
Community Bank
01/07/2005
2.670
10,000,000.00
07/08/2005
Community Bank
02/02/2005
2.770
25,000,000.00
08/03/2005
Community Bank
03/16/2005
3.110
10,000,000.00
09/14/2005
Community Bank
04/07/2005
3.180
10,000,000.00
10/06/2005
Community Bank
04/13/2005
3.170
15,000,000.00
10/12/2005
Wescom Credit Union
11/18/2004
2.420
35,000,000.00
05/19/2005
Wescom Credit Union
03/23/2005
2.880
50,000,000.00
06/22/2005
Wescom Credit Union
04/13/2005
2.850
40,000,000.00
07/13/2005
Wescom Credit Union
03/18/2005
3.150
15,000,000.00
09/16/2005
Wescom Credit Union
04/28/2005
3.250
25,000,000.00
10/27/2005
PLACERVILLE
El Dorado Savings Bank
06/04/2004
1.920
20,000,000.00
06/03/2005
El Dorado Savings Bank
04/29/2005
3.390
5,000,000.00
04/28/2006
POMONA
PFF Bank and Trust
11/04/2004
2.230
20,000,000.00
05/05/2005
PFF Bank and Trust
12/08/2004
2.440
20,000,000.00
06/08/2005
PFF Bank and Trust
02/25/2005
2.970
20,000,000.00
08/26/2005
PFF Bank and Trust
03/04/2005
3.040
20,000,000.00
09/02/2005
PORTERVILLE
Bank of the Sierra 04/21/2005 3.170 10,000,000.00 10/20/2005
RANCHO SANTA FE
La Jolla Bank, FSB
02/02/2005
2.500
25,000,000.00
05/04/2005
La Jolla Bank, FSB
02/11/2005
2.560
15,000,000.00
05/13/2005
La Jolla Bank, FSB
02/16/2005
2.560
25,000,000.00
05/18/2005
La Jolla Bank, FSB
12/02/2004
2.460
10,000,000.00
06/02/2005
La Jolla Bank, FSB
03/03/2005
2.780
10,000,000.00
06/03/2005
22
NAME
RANCHO SANTA FE (continued)
La Jolla Bank, FSB
La Jolla Bank, FSB
REDWOOD CITY
Provident Central Credit Union
Provident Central Credit Union
ROCKLIN
TIME DEPOSITS
DEPOSIT
DATE YIELD
03/17/2005 2.830
03/24/2005 2.870
12/02/2004 2.460
04/28/2005 3.230
PAR MATURITY
AMOUNT ($) DATE
10,000,000.00 06/16/2005
5,000,000.00 06/23/2005
20,000,000.00 06/02/2005
20,000,000.00 10/27/2005
Five Star Bank
02/11/2005
2.560
3,000,000.00
05/13/2005
Five Star Bank
12/16/2004
2.520
3,000,000.00
06/16/2005
Five Star Bank
01/26/2005
2.690
2,000,000.00
07/27/2005
Five Star Bank
03/30/2005
3.200
2,000,000.00
09/28/2005
Five Star Bank
03/30/2005
3.200
10,000,000.00
09/28/2005
RICHMOND
The
Mechanics
Bank
06/09/2004
1.960
10,000,000.00
06/09/2005
The
Mechanics
Bank
07/08/2004
2.070
10,000,000.00
07/08/2005
The
Mechanics
Bank
01/26/2005
2.710
20,000,000.00
07/27/2005
The
Mechanics
Bank
08/04/2004
2.180
10,000,000.00
08/04/2005
The
Mechanics
Bank
09/10/2004
2.180
10,000,000.00
09/14/2005
The
Mechanics
Bank
10/15/2004
2.250
10,000,000.00
10/14/2005
The
Mechanics
Bank
04/21/2005
3.180
10,000,000.00
10/20/2005
The
Mechanics
Bank
10/29/2004
2.320
10,000,000.00
10/28/2005
The
Mechanics
Bank
11/05/2004
2.380
10,000,000.00
11/04/2005
The
Mechanics
Bank
03/03/2005
3.250
10,000,000.00
03/03/2006
The
Mechanics
Bank
04/01/2005
3.490
10,000,000.00
04/05/2006
RIVERSIDE
Provident Savings Bank
02/02/2005
2.780
25,000,000.00
08/03/2005
Provident Savings Bank
03/24/2005
3.150
25,000,000.00
09/22/2005
Provident Savings Bank
04/07/2005
3.180
25,000,000.00
10/06/2005
SACRAMENTO
American River Bank
12/16/2004
2.520
1,250,000.00
06/16/2005
American River Bank
01/07/2005
2.650
1,000,000.00
07/08/2005
American River Bank
01/27/2005
2.730
1,500,000.00
07/28/2005
American River Bank
02/25/2005
2.950
2,000,000.00
08/26/2005
American River Bank
03/17/2005
3.120
1,000,000.00
09/08/2005
23
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
SACRAMENTO (continued
American River Bank
03/18/2005
3.120
1,250,000.00
09/15/2005
American River Bank
03/24/2005
3.130
2,000,000.00
09/22/2005
American River Bank
04/06/2005
3.150
1,500,000.00
10/05/2005
Bank of Sacramento
02/09/2005
2.540
1,500,000.00
05/11/2005
Bank of Sacramento
12/01/2004
2.450
2,000,000.00
06/01/2005
Bank of Sacramento
03/18/2005
3.130
2,000,000.00
09/16/2005
Merchants National Bank of Sacramento
03/22/2005
2.850
2,000,000.00
06/22/2005
Merchants National Bank of Sacramento
01/20/2005
2.730
2,000,000.00
07/21/2005
Merchants National Bank of Sacramento
04/13/2005
3.170
2,000,000.00
10/12/2005
River City Bank
02/24/2005
2.670
2,000,000.00
05/26/2005
River City Bank
01/28/2005
2.770
3,000,000.00
07/29/2005
River City Bank
04/06/2005
3.160
2,000,000.00
10/05/2005
U.S. Bank, N.A.
01/18/2005
2.500
25,000,000.00
05/04/2005
U.S. Bank, N.A.
02/02/2005
2.540
50,000,000.00
05/04/2005
U.S. Bank, N.A.
02/09/2005
2.560
50,000,000.00
05/12/2005
U.S. Bank, N.A.
02/18/2005
2.660
50,000,000.00
05/20/2005
U.S. Bank, N.A.
02/25/2005
2.720
25,000,000.00
05/27/2005
U.S. Bank, N.A.
04/07/2005
2.880
100,000,000.00
07/07/2005
U.S. Bank, N.A.
02/09/2005
2.810
50,000,000.00
08/11/2005
U.S. Bank, N.A.
02/18/2005
2.900
50,000,000.00
08/19/2005
Union Bank of California, N.A.
12/16/2004
2.540
150,000,000.00
06/16/2005
Union Bank of California, N.A.
01/14/2005
2.700
175,000,000.00
07/15/2005
Union Bank of California, N.A.
02/03/2005
2.830
150,000,000.00
08/04/2005
SAN DIEGO
First Future Credit Union
02/25/2005
2.660
15,000,000.00
05/27/2005
First Future Credit Union
03/04/2005
3.040
15,000,000.00
09/02/2005
First Future Credit Union
03/16/2005
3.110
8,000,000.00
09/14/2005
First United Bank
02/11/2005
2.820
1,000,000.00
08/12/2005
First United Bank
04/14/2005
3.210
2,000,000.00
10/13/2005
Mission Federal Credit Union
01/13/2005
2.720
10,000,000.00
07/14/2005
Mission Federal Credit Union
03/02/2005
3.040
10,000,000.00
08/31/2005
Neighborhood National Bank
01/21/2005
2.760
2,000,000.00
07/22/2005
Neighborhood National Bank
02/02/2005
2.780
2,000,000.00
08/03/2005
SAN FRANCISCO
America California Bank
12/03/2004
2.460
2,000,000.00
06/03/2005
America California Bank
04/07/2005
2.820
6,000,000.00
07/07/2005
Citibank (West), FSB
04/14/2005
2.830
100,000,000.00
07/14/2005
Citibank (West), FSB
04/21/2005
2.960
100,000,000.00
07/20/2005
Citibank (West), FSB
04/07/2005
3.180
150,000,000.00
10/06/2005
24
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT (S) DATE
SAN FRANCISCO (continued
Citibank (West), FSB
04/27/2005
3.200
50,000,000.00
10/26/2005
Oceanic Bank
09/10/2004
2.160
4,000,000.00
09/13/2005
Trans Pacific National Bank
12/22/2004
2.530
1,000,000.00
06/22/2005
Trans Pacific National Bank
02/03/2005
2.840
1,000,000.00
08/04/2005
Trans Pacific National Bank
03/02/2005
3.040
1,000,000.00
08/31/2005
Trans Pacific National Bank
03/24/2005
3.160
1,000,000.00
09/22/2005
Trans Pacific National Bank
04/13/2005
3.180
1,000,000.00
10/12/2005
United Commercial Bank
02/23/2005
2.660
20,000,000.00
05/25/2005
United Commercial Bank
12/01/2004
2.450
50,000,000.00
06/01/2005
United Commercial Bank
12/03/2004
2.460
25,000,000.00
06/03/2005
United Commercial Bank
03/11/2005
2.800
25,000,000.00
06/10/2005
United Commercial Bank
03/18/2005
2.840
65,000,000.00
06/17/2005
United Commercial Bank
01/13/2005
2.710
55,000,000.00
07/14/2005
United Commercial Bank
04/14/2005
2.820
90,000,000.00
07/14/2005
United Commercial Bank
04/27/2005
2.950
40,000,000.00
07/27/2005
SAN JOSE
Comerica Bank
04/08/2005
3.150
50,000,000.00
10/07/2005
Comerica Bank
04/27/2005
3.190
25,000,000.00
10/26/2005
Heritage Bank of Commerce
02/09/2005
2.820
4,000,000.00
08/10/2005
Meriwest Credit Union
01/20/2005
2.740
5,000,000.00
07/21/2005
Meriwest Credit Union
03/16/2005
3.120
5,000,000.00
09/14/2005
Meriwest Credit Union
04/13/2005
3.180
10,000,000.00
10/12/2005
Santa Clara Co. Federal Credit Union
11/05/2004
2.250
7,500,000.00
05/06/2005
Santa Clara Co. Federal Credit Union
02/04/2005
2.830
7,500,000.00
08/05/2005
Santa Clara Co. Federal Credit Union
02/18/2005
2.920
5,000,000.00
08/19/2005
SAN LUIS OBISPO
First Bank Of San Luis Obispo
12/03/2004
2.460
4,500,000.00
06/03/2005
First Bank Of San Luis Obispo
01/06/2005
2.660
2,000,000.00
07/07/2005
First Bank Of San Luis Obispo
02/09/2005
2.810
6,000,000.00
08/10/2005
First Bank Of San Luis Obispo
03/16/2005
3.110
7,000,000.00
09/14/2005
First Bank Of San Luis Obispo
03/25/2005
3.190
5,000,000.00
09/23/2005
Mission Community Bank
12/09/2004
2.480
1,000,000.00
06/09/2005
Mission Community Bank
03/03/2005
3.020
1,000,000.00
09/01/2005
Mission Community Bank
04/06/2005
3.130
2,500,000.00
10/05/2005
Mission Community Bank
04/27/2005
3.170
2,500,000.00
10/26/2005
San Luis Trust Bank
04/20/2005
3.120
1,700,000.00
10/19/2005
25
NAME
SAN MARINO
East West Bank
East West Bank
East West Bank
East West Bank
East West Bank
East West Bank
SANTA ROSA
National Bank of the Redwoods
Summit State Bank
SONORA
Central California Bank
STOCKTON
Pacific State Bank
Pacific State Bank
Washington Mutual Bank, FA
Washington Mutual Bank, FA
Washington Mutual Bank, FA
TORRANCE
China Trust Bank (USA)
China Trust Bank (USA)
China Trust Bank (USA)
China Trust Bank (USA)
TRACY
Service 1st Bank
VACAVILLE
Travis Credit Union
TIME DEPOSITS
DEPOSIT
DATE YIELD
02/04/2005 2.570
01 /07/2005 2.670
02/17/2005 2.890
02/23/2005 2.930
03/11/2005 3.080
04/13/2005 3.170
02/09/2005 2.520
04/29/2005 2.920
03/25/2005 3.170
01/06/2005 2.640
04/06/2005 3.130
12/15/2004 2.510
01 /20/2005 2.740
02/18/2005 2.910
02/11/2005 2.580
03/11/2005 2.800
04/15/2005 2.830
04/22/2005 2.930
12/16/2004 2.550
PAR MATURITY
AMOUNT ($) DATE
35,000,000.00
05/06/2005
50,000,000.00
07/08/2005
38,000,000.00
08/18/2005
25,000,000.00
08/24/2005
85,000,000.00
09/09/2005
42 , 000, 000.00
10/ 12/2005
5,000,000.00 05/11/2005
4,000,000.00 07/29/2005
5,000,000.00 09/23/2005
1,000,000.00
07/07/2005
1,000,000.00
10/05/2005
45,000,000.00
06/15/2005
75,000,000.00
07/21/2005
60,000,000.00
08/19/2005
20,000,000.00
05/13/2005
35,000,000.00
06/10/2005
40,000,000.00
07/15/2005
30,000,000.00
07/22/2005
2,000,000.00 06/16/2005
12/01/2004 2.430 40,000,000.00 06/01/2005
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
WALNUT CREEK
Bank of the West
02/18/2005
2.630
242,000,000.00
05/20/2005
Bank of the West
03/17/2005
2.850
82,000,000.00
06/16/2005
Bank of the West
01/14/2005
2.710
134,000,000.00
07/15/2005
Bank of the West
04/29/2005
2.950
176,500,000.00
07/29/2005
WHITTIER
Banco Popular
Banco Popular
Quaker City Bank
TOTAL TIME DEPOSITS APRIL 2005
02/14/2005 2.840
04/14/2005 3.220
01 /28/2005 2.770
27
25,000,000.00 08/17/2005
24,000,000.00 10/13/2005
16,000,000.00 07/29/2005
6,833,495,000.00
BANK DEMAND DEPOSITS
April 2005
($ in thousands)
DAILY BALANCES
DAY OF
BALANCES
WARRANTS
MONTH
PER BANKS
OUTSTANDING
1
$ 1,146,007
$ 3,353,840
2
1,146,007
3,353,840
3
1,146,007
3,353,840
4
815,970
2,618,957
5
712,341
2,551,960
6
577,097
2,472,451
7
303,887
2,615,596
8
280,829
2,422,719
9
280,829
2,422,719
10
280,829
2,422,719
11
422,009
2,385,192
12
559,544
2,123,976
13
500,840
2,003,073
14
379,666
2,932,729
15
627,195
3,122,654
16
627,195
3,125,869
17
627,195
3,125,869
18
1,052,378
2,970,077
19
557,"0
2,896,586
20
535,313
2,560,745
21
257,507
2,535,528
22
560,152
2,318,923
23
560,152
2,318,923
24
560,152
2,318,923
25
113,728
2,240,010
26
640,560
2,303,277
27
788,566
2,289,958
28
1,274,380
2,456,463
29
883,824
2,730,823
30
883,824
2,735,340
al
AVERAGE DOLLAR DAYS
$ 636,714 —
The prescribed bank balance for April was $701,427. This consisted of
$407,679 in compensating balances for services, balances for uncollected
funds of $298,010 and a deduction of $4,262 for April delayed
deposit credit.
27
DESIGNATION BY POOLED MONEY INVESTMENT BOARD
OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS
No. 1670
In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its
meeting on April 20, 2005, 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 asso6
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
$ 407,679,000
The active noninterest-bearing bank accounts designation constitutes a calendar month average balance. For purposes of
computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as
a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any
deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount
provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in
the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection
periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in
such a manner as to realize the maximum return consistent with safe and prudent treasury management.
2.
In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest -
bearing deposits in banks and savings and loan associations as follows:
Time Deposits in
Various Financial
Institutions
In Securities
(sections 16503a
Estimated
From
To
Transactions
(section 16430r
and 16602)"
Total
( 1)
4/18/2005
4/22/2005
$
1,890,000,000
$
45,740,505,000
$
6,754,495,000
$
52,495,000,000
(2)
4/25/2005
4/29/2005
$
2,469,800,000
$
48,210,305,000
$
6,754,495,000
$
54,964,800,000
(3)
5/2/2005
5/6/2005
$
(749,600,000)
$
47,460,705,000
$
6,754,495,000
$
54,215,200,000
(4)
5/9/2005
5/13/2005
$
131,000,000
$
47,591,705,000
$
6,754,495,000
$
54,346,200,000
(5)
5/16/2005
5/20/2005
$
669,300,000
$
48,261,005,000
$
6,754,495,000
$
55,015,500,000
(6)
5/23/2005
5/27/2005
$
(181,800,000)
$
48,079,205,000
$
6,754,495,000
$
54,833,700,000
(7)
5/30/2005
6/3/2005
$
(1,680,300,000)
$
46,398,905,000
$
6,754,495,000
$
53,153,400,000
(8)
6/6/2005
6/10/2005
$
180,800,000
$
46,579,705,000
$
6,754,495,000
$
53,334,200,000
(9)
6/13/2005
6/17/2005
$
2,730,600,000
$
49,310.305,000
$
6,754,495,000
$
56,064,800,000
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), Govemment 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 $ 407,679,000.
Dated: April 20, 2005
. Government Code
POOLED MONEY INVESTMENT BOARD:
Signatures on file at STO and SCO
Chairperson
Member
Member
INVESTMENT ADVISORY BOARD MEETING
Meeting Date: July 13, 2005
ITFKA TIT[ F
Distribution of Investment Policies
for Fiscal Year 2005/2006
BACKGROUND:
Correspondence and
Written Material: C
On June 21, 2005 the City Council approved the Investment Policies for Fiscal Year
2005/2006 which are attached.
Based upon Council direction, a minor change was made to the Executive Summary
regarding the Portfolio Manager.
RECOMMENDATION:
6j7ive and File.
n M. Falconer, Finance Director
City of La Quminta
Investment Policy
Fiscal Year 2005-2006
CITY OF LA QUINTA
Investment Policy
Table of Contents
Section Topic
Page
Executive Summary
2
I
General Purpose
4
II
Investment Policy
4
III
Scope
4
IV
Objectives
4
► Safety
No. Liquidity
► Yield
► Diversified Portfolio
V
Maximum Maturities
6
VI
Prudence
6
-- V11
Delegation of Authority
6
Vill
Conflict of Interest
7
IX
Authorized Financial Dealers and Institutions
7
► Broker/Dealers
► Financial Institutions
X
Authorized Investments and Limitations
8
XI
Investment Pools
12
XII
Payment and Custody
13
XIII
Interest Earning Distribution Policy
13
XIV
Internal Controls and Independent Auditors
13
XV
Benchmark
15
— XVI
Reporting Standards
15
XVII
Financial Assets and Investment Activity Not Subject to this Policy
16
XVIII
Investment of Bond Proceeds
16
XIX
Professional Portfolio Manager
16
XX
Investment Advisory Board - City of La Quinta
17
XXI
Investment Policy Adoption
17
Appendices: A. Summary of Authorized Investments and Limitations
18
B. Municipal Code Ordinance 2.70 - Investment Advisory Board
19
C. Municipal Code Ordinance 3.08 - Investment of Moneys and Funds
20
D. Segregation of Major Investment Responsibilities
22
E. Listing of Approved Financial Institutions
23
_
F. Broker/Dealer Questionnaire and Certification
24
G. Investment Pool Questionnaire
29
H. Request for Proposal for Portfolio Manager
33
-
I. Permissible Investment Chart
39
J. Glossary
40
1
City of La Quinta
Investment Policy
Executive Summary
-- The general purpose of this Investment Policy is to provide the rules and standards
users must follow in investing funds of the City of La Quinta.
It is the policy of the City of La Quinta to invest all public funds in a manner which
will provide a diversified portfolio with maximum security while meeting daily cash
flow demands and the highest investment return in conformity to all state and local
statutes. This Policy applies to all cash and investments of the City of La Quinta, La
Quinta Redevelopment Agency and the La Quinta Financing Authority, hereafter
referred in this document as the "City".
The primary objectives, in order of priority, of the City of 4a Quinta's investment
activity shall be:
Safety of principal is the foremost objective of the investment program.
-- Investments of the City of La Quinta shall be undertaken in a manner that
seeks to ensure the preservation of capital in the overall portfolio
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
_ The investment portfolio shall be designed with the objective of attaining a
market rate of return or yield throughout budgetary and economic cycles,
taking into account the investment risk constraints and liquidity needs.
Within the constraints of safety, liquidity and yield, the City will endeavor to
- maintain a diversified portfolio by allocating assets between different types of
investments within policy limitations.
- Investments shall be made with judgment and care - under circumstances then
prevailing - which persons of prudence, discretion, and intelligence exercise in the
management of their own affairs, not for speculation, but for investment, considering
the probable safety of their capital as well as the probable income to be derived.
Authority to manage the City of La Quinta's investment portfolio is derived from the
City Ordinance. Management responsibility for the investment program is delegated
to the City Treasurer, who shall establish and implement written procedures for the
_. operation of the City's investment program consistent with the Investment Policy.
The Treasurer shall establish and implement a system of internal controls to maintain
the safety of the portfolio. In addition, the internal control system will also insure the
timely preparation and accurate reporting of the portfolio financial information. As
part of the annual audit of the City of La Quinta's financial statements the
independent auditor reviews the adequacy of those controls and comments if
weaknesses are found.
2
The City Treasurer may use a professional investment manager engaged by the City
to assist the City Treasurer in managing the investment program.
Investment responsibilities carry added duties of insuring that investments are made
without improper influence or the appearance to a reasonable person of questionable or
improper influence.
The City of La Quinta Investment Policy maintains a listing of financial institutions
which are approved for investment purposes. All Broker/Dealers and financial
institutions selected by the Treasurer to provide investment services will be approved
by the City Manager subject to City Council approval.
The Treasurer will be permitted to invest only in City approved investments up to the
maximum allowable percentages or dollar limitations and, where applicable, through
the bid process requirements. Authorized investment vehicles and related maximum
portfolio positions are listed in Appendix A - Summary of Authorized Investments and
Limitations. At least two bids will be required of investments in the authorized
_ investment vehicles.
Collateralization will be required for Certificates of Deposits in excess of $100,000.
-- Collateral will always be held by an independent third party from the institution that
sells the Certificates of Deposit to the City. , Evidence of compliance with State
Collateralization policies must be supplied to the City and retained by the City
- Treasurer.
The City of La Quinta Investment Policy shall require that each individual investment
have a maximum maturity of two years unless specific approval is authorized by the
City Council, except the projected annual dollar amount as detailed in Section V, may
be invested in U.S. Treasury bills, notes and bonds maturing between 2 and 5 years. In
addition, the City's investment in the State Local Agency Investment Fund (LAIF) is
allowable as long as the average maturity does not exceed two years, unless specific
approval is authorized by the City Council. The City's investment in Money Market
Mutual funds is allowable as long as the average maturity does not exceed 60 days.
The City of La Quinta Investment Policy will use the six-month U.S. Treasury Bill as a
benchmark when measuring the performance of the investment portfolio.
-- The Investment Policies shall be adopted by resolution of the La Quinta City Council on
an annual basis. The Investment Policies will be adopted before the end of June of
each year.
This Executive Summary is an overall review of the City of La Quinta Investment
Policies. Reading this summary does not constitute a complete review, which can only
be accomplished by reviewing all the pages.
3
P
P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLE TAMPICO
LA QUINTA, CALIFORNIA 92253
City of La Quinta
Statement of Investment Policy
July 1, 2005 through June 21, 2006
(760) 7 7 7 - 7 0 0 0
FAX (760) 777-7101
Adopted by the City Council on June 21, 2005
I GENERAL PURPOSE
The general purpose of this document is to provide the rules and standards users must follow
in administering the City of La Quinta cash investments.
11 INVESTMENT POLICY
It is the policy of the City of La Quinta to invest public funds in a manner which will provide a
diversified portfolio with safety of principal as the primary objective while meeting daily cash
flow demands with the highest investment return. In addition, the Investment Policy will
conform to all State and local statutes governing the investment of public funds.
SCOPE
This Investment Policy applies to all cash and investments, except as further detailed in
Section XVII of the City of La Quinta, City of La Quinta Redevelopment Agency and the City of
La Quinta Financing Authority, hereafter referred in this document as the "City". These funds
are reported in the City of La Quinta Comprehensive Annual financial Report (CAFR) and
include:
All funds within the following fund types:
► General
► Special Revenue
► Capital Projects
► Debt Service
ON. Enterprise
► Internal Service
► Trust and Agency
► Any new fund types and fund(s) that may be created.
IV OBJECTIVES
The primary objective, in order of priority, of the City of La Quinta's investment activity shall
be:
1. Safety
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio in accordance with
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the permitted investments. The objective will be to mitigate credit risk and
interest rate risk.
A. Credit Risk
Credit Risk - is the risk of loss due to the failure of the security issuer or
backer. Credit risk may be mitigated by:
-- ► Limiting investments to the safest types of securities;
► Pre -qualifying the financial institutions, and broker/dealers, which
the City of La Quinta will do business with; and
- ► Diversifying the investment portfolio so that potential losses on
individual securities will be minimized.
B. Interest Rate Risk
Interest Rate risk is the risk that the market value of securities in the
portfolio will fall due to changes in general interest rates. Interest rate
risk may be mitigated by:
► Structuring the investment portfolio so that securities mature to
meet cash requirements for ongoing operations, thereby avoiding
the need to sell securities on the open market prior to maturity;
-- and
► By investing operating funds primarily in shorter -term securities.
2. Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated. This is accomplished by
structuring the portfolio so that sufficient liquid funds are available to meet
anticipated demands. Furthermore since all possible cash demands cannot be
anticipated the portfolio should be diversified and consist of securities with
active secondary or resale markets. Securities shall not be sold prior to maturity
_ with the following exceptions:
► A declining credit quality security could be sold early to minimize loss of
— principal;
► Liquidity needs of the portfolio require that the security be sold.
-- 3. Yield
The investment portfolio shall be designed with the objective of attaining a
market rate of return throughout budgetary and economic cycles, taking into
account the investment risk constraints and liquidity needs. Return on
_ investment is of least importance compared to the safety and liquidity objectives
described above. The core of investments are limited to relatively low risk
securities in anticipation of earning a fair return relative to the risk being
assumed
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4. Diversified Portfolio
Within the constraints of safety, liquidity and yield, the City will endeavor to
maintain a diversified portfolio by allocating assets between different types of
investments within policy limitations.
V MAXIMUM MATURITIES
It is the policy of the City of La Quinta to hold securities and other investments of
- cash in financial instruments until maturity, thus avoiding the risk that the market
value. on investments fluctuates with overall market interest rates. The hold until
maturity policy shall not prevent the sale of a security to minimize loss of principal
when the issuer or backer suffers declining credit worthiness. The hold until
maturity policy requires that the City of La Quinta's investment portfolio is
structured so that sufficient funds are available from maturing investments and
other sources to meet anticipated cash needs. To meet anticipated cash needs, it
is essential that the Treasurer have reasonably accurate, diligently prepared cash
flow projections.
Annually, the Treasurer shall project the amount of funds not expected to be
disbursed within five years. For FY 2005/06, the amount of such funds was $8
million. Funds up to that amount maybe invested in U.S. Treasury bills, notes and
bonds maturing between 2 and 5 years. For all other funds, investments are
limited to two years maximum maturity.
VI PRUDENCE
The City shall follow the Uniform Prudent Investor Act as adopted by the State of
California in Probate Code Sections 16045 through 16054.
Section 16053 sets forth the terms of a prudent person which are as follows:
Investments shall be made with judgment and care - under circumstances then
prevailing - which persons of prudence, discretion, and intelligence exercise in the
professional management of their own affairs, not for speculation, but for investment,
- considering the probable safety of their capital as well as the probable income to be
derived.
VII DELEGATION OF AUTHORITY
Authority to manage the City of La Quinta's investment portfolio is derived from the
City Ordinance. Management responsibility for the investment program is delegated to
the City Treasurer, who shall establish written procedures for the operation of the
investment program consistent with the Investment Policy. Procedures should include
reference to. safekeeping, wire transfer agreements, banking service contracts, and
collateral/depository agreements. Such procedures shall include explicit delegation of
authority to persons responsible for investment transactions. No person may engage
in an investment transaction except as provided under the terms of this Investment
Policy and the procedures established by the City Treasurer. The City Treasurer shall
be responsible for all transactions undertaken and shall establish a system of controls
to regulate the activities of subordinate officials. The City Manager or Assistant City
Manager shall approve in writing all purchases and sales of investments prior to their
execution by the City Treasurer.
Vlll CONFLICT OF INTEREST
Investment responsibilities carry added duties of insuring that investments are made
without improper influence or the appearance of improper influence.
Therefore, the City Manager, Assistant City Manager, and the City Treasurer shall
adhere to the State of California Code of Economic Interest and to the following:
► The City Manager, Assistant City Manager, and the City Treasurer shall not
personally or through a close relative maintain any accounts, interest, or private
dealings with any firm with which the City places investments, with the
exception of regular savings, checking and money market accounts, or other
similar transactions that are offered on a non-negotiable basis to the general
public. Such accounts shall be disclosed annually to the City Clerk in
conjunction with annual disclosure statements of economic interest.
► All persons authorized to place or approve investments shall report to the City
Clerk kinship relations with principal employees of firms with which the City
places investments.
IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City of La Quinta Investment Policy maintains a listing of financial institutions
which are approved for direct investment purposes. In addition a list will also be
maintained of approved broker/dealers selected by credit worthiness, who maintain an
office in the State of California.
1. Broker/Dealers who desire to become bidders for direct investment transactions
must supply the City of La Quinta with the following:
► Current audited financial statements;
► Proof of National Association of Security Dealers Certification;
► Trading resolution;
► Proof of California registration;
IN. Resume of Financial broker; and
► Completion of the City of La Quinta Broker/Dealer questionnaire which
contains a certification of having read the City of La Quinta Investment
Policy.
The City Treasurer shall evaluate the documentation submitted by the
broker/dealer and independently verify existing reports on file for any firm and
individual conducting investment related business.
7
The City Treasurer will also contact the following agencies during the
verification process:
No. National Association of Security Dealer's Public Disclosure Report File -
1-800-289-9999
► State of California Department of Corporations 1-916-445-3062
All Broker/Dealers selected by the City Treasurer to provide investment services
will be approved by,the City Manager subject to City Council approval. The City
Attorney will perform a legal review of the trading resolution/investment
-- contract submitted by each Broker/Dealer.
Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S.
Treasury Department regulations. Each mutual fund shall provide a prospectus and
statement of additional information.
2. Financial Institutions will be required to meet the following criteria in order to
receive City funds for deposit or investment:
A. Insurance - Public Funds shall be deposited only in financial
institutions having accounts insured by the Federal Deposit
-- Insurance Corporation (FDIC)
B. Collateral - The amount of City of La Quinta deposits or
-- investments not insured by the FDIC -shall be 1 10% collateralized .
by securities' or 150% mortgages' market values of that amount
of invested funds plus unpaid interest earnings.
C. Disclosure - Each financial institution maintaining invested funds in
excess of the FDIC insured amount shall furnish the City a copy of
the most recent Annual Call Report.
The City shall not invest in excess of the FDIC insured amount in
banking institutions which do not disclose to the city a current
listing of securities pledged for collateral ization in public monies.
X AUTHORIZED INVESTMENTS AND LIMITATIONS
The City Treasurer will be permitted to invest in the investments summarized in the
Appendix A.
K. STATE OF CALIFORNIA AND CITY OF LA QUINTA LIMITATIONS
As provided in Sections 16429.1, 53601, 53601.1, and 53649 of the
Government Code, the State of California limits the investment vehicles
available to local agencies as summarized in the following paragraphs. Section
53601, as now amended, provides that unless Section 53601 specifies a
limitation on an investment's maturity, no investments with maturities
8
exceeding five years shall be made. The City of La Quinta Investment Policy
has specified that no investment may exceed two years, except the projected
annual dollar amount, as detailed in Section V, may be invested in U.S. Treasury
bills, notes and bonds maturing between 2 and 5 years.
State Treasurer's Local Agency Investment Fund (LAIF) - As authorized in
Government Code Section 16429.1 and by LAIF procedures, local government
agencies are each authorized to invest a maximum of $40 million per account in
this investment program administered by the California State Treasurer. The
City's investment in the State Local Agency Investment Fund (LAIF) is allowable
as long as the average maturity of its investment portfolio does not exceed two
years, unless specific approval is authorized by the City Council. The City of La
Quinta has two accounts with LAIF. The City of La Quinta Investment Policy
has a limitation of 25% of the portfolio.
U.S. Government and Related Issues As authorized in Government Code
Sections 53601 (a) through (n) as they pertain to surplus funds, this category
includes a wide variety of government securities which include the following:
• Local government bonds or other indebtedness and State bonds or other
indebtedness. The City of La Quinta Investment Policy does not allow
investments in local and state indebtedness
• U.S. Treasury bills, notes and bonds and Government National Mortgage
Association (GNMA) securities directly issued and backed by the full faith
and credit of the U.S. Government. The City of La Quinta Investment
Policy limits investments in U.S. Treasury issues and GNMA to 100% of
the portfolio.
• U.S. Government instrumentalities and agencies commonly referred to as
government sponsored enterprises (GSEs), issuing securities not backed
as to principal and interests by the full faith and credit of the U.S.
Government. Publicly owned GSEs include Federal National Mortgage
Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC)
and Student Loan Marketing Association (SLMA). Non -publicly owned
GSEs include the Federal Home Loan Bank (FHLB), Federal Farm Credit
Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit
Bank (FICB). The City of La Quinta Investment Policy allows investment
only in securities of FNMA, FHLMC, FHLB and FFCB and has a limitation
of $10 million face amount for each issuer.
Bankers' Acceptances - As authorized in Government Code Section 53601 (f),
40% of the portfolio may be invested in Bankers' Acceptances, although no
more than 30% of the portfolio may be invested in Bankers' Acceptances with
any one commercial bank. Additionally, the maturity period cannot exceed 180
days. The City of La Quinta Investment Policy does not allow investment in
-- Bankers' Acceptances.
Commercial Paper - As authorized in Government Code Section 53601(g), 15%
of the portfolio may be invested in commercial paper of the, highest rating (A-1
or P-1) as rated by Moody's or Standard and Poor's, with maturities not to
exceed 270 days. This percentage may be increased to 30% if the dollar
weighted average maturity does not exceed 31 days. There are a number of
other qualifications regarding investments in commercial paper based on the
financial strength of the corporation and the size of the investment. The City of
La Quinta's Investment Policy follows The Government Code with the following
additional limitations: (1) maximum maturity per issue of 90 days and .(2) a
maximum of $3 million per issuer.
Negotiable Certificates of.Deposit.- As authorized in Government Code Section
53601(h)> 30% of. the portfolio may be invested in negotiable certificates of
deposit issued by commercial banks and savings and loan associations. The
City of La Quinta Investment Policy does not allow investment in Negotiable
Certificates of Deposit.
Repurchase and Reverse Repurchase Agreements - As authorized in Government
Code Section 53601 (i), these investment vehicles are agreements between the
local agency and seller for the purchase of government securities to be resold at
a specific date and for a specific amount. Repurchase agreements are generally
used for short term investments varying from one day to two weeks. There is
no legal limitation on the amount of the repurchase agreement. However, the
maturity period cannot exceed one year. The market value of securities
underlying a repurchase agreement shall be at least 102 % of the
funds invested and shall be valued at least quarterly.
The City of La Quinta Investment Policy does not allow investment in
Repurchase Agreements.
The term "reverse repurchase agreement" means. the sale of securities .by the
local agency pursuant to an agreement by which the local agency will
repurchase such securities on or before a specific date and fora specific
amount. As provided in Government Code Section 53635, reverse repurchase
agreements require the prior approval of the City Council. The City of La Quinta
Investment Policy does not allow investment in Reverse Repurchase
Agreements.
Corporate Notes - As authorized in Government Code Section 53601 (j), local
agencies may invest in corporate notes for a maximum period of five years in an,
amount not to exceed 30%,of the agency's portfolio. The notes must be issued
by corporations organized and operating in the United States or by depository
institutions licensed by the United States or any other state and operating in the
United States. The City of La Quinta Investment Policy allows investment in
corporate notes authorized by the Government Code with the following
limitations:
10
No. Maturities shall conform with Section V.
► Eligible notes shall be regularly quoted and traded in the marketplace.
► Eligible. notes shall be rated "AA" or "AAA" on the date of acquisition.
► Total investment shall not exceed 15% of the portfolio, and
► The maximum aggregate investment shall not exceed $3 million face
amount for each issurer.
Diversified Management Companies - As authorized in Government Code
Section 53601(k), local agencies are authorized to invest in shares of beneficial
interest issued by diversified management companies (mutual funds) in an
amount not to exceed 20% of the agency's portfolio. There are a number of
other qualifications and restrictions regarding allowable investments in corporate
notes and shares of beneficial interest issued by mutual funds which include (1)
attaining the highest ranking or the highest letter and numerical rating provided
by not less than two of the three largest nationally recognized rating services, or
(2) having an investment advisor registered with the Securities and Exchange
Commission with not less than five years' experience investing in the securities
and obligations and with assets under management in excess of five hundred
million dollars ($500,000,000). The City of La Quinta Investment Policy only
allows investments in mutual funds that are money market funds maintaining a
par value of $1 per share that invests in direct issues of the U.S. Treasury
and/or US Agency Securities with an average maturity of their portfolio not
exceeding 90 days and the City limits such investments to 20% of the portfolio.
- Mortgage -Backed Securities - As authorized in Government code Section
53601(n), local agencies may invest in mortgage -backed securities such as
mortgage pass -through securities and collateralized mortgage obligations for a
maximum period of five years in an amount not to exceed 20% of the agency' s
portfolio. Securities eligible for investment shall have a "A" or higher rating.
The City of La Quinta Investment Policy does not allow investment in Mortgage -
Backed Securities.
-- Financial Futures and Financial Option Contracts - As authorized in Government
Code Section 53601.1, local agencies may invest in financial futures or option
contracts in any of the above investment categories subject to the same overall
portfolio limitations.
The City of La Quinta Investment Policy does not allow investments in financial
futures and financial option contracts.
Certificates of Deposit - As authorized in Government Code Section 53649,
Certificates of Deposit are fixed term investments which are required to be
collateralized from 110% to 150% depending on the specific security pledged
as collateral in accordance with Government Code Section 53652. There are
no portfolio limits on the amount or maturity for this investment vehicle.
Collateralization will be required for Certificates of Deposits in excess of the
FDIC insured amount. The type of collateral is limited to City authorized
11
investments. Collateral will always be held by an independent third party from
the institution that sells the Certificates of Deposit to the City. Evidence of
compliance with State Collateralization policies must be supplied to the City and
retained by the City Treasurer as follows:
1. Certificates of Deposits Insured by the FDIC.
The City Treasurer may waive collateralization of a deposit that is
- federally insured.
2. Certificates of Deposit in excess of FDIC Limits.
The amount not federally insured shall be 1 10% collateralized securities
or 150% mortgages market value of that amount of invested funds plus
unpaid interest earnings.
The City of La Quinta Investment Policy limits the percentage of Certificates of
Deposit to 60% of the portfolio.
Sweep Accounts - As authorized by the City Council, a U.S. Treasury and/or
U.S. Agency Securities Money Market Sweep Account with a $50,000 target
balance may be maintained in conjunction with the checking account.
Derivatives - The City of La Quinta Investment Policy does not allow investment
in derivatives.
XI INVESTMENT POOLS
There are three (3) types of investment pools: 1) state -run pools, 2) pools that are
operated by a political subdivision where allowed by law and the political subdivision is
the trustee i.e. County Pool; and 3) pools that are operated for profit by third parties.
The City of La Quinta Investment Policy has authorized investment with the State of
California's Treasurers Office Local Agency Investment Fund commonly referred to as
LAIF. LAIF was organized in 1977 through State Legislation Section 16429.1, 2 and
3. Each LAIF account is restricted to a maximum investable limit of $40 million. In
addition, LAIF will provide quarterly market value information to the City of La Quinta.
On an annual basis the City Treasurer will submit the Investment Pool Questionnaire to
LAIF.
Also, prior to opening any new Investment Pool account, which would require City
Council approval, the City Treasurer will require the completion of the Investment Pool
Questionnaire.
XII PAYMENT AND CUSTODY
The City shall engage qualified third party custodians to act in a fiduciary capacity to
maintain appropriate evidence of the City's ownership of securities and other eligible
investments. Such custodians shall disburse funds, received from the City for a
purchase, to the broker, dealer or seller only after receiving evidence that the City has
12
legal, record ownership of the securities. Even though ownership is evidenced in book -
entry form rather than by actual certificates, this procedure is commonly accepted as
the delivery versus payment (DVP) method for the transfer of securities.
XI11 INTEREST EARNING DISTRIBUTION POLICY
Interest earnings are generated from pooled investments and specific investments.
1. Pooled Investments - It is the general policy of the City to pool all available
operating cash of the City of La Quinta, La Quinta Redevelopment Agency and
La Quinta Financing Authority and allocate interest earnings, in the following
order, as follows:
A. Payment to the General Fund of an amount equal to the total annual bank
service charges as incurred by the general fund for all operating funds as
included in the annual operating budget.
B. Payment to the General Fund of a management fee equal to 5% of the
_ annual pooled cash fund investment earnings.
C. Payment to each fund of an amount based on the average computerized
daily cash balance included in the common portfolio for the earning
period.
2. Specific Investments - Specific investments purchased by a fund shall incur all
earnings and expenses to that particular fund.
XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR
The City Treasurer shall establish a system of internal controls to accomplish the
following objectives:
► Safeguard assets;
► The orderly and efficient conduct of its business, including adherence to
management policies;
► Prevention or detection of errors and fraud;
► The accuracy and completeness of accounting records; and
No. Timely preparation of reliable financial information.
While no internal control system, however elaborate, can guarantee absolute assurance
that the City's assets are safeguarded, it is the intent of the City's internal control to
provide a reasonable assurance that management of the investment function meets the
City's objectives.
13
The internal controls shall address the following:
a. Control of collusion. Collusion is a situation where two or more employees are
working in conjunction to defraud their employer.
b. Separation of transaction authority from accounting and record keeping. By
separating the person who authorizes or performs the transaction from the
people who record or otherwise account for the transaction, a separation of
duties is achieved.
C. Custodial safekeeping. Securities purchased from any bank or dealer including
appropriate collateral (as defined by State Law) shall be placed with an
independent third party for custodial safekeeping.
d. Avoidance of physical delivery securities. Book entry securities are much easier
to transfer and account for since actual delivery of a document never takes
place. Delivered securities must be properly safeguarded against loss or
destruction. The potential for fraud and loss increases with physically delivered
securities.
e. Clear delegation. of authority to subordinate staff members. Subordinate staff
members must have a clear understanding of their authority and responsibilities
to avoid improper actions. Clear delegation of authority also preserves the
internal control structure that is contingent on the various staff positions and
their respective responsibilities as outlined in the Segregation of Major
Investment Responsibilities appendices.
f. Written confirmation or telephone transactions for investments and wire
transfers. Due to the potential for error and improprieties arising from telephone
transactions, all telephone transactions shall be supported by written
communications and approved by the appropriate person. Written
communications may be via fax if on letterhead and the safekeeping institution
has a list of authorized signatures. Fax correspondence must be supported by
evidence of verbal or written follow-up.
g. Development of a wire transfer agreement with the City's bank and third party
- custodian. This agreement should outline the various controls, security
provisions, and delineate responsibilities of each party making and receiving wire
transfers.
The System of Internal Controls developed by the City, shall be reviewed annually by
the independent auditor in connection with the annual audit of the City of La Quinta's
Financial Statements.
The independent auditor's management letter comments pertaining to cash and
investments, if any, shall be directed to the City Manager who will direct the City
Treasurer to provide a written response to the independent auditor's letter. The
management letter comments pertaining to cash and investment activities and the City
Treasurer's response shall be provided to the City's Investment Advisory Board for
their consideration. Following the completion of each annual audit, the independent
auditor shall meet with the Investment Advisory Board and discuss the auditing
procedures performed and the review of internal controls for cash and investment
activities.
XV BENCHMARK
The investment portfolio shall be designed with the objective of obtaining a rate of
return throughout budgetary and economic cycles commensurate with the investment
risk constraints and the cash flow needs of the City. Return on investment is of least
importance compared to safety and liquidity objectives.
The City of La Quinta Investment Policy will use the six-month U.S. Treasury Bill as a
benchmark when measuring the performance of the investment portfolio.
XVI REPORTING STANDARDS
SB564 section 3 requires a quarterly report to the Legislative Body of Investment
activities. The City of La Quinta Investment Advisory Board has elected to report the
investment activities to the City Council on a monthly basis through the Treasurers
Report. AB 943 requires that the December 31 s' and June 301' Treasurers Reports be
-- sent to the California Debt and Advisory Commission within sixty days of the end of
the quarter.
The City Treasurer shall submit a monthly Treasurers Report to the City Council and
the Investment Advisory Board that includes all cash and investments under the
authority of the Treasurer.
The Treasurers Report shall summarize cash and investment activity and changes in
balances and include the following:
► A certification by City Treasurer.
► A listing of Purchases and sales/maturities of investments.
► Cash and Investments categorized by authorized investments, except for
LAIF which will be provided quarterly and show yield and maturity.
► Comparison of month end actual holdings to Investment Policy
limitations.
► Current year and prior year monthly history of cash and investments for
trend analysis.
► Balance Sheet.
► Distribution of cash and investment balances by fund.
► A comparison of actual and surplus funds.
► A year to date historical cash flow analysis and projection for the next six
months.
► A two-year list of historical interest rates.
15
XVII FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS
POLICY
The City's Investment Policy does not apply to the following:
• Cash and Investments raised from Conduit Debt Financing;
• Funds held in trust in the City's name in pension or other post -retirement
benefit programs;
• Cash and Investments held in lieu of retention by banks or other financial
institutions for construction projects;
• Short or long term loans made to other entities by the City or Agency; and
Short term (Due to/from) or long term (Advances from/to) obligations made
either between the. City and its funds or between the City and Agency.
XVIII INVESTMENT OF BOND PROCEEDS
The City's Investment Policy shall govern bond proceeds and bond reserve fund
investments. California Code Section 5922 (d) governs the investment of bond
proceeds and reserve funds in accordance with bond indenture provisions which shall
be structured in accordance with the City's Investment Policy.
Arbitrage Requirement
The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as
required and return excess earnings to the US Treasury from investments of proceeds
of bond issues sold after the effective date of this law. This arbitrage calculations may
be contracted with an outside source to provide the necessary technical assistance to
comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will
be kept segregated from other funds and records will be kept in a fashion to facilitate
the calculations. The City's investment position relative to the new arbitrage
restrictions is to continue pursuing the maximum yield on applicable investments while
ensuring the safety of capital and liquidity. It is the City's position to continue
maximization of yield and to rebate excess earnings, if necessary.
XIX PROFESSIONAL PORTFOLIO MANAGER
With the Approval of the City Council, the City may engage a professional investment
portfolio manager(s to assist the City Treasurer administer the delegated authority to
manage and invest the City's Funds. The investment portfolio managers will be
approved by City Council based upon a request for proposal process as outlined in
Appendix H. Before engagement by the City, except as may be specifically waived or
revised, the professional manager or advisor shall commit to adhere to the provisions
of the City of La Quinta Investment Policy. Such managers may be granted the
discretion to purchase and sell investment securities in accordance with this
Investment Policy as outlined in Appendix I. Such managers shall have: (1) an
established professional reputation for asset or investment management; (2)
knowledge and working familiarity with State and Federal laws governing and
restricting the investment of public funds; (3) substantial experience providing
16
investment management services to local public agencies whose investment policies
and portfolio size are similar to those of the City; and (4) professional liability (errors
and omissions) insurance and fidelity bonding in such amounts as are required by the
City. Such managers shall be registered under the Investment Advisers Act of 1940.
XX INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA
The Investment Advisory Board (IAB) consists of five members of the community that
have been appointed by and report to the City Council. The IAB usually meets on a
monthly basis, but at least quarterly to (1) review at least annually the City's
Investment Policy and recommend appropriate changes; (2) review monthly Treasury
Report and note compliance with the Investment Policy and adequacy of cash and
investments for anticipated obligations; (3) receive and consider other reports provided
by the City Treasurer; (4) meet with the independent auditor after completion of the
annual audit of the City's financial statements, and receive and consider the auditor' s
comments on auditing procedures, internal controls and findings for cash and
investment activities, and; (5) serve as a resource for the City Treasurer on matters
such as proposed investments, internal controls, use or change of financial institutions,
custodians, brokers and dealers.
The appendices include City of La Quinta Ordinance 2.70 entitled Investment Advisory
Board Provisions.
XXI INVESTMENT POLICY ADOPTION
On an annual basis, the Investment policies will be initially reviewed by the Investment
Advisory Board and the City Treasurer. The Investment Advisory Board will forward
the Investment policies, with any revisions, to the City Manager and City Attorney for
their review and comment. A joint meeting will be held with the Investment Advisory
_ Board, City. Manager, City Attorney, and City Treasurer to review the Investment
policies and comments, prior to submission to the City Council for their consideration.
- The Investment Policies shall be adopted by resolution of the City of La Quinta City
Council on an annual basis. The Investment Policies will be adopted before the end of
June of each year.
AB 943 requires that the Investment Policies be sent to the California Debt and
Investment Advisory Commission within sixty days of a change to the Investment
Policy.
17
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Appendix B
Chapter 2.70
INVESTMENT ADVISORY BOARD PROVISIONS
Sections:
2.70.010 General Rules Regarding Appointment.
2.70.020 Board meetings.
2.70.030 Board functions.
2.70.010 General rules regarding appointment
A. Except as set out below, see Chapter 2.06 for General Provisions.
B. The Investment Advisory Board (the"board") is a standing board composed of five (5)
members from the public that are appointed by city council. La Quinta residency is required
except for Board Members currently serving on the Board as of June 30, 2003.
C. Background in the investment field and/or related experience is preferred. Background
information will be required and potential candidates must agree to a background check and
verification.
D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at
any time if a change in circumstances warrants, each board member will provide the City
Council with a disclosure statement which identifies any matters that have a bearing on the
appropriateness of that member's service on the board. Such matters may include, but are not
limited to, changes in employment, changes in residence, or changes in clients.
2.70.020 Board meetings.
The Board usually will meet monthly, but this schedule may be extended to quarterly
meetings upon the concurrence of the Board and the City Council. The specific meeting dates
will be determined by the Board Members and meetings may be called for on an as needed basis.
2.70.030 Board functions.
1. The principal functions of the Board are: (1) review at least annually the City's Investment
Policy and recommend appropriate changes; (2) review monthly Treasury Report and note
compliance with the Investment Policy and adequacy of cash and investments for anticipated
obligations; (3) receive and consider other reports provided by the City Treasurer; (4) meet
with the independent auditor after completion of the annual audit of the City's financial
statements, and receive and consider the auditor's comments on auditing procedures,
internal controls, and findings for cash and investment activities, and; (5) serve as a resource
for the City Treasurer on matters such as proposed investments, internal controls, use or
change of financial institutions, custodians, brokers and dealers.
2. The Board will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting.
19
Appendix C
Chapter 3.08
INVESTMENT OF MONEYS AND FUNDS
Sections:
3.08.010 Investment of city moneys and deposit of securities.
3.08.020 Authorized investments.
3.08.030 Sales of securities.
3.08.040 City bonds.
3.08.050 Reports.
3.08.060 Deposits of securities.
3.08.070 Trust fund administration.
3.08.010 Investment of city moneys and deposit of securities.
Pursuant to, and in accordance with, and to the extent allowed by, Sections
53607 and 53608 of the Government Code, the authority to invest and reinvest
moneys of the city, to sell or exchange securities, and to deposit them and provide
for their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982)
3.08.020 Authorized investments.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to purchase, at their original sale or after they have been issued, securities
which are permissible investments under any provision of state law relating to the
investing of general city funds, including but not limited to Sections 53601 and 53635
of the Government Code, as said sections now read or may hereafter be amended,
from moneys in his custody which are not required for the immediate necessities of the
city and as he may deem wise and expedient, and to sell or exchange for other eligible
securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part),
1982)
3.08.030 Sales of Securities.
From time to time the city treasurer shall sell the securities in which city moneys
have been invested pursuant to this chapter, so that the proceeds may, as appropriate,
be applied to the purchase for which the original purchase money may have been
designated or placed in the city treasury. (Ord.2 § I (part),
3.08.040 City bonds.
Bonds issued by the city and purchased pursuant to this chapter may be canceled
either in satisfaction of sinking fund obligations or otherwise if proper and appropriate;
provided, however, that the bonds may be held uncancelled and while so held may be
resold. (Ord. 2 § 1 (part), 1982)
3.08.050 Reports.
The city treasurer shall make a monthly report to the city council of all investments
made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982)
20
3.08.060 Deposits of securities.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to deposit for safekeeping, the securities in which city moneys have been
invested pursuant to this chapter, in any institution or depository authorized by the
terms of any state law, including but not limited to Section 53608 of the Government
Code as it now reads or may hereafter be amended. In accordance with said section,
the city treasurer shall take from the institution or depository a receipt for the
securities so deposited and shall not be responsible for the securities delivered to and
receipted for by the institution or depository until they are withdrawn therefrom by the
city treasurer. (Ord. 2 § 1 (part), 1982
3.08.070 Trust fund administration.
Any departmental trust fund established by the city council pursuant to Section
_ 36523 of the Government Code shall be administered by the city treasurer in
accordance with Section 36523 and 26524 of the Government code and any other
applicable provisions of law. (Ord. 2 § 1 (part), 1982)
21
Appendix D
SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function
Responsibilities
Develop formal Investment Policy
City Treasurer
Recommend modifications to Investment Policy
Investment Advisory Board
Review formal Investment Policy and recommend
City Manager and
City Council action
City Attorney
Adopt formal Investment Policy
City Council
Review Financial Institutions & Select Investments
City Treasurer
Approve investments
City Manager or
Assistant City Manager
Execute investment transactions
City Manager or Treasurer
Confirm wires, if applicable
Accounting Manager or
Record investment transactions in City's
accounting records
Investment verification - match broker confirmation
to City investment records
Reconcile investment records
- to accounting records and bank statements
Reconcile investment records
- to Treasurers Report
of investments
Security of investments at City
Security of investments Outside City
Review internal control procedures
22
Financial Services Assistant
Accounting Manager or
Financial Services Assistant
City Treasurer and Financial
Services Assistant
Financial Services Assistant
Accounting Manager
Vault
Third Party Custodian
External Auditor
Appendix E
LISTING OF APPROVED FINANCIAL INSTITUTIONS
1. Banking Services -
Wells Fargo Bank, Government Services,
Los Angeles, California
2. Custodian Services
- Bank of New York, Los Angeles,
-
California
3. Deferred Compensation
- International City/County Management
Association Retirement Corporation
4. Broker/Dealer Services
- Merrill Lynch, Los Angeles, CA
Morgan Stanley, Los Angeles, CA
CitiGroup, San Francisco, CA
5. Government Pool
- State of California Local Agency
Investment Fund
City of La Quinta Account
La Quinta Redevelopment Agency
-- 6. Bond Trustees
- 1991 City Hall Revenue Bonds - US Bank
1991 RDA Project Area 1 - US Bank
1992 RDA Project Area 2 - US Bank
-
1994 RDA Project Area 1 - US Bank
1998 RDA Project Area 1 &2 - US Bank
2001 RDA Project Area 1 - US Bank
2002 RDA Project Area 1 - US Bank
2003 RDA Project Area 1 - US Bank
Assessment Districts - US Bank
No Changes to this listing maybe made without City Council approval
23
Appendix F
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1 . Name of Firm:
2. Address:
-- 3. Telephone:
4. Broker's Representative to the City (attach resume):
-- Name:
Title:
Telephone: (_)
5. Manager/Partner-in-charge (attach resume):
Name:
Title:
Telephone:
6. List all personnel who will be trading with or quoting securities to City employees
(attach resume)
Name:
Title:
Telephone:
7. Which of the above personnel have read the City's Investment Policy?
8, Which instruments are offered regularly by your local office? (Must equal
100%)
% U.S. Treasuries % Repos
% BA's % Reverse Repos
% Commercial Paper % CMO's
% CD's % Derivatives
- % Mutual Funds % Stocks/Equities
% Agencies (specify): % Other (specify):
24
9. References -- Please identify your most directly comparable public sector
clients in our geographical area.
Entity Entity
Contact Contact.
Telephone ( ) Telephone ( )
Client Since Client Since
10. Have any of your clients ever sustained a loss on a securities transaction arising
from a misunderstanding or misrepresentation of the risk characteristics of the
instrument? If so, explain.
11. Has your firm or your local office ever been subject to a regulatory or state/
federal agency investigation for alleged improper, fraudulent, disreputable or
-- unfair activities related to the sale of securities? Have any of your employees
been so investigated? If so,
explain.
12. Has a client ever claimed in writing that you were responsible for an
investment loss? Yes No If yes, please provide
action taken
- Has a client ever claimed in writing that your firm was responsible for an
investment loss? Yes No If yes, please provide
action taken
Do you have any current or pending complaints that are unreported to the
NASD?
Yes No If yes, please provide action taken
- Does your firm have any current, or pending complaints that are unreported
to the NASD? Yes No If yes, please provide action
taken
13. Explain your clearing and safekeeping procedures, custody and delivery process.
Who audits these fiduciary responsibilities?
Latest Audit Report Date
14. How many and what percentage of your transactions failed.
Last month? % $
Last year? % $
15. Describe the method your firm would use to establish capital trading limits for.the
City of La Quinta.
16. Is your firm a member in the S.I.P.C. insurance program. Yes No
If yes, explain primary and excess coverage and carriers.
- 17. What portfolio information, if any, do you require from your clients?
M
18. What reports and transaction confirmations or any other research publications will
the City receive?
19. Does your firm offer investment training to your clients? Yes No
20. Does your firm have professional liability insurance. Yes No
If yes, please provide the insurance carrier, limits and expiration date._
21. Please list your NASD Registration Number,
22.
Do you have any relatives who work at the City of La Quinta?
Yes No If yes, Name and Department
23. Do you maintain an office in California. Yes No
24. Do you maintain an office in La Quinta or Riverside County? Yes No
25. Please enclose the following:
- 0 Latest audited financial statements.
❑ Samples of reports, transaction confirmations and any other
research/publications the City will receive.
❑ Samples of research reports and/or publications that your firm regularly
provides to clients.
❑ Complete schedule of fees and charges for various transactions.
'CERTIFICATION'
*CERTIFICATION*
I hereby certify that I have personally read the Statement of Investment Policy of the City
of La Quinta, and have implemented reasonable procedures and a system of controls
designed to preclude imprudent investment activities arising out of transactions
conducted between our firm and the City of La Quinta. All sales personnel will be
routinely informed of the City's investment objectives, horizons, outlooks, strategies and
risk constraints whenever we are so advised by the City. We pledge to exercise due
diligence in informing the City of La Quinta of all foreseeable risks associated with
financial transactions conducted with our firm.
By signing this document the City of La Quinta is authorized to conduct any and all
background checks.
27
Under penalties of perjury, the responses to this questionnaire are true and accurate to
the best of my knowledge.
Broker Representative
Date Title
Sales Manager and/or Managing Partner*
Date Title
Appendix G
INVESTMENT POOL QUESTIONNAIRE
Note: This Investment Pool Questionnaire was developed by the Government Finance
Officers Association (GFOA).
Prior to entering a pool, the following questions and issues should be considered.
SECURITIES
-- Government pools may invest in a broader range of securities than your entity invests in.
It is important that you are aware of, and are comfortable with, the securities the pool
buys.
1 Does the pool provide a written statement of Investment Policy and objectives?
2. Does the statement contain:
a. A description of eligible investment instruments?
b. The credit standards for investments?
c. The allowable maturity range of investments?
d. The maximum allowable dollar weighted average portfolio maturity?
e. The limits of portfolio concentration permitted for each type of security?
f. The policy on reverse repurchase agreements, options, short sales and futures?
3. Are changes in the policies communicated to the pool participants?
4. Does the pool contain only the types of securities that are permitted by your
Investment Policy?
INTEREST
Interest is not reported in a standard format, so it is important that you know how
interest is quoted, calculated and distributed so that you can make comparisons with
other investment alternatives.
Interest Calculations
1. Does the pool disclose the following about yield calculations:
a. The methodology used to calculate interest? (Simple maturity, yield to maturity,
etc.)
b. The frequency of interest payments?
c. How interest is paid? (Credited to principal at the end of the month, each quarter;
mailed?)
d. How are gains/losses reported? Factored monthly or only when realized?
29
REPORTING
1. Is the yield reported to participants of the pool monthly? (If not, how often?)
2. Are expenses of the pool deducted before quoting the yield?
3. Is the yield generally in line with the market yields for securities in which you usually
invest?
4. How often does the pool report, and does that report include the market value of
securities?
SECURITY
The following questions are designed to help you safeguard your funds from loss of
principal and loss of market value.
1. Does the pool disclose safekeeping practices?
2. Is the pool subject to audit by an independent auditor?
3. Is a copy of the audit report available to participants?
4. Who makes the portfolio decisions?
5. How does the manager monitor the credit risk of the securities in the pool?
6. Is the pool monitored by someone on the board of a separate neutral party external to
the investment function to ensure compliance with written policies?
7. Does the pool have specific policies with regards to the various investment vehicles?
a. What are the different investment alternatives?
b. What are the policies for each type of investment?
8. Does the pool mark the portfolio to its market value?
9. Does the pool disclose the following about how portfolio securities are valued:
a. The frequency with which the portfolio securities are valued?
b. The method used to value the portfolio (cost, current value, or some other
method)?
30
OPERA TONS
The answers to these questions will help you determine whether this pool meets your
operational requirements:
1. Does the pool limit eligible participants?
2. What entities are permitted to invest in the pool?
3. Does the pool allow multiple accounts and sub -accounts?
4. Is there a minimum or maximum account size?
5. Does the pool limit the number of transactions each month? What is the number
of transactions permitted each month?
6. Is there a limit on transaction amounts for withdrawals and deposits?
a. What is the minimum and maximum withdrawal amount permitted?
b. What is the minimum and maximum deposit amount permitted?
7. How much notice is required for withdrawals/deposits?
8. What is the cutoff time for deposits and withdrawals?
9. Can withdrawals be denied?
10. Are the funds 100% withdrawable at anytime?
11. What are the procedures for making deposits and withdrawals?
a. What is the paperwork required, if any?
b. What is the wiring process?
12. Can an account remain open with a zero balance?
13. Are confirmations sent following each transaction?
-- STATEMENTS
It is important for you and the agency's trustee (when applicable), to receive statements
monthly so the pool's records of your activity and holding are reconciled by you and
your trustee.
31
1. Are statements for each account sent to participants?
a. What are the fees?
b. How often are they passed?
c. How are they paid?
d. Are there additional fees for wiring funds (what is the fee)?
2. Are expenses deducted before quoting the yield?
QUESTIONS TO CONSIDER FOR BOND PROCEEDS
-- It is important to know (1) whether the pool accepts bond proceeds and (2) whether the
pool qualifies with the U.S. Department of the Treasury as an acceptable commingled
fund for arbitrage purposes.
1. Does the pool accept bond proceeds subject to arbitrage rebate?
- 2. Does the pool provide accounting and investment records suitable for proceeds of
bond issuance subject to arbitrage rebate?
3. Will the yield calculation reported by the pool be acceptable to the IRS or will it have
to be recalculated?
4. Will the pool accept transaction instructions from a trustee?
— 5. Are you allowed to have separate accounts for each bond issue so that you do not
commingle the interest earnings of funds subject to rebate with funds not subject to
regulations?
32
Appendix H
Request for Proposals
Investment Advisory Services
City of La Quinta, CA
The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from interested firms
- for the provision of a discretionary investment management services for City of La
Quinta, CA. The portfolio to be managed of the invested assets is estimated to be $10
million and will be invested between 0 — 5 years.
The investment of City of La Quinta, CA's funds is guided by the applicable State
statutes and the City of La Quinta, CA's investment policy. A copy of the investment
policy is attached for your information.
Questions regarding this RFP should be directed to:
Name:
John M. Falconer
Title:
Finance Director/Treasurer
City of:
La Quinta, CA
Address:
78-495 Calle Tampico
- City, State
Zip Code: La Quinta, CA 92253
Phone Number:
(760)777-7150
I. CRITERIA FOR EVALUATION AND SELECTION
■ Experience of the firm in providing services to public sector entities of
similar size and with similar investment objectives
■ Professional experience and qualifications of the individuals assigned to the
account
■ Portfolio management resources, investment philosophy and approach
■ Responsiveness to the RFP, communicating an understanding of the overall
program and services required
■ Reporting capabilities
■ Fees
II. SELECTION TIMETABLE
A. [Month Day, Year]
_._ B. [Month Day, Year]
C. [Month Day, Year]
Proposals due by [Time] PST.
Proposals evaluated: to be determined
[City of La Quinta, CA] [Board/Council] approves
33
selection and awards contract.
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 in
the last ten years.
5. 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
and address any incentive compensation programs.
34
C. Assets Under Management
1. Summarize your institutional investment management asset totals by category.
for your latest reporting period in the following table:
Number Operating Funds Number of Other Restrictive
of Clients Clients Funds
Governmental $
Governmental $
Pension
Non Governmental $
Pension
Corporate $
High Net Worth Client $
Endowmental/Founda $
tion
2. Provide the number of separate accounts whose portfolios consist of
operating funds.
3. List in the following table the percentage by market value of aggregate
assets under all governmental accounts 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 )
35
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 five years. Indicate the
number of government accounts gained and the number of government
accounts lost.
6. List your five governmental largest clients. Identify those that are
exclusively operating fund relationships and/or those that are other
relationships (e.g., bond fund, retirement fund).
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 City of
La Quinta, CA's portfolio.
3. What are the primary strategies for adding value to portfolios?
4. Describe the process you would recommend for establishing the investment
objectives and constraints for this account.
5. 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 governmental accounts.
6. Describe your firm's trading methodology.
7. Describe your firm's decision -making process in terms of structure,
committees, membership, meeting frequency, responsibilities, integration of
research ideas, and portfolio management.
36
-- 8. Describe your research capabilities as they would pertain to governmental
accounts. What types of analysis do you use?
- 9. Describe the firm's approach to managing relationships with the broker -
dealer community.
E. Portfolio Management
1. Are portfolios managed by teams or by one individual?
2. What is the average number of accounts handled per manager?
3. Which professional staff member will be the primary client contact for City
of La Quinta, CA?
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?
G. Performance Reporting
1 . Please report on all accounts under $100 million.
2. Please provide performance history for governmental accounts for the
last five years.
3. Please provide risk measurements for governmental accounts for the last
five years.
- 4. Indicate whether your returns are calculated and compiled in accordance
with the Association for Investment Management and Research
(AIMR/CFA Institute) standards.
5. Do your reports conform to the State of California reporting standards? Are
you willing to customize your reports to meet our specifications?
37
6. How will you notify us of investment transactions?
7. Are confirmation of investment transactions sent directly by the
broker/dealer to the client?
8. Do your reports include rating information on investments which is
required by GASB 40?
H. References
Provide a list of at least five (5) client references in California. References should
be public agencies with portfolio size and investment objectives similar to City of
La Quinta, CA. Include length of time managing the assets, contact name, and
phone number.
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 . Seven (7) copies of the proposal shall be submitted in a sealed envelope
bearing the caption RFP for (City of La Quinta, CA) and addressed to:\
City of La Quinta, CA
78-495 Calle Tampico
La Quinta, CA 92253
Attention: John M. Falconer, Finance Director/Treasurer
2. Proposal must be received no later than [Time] PST on [Month, Day,
Year].
3. Proposals should be verified before submission. The City of La Quinta,
CA shall not be responsible for errors or omissions on the part of the
respondent in preparation of a proposal. The City of La Quinta, CA
--- 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.
Enclosures: Investment Policy
Treasurers Report
m
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39
Appendix J
GLOSSARY
(Adopted from the Municipal Treasurers Association)
The purpose of this glossary is to provide the reader of the City of La Quinta investment
policies with a better understanding of financial terms used in municipal investing.
AGENCIES: Federal agency securities and/or
Government -sponsored enterprises.
ASKED: The price at which securities are offered.
BANKERS' ACCEPTANCE (BA): A draft or bill of
exchange accepted by a bank or trust company.
The accepting institution guarantees payment of
the bill, as well as the issuer.
BID: The price offered by a buyer of securities.
(When you are selling securities, you ask for a
bid.') See Offer.
BROKER: A broker brings buyers and sellers
together for a commission.
CERTIFICATE OF DEPOSIT (CD): A time deposit
with a specific maturity evidenced by a
certificate. Large -denomination CD's are
typically negotiable.
COLLATERAL: Securities, evidence of deposit or
other property which a borrower pledges to
secure repayment of a loan. Also refers to
securities pledged by a bank to secure deposits
of public monies.
COMMERCIAL PAPER: Short-term unsecured
promissory notes issued by a corporation to raise
working capital. These negotiable instruments
are purchased at a discount to par value or at par
value with interest bearing. Commercial paper is
issued by corporations such as General Motors
Acceptance Corporation, IBM, Bank America, etc.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
(CAFR): The official annual report for the City of
La Quinta. It includes five combined statements
40
for each individual fund and account group
prepared in conformity with GAAP. It also
includes supporting schedules necessary to
demonstrate compliance with finance -related legal
and contractual provisions, extensive introductory
material, and a detailed Statistical Section.
CONDUIT FINANCING: A form of Financing in
which a government or a government agency
lends its name to a bond issue, although it is
acting only as a conduit between a specific project
and bond holders. The bond holders can look only
to the revenues from the project being financed
for repayment and not to the government or
agency whose name appears on the bond.
COUPON: (a) The annual rate of interest that a
bond's issuer promises to pay the bondholder on
the bond's face value. (b) A certificate attached
to a bond evidencing interest due on a payment
date.
DEALER: A dealer, as opposed to a broker, acts as
a principal in all transactions, buying and selling
for his own account.
DEBENTURE: A bond secured only by the general
credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two
methods of delivery of securities: delivery versus
payment and delivery versus receipt. Delivery
versus payment is delivery of securities with an
exchange of money for the securities. Delivery
versus receipt is delivery of securities with an
exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments whose
return profile is linked to, or derived from, the
movement of one or more underlying index or
security, and may include a leveraging factor, or
(2) financial contracts based upon notional
amounts whose value is derived from an
underlying index or security (interest rates,
foreign exchange rates, equities or commodities).
DISCOUNT: The difference between the cost
- price of a security and its maturity when quoted
at lower than face value. A security selling
below original offering price shortly after sale also
- is considered to be at a discount.
3.
DISCOUNT SECURITIES: Non -interest bearing
money market instruments that are issued a
discount and redeemed at maturity for full face 4.
value, e.g., U.S. Treasury Bills.
DIVERSIFICATION: Dividing investment funds
among a variety of securities offering
independent returns.
FEDERAL CREDIT AGENCIES: Agencies of the
Federal government set up to supply credit to
various classes of institutions and individuals, 5.
e.g., S&L's, small business firms, students,
_ farmers, farm cooperatives, and exporters.
1. FNMAs (Federal National Mortgage
Association) - Used to assist the home
mortgage market by purchasing mortgages
insured by the Federal Housing
Administration and the Farmers Home
Administration, as well as those guaranteed by
the Veterans Administration. They are issued in
various maturities and in minimum denominations
of $10,000. Principal and Interest is paid
monthly.
2. FHLBs (Federal Home Loan Bank Notes and
Bonds) - Issued by the Federal Home Loan
Bank System to help finance the housing
industry. The notes and bonds provide
liquidity and home mortgage credit to savings
and loan associations, mutual savings banks,
cooperative banks, insurance companies, and
mortgage -lending institutions. They are
issued irregularly for various maturities. The
minimum denomination is $5,000. The notes
41.
are issued with maturities of less than one
year and interest is paid at maturity.
FLBs (Federal Land Bank Bonds) - Long-term
mortgage credit provided to farmers by Federal
Land Banks. These bonds are issued at
irregular times for various maturities ranging
from a few months to ten years. The
minimum denomination is $1,000. They carry
semi-annual coupons. Interest is calculated on
a 360-day, 30 day month basis.
FFCBs (Federal Farm Credit Bank) - Debt
instruments used to finance the short and
intermediate term needs of farmers and the
national agricultural industry. They are issued
monthly with three- and six-month maturities.
The FFCB issues larger issues (one to ten
year) on a periodic basis. These issues are
highly liquid.
FICBs (Federal Intermediate Credit bank
Debentures)_- Loans to lending institutions
used to finance the short-term and
intermediate needs of farmers, such as
seasonal production. They are usually issued
monthly in minimum denominations of $3,000
with a nine -month maturity. Interest is
payable at maturity and is calculated on a
360-day, 30-day month basis.
6. FHLMCs (Federal Home Loan Mortgage
Corporation) - a government sponsored entity
established in 1970 to provide a secondary
market for conventional home mortgages.
Morgages are purchased solely from the
Federal home Loan Bank System member
lending institutions whose deposits are insured
by agencies of the United States Government.
They are issued for various maturities and in
minimum denominations of $10,000. Principal
and Interest is paid monthly. Other federal
agency issues are Small Business
Administration notes (SBAs), Government
National Mortgage Association notes
(GNMAs), Tennessee Valley Authority notes
(TVAs), and Student Loan Association notes
(SALLIE-MAEs).
FEDERAL DEPOSITOR INSURANCE
CORPORATION (FDIC): A federal agency that
insures bank deposits, currently up to $100,000
per deposit.
- FEDERAL FUNDS RATE: The rate of interest at
which Fed funds are traded. This rate is
currently pegged by the Federal Reserve through
-- open -market operations.
FEDERAL HOME LOAN BANKS (FHLB):
Government sponsored wholesale banks
(currently 12 regional banks) which lend funds
and provide correspondent banking services to
member commercial banks, thrift institutions,
credit unions and insurance companies. The
mission of the FHLBs is to liquefy the housing
related assets of its members who must purchase
stock in their district Bank.
FEDERAL OPEN MARKET COMMITTEE (FOMC):
Consists of seven members of the Federal
Reserve Board and five of the twelve Federal
Reserve Bank Presidents. The President of the
New York Federal Reserve Bank is a permanent
member, while the other Presidents serve on a
rotating basis. The Committee periodically meets
to set Federal Reserve guidelines regarding
purchases and sales of Government Securities in
the open market as a means of influencing the
volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of
the United States created by Congress and
consisting of a seven member Board of
Governors in Washington, D.C., 12 regional
banks and about 5,700 commercial banks that
are members of the system.
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA or Ginnie Mae): Securities
influencing the volume of bank credit guaranteed
by GNMA and issued by mortgage bankers,
commercial, banks, savings and loan associations,
42
and other institutions. Security holder is protected
by full faith and credit of the U.S. Government.
Ginnie Mae securities are backed by the FHA, VA
or FMHM mortgages. The term "passthrough" is
often used to describe Ginnie Maes.
LAIF (Local Agency Investment Fund) - A special
fund in the State Treasury which local agencies
may use to deposit funds for investment. There is
no minimum investment period and the minimum
transaction is $ 5,000, in multiples of $1,000
above that, with a maximum balance of
$30,000,000 for any agency. The City is
restricted to a maximum of ten transactions per
month. It offers high liquidity because deposits
can be converted to cash in 24 hours and no
interest is lost. All interest is distributed to those
agencies participating on a proportionate share
basis determined by the amounts deposited and
the length of time they are deposited. Interest is
paid quarterly. The State retains an amount for
reasonable costs of making the investments, not
to exceed one -quarter of one percent of the
earnings.
LIQUIDITY: A liquid asset is one that can be
converted easily and rapidly into cash without a
substantial loss of value. In the money market, a
security is said to be liquid if the spread between
bid and asked prices is narrow and reasonable size
can be done at those quotes.
LOCAL GOVERNMENT INVESTMENT POOL
(LGIP): The aggregate of all funds from political
subdivisions that are placed in the custody of the
State Treasurer for investment and reinvestment
MARKET VALUE: The price at which a security is
trading and could presumably be purchased or
sold.
MASTER REPURCHASE AGREEMENT: A written
contract covering all future transactions between
the parties to repurchase --reverse repurchase
agreements that establishes each party' s rights in
the transactions. A master agreement will
often specify, among other things, the right. of the
buyer -lender to liquidate the underlying securities
in the vent of default by the seller -borrower.
MATURITY: The date upon which the principal or
stated value of an investment becomes due and
payable
MONEY MARKET: The market in which short-
term debt instruments (bills, commercial paper,
bander' acceptances, etc.) are issued and
traded.
OFFER: The price asked by a seller of securities.
(When you are buying securities, you ask for an
offer.) See Asked and Bid.
OPEN MARKET OPERATIONS: Purchases and
sales of government and certain other securities
in the open market by the New York Federal
Reserve Bank as directed by the FOMC in order
to influence the volume of money and credit in
the economy. Purchases inject reserves into the
bank system and stimulate growth of money and
credit; sales have the opposite effect. Open
market operations are the Federal Reserve's
most important and most flexible monetary policy
tool.
PORTFOLIO: Collection of all cash and securities
under the direction of the City Treasurer,
including Bond Proceeds.
PRIMARY DEALER: A group of government
securities dealers who submit daily reports of
market activity and depositions and monthly
financial statements to the Federal Reserve Bank
of New York and are subject to its informal
oversight. Primary dealers include Securities and
Exchange Commission (SEC) -registered securities
broker -dealers, banks and a few unregulated
firms.
QUALIFIED PUBLIC DEPOSITORIES: A financial
institution which does not claim exemption from
the payment of any sales or compensating use or
ad valorem taxes under the laws of this state,
which has segregated for the benefit of the
43
commission eligible collateral having a value of not
less than its maximum liability and which has been
approved by the Public Deposit Protection
Commissiontohold public deposits.
RATE OF RETURN: The yield obtainable on a
security based on its purchase price or its current
market price. This may be the amortized yield to
maturity on a bond the current income return.
REPURCHASE AGREEMENT (RP OR REPO): A
repurchase agreement is a short-term investment
transaction. Banks buy temporarily idle funds
from a customer by selling U.S. Government or
other securities with a contractual agreement to
repurchase the same securities on a future date.
Repurchase agreements are typically for one to
ten days in maturity. The customer receives
interest from the bank. The interest rate reflects
both the prevailing demand for Federal funds and
the maturity of the repo. Some banks will execute
repurchase agreements for a minimum of
$100,000 to $500,000, but most banks have a
minimum of $1,000,000.
REVERSE REPURCHASE AGREEMENTS (RRP or
RevRepo) - A holder of securities sells these
securities to an investor with an agreement to
repurchase them at a fixed price on a fixed date.
The security "buyer" in effect lends the "seller"
money for the period of the agreement, and the
terms of the agreement are structured to
compensate him for this. Dealers use RRP
extensively to finance their positions. Exception:
When the Fed is said to be doing RRP, it is lending
money that is increasing bank reserves.
SAFEKEEPING: A service to customers rendered
by banks for a fee whereby securities and
valuables of all types and descriptions are held in
the bank's vaults for protection.
SECONDARY MARKET: A market made for the
purchase and sale of outstanding issues following
the initial distribution.
SECURITIES & EXCHANGE COMMISSION:
Agency created by Congress to protect investors
in securities transactions by administering
securities legislation.
SEC RULE 15C3-1: See Uniform Net Capital Rule.
STRUCTURED NOTES: Notes issued by
Government Sponsored Enterprises (FHLB,
FNMAS, SLMA, etc.) And Corporations which
have imbedded options (e.g., call features, step-
up coupons, floating rate coupons, derivative -
based returns) into their debt structure. Their
market performance is impacted by the
fluctuation of interest rates, the volatility of the
imbedded options and shifts in the Shape of the
yield curve.
SURPLUS FUNDS: Section 53601 of the
California Government Code defines surplus
funds as any money not required for immediate
necessities of the local agency. The City has
defined immediate necessities to be payment due
within one week.
TREASURY BILLS: A non -interest bearing
discount security issued by the U.S. Treasury to
finance the national debt. Most bills are issued
to mature in three months, six months or one
year.
TREASURY BONDS: Long-term coupon -bearing
U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities of more than 10 years.
TREASURY NOTES: Medium -term coupon -bearing
U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities from two to 10 years.
UNIFORM NET CAPITAL RULE: Securities and
Exchange Commission requirement that member
firms as well as nonmember broker -dealers in
securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1; also
called net capital rule and net capital ratio.
44
Indebtedness covers all money owed to a firm,
including margin. loans and commitments to
purchase securities, one reason new public issues
are spread among members of underwriting
syndicates. Liquid capital includes cash and
assets easily converted into cash.
UNIFORM PRUDENT INVESTOR ACT: The State
of California has adopted this Act. The Act
contains the following sections: duty of care,
diversification, review of assets, costs,
compliance determinations, delegation of
investments, terms of prudent investor rule, and
application.
YIELD: The rate of annual income return on an
investment, expressed as a percentage. (a)
INCOME YIELD is obtained by dividing the current
dollar income by the current market price for the
security. (b) NET YIELD or YIELD TO MATURITY is
the current income yield minus any premium
above par of plus any discount from par in
purchase price, with the adjustment spread over
the period from the date of purchase to the date
of maturity of the bond.