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2007 04 11 IABAGENDA INVESTMENT ADVISORY BOARD Finance Conference Room 78-495 Calle Tampico- La Quinta, CA 92253 April 11, 2007 - 4:30 P.M. CALL TO ORDER a. Pledge of Allegiance b. Roll Call II PUBLIC COMMENT - (This is the time set aside for public comment on any matter not scheduled on the agenda.) III CONFIRMATION OF AGENDA IV CONSENT CALENDAR A. Approval of Minutes of Meeting on March 14, 2007, for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for February 2007 B. Continued Consideration of Fiscal Year 2007/08 Investment Policies & Work Plan Items VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report and other selected Financial Data - March 2007 B. Pooled Money Investment Board Reports - January 2007 VII BOARD MEMBER ITEMS VIII ADJOURNMENT P.O. 13oN 1504 • LA QUINTA, CALIFORNIA 92247-1504 �y 78-495 C,kLLE'FAMPrco • LA QUIVIA, CALIFORNIA 92253 (760) 777-7000 •FAX (760) 777-7101 INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: April 11, 2007 ITEM TITLE: Transmittal of Treasury Report for February 28, 2007 BACKGROUND: Attached please find the Treasury Report February 28, 2007 RECOMMENDATION: Review, Receive and File the Treasury Report for February 28, 2007 A. Falconer, Finance Director MEMORANDUM TO: La Quints City Council FROM John M. Falconer, Finance Director/rreasurer SUBJECT Treasurers Report for February 28, 2007 DATE: March 31, 2007 Attached is the Treasurers Report for the month ending February 28, 2007 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 I Sold/Matured Other Endinq Change Cash (3) $ 4,962,041 $ 1,019,457 (1) $ 5,981,498 $ 1,019,457 LAIF 47,636,025 5,050,000 (5,900,000) 0 46,786,025 (850,000) US Treasuries (2) 115,107.481 439,138 115,546,619 439,138 US Gov't Sponsored Enterprises (2) 34,301,366 (5,000,000) 113,437 29,414,803 14,886,563) Commercial Paper (2) 18,937,527 12,000,000 (12,000,000) 12,437 18,949,964 12,437 Corporate Notes 2,925,266 3,359 2,928,625 3,359 Mutual Funds 4.184.770 1 1,462,450 2,722,320 1,462,450 Total $ 228.054,476 $ 18.069,457 $ 24,362,450 $ 568,371 $ 222,329,854 $ 5,724,622 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 Cityof 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 aohn M. Falconer ate Finance Directorlrreasurer 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. 2 Treasurer's Commentary For the Month of February Cash Balances — The portfolio size decreased by $5.7 million. The major reason for the decrease was pass through payments totaling $5.5 million made as a result of the property tax receipts received in January. In addition, the City had $5.98 million on hand as of February in order to pay a semi-annual debt service payment of $6.1 million due on March 1 ". Investment Activity — The Treasurer has been increasing the LAIF holdings in February to take advantage of a 23 basis point advantage over US Treasuries. A FNMA investment matured February 28`h with the proceeds used to pay in part the aforementioned debt service payment. As of February 28`h the City did not have any FNMA investments. Mutual funds decreased $1.462 million based upon low and moderate income payments for the Vista Dunes Project and Watercolors second trust deeds. The sweep account earned $ 5,375 in cash for the month. The bank fees for the month were $ 2,011 which resulted in a net increase of $ 3,364 in real savings. Portfolio Performance — The overall portfolio performance increased by one (1) basis point and ended at 5.17% for the month. At the end of February, the portfolio yield was sixteen (23) basis points over the benchmark which had decreased by three (3) basis points from January. With the short average maturity of 69 days, the portfolio yield should remain at these levels. The Treasurer will continue to invest in short term investments based upon the yield curve. At this time last year, the portfolio was yielding 4.09% and the benchmark was at 4.58% for a 49 point difference so we have made progress in meeting our benchmark. The Treasurer has been investing more in LAIF and has not been investing in longer than six months Treasury securities or in will be investing in longer than six months GSE's based upon the yield curve to take advantage of yield spreads. Future Thoughts The Treasurer will continue to invest in short term maturities to take advantage of the inverted yield curve — Commercial Paper with 30 to 60 day maturities and Bond proceeds will be laddered in three and six month Treasury bills as they mature. GSE's may be rolled over for no longer than one year maturities. 3 \k !!( o \|] 12 - - !, e } } | \\\ 0 9¢ 5 5 is Y> m F 00000000������ o0000000000 �ono�� O O O O O O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O n N N n V Vi d M O C G O O O G OOOOOOYI O O O O O O O O O O O O OOOOOOOOOOO Vm[O 1100 (p N g Q O O O O N q O O O O O O O f p O M O Q ui `�`. O O M l f l mmv M N d N— 2ai ni ni ai cV — � d M, ni `. ci `. 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E 18.286To1aP Bank AtCOurlra E 1820d U S Treasury CusloOan Ava�la0i lus Issuer? a Amon zed Value Stopics Yes Ad,Yes Suglua BanF of New YOh Den"m Bankol New York Demand Bamm New York Demand Sank0l New York Demand Bank of New VOM1' Demand _Sur 56]8,590 8912H1 1119 16,695<99 9)9i,612 5,eJ8590 0,9126d1 9,886,119 Id695,d99 9]9J,661 Yes Yes Yes Yes yes US Treasury Bill US treasury BAl US Treasury But US Tttasury 0111 US Treasury Bill 5878590 8,912d01 9,686119 1d,695,d99 9)9]fi12 Total US Treasury09A60,261 49,168,261 d916Q281 Surpus No AO Surplus No AY Fun65 Actual% Suplus Yes E J.029,168 E 3.691A16 E 8,920.566 IS W0 1.W0 E5,983,21d $ Alai E 6.9213& 2.001% 00084R Surplus No Aid Surplus No All Funds Actual % Suplus as 221150% 228256% U $GOremmem $pOrsoretl Eniegnses AmoR¢etl Surplus Suplus Surplus Surplus Ml Funds Surplus DoslWlam AVdrldblll Sorace Issuer? ¢ Vyce Yea Atl Yea NO Atl No AtWdl% Yes Ba""d New YOM-LemaW fir Freddie Mac 2,969,954 2969.956 2.969.951 - BanhOfNew YOM-Demand Yes FHIB 1,996,6]] 19m.6T] 1958,877 ::m of New York - Cm eaW Yes FFOB 4W.1]] d,6fdd]J d,869,1]I Bank of New YOM-Demand Yea Freddie Mac 4i66,860 1,666,640 d.I86,810 Sky nk0l New YOM Demand Yes FHLB ],950,133 ],950,d33 Bank 0 kew YDM-Demand Yea FFCB P912532 4,912.02 1.912.632 Bahr Of New YOM-Opmand Yes FHL MO-Dkcoura Note 21522W 2,152293 2,152290 TOW �U S Gwemmem5acurdr5 20,dA 60J 29d11.Bo3 29,610.B03 133303% 136531% Medmm BanLkushNia Note lSSlu3 Term uga NO Ad .AvaBrooks Issm"IT Vau oNew ' oa kilaW%na 2928025 -0SuNgalu3 AAlctl FuuarlN%s SuYgelsus 2920825 2,920,825 13A2% 13595% ...., ue.,...., •..., o..... 2928,fi25 2,020,fi25 2,928,825 Prime Comore Dal Paper CurtOdan-Avauabul Surplus IssuerR Book Value Surplus Yes Act Surplus Yes Bank of New YOM Oemantl Yes bh. Dare Capers, C9q 2981,1]9 2,98t,99 298t1]9 Bank Of New York Demand Yes CNGm, FUWLq Im 2,958,ddd 2,988,tld 2980,dU Bank of New York Demand Yes American E.Ma, CRdd 2,9111,Wd 2,994,944 2Wd.9U Bank ON ew YOM-Demand Yes Nes9e Cap., 998,869 998,869 990,869 Banx of New Tork-demand Yes Inkromismal Lease 2,991,909 2996.998 2,99i BanNOINew York Demand Yes ATBT 2,9yi 293d,9Jd 2,9949]d Bankof New York -Demand Yes Gencral Electric Co al 2996,626 3996.626 2996 626 Total-0nme Commemal Pa r 18,9699W 11;919964 18.9d9966 Local Agency Investment Food $wplue Surplus Name-Ava�labibty 5m lus T Book Yes Ad Yes WAIF- city -0emand Yes Stale Pool 33,209,825 33.209023 (950,3W) 33.251,0)5 LAIF- RDA -Demand yes StNe Pcol 13,5]6200 135)6.2W t3.5]820] Toldl - Slaw, Pool 68]efi.025 d6,J0G.o25 958,35o d5,52].6]5 sort Na Act Surlus Na All FUWS Actual % Surplus Yes 85210% B1972% Surplus Suplus All FUWS 51-0 NO Ad ND PtNal% Yes 21 C035% 21 2]l8°M1 Total Day lnvnNleMe 1Q,2dT,e]9 1n,247.1 58,]59 11{219.129 6e P2f!% 6]8129% TOIaI Cie/ Cash 91MFF1nx 15]R29,1T9I 107,20M 9N,]W 1KAOT,84 5,993.21< 9b,]W 6.9215M 58.919]% 6i.9311% FlFcalA entlnwaMeMs PmVOIro - CM Investments Capaphm- Availability Su Ius IesUer ! ArroNZW Value Surplus Yes Ad Surplus Yes T,BJ8.1P 2d,9W.Y12 8.9T],Jfi1 26819,110 7.878,127 26,90),i22 09J],301 red 8191d0 2002 RDA U S Mardi 2030 Fnanre AWwmy LIP 200.d Finance AWpnry-DIP Year Ve3 Tas Ye8 USTreasury B81 US Treasury Bul USTrea3ury Bell USTreasu Bell 7,BTB,t27 20,W6.R2 B,BJ3,J61 red 61B,168 2Wd Fort. Arld' -LIP Tola1-US Treasu BBAT8,350 W.3]0350 66.3T8,356 POM01io-MWual Funds T.-Aval,N1 Su a a MOreY MaMt MUNdI Fund Soak Valw Surplus Yea Ad Supplaus Yes Yes Cevk Cooler U S Bank Pmpd YES ISt American 382 302 ]@ Crvlc Career U S Bank -O¢M Svc YES 1st A 19M RDA U S Bank Debt Svc YES I V Am0nwn 1995 RDA U S Bank - CIF YES 1atAmencaa 1995RDAUSBank-SWOMFUW YES 1MAmencan 2Wd Fm Auth N%5USBank Eacmw YES 1M Amsome 1998 ROA U S Bank -CIP YES IMAmenUn 1990 RDA U S Bank -Ohl Svc YES tilt American 1990 RDA U 5 Bank - Special Food YES 1sw American 1990RDAUSBank DIP YES IMAmeWan ; 2MIRDAUS Bank DMSvc YES 11Amencan 20o1 RDA U5 Bank -DIP YES 1st American ; 1 2092 ROA U$Bank -DMSvc YES 1st AmeRwn d66.328 d606 32 d8d,328 212 RDA US Bend -CIP YES 1M American 1 1 2093 Taab ak RDA U S Bank -DS YES 1st American 1 _ 2003 Tweaks RDA U S Bank -COI YES 11Anerlan - 2003Taxable RDA U.SSank-CIP YES 19Amerkan 2,357.61 2,257.611S 225T,885 2CM Fen AM US Bank -CIP YES last American 2 2 2004 Fin Audi US Bank -COI YES let AmeRcdn 2.M2320 272232, 2,T32,32U SubIOUI-MNUaI FUW SwplUs Np A Surplus No All FUWS Adudl % SROIus Yes 290550% J00151% Surpue No "I $uMus NO AIIFUWs Actual % Surplus Yes 12WE% 12638% Total Fiscal A9aM ImasimarHs ro,199,a]e x,199,e]e e9,to9,a]e a1.99wx ]29]e9x Grand Tabl 9IIA39,9511 219 366,6,19 959,350 315,606]90 S,f8J,2H 99E.]W 6,R1,SN iW 80 100.W00% 10 c moo m %o -'vMaM a N O O m N m t7 N M a O e m r m n a N P m M N M d M a N e e e e LLC1 OOm o r m N m P m C lmn 0 0 0 N M m tC N m m' m pe m inn n m N m m e e e e Z O N P M m In �jm �cm m m O v N (wn � N INO m m m m m m tan N M N °� i0(1 mmmmm`Nm T \ \ e N e J O e M M N N QJm �cm m �mmmm m m £ c c E E E c E E E O i > i m >O >> > i m = 'c m = V _ c '_" y E " v m d E 9 m m m v m c a R= m N m m N c m v m LL LL a ll 0. LLw 3 K o -To LL LL a K �X d LL a K m d LL a [C LL LL a K R LL a K O O O O O O O O m q O N O m O S O m O O O m O O O m C m '' diO N C S' N EEEm' C C C_ j a r EEc me r 9 m y EcEm 5€0 E EE m E E E m EEEm' N m m E Eq m R N m N R N N m 2 m m N C N m m m y J W W W m N N y V W W W m J W W W f 7'0 y W W W W W W 12 m W W W 9 9~ m W W W 98j9~�.m. m Q C N F% N N m L y r N N d L N N N- m N m Ly m N N m r0 y.O9F m m m$ 2 m N N N C m CO aoo~ N N m m y� m N N H C m Y11 m .y N C m 10 K N O W t� N N N O W R LOLL .y N R N O W KN JE Niy F N o W K JJ�L'iy N N N O W K JJ "LL N j m o w K J EC�y j 10 'mJ g N LL OO2 uiLL J JE EW J JE C aaayag na5 i- �aahag a`a`a`na'S ac a`a`na'g a`a a`wa3 ¢`minas 11 ! � { k k } / ! k ! F ! � ) f � R � 2 g a i k ) 7 z k | ! � B f � | ■2 2 2WL ! 77M | jag ) /§\ k . ! - -ORv ® £ « ƒ ) (co i a ui r r r L6)$§ -- 2 � 2 INVESTMENT ADVISORY BOARD Meeting Date TITLE: April 11, 2007 Continued Consideration of Fiscal Year 2007/08 Investment Policies & Work Plan Items BACKGROUND: Business Session: B The Investment Advisory Board has been reviewing the Investment Policies for final recommendation to the City Council in June 2007. The Investment Policy is attached for the Board's review. As a follow-up to last month's review of the Investment Policy, Staff reviewed Appendix 2: Investment Pool of the Government Finance Officers Association (GFOA) model investment policy and did not note any changes. Changes from the previous meeting are attached for the Board's review. RECOMMENDATION: Continued review of the Investment policies for approval by City Council in June John M. Falconer, Finance Director engagement by the City, except as may be specifically waived or revised, the professional portfolio managefineift firm or adviser 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 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. in 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 ani"OOR # be approximately 10% of the City's investment portfoW net of bond, proceeds 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: Title: City of: Address: City, State Zip Code Phone Number: John M. Falconer Finance Director/Treasurer La Quinta, CA 78-495 Calle Tampico La Quinta, CA 92253 (760)777-7150 L 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] Proposals due by [Time] PST. B. [Month Day, Year] Proposals evaluated: to be determined C. [Month Day, Year] [City of La Quinta, CA] [Board/Council] approves selection and awards contract. all 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 EndowmentallFoun- dation S Not Not cq Applicable Not Not Applicatitp Applicable Nat Not Applical Applicable, Not Appkatk Not Applicable Appficable 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 ) [ti INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A Meeting Date: April 11, 2007 TITLE: Month End Cash Report for March 31, 2007 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. John M. Falconer, Finance Director m m O O O O O m Q Q O N O O O N W O O r O N O O N 0 0 o Q M W n O O N O N N w 0 W O N O O m Om) N h f00 N 0 N 0 0 0 O Q' n N W h O W O m d o o O O N O W o m 0 N N m\ WE o 0 o W w n m Q o o m o 0 o o.n a a Q o N w N N o Q- O O O Q Q O d pp v m w m w m 0 LL p N O N O O O O N O W (O O p O O n N h N a J f0 (0 f0 a fW0 OJ N n o O O O N N VWI N M N N O N N o.0 O N N O N N N O O N W N Q m W O W W 0 (0 m CmJ n OQI W o n r m V7 ci 20 m q e e y LL N yNy O N O O o o N m h d N 0 0 0 O O O O N N a m o o M 0 m M O N N N 11 M ✓I O m w N w N w O O N Oi d 3 V O Q Q O M W W W IL ry W � O uNi uNi O � W m N m pl p m W mm O O NCt Ian 1� N W W N LLC 0� Q o O O W Q Q w N O W O O p % d p rtl N O O W N w 0 O N N W Q O O O ? U p 0) Q m O W m M Y M j V d G Yp W N n aU 0 N d p' a Tw d N c M N OS n U y d C LL' 3 C N W C C o m y C fnm N N N O d C N N m a d V d m C w d« E c c m 3 E d v m `m E h M MW 2 Bill Lockyer, State Treasurer Inside the State Treasurer's Office Local Agency lnvestrr:=nt Fund (LAIF) PMIA Performance Report Data Degy YJeld Quarter to Date Yield Average Maturity (in days) 3/15/2007 5.21 5.18 179 3/16/2007 5.21 5.18 178 3/17/2007 5.21 5.18 178 3/18/2007 5.21 5.18 178 3119/2 007 5.21 518 175 3/20/2007 5.22 5.18 177 3/21 /2007 5.22 5.18 176 3/22/2007 5.22 5.18 176 3/23/2007 5.22 5.18 177 3/24/2007 5.22 5.18 177 3/25/2007 5.22 5.18 177 3/26/2007 5.22 5.18 173 3/27/2007 5.22 5.18 172 3/26/2007 1 5.221 518 179 LAW Performance Report Quarter ending 12/31/06 Apportionment Rate: 5.11% Earnings Ratio: .00013991107557790 Fair Value Factor: .999444427 PMIA Average Monthly Effective Yields February 2007 5.181% January 2007 5.156% December 2006 5.129% Pooled Money Investment Account Portfolio Composition $59.9 Billion 02/28/07 Corporate Bonds 0.86% Commercial Paper 18 57% Loans 18 71% Time Deposits 14.16% Treasuries 770% Mortgages 1.55% 19 80% CDs/BNs 18.65% 3 Recent Bill Auction Results rage 1 oT 1 Tieasurn/ irect. Recent Bill Auction Results Security Issue Maturity Discount Investment Price CUSIP Term Date Date Rate % Rage % Per$100 91-DAY 04-05-2007 07-05-2007 4.910 5.055 98.758861 912795ZP9 182-DAY 04-05-2007 10-04-2007 4.870 5.076 97.537944 912795A43 13-DAY 04-03-2007 04-16-2007 5.195 5.292 99.812403 912795TX9 17-DAY 03-30-2007 04-16-2007 5.070 5.167 99.760583 912795TX9 28-DAY 03-29-2007 04-26-2007 5.130 5.236 99.601000 912795ZD6 91-DAY 03-29-2007 06-28-2007 4.925 5.070 98.755069 912795ZN4 182-DAY 03-29-2007 09-27-2007 4.875 5.081 97.535417 912795A35 28-DAY 03-22-2007 04-19-2007 5.140 5.247 99.600222 912795ZC8 91-DAY 03-22-2007 06-21-2007 4.930 5.075 98.753806 912795ZM6 182-DAY 03-22-2007 09-20-2007 4.910 5.119 97.517722 912795A27 28-DAY 03-15-2007 04-12-2007 5.160 5.267 99.598667 912795ZBO 91-DAY 03-15-2007 06-14-2007 4.965 5.112 98.744958 912795ZL8 182-DAY 03-15-2007 09-13-2007 4.920 5.130 97.512667 912795ZZ7 28-DAY 03-08-2007 04-05-2007 5.140 5.247 99.600222 912795ZA2 91-DAY 03-08-2007 06-07-2007 4.965 5.112 98.744958 912795ZKO 182-DAY 03-08-2007 09-06-2007 4.855 5.060 97,545528 912795ZYO 13-DAY 03-02-2007 03-15-2007 5.185 5.281 99.812764 912795YX3 28-DAY 03-01-2007 03-29-2007 5.160 5.267 99.598667 912795YZB 91-DAY 03-01-2007 05-31-2007 5.035 5.185 98.727264 912795Z33 182-DAY 03-01-2007 08-30-2007 4.950 5.162 97.497500 912795ZX2 28-DAY 02-22-2007 03-22-2007 5.175 5.268 99.597500 912795YY1 91-DAY 02-22-2007 05-24-2007 5.035 5.171 98.727264 912795ZH7 182-DAY 02-22-2007 08-23-2007 4.950 5.148 97.497500 912795ZW4 6-DAY 02-16-2007 02-22-2007 5.140 5.216 99.914333 912795YU9 28-DAY 02-15-2007 03-15-2007 5.135 5.227 99.600611 912795YX3 91-DAY 02-15-2007 05-17-2007 5.025 5.160 98.729792 912795ZG9 182-DAY 02-15-2007 08-16-2007 4.965 5.164 97.489917 912795ZV6 28-DAY 02-08-2007 03-08-2007 5.045 5.135 99.607611 912795YW5 91-DAY 02-08-2007 05-10-2007 5.010 5.145 98.733583 912795ZFI 182-DAY 02-08-2007 08-09-2007 4.955 5.153 97.494972 912795ZUB 28-DAY 02-01-2007 03-01-2007 4.885 4.972 99.620056 912795YV7 91-DAY 02-01-2007 05-03-2007 5.010 5.145 98.733583 912795ZE4 182-DAY 02-01-2007 08-02-2007 4.980 5.180 97.482333 912795ZT1 28-DAY 01-25-2007 02-22-2007 4.900 4.987 99.618889 912795YU9 91-DAY 01-25-2007 04-26-2007 4.995 5.129 98.737375 912795ZD6 182-DAY 01-25-2007 07-26-2007 4.965 5.164 97.489917 912795Z53 28-DAY 01-18-2007 02-15-2007 4.895 4.982 99.619278 912795YT2 91-DAY 01-18-2007 04-19-2007 4.975 5.108 98.742431 912795ZCS 182-DAY 01-18-2007 07-19-2007 4.950 5.148 97.497500 912795ZR5 28-DAY 01-11-2007 02-08-2007 4.800 4.885 99.626667 912795YS4 Effective with the 11/2/98 auction, all bills are auctioned using the single -priced method. 4 http://www.treasurydirect.gov/RI/OFBills 4/2/2007 Recent Bill Auction Results rage i of i Treasuquirect Recent Bill Auction Results Security Issue Maturity Discount Investment Price CUSIP Term Date Date Rate % Rate % Per $100 91-DAY 04-05-2007 07-05-2007 4.910 5.055 98.75B861 912795ZP9 182-DAY 04-05-2007 10-04-2007 4.870 5.076 97.537944 912795A43 13-DAY 04-03-2007 04-16-2007 5.195 5.292 99.812403 912795TX9 17-DAY 03-30-2007 04-16-2007 5,070 5.167 99.760583 912795TX9 28-DAY 03-29-2007 04-26-2007 5.130 5,236 99,601000 912795ZD6 91-DAY 03-29-2007 06-28-2007 4.925 5.070 98,755069 912795ZN4 182-DAY 03-29-2007 09-27-2007 4.875 5.081 97.535417 912795A35 28-DAY 03-22-2007 04-19-2007 5.140 5.247 99.600222 912795ZCB 91-DAY 03-22-2007 06-21-2007 4.930 5.075 98.753806 912795ZM6 182-DAY 03-22-2007 09-20-2007 4.910 5.119 97.517722 912795A27 28-DAY 03-15-2007 04-12-2007 5.160 5,267 99,598667 912795ZBO 91-DAY 03-15-2007 06-14-2007 4.965 5.112 98.744958 912795ZL8 182-DAY 03-15-2007 09-13-2007 4.920 5.130 97.512667 912795ZZ7 28-DAY 03-08-2007 04-05-2007 5.140 5.247 99.600222 912795ZA2 91-DAY 03-08-2007 06-07-2007 4.965 5.112 98.744958 912795ZKO 182-DAY 03-08-2007 09-06-2007 4.855 5.060 97.545528 912795ZYO 13-DAY 03-02-2007 03-15-2007 5.185 5.261 99.812764 912795YX3 28-DAY 03-01-2007 03-29-2007 5.160 5.267 99.598667 912795YZ8 91-DAY 03-01-2007 05-31-2007 5.035 5.185 98.727264 912795Z13 182-DAY 03-01-2007 08-30-2007 4.950 5.162 97.497500 912795ZX2 28-DAY 02-22-2007 03-22-2007 5.175 5.268 99.597500 912795YY1 91-DAY 02-22-2007 05-24-2007 5.035 5.171 98.727264 912795ZH7 182-DAY 02-22-2007 08-23-2007 4.950 5.148 97.497500 912795ZW4 6-DAY 02-16-2007 02-22-2007 5.140 5.216 99,914333 912795YU9 28-DAY 02-15-2007 03-15-2007 5.135 5.227 99,600611 912795YX3 91-DAY 02-15-2007 05-17-2007 5.025 5.160 98.729792 912795ZG9 182-DAY 02-15-2007 08-16-2007 4.965 5.164 97.489917 912795ZV6 28-DAY 02-08-2007 03-08-2007 5.045 5.135 99.607611 912795YW5 91-DAY 02-08-2007 05-10-2007 5.010 5.145 98.733583 912795ZF1 182-DAY 02-08-2007 08-09-2007 4.955 5.153 97.494972 912795ZU8 28-DAY 02-01-2007 03-01-2007 4.885 4.972 99.620056 912795YV7 91-DAY 02-01-2007 05-03-2007 5.010 5.145 98.733583 912795ZE4 182-DAY 02-01-2007 08-02-2007 4.980 5.180 97.482333 912795ZT1 28-DAY 01-25-2007 02-22-2007 4.900 4,987 99.618889 912795YU9 91-DAY 01-25-2007 04-26-2007 4.995 5.129 98.737375 912795ZD6 182-DAY 01-25-2007 07-26-2007 4.965 5.164 97,489917 912795ZS3 28-DAY 01-18-2007 02-15-2007 4.895 4.982 99.619278 912795Yr2 91-DAY 01-18-2007 04-19-2007 4.975 5.108 98.742431 912795ZC8 182-DAY 01-18-2007 07-19-2007 4,950 5.148 97.497500 912795ZR5 28-DAY 01-11-2007 02-08-2007 4.800 4.885 99.626667 912795YS4 Effective with the 11/2/98 auction, all bills are auctioned using the single -priced method. 5 http://www.treasurydirect.gov/RI/0FBilis 4/2/2007 FRB: Commercial Paper Rates and Outstandings rage i or j Commercial Pa Release I About I Announcements I Outstandines I Volume statistics I Year-end I Data Download Program (DDP) Data as of March 30, 2007 Commercial Paper Rates and Outstanding Derived from data supplied by The Depository Trust Company Posted April 2, 2007 T\-0a vn♦ rn4nc A2/P2/F2 �� Term ❑� nonfmancral nonfmancial finaneral asset -backed 1-day 5.39 F 5.52 5.43 7-day 5.29 5.47 5.40 5.25 5.22 1 5.35 5.32 15-day 5.25 30-day 5.23 5.36 5.23 5.30 60-day n.a. 5.35 5.24 5.26 90-day n.a. 5.32 of the 00-0av 5.24 AA nonfinancial 5.25 and 90-0ay AA nonfinai Tr H. data ins,,flicient to sunnort calculation Yield curve icial rates for March 30, 2007. Money market basis ruwua — — — AAnonlinan6al .......... A?FP?J1=2 nomfinanclal — — AA financial 1 7 15 30 60 w Bays to Maturity 5.7 5.5 5.3 3.1 6 http://www.federalreserve.gov/Releases/CP/ 4/2/2007 FRB: Commercial Paper Rates and Outstandings Discount rate spread 2001 2002 2003 2004 2005 2UM arty -tray comnuawai papa kumiy I — — — AA nonfinancial A2tPM nonfinancial -- AAfin4nA41 ._...__. AAs�t-kicbxd 2001 2002 2003 2004 2M5 2UM Outstandings Weekly (Wednesday), seasonally adjusted 120 100 80 60 40 20 n I 4 3 2 1 0 rugv / UL a 7 http://www.federalreserve.gov/Releases/CP/ 4/2/2007 FRB: Commercial Paper Rates and Outstandings rage -i or �3 Billions of dollars Billions of dollars — — — Nonfinancial (right Scale) '{ --- financial (left scale) i �IrNLZr ----- Awry-bael.G=I tickt �;rulti-} ! f l VJ � 4 250 210 170 130 90 The daily commercial paper release will usually be available before 11:00am EST. However, the Federal Reserve Board makes no guarantee regarding the timing of the daily commercial paper release. When the Federal Reserve Board is closed on a business day, rates for the previous business day will be available through the Federal Reserve Board's Data Download aoolication. This policy is subject to change at any time without notice. Release I About I Announcements I Outstandings I Volume statistics I Year-end Data Download Program (DDP) Home I Statistical releases Accessibility I Contact Us Last update: April 2, 2007 8 http://www.federalreserve.gov/Releases/CP/ 4/2/2007 FRB: H.15--Selected Interest Rates, Web -Only Daily Update --March 30, 20U7 rage i or 4 Federal Reserve Statistical Release H.15 Selected Interest Rates (Daily) Slip to Content Release Date: March 30, 2007 Weekly_ release dates I Historical data I Data Download Program_(DDP�_I About I Announcements Daily update Other formats: Screen reader I ASCII T The weekly release is posted on Monday. Daily updates of the weekly release are p through Friday on this site. If Monday is a holiday, the weekly release will be p after the holiday and the daily update will not be posted on that Tuesday. FEDERAL RESERVE STATISTICAL RELEASE H.15 DAILY UPDATE: WEB RELEASE ONLY SELECTED INTEREST RATES For use at 4:15 p.m. Eastern Time Yields in percent per annum March 30, 2007 2007 2007 2007 2007 Instruments Mar Mar Mar Mar 26 27 28 29 Federal funds (effective) 1 2 3 5.28 5.25 5.27 5.29 Commercial Paper 3 4 5 Nonfinancial 1-month 5.23 5.23 5.23 5.24 2-month 5.21 5.21 5.21 5.21 3-month 5.20 5.22 5.20 5.20 Financial 1-month 5.24 5.23 5.25 5.25 2-month 5.23 5.23 5.23 5.22 3-month 5.22 5.22 5.23 5.23 CDs (secondary market) 3 6 1-month 5.29 5.30 5.29 5.30 3-month 5.31 5.30 5.30 5.31 6-month 5.30 5.29 5.28 5.29 Eurodollar deposits (London) 3 7 1-month 5.32 5.32 5.32 5.32 3-month 5.34 5.34 5.34 5.34 6-month 5.32 5.32 5.32 5.32 Bank prime loan 2 3 8 8.25 8.25 8.25 8.25 Discount window primary credit 2 9 6.25 6.25 6.25 6.25 U.S. government securities Treasury bills (secondary market) 3 4 4-week 5.14 5.11 5.08 4.95 3-month 4.93 4.93 4.92 4.91 6-month 4.88 4.88 4.87 4.86 Treasury constant maturities Nominal 10 1-month 5.22 5.20 5.18 5.05 3-month 5.06 5.08 5.06 5.05 6-month 5.09 5.09 5.08 5.06 1-year 4.91 4.91 4.90 4.90 2-year 4.56 4.58 4.53 4.58 41 http://www.federalreserve.gov/Releases/H 15/update/ 4/2/2007 FRB: H.15--Selected Interest Rates, Web -Only Daily Update --March 3U, LUU / rage / of 4 3-year 5-year 7-year 10-year 20-year 30-year Inflation indexed 11 5-year 7-year 10-year 20-year Inflation -indexed long-term average Interest rate swaps 13 1-year 2-year 3-year 4-year 5-year 7-year 10-year 30-year Corporate bonds Moody's seasoned Aaa 14 Baa State & local bonds 15 Conventional mortgages 16 4.50 4.51 4.49 4.52 4.48 4.50 4.50 4.53 4.51 4.53 4.53 4.55 4.60 4.62 4.62 4.64 4.86 4.89 4.90 4.90 4.79 4.81 4.83 4.83 2.00 1.99 1.98 2.00 2.11 2.10 2.11 2.12 2.16 2.16 2.17 2.18 2.26 2.27 2.30 2.30 12 2.25 2.25 2.28 2.28 5.22 5.23 5.20 5.23 4.96 4.97 4.92 4.99 4.89 4.91 4.85 4.93 4.90 4.92 4.87 4.94 4.92 4.95 4.90 4.97 5.00 5.03 4.99 5.05 5.10 5.14 5.10 5.16 5.31 5.36 5.34 5.38 5.36 5.39 5.41 5.41 6.35 6.38 6.40 6.38 4.25 6.16 Footnotes 1. The daily effective federal funds rate is a weighted average of rates on broke 2. Weekly figures are averages of 7 calendar days ending on Wednesday of the curr 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 settl Depository Trust Company. The trades represent sales of commercial paper by deale issuers to investors (that is, the offer side). The 1-, 2-, and 3-month rates are 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 deposit. 7. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. 8. Rate posted by a majority of top 25 (by assets in domestic offices) insured U. commercial banks. Prime is one of several base rates used by banks to price short loans. 9. The rate charged for discounts made and advances extended under the Federal Re credit discount window program, which became effective January 9, 2003. This rate adjustment credit, which was discontinued after January 8, 2003. For further info www.federalreserve.gov/boarddocs/press/bcreg/2002/200210312/default.htm. The rate for the Federal Reserve Bank of New York. Historical series for the rate on adjus well as the rate on primary credit are available at www.federalreserve.gov/releas 10 http://www.federalreservc.gov/Releases4ll5/update/ 4/2/2007 FRB: H.15--Selected Interest Rates, Web -Only Daily Update --March 30, 2OU7 rage j or 4 10. Yields on actively traded non -inflation -indexed issues adjusted to constant m 30-year Treasury constant maturity series was discontinued on February 18, 2002, on February 9, 2006. From February 18, 2002, to February 9, 2006, the U.S. Treasu factor for adjusting the daily nominal 20-year constant maturity in order to esti nominal rate. The historical adjustment factor can be found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ltcompositei Source: U.S. Treasury. 11. Yields on Treasury inflation protected securities (TIPS) adjusted to constant Source: U.S. Treasury. Additional information on both nominal and inflation -index found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ind 12. Based on the unweighted average bid yields for all TIPS with remaining terms more than 10 years. 13. International Swaps and Derivatives Association (ISDA(R)) mid -market par swap for a Fixed Rate Payer in return for receiving three month LIBOR, and are based o at 11:00 a.m. Eastern time by Garban Intercapital plc and published on Reuters Pa ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited. 14. Moody's Aaa rates through December 6, 2001, are averages of Aaa utility and A rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds o 15. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Th 16. Contract interest rates on commitments for fixed-rate first mortgages. Source --------------------------------------------------------------------------------- Note: Weekly and monthly figures on this release, as well as annual figures avail Board's historical H.15 web site (see below), are averages of business days unles Current and historical H.15 data are available on the Federal Reserve Board's web (www.federalreserve.gov/). For information about individual copies or subscriptio Publications Services at the Federal Reserve Board (phone 202-452-3244, fax 202-7 electronic access to current and historical data, call STAT-USA at 1-800-782-8872 Description of the Treasury Nominal and Inflation -Indexed Constant Maturi Yields on Treasury nominal securities at "constant maturity" are interpolated by from the daily yield curve for non -inflation -indexed Treasury securities. This cu the yield on a security to its time to maturity, is based on the closing market b actively traded Treasury securities in the over-the-counter market. These market calculated from composites of quotations obtained by the Federal Reserve Bank of constant maturity yield values are read from the yield curve at fixed maturities, and 6 months and 1, 2, 3, 5, 7, 10, 20, and 30 years. This method provides a yiel maturity, for example, even if no outstanding security has exactly 10 years remai Similarly, yields on inflation -indexed securities at "constant maturity" are inte daily yield curve for Treasury inflation protected securities in the over-the-cou inflation -indexed constant maturity yields are read from this yield curve at fixe currently 5, 7, 10, and 20 years. Weekly release dates I Historical data I Data Download Program (DDP)J About I Announcements Daily update Other formats: Screen reader I ASCII 11 http://www.federalreserve.gov/Releases/Hl5/update/ 4/2/2007 \ ! { ) - �- ! \ )] a!§! (!a(! §§ I \\ �) ( / E \ [ -- - _ t - \! �„ N '6 _ ! \\(�}�)i\-\(\ \� r «` ® !r ) \ \ r /(/ -E 4§ \\ ! /[§f§G e (\ _ \){ r\ '§ / | �§ / ; H�ZZMH)\ /\f!z �! )\ §2\§22/!\)§/f7! {!a!§ , ; \\)\\ } §\[f\j)§))(j\\/ ` ) }))$) M) zw 12 INVESTMENT ADVISORY BOARD Meeting Date: TITLE: April 11, 2007 Pooled Money Investment Board Report for January 2007 BACKGROUND: Correspondence & Written Material Item B The Pooled Money Investment Board Report for January 2007 is included in the agenda packet. RECOMMENDATION: Receive & File John M. Falconer, Finance Director POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF JANUARY 2007 WITH JANUARY 2006 (DOLLARS IN THOUSANDS) JANUARY200711 JANUARY2006 CHANGE Average Daily Portfolio $ 57,956,340 $ 58,086,223 $ -129,883 Accrued Earnings $ 253,783 $ 195,101 $ +58,682 Effective Yield 5.166 3.955 +1.201 Average Life -Month End (In Days) 183 175 +8 Total Security Transactions Amount $ 24,806,849 $ 21,902,735 $ +2,903,114 Number 534 457 +77 Total Time Deposit Transactions Amount $ 5,817,500 $ 4,839,190 $ +978,310 Number 211 182 +29 Average Workday Investment Activity $ 1,468,255 $ 1,337,096 $ +121,159 Prescribed Demand Account Balances For Services $ 248,440 $ 332,791 $ -84,351 For Uncollected Funds $ 220,261 $ 163,896 $ +56,365 1 BILL LOCKYER TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) JANUARY 31, 2007 DIFFERENCE IN PERCENTOF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOUNT PORTFOLIO PRIOR MONTH Government Bills $ 4,613,865 7.73 +1.37 Bonds 0 0.00 0 Notes 0 0 Strips 0 0.00 0 Total Government $ 4,613,865 7.73 +1.37 Federal Agency Coupons $ 9,850,175 16.61 -0.19 Certificates of Deposit 10,818,340 18.12 -2.31 Bank Notes 1,075,018 1.80 -0.15 Bankers' Acceptances 0 0.00 0 Repurchases 0 0.00 0 Federal Agency Discount Notes 5,481,146 9.18 -0.59 Time Deposits 8,599,495 14.41 -0.52 GNMAs 223 0.00 0 Commercial Paper 9,329,035 15.63 +2.08 FHLMCIRemics 945,480 1.58 -0.11 Corporate Bonds 609,442 1.03 +0.06 AB 55 Loans 8,363,448 14.01 +0.70 GF Loans 0 0.00 -0.34 Reversed Repurchases 0 0.00 0 Total (All Types) $ 69,685,667 100.00 INVESTMENT ACTIVITY Pooled Money Other Time Deposits Totals PMIA Monthly Average Effective Yield Year to Date Yield Last Day of Month JANUARY 2007 NUMBER AMOUNT 534 $ 24,805,849 1 117 211 5,817,500 746 $ 30,623,466 N%Vfj 5.044 2 DECEMBER 2006 NUMBER AMOUNT 634 $ 30,236,268 55 1,264,836 173 3,380,500 862 $ 34,871,603 5.129 5.025 Pooled Money Investment Account Portfolio Composition $59.7 Billion 01 /31 /07 Corporate B, 1.03% Commercial Paper 15.63% Time D 14.� Treasuries Loans 7.73016 Mortgages CDs/BNs 19.92% Agencies 25.69% BOARD MEMBER ITEMS