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2010 08 11 IABVII Y.O. lox 1504 LA QUIN 12%, CALIFORNIA 92247-1504 78-495 CALLC-[-Ay,PICO (760) 777-7000 LA Qoiu rA, CALIFORNIA 92253 FAX (760) 777-7101 AGENDA INVESTMENT ADVISORY BOARD Caucus Room 78-495 Calle Tampico- La Quinta, CA 92253 August 11, 2010 - 4:00 P.M. CALL TO ORDER a. Pledge of Allegiance b. Roll Call PUBLIC COMMENT - (This is the time set aside for public comment on any matter not scheduled on the agenda.) CONFIRMATION OF AGENDA CONSENT CALENDAR A. Approval of Minutes of Meeting on July 14, 2010 for the Investment Advisory Board. BUSINESS SESSION A. Transmittal of Treasury Report for June 2010 B. Investment Advisory Board 2010/2011 Work Plan CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - July 2010 B. Pooled Money Investment Board Report — May 2010 BOARD MEMBER ITEMS Vlll ADJOURNMENT PUBLIC NOTICES The La Quinta Caucus Room is handicapped accessible. If special equipment is needed for the hearing impaired, please call the Finance Department at 777-7150, twenty-four (24) hours in advance of the meeting and accommodations will be made. Any writings or documents provided to a majority of the Investment Advisory Board regarding any item on this agenda will be made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quints, CA 92253, during normal business hours. N INVESTMENT ADVISORY BOARD MEETING July 14, 2010 I. CALL TO ORDER A regular meeting of the Investment Advisory Board was called to order at 4:00 p.m. by Chairperson Park followed by the Pledge of Allegiance. PRESENT: Board Members Blum, Park, Rassi, and Spirtos ABSENT: Board Member Mortenson STAFF PRESENT: John Falconer, Finance Director and Angela Guereque, Senior Secretary II. APPOINTMENT OF OFFICERS A. Appointment of Investment Advisory Board Chairperson Member Spirtos nominated Member Park as Chairperson. Motion — It was moved by Board Members Spirtos/Blum to elect Board Member Park to serve as Chairperson for the Investment Advisory Board. Motion carried unanimously. B. Appointment of Investment Advisory Board Vice -Chairperson Chairperson Park nominated Member Rassi as Vice -Chairperson Motion — It was moved by Board Members Park/Blum to elect Board Member Rassi to serve as Vice -Chairperson for the Investment Advisory Board. Motion carried unanimously. III. PUBLIC COMMENT — NONE IV. CONFIRMATION OF AGENDA Motion - It was moved by Board Members Spirtos/Blum to confirm the agenda. Motion carried unanimously. V. CONSENT CALENDAR A. Approval of June 9, 2010 Minutes Motion — It was moved by Board Members Rassi/Park to affirm the minutes of June 9, 2010. Motion carried unanimously. Motion — It was moved by Board Members Spirtos/Rassi to approve the minutes as submitted. Motion carried unanimously. VI. BUSINESS SESSION A. Transmittal of Treasury Report for May 2010 Mr. Falconer presented and reviewed the staff report for the month of May 2010, advising the Board that the portfolio's balance ended at $186.59 million, with an increase of $3.15 million for the month. The increase was due to the receipt of the second County of Riverside May property tax installment of $26.9 million less a payment of the $23.5 million SERAF payment to the State of California. Mr. Falconer also advised that the portfolio performance remained unchanged from last month and ended at .48% for the month, with the pooled cash investments yielding .52%. The portfolio yield should continue to stay at these levels for the near future. At this time last year, the portfolio was yielding .84% which reflects the current interest rate environment. Mr. Falconer summarized the Treasurers Report for the new Board members along with general questions and discussion by the Board in reference to the Treasurers Report. Motion — It was moved by Board Members Spirtos/Blum to review, receive, and file the Treasurers Report for May 2010. Motion carried unanimously. B. Consideration of Approval of Investment Advisory Board 2010-2011 Work Plan Mr. Falconer presented and reviewed the staff report. Chairperson Park suggested moving the item to the August meeting. Member Spirtos suggested the item be looked at today. Motion — It was moved by Board Members Spirtos/Rassi to review and approve the 2010-2011 Work Plan items for consideration by the City Council. Motion carried unanimously. C. Meeting Schedule for Fiscal Year 2010-2011 Motion — It was moved by Board Members Park/Spirtos to approve the meeting schedule of the Investment Advisory Board for Fiscal Year 2010-2011. Motion carried unanimously. D. LAIF Conference Mr. Falconer presented and reviewed the staff report. Chairperson Park suggested that the new members attend. Member Blum stated he would like to attend and will get back with staff to confirm. Member Spirtos stated that she respectfully declined the invitation. Motion — It was moved by Board Members Park/Spirtos to select up to two Board Members on a first come basis to attend the LAIF Conference. Motion carried unanimously. VII. CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report — June 2010 Mr. Falconer presented and reviewed the staff report. Noted and Filed B. Pooled Money Investment Board Reports — April 2010 Mr. Falconer presented and reviewed the staff report. Noted and Filed C. Distribution of Investment Policies for Fiscal Year 2010-2011 Mr. Falconer presented and reviewed the staff report. Noted and Filed Vill. BOARD MEMBER ITEMS The Board Members introduced themselves to each other. Member Spirtos suggested business cards and a name tag for herself. IX. ADJOURNMENT It was moved by Members Blum/Spirtos to adjourn the Investment Advisory Board meeting at 5:30 p.m. Motion carried unanimously. mit Angela Guereque Community Services Senior Secretary INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: August 11, 2010 ITEM TITLE: Transmittal of Treasury Report for June 30, 2010 BACKGROUND: Attached please find a draft of the Treasury Report for June 30, 2010 pending year-end closing entries. A final Treasury Report for June will be distributed at the September Investment Advisory Board meeting. The six month cash flow page will not be available until later in August after the completion of the annual audit. The page will be sent to the Board when it becomes available in September, along with the entire final June Treasury Report. RECOMMENDATION Review, Receive and File the Treasury Report for June 30, 2010. John M. Falconer, Finance Director MEMORANDUM _jinta City Council FROM: John M. Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Report for June 30, 2010 DATE: 7/3012010 Attached is the Treasurer's Report for the month ending June 30. 2010. 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: DRAFT Investment Be innin Purchased Notes Sold/MaturTdOther Endin Chan e LAIF Certificates of Deposit $ 51,651,232 1,209,000 $ 3,800,000 $ (5,100,0 $ fill 51,232 (1,300,000) US Treasuries 98,915,843 729,000 16,000,000 (2) (969,0 (17,000,0 8,800 969,000 (240,000) US Gov't Sponsored Enterprises 18,995,608 (2) 97,924,643 (991,200) Commercial Paper 1 816 18,997,424 1 816 Corporate Notes 15,191,302 (2) 0 0 0 Mutual Funds 411,652 i (11,785) 15,179,517 (11,785) Subtotal $ 186,374,637 $ 20,529,000 $ 23,069,000 $ 170, 138 168,969 581,790 $ 184,003,790 $ 170,138 2, 171,131 Cash $ 215,918 1 & 3 $ 1,546,499 $ 1,330,581 1,546,499 Total $ 186,590,555 $ 20,529,000 $ 24,615,499 $ 168,969 $ 182,673,025 _ $ 3,917,530) 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. *OhnFall coner Finance Director/Treasurer Date 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 June 2010 Cash Balances — The portfolio size decreased by $3.92 million to end the month at $182.67 million. The major reason for the decrease was approximately $2.8 million in Capital Improvement Project payments made during the month. These included $1.27 million for the Fire Station/Corporate Yard Project, $240,000 for the Laguna de la Paz Sound wall, $160,000 for the Adams Street Bridge Crossing Project and $216,000 for the Hwy 111 Traffic Signal Upgrade Project. Investment Activity — The investment activity resulted in an average maturity decreased by 3 days to 134 days at the end of June. The Treasurer follows a buy and hold investment policy and purchased two (2) Treasury Bills totaling $16 million in principal and three (3) Certificates of Deposit totaling $729,000 during the month. The sweep account earned $14 in interest income for the month of June and the bank fees for the month were $ 2,008 which resulted in a net decrease of $1,994 in real savings. Portfolio Performance — The overall portfolio performance decreased by 1 basis point from last month and ended at .47% for the month, with the pooled cash investments yielding .50% versus .52 from the prior month. The portfolio yield should continue to stay at these levels for the near future. At this time last year, the portfolio was yielding .80% which reflects the current interest rate environment. Looking Ahead The Treasurer is still concentrating on safety first and foremost. In the short term, the Treasurer will be maintaining LAIF balances at the maximum allowable percentage because its rate declines slower in a declining rate environment. 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NpNA5 % UPAi 12 & gE8R.sA$�''�mr oi.mm Hill S. €$jR 1 nmqm n. a :$ »» »»m^ sups A m $m» �omm^ ilia 'I mm Ir n.nmw�m $C-OST e e v2$ s�g deb "gg -L B,R� d�l�5g �SL �owdEzF spLL �a:aE�E gt°y" ble �` `nF " FNp�LL 1i6�» F V 1-UNJJ6�U�F� Y-UNJJ�VUES -V»JJLL�EF -UNJJ6UZF P City of La Ovinta Comparative Rates of Interest June 30, 2010 Three Month FY O610] July 2006 493% o.on, aw-n a= 4.95% Au9u5t2006 494% 5.01% 497% 48 4.97% 592% Shat2006 498% 501% 499% 53 5.00% 5.10% Oct 2006 500% 502% 5,01% 67 4.96% 5.13% Nov 2006 5.04% 5.03% 6.03% 62 494% 5.13%'. Dec 2006 5.08% 504% 5.06% 89 4B0% 5.16% Jan 2007 5,18% 5.12% 5.16% 64 498% 5.18% Feb 2007 5.10% 5.13% 5.17% 45 4.95% 5,21% Mar 2007 521% 503% 5.15% 67 4.M% 5.22% Apr2007 520% 5.14% 5.15% 42 4.84% 5.25% May 2007 5.20% 5.05% 5.16% 32 481% 5.25% June 2007 5.19% 4.88% 5.10% 85 480% 52% FY 07108 July 2007 5.21% 490% 5.12% 129 680% 525% Augus12007 5.17% 4.65% 508% 109 4.59% 5.23% Seti 5.16% 4.86% 5.06% 129 400% 514% Oct2007 5,11% 4.85% 5,02% 116 395% 496% Nov 2007 503% 4.83% 496% 99 3.34% 480% Dec 2007 495% 343% 445% 123 3.39% 4.62% Jan 2008 458% 333% 422% 96 2.31% 4.18% Feb 2008 4.12% 3.24% 3.85% 86 207% 3% Mai-2008 407% 2.83% 367% 74 1.50% 340% Apr2008 345% 3.27% 341% 82 170% 307% May 2008 3.14% 3.27% 3,17% 63 1,92% 2.89% June 2008 3.09% 1.04% 2.66% 80 2.14% 229% 2.75% 2,18% 279% FY OM9 July 2008 299% 193% 2.]]% 62 170% 169% 1.88 % 1.89% 2.14% 2,38% 2.08% 278% August2908 3.16% 192% 288% 51 1.42% 1.]H% 196% 200% 2.13% 2]]% Sept 2008 281% 1.92% 264% 37 140% 1,72% 1.50% 2,07% 2.]t% Oct 2008 2.66% 2.61% 2.61% 29 0.90% 049% 1.04% 125% 145% 2.57% Nov 2008 2.38% 2.36% 236% 60 0.15% 0.25% 059% 088% 091% 235% Dec 2008 160% 0.18% 142% 116 005% 0.16% 0,35% 043% 0.88% 031% 2.05% Jan 2009 1.36% 0.18% 1.23% 82 061% 0.88% 0.48% 1.87% Feb 2009 1.23% 0.18% 1.11% 95 0.30% 0.50% ON% 0.31% 182% Mar 2009 126% 0.18% 1,13% 69 020% 0.42% 070% 0.59% 0.88% 028% 161% Apr2009 094% 0.18% 0.85% 54 031% 0.33% 0,23% 1.53% May 2009 0.92% 0.18% 0.84% 80 0.18% 0,30% 053% 088% 0.26% 138% June 2009 0.85% 0.29% 080% 1t1 0.20% 035% 0.55% 1.13% 0.28% 104% FY 09110 July 2009 069% 0.30% 066% 111 0.19% 0.28% 047% 046% 100% 1.00% 0,24% 0.93% Augus12009 0.64% 0.30% 061% 92 0.16% 026% 100% 0.19% 075% S.pt2009 0,56% 0,31% 0.53% 112 0.12% 0.19% 041% 1.00% 0.19% O65% Oct 2009 0.52% 0.31% 0.50% 90 0.08% 0.19% 0.38% 0.75% 0.15% 0.61% Nay 2009 0.56% 031% 0.53% 152 0.04% 0.14% 0.32% 0.16% 0.57% Dec 2009 0.56% 0.16% 0.51% 239 0.11% 0.20% 0.16% 100% 088% 0.13% 0,56% Jan2010 046% 0.15% 0.43% 179 006% 0.14% 0.34% O88% 0.15% 0.58% Feb 2010 051% 0.16% 048% 162 0.13% 0.19% 0.32% 100% 0.20% 0.55% Mar2010 050% 0.16% 0.47% 172 0.15% 024% 0.38% 49% 100% 0.23% 0 59% Apr 2010 0.52% 0.16% 0 48% 162 0.15% 0.24% 0 075% 0.28% 056% May 2010 0.52% 0.16% 048% 137 0.17% 0.22% 0.37% 0.32% 1 1 053% .li no 2010 0.50% 0.15% 047% 134 0.16% 0.22% 1 032% 1 063% PI O O N V `) m J ) O C L O 0 N U R o 0 7 N O O C O N / IB I I I I 1 I I 1 I I I I I I I 1 1 1 8 I I 1 I 1 I 1 1 Ip o o 0 61 N O O O d a 10 INVESTMENT ADVISORY BOARD MEETING BUSINESS SESSION: B Meeting Date: August 11, 2010 ITEM TITLE Investment Advisory Board Work Plan BACKGROUND: The City Council approved the attached Annual Work Plan at the August 3rd, 2010 Council meeting. RECOMMENDATION: Information item only. ohn M. Falconer, Finance Director La s Watt 4 ,v Qumrry �F a AGENDA CATEGORY: /� CF'k oF'I'�;Q'� BUSINESS SESSION: p�1 COUNCIL/RDA MEETING DATE: August 3, 2010 CONSENT CALENDAR: ITEM TITLE: Consideration Of Investment AdVISOfy STUDY SESSION: Board 2010-201 1 Work Plan PUBLIC HEARING: RECOMMENDATION: Approve the Investment Advisory Board 2010-2011 Work Plan. FISCAL IMPLICATIONS: Fiscal implications consist of Board Members meeting expenses, budgeted at $4,500, and staff support time. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Municipal Code Section 2.70.030 sets forth the work plan items for the Investment Advisory Board for each year as follows: 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 of change of financial institutions, custodians, brokers and dealers. 1 The Investment Advisory Board met on July 14, 2010 and is not recommending that any additional Work Plan Items be added to those outlined in the Municipal Code. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the Investment Advisory Board 2010-201 1 Work Plan; or 2. Do not approve the Investment Advisory Board 2010-201 1 Work Plan; or 3. Provide staff with alternative direction. Respectfully submitted, John M. Falconer, Finance Director Approved for submission by: Thomas P. Genovese, City Manager PA INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A Meeting Date: August 11, 2010 TITLE: Month End Cash Report - July 2010 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. This report also includes other statistical investment data for the Board to review. The budget to actual comparison will not be available until later in August after the completion of the annual audit. The page will be sent to the Board when it becomes available. RECOMMENDATION: Information item only. r\ i -t7 John M. Falconer, Finance Director \ \\} C6 \co &\\ \ \ C6 20 ci ; zio §� !!� ci co oR � ! 2 • ( ! ) 4 iz ).lk�, ) ) \) — — �)\]|{!!t\ — — 2 Bill Lockyer, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund (LAIF) PMIA Performance Report v Date Dat field 7/15/2010 0.52 7/16/2010 0.52 7/17/2010 0.52 7/18/2010 0.52M 7/19/2010 0.52 0.54 205 7/20/2010 0.52 0.54 203 7/21/2010 0.52 0.54 203 7/22/2010 0.52 0.54 203 7/23/2010 0.52 0.54 203 7/24/2010 0.52 0.54 203 7/25/2010 0.52 0.54 203 7/26/2010 0.52 0.53 202 7/27/2010 0.51 0.53 202 7/28/2010 0.51 0.531 200 'Daily yield does not reflect capital gains or losses LAIF Performance Report Quarter ending 6/30/2010 Apportionment Rate: Earnings Ratio: Fair Value Factor: Daily: Quarter To Date: Average Life: 0.56% .00001523807623153 1.001643776 0.51 % 0.56% 203 PMIA Average Monthly Effective Yields JUN 2010 0.528% MAY 2010 0.560% APR 2010 0.588% Pooled Money Investment Account Portfolio Composition $69.4 Billion 06/30/10 Corporate B 0.18% Commercial Paper 11.19% Time Deposits 5.97% CDs/BNs 11.48% Loans 10.79% Agencies Mortgages 12 79% 0.94% Treasuries 46.66% 3 Recent Bill Auction Results TreasuryDrect II I dqA, ,Orstma00II I All 1c mx0ts. I)ata& rtt'dn Lele'I AdUA)pllu ` Recenr B I I I A arrialilSaIt' Recent Bill Auction Results S¢[uritY Term Issne Date MatartIY Date Discount Pate °b InA...A J LAID, % Pr1ce Per SA Of CUSIP 4-WFFK 56-DAY 13 WEEK 2fi-WEEK 52 WEEK 4WEEK 50 DA 13-WEEK 26-WEEK - 4WCEK 56 DAY 13-W[EK 26 WEEK 4-WEEK 56-DAY 13-WEEK 26-WEEK h-WEEK 56-DAY 13-WEEK 26WEEK 52-WEEK h-WEEK 56-DAY 33-WEEK 26-WE( K 4-WEEK 56 DAY 13-WILEK 26-WCEK S DAY 4-WEEK 56-0AY 130WEEK 26-WEEK 4-WILEK 56-DAY 33-WEEK 26 WEEK 52-WEEK 02-292010 07-29 2010 0129-2010 O7-29 2010 07-09 2010 07-22-2010 O7 22.203U 01-22-2010 0]-15-2010 7 b 2010 DT35-2010 07-15-2010 07-00Q010 07 08-2010 01-06-2010 01-08-2010 09-01-2010 07 01-2010 07 01-2010 0]-01-2010 0701-2010 06-24-201D 06-24-2010 06-24-2010 06-24-2010 04-V4010 0A_ll, la 0 06 17-2010 06-17 2010 06-10-2010 06-30-2010 06-t0-2010 06-10-2010 06-10-20ID 06-03-2010 06-03 2010 06-0320tD 06-03-2010 06-032010 06-26-2010 09-23-2010 1028-2010 O1-27 -2011 07-28 2011 00-19-2010 09-]6-2010 O1 30 2011 U6-3[-2030 09-09-2010 10-14-2010 01-13-2011 08-05-2010 09-02-2010 10-07-2010 01-06-2011 0]-29-2010 08-26-2010 09.30-N IS 12-30 2010. 0630-2011 07-22 2010 00.19 2010 09 23-2030 12-23-2010 0]-15-2010 06 12-2010 09-16-2030 12-16-2010 06-15 2010 07-08-2010 18-05-2010 09-09 2010 0-09-2010 07-01-2010 07-29-2010 09-022010 12-02-2010 06-022011 0.155 0.155 0.ISO a NO ,295 0.155 0.160 0155 0.195 0.150 0.160 0. 15D 0.200 U.165 0. 165 0,165 0.205 0. 150 0.180 0.160 0215 0.320 fleas 0IN 0.115 0.170 0030 0.090 0.065 0.150 0.160 O.000 0.095 0.130 0.210 0.130 0.140 0.160 0220 0.365 0. 15] 0. 157 0.112 0.203 0.300 0.157 0362 015] 0.196 0.152 0.162 OJY2 0.203 0.16] 0.167 0.16l 0.208 0.152 0.1.83 0162 0.21B 0.325 0 O86 0.122 a 117 0.173 OIM 0.091 1A66 U.152 D.Iti2 0.111 0.096 0.132 0.213 0. 132 0. I A2 0.162 0,223 0.3]1 99987944 99.9]5889 90962083 99.896869 99 J01722 99,987544 99.97Stll 99.960819 99.901417 99,988333 99.962,83 999fi2063 19.898889 99 Stiff67 99.914333 99 958292 99.696361 99.988333 99912000 99.95955E 99.691306 99676444 99.993389 99.981333 99.9]0931 99914036 99992667 99,986000 99.983569 99 924167 9999177B 99.993000 99985222 99.96]t 39 99.893833 99.989889 99.978222 99959556 99,880]]8 99,630944 9127951182 912795090 912795W49 S1219 X97 91279SX63 912]95V65 9U95VO4 932795U112 91279SX69 912]95V5> 91J95VA6 912]95 W33 912295UX7 91279SV24 912195V23 912795W23 9ll 195%91 9II I95rl/h 912795U82 912795VC2 912795%SS 912795X22 912]95U22 932795V65 912]95U90 912795X90 912795UYS 91279SV57 912795VB4 912195UK5 912795Z53 912795UW9 912795d2I 91)155VA6 912195%30 912]951166 9127951174 912)95V73 91279SW90 912795VI54 Effective with the 1112/98 auction, all bills are auctioned using the single -priced method IOCCOoOf Idd>IdI1I1dr.n.I Ll-KGoda e 1 'r v�cy a"A" bocce'. I WOVII,Q TPrMs Is Ct41j1tiOOY I Aus21p1b DataQuarry ,11�0 prtne,l if or, T iry BVEeauf lha Pubk DCbl 4 http://www.treasurydirect.gov/RI/OFBills 8/2/2010 Recent Note, Bond, and TIPS Auction Results _a TreasuryDirect Hu 1,tto➢g0al AOOsl ltenle. 04t 4NeSNtI L1tr11A10A OG RecentY H'd, anit nl n tiun Resvlle Recent Note, Bond, and TIPS Auction Results Iuvuc Maturity Interest Yield Price CVSIP Sefurit, Term T11. pate Date R.".. R. M Per $1D0 NOTE 08-02-200 07-31-2012 0.125 0.665 99.920863 912828NQ9 2-YFAR 08-02-2010 0,-3'.2015 1.150 1.796 99.731106 912828NPt 5-YEAR NOTE 0231-201J 2.32E 2394 99.878150 91262BNR2 TAEAR NOTE 08-02-2010 2013 1.000 1.05E 99 B38004 912828NN6 3 YEAR NOTE 07-15 2010 02-15 3.SU0 1Ere 103.199611 912828ND0 9 YEAR 30-MONTH NOT[ UI 15 2010 05-15-2U20 295 99.579194 912828N1Atl 30-YEAR UPS 02 15-2010 02 15-2020 1.250 1 YEAR 10-MONTH BOND 0]-15-2030 05-11 2040 4.325 4.080 105,053815 912UUQH4 29 NOTE O6-30-2010 06-303O12 0.62E O71E 99 116020 912020N55 2-YFAR NOTE 0G-30-10 E0 0G 30-2015 L875 1.99 99 AE164ti 912820N10 S-YEAR NOTE 06-30-2U10 O630-20" 2.500 2.9E 99.52239E 912820tJN1 YEAR 06 15-2010 06-15-2013 1, 125 1.221 99.720997 Y12828NH9 3-YEAR NOTE 05-15-2020 3.500 3.242 102,169092 912818ND8 Y-YEAR 11-MONTH NOTE 06-15-2010 4.375 4.182 IUY.270808 912810Qf14 29 YEAR 11-I40NTH BOND 06-154U10 054E-2040 169 99962406 912828NE6 2-YEAR NOTE 06-81-2010 OS-91-2012 0.750 0 NOTE 06 01-200 05-31-2015 2.125 2.130 99 916355 912828NF3 5-YEAR NOIL 06-01-2.910 0531-2011 2. I50 2.815 99, 569671 912828NG1 /-YEAR - NOTE 05-V-201O 05-I5-2013 1.325 1.414 99.865991 912R2814C0 3-YEAR NOTE O$-17 2030 05-15-2020 3.500 3.548 99.54Fi 223 91281NN D8 10-YEAR O5 1)-2ft10 05-15-2040 4. 375 t190 9N. 114362 9128 NQM4 30'YEAR BOND NOTE 04-30-2010 04-30-2012 1 000 1.024 99 95260.3 912828N82 2 YEAR TIPS 04-30-2010 04-15-2015 0.Soo 0 510 92167640 912828MY3 S YEAR NOTE 04 30-2010 04-30-2015 2500 254P 99 913289 91282SM70 S-YEAR NOTE 04-30 2010 04-30 2017 3.125 3.210 99 470682 412828NM 1-YEAR NOTE 04-153010 0415-2033 1.950 1.77E 99.924368 912828PMS 3-YEAR PONT. TIPS 04-IS 2010 01-15 2020 1.375 1.209 97219005 912828MF4 9 YEAR 9 YEAR 9 10-MONT1i NOTE 04 15-2010 02-15-2020 3 625 3.900 97 763192 912828MP2 !, 29-YEAR J0-YIQNTM BOND 044E-2010 02-15-2040 4.62E 4720 97 e12939 912810QEI NOTE 03-31 2010 03-31-2012 1.000 1.000 100,000000 912828NUl 2 YEAR NOTE 03-31-2010 0331-2015 2500 2.605 99510730 9128201MVD 5.YEAR NOTE 03 31 2010 03-31-2017 3250 3.324 992326EU 912628MV9 2-YEAR NOTE 03-15 '2010 03-15-2013 L32s 1432 99.818569 912028MT4 }.YEAR 9-YEAR 11-MONTH NOTE 03-15-2030 02-15-2020 3.625 3 235 99.090493 912828MI12 ,9 YEAR It -MONTH BOND 03-15-2010 O2-1S-2B40 4.625 4.6%9 99.128159 9120 tOQE1 NOIE 03 01-2010 02 29-2012 081E 0.895 99.911,86 91282814Q0 2-YEAR NOTE 03 01-2010 02-n 2015 23Y5 2.395 99.906254 R12820MR0 5'YEAR NOTE 03-01-2010 02'28-201, 3.000 3.078 9992216 9R828M56 I YEAR IIPS 02-26-2010 02-15-2040 2. 125 2.229 92.667212 9128IOQF8 ^30-YFAR NOTE 02-16-2010 02-15-2013 1.315 1171 99.994122 912928MN7 3-YEAR NOTE 02-16-2010 02-15-2020 3.62E 3.G92 99 A43944 912628FIP2 10-YEAR 30"YEAR NOND 02-16-2010 02-15-2040 4.625 4]20 98,483611 Ot2810QE, Denotes TIPS bond; all other TIPS vothout asterisk$ are notes Preeda t,(ort0a1r1.At I IT'eF 5u510 tr"- I Irvacl 3_t al f)at ce4 I YYat t n58 O4Pft I AtcIII Sl1 ota Quc ly -_- - - Il _';,F t "At ofth, Trrol ry Idea Vl. Iftht F bl<DIAI:. 5 http://www.treasurydirect.gov/RI/OFNtebnd 8/2/2010 FRB: H.15--Selected Interest hates, web-unly fatly upuate--Jury Ju, aVly a Federal Reserve Statistical Release µ . K 15 Selected Interest Rates (Daily) tik lV io Conrevl Release Date: July 30, 2010 Weekly release dates I I Iistorical data I Data Download Program (DDP) About Announcements Daily update Otherjormats: Screen reader I ASCII -----..__...--- y �11�� oa� oowmaaa Pr rem The weekly release is posted on Monday. Daily updates of the weekly release are posted Tuesday through Friday on this site. If Monday is a holiday, the weekly release will be posted on Tuesday 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 July 30, 2010 2010 2010 2010 2010 Instruments Jul Jul Jul Jul 26 27 28 29 Federal funds (effective) 1 2 3 0.19 0.19 0.20 0.19 Commercial Paper 3 4 5 6 Nonfinancial 1-month 0.20 0.20 0.21 0.23 2-month 0.23 0.24 0.21 0.20 3-month 0.24 n.a. 0.24 0.26 Financial 1-month 0.24 0.15 0.23 0.18 2-month 0.27 0.22 0.25 0.22 3-month 0.30 0.28 0.28 0.35 CDs (secondary market) 3 7 1-month 0.28 0.27 0.27 0.27 3-month 0.39 0.38 0.38 0.38 6-month 0.59 0.56 0.56 0.54 Eurodollar deposits (London) 3 8 1-month 0.45 0.45 0.40 0.40 3-month 0.62 0.62 0.60 0.60 6-month 0.73 0.73 0.70 0.70 Bank prime loan 2 3 9 3.25 3.25 3.25 3.25 Discount window primary credit 2 10 0.75 0.75 0.75 0.75 U.S. government securities Treasury bills (secondary market) 3 4 4-week 0.15 0.16 0.15 0.15 3-month 0.16 0.15 0.15 0.15 6-month 0.20 0.21 0.20 0.20 1-year 0.27 0.30 0.30 0.29 Treasury constant maturities Nominal 11 1-month 0.15 0.16 0.15 0.15 3-month 0.16 0.15 0.15 0.15 6-month 0.20 0.21 0.20 0.20 1-year 0.29 0.30 0.30 0.30 2-year 0.62 0.65 0.61 0.59 3-year 0.97 1.02 0.95 0.92 5-year 1.76 1.82 1.75 1.70 7-year 2.45 2.51 2.43 2.40 10-year 3.03 3.08 3.03 3.03 20-year 3.82 3.88 3.86 3.86 30-year 4.03 4.08 4.07 4.08 Inflation indexed 12 5-year 0.36 0.38 0.29 0.25 7-year 0.73 0.75 0.69 0.66 10-year 1.24 1.26 1.22 1.21 6 http://www.federalreserve.gov/Releases/Hl 5/update/ 8/2/2010 FRB: H.15--Selected interest Kates, wen-uniy Many UPUdLc -au ,r 20-year 30-year Inflation -indexed long-term average 13 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 n.a. Not available. 1.87 1.92 1.85 1.83 1.92 1.94 1.91 1.92 1.83 1.85 1.81 1.82 0.56 0.55 0.53 0.51 0.85 0.85 0.82 0.76 1.23 1.22 1.19 1.11 1.62 1.61 1.58 1.49 1.97 1.97 1.95 1.84 2.54 2.53 2.52 2.43 3.04 3.03 3.02 2.96 3.81 3.80 3.80 3.79 4.74 4.81 4.76 4.80 5.95 5.98 5.95 5.95 4.21 4.54 ------------------------------ Footnotes 1. The daily effective federal funds rate is a weighted average of rates on brokered trades. 2. weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month. 3. Annualized using a 360-day year or bank interest. 4. On a discount basis. 5. Interest rates interpolated from data on certain commercial paper trades settled by The Depository Trust Company. The trades represent sales of commercial paper by dealers or direct issuers to investors (that is, the offer side). The 1-, 2-, and 3-month rates are equivalent to the 30-, 60-, and 90-day dates reported on the Board's Commercial Paper Web page (www.federalreserve.gov/releases/cp/). 6. Financial paper that is insured by the FDIC's Temporary Liquidity Guarantee Program is not excluded from relevant indexes, nor is any financial or nonfinancial commercial paper that may be directly or indirectly affected by one or more of the Federal Reserve's liquidity facilities. Thus the rates published after September 19, 2008, likely reflect the direct or indirect effects of the new temporary programs and, accordingly, likely are not comparable for some purposes to rates published prior to that period. 7. An average of dealer bid rates on nationally traded certificates of deposit. 8. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. 9. Rate posted by a majority of top 25 (by assets in domestic offices) insured U.S.-chartered commercial banks. Prime is one of several base rates used by banks to price short-term business loans. 10. The rate charged for discounts made and advances extended under the Federal Reserve's primary credit discount window program, which became effective January 9, 2003. This rate replaces that for adjustment credit, which was discontinued after January 8, 2003. For further information, see 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 as well as the rate on primary credit are available at www.federalreserve.gov/releases/hlS/data.htm. 11. Yields on actively traded non -inflation -indexed issues adjusted to constant maturities. The 30-year Treasury constant maturity series was discontinued on February 18, 2002, and reintroduced on February 9, 2006. From February 18, 2002, to February 9, 2006, the U.S. Treasury published a factor for adjusting the daily nominal 20-year constant maturity in order to estimate a 30-year nominal rate. The historical adjustment factor can be found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/Itcompositeindex historical.shtml. Source: U.S. Treasury. 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/. 7 http://www.federalreserve.gov/Releases/Hl 5/update/ 8/2/2010 FRB: H.15--Selected Interest Rates, Web-Unty uaily upaate--Jury w, zuIv �s� 13. Based on the unweighted average bid yields for all TIPS with remaining terms to maturity of more than 10 years. 14. International Swaps and Derivatives Association (ISDA?) mid -market par swap rates. Rates are for a Fixed Rate Payer in return for receiving three month LIBOR, and are based on rates collected at 11:00 a.m. Eastern time by Garban Intercapital plc and published on Reuters Page ISDAFIX?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: Primary Mortgage Market Survey? data provided by Freddie Mac. Note: weekly and monthly figures on this release, as well as annual figures available on the Board's historical H.15 web site (see below), are averages of business days unless otherwise noted. Current and historical H.15 data are available on the Federal Reserve Board's web site (www.federalreserve.gov/). For information about individual copies or subscriptions, contact Publications Services at the Federal Reserve Board (phone 202-452-3244, fax 202-728-5886). For paid electronic access to current and historical data, call STAT-USA at 1-800-782-8872 or 202-482-1986. --------------------------------------------------------------------------------------------------- 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, 20, and 30 years. This method provides a yield for a 10-year maturity, for example, even if no outstanding security has exactly 10 years remaining to maturity. 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 I Historical data I Data Download program GNP) I About I Announcements Daily update Otherformats: Screen reader I ASCII Statistical releases Home I Econonacreseurchand_than Accessibility I Contact Us Last update: July 30, 2010 8 http://www.federalreserve.gov/Releases/H15/update/ 8/2/2010 FRB: Commercial Paper Rates and Outstandings Federal Resew e 'Release Commercial Pa Release _About Amrouncements Outstandings I Volume statistics Year-end I Maturity_Distribution I Data Download Program (DDP) Data as of July 30, 2010 Commercial Paper Rates and Outstanding Derived from data supplied by The Depository Trust & Clearing Corporation Posted August 2, 2010 Term AA i nonfinancial A2/P2 nonfinancial AA i►nanc►al AA asset -backed 1-day 0.19 0.36 0.16 0.28 0.18 0.32 7-day 0.19 0.35 15-day 0.21 0.42 0.19 0.34 30-day 0.20 0.22 0.40 0.49 0.21 0.34 60-day 90-day 0.25 n.a. aa 7. ,Im nnto in, id ri.nt m sunnort calcWation of the 90-day 30, 201 Yield curve mamui uiaua ---- AA nonrnancial ........... A2&2-nunCnintciiii --- AA litnfncial 1. Percent ----� 0,75 l{ { 0.25 { {{ 1 7 15 30 60 Idu Days to Maturity 9 http://www.federalreserve.gov/Releases/CP/ 8/2/2010 FRB: Commercial Paper Kates and uutstanatngs Discount rate spread Thirty -day A2/P2 less AA nonfinancial commercial paper (daily) Basis points 800 S•day movingavg 700 600 500 j 400 300 _ j 200 I _ 1l4 100 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Discount rate history Thirty -day commercial paper taauyl -- AA nc+nfinnncini ------ A2JA2 nonlmzncial i — AA gn avci d � a i 2001 2002 2003 2004 2005 2006 2007 2008 2o09 Zulu Outstandings Weekly (Wednesday), seasonally adjusted 7 6 5 4 3 2 1 0 10 http://www.federalreserve.gov/Releases/CP/ 8/2/2010 FRB: Commercial Paper Rates and Uutstanamgs 1190 1090 990 890 790 690 590 490 390 „rd„nnm Billions of dollars — — — Nonfinancial (6�01( �c lO Firmlicial(Ivu,c3AeI i l I t ,✓ + j t U. 2001 2003 2005. 2007 LUUy 280 240 200 160 120 80 The daily commercial paper release will usually be available before 11:OOam 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 Program (DDP). This policy is subject to change at any time without notice. Release I About I Announcements I Outstandngs I Volume statistics I Year-end I Maturity Distribution I Data Download Program (DDP) Home I Statistical releases Accessibility I Contact Us Last update: August 2, 2010 11 http://www.federalreserve.gov/Releases/CP/ 8/2/2010 INVESTMENT ADVISORY BOARD Meeting Date: August 11, 2010 TITLE: Pooled Money Investment Board Report for May 2010 BACKGROUND: Correspondence & Written Material Item B The Pooled Money Investment Board Report for May, 2010, summary pages have been attached for the Board's review. A complete copy is available for review upon request. RECOMMENDATION: Receive & File �-/ John M. Falconer, Finance Director POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF MAY 2010 WITH MAY 2009 (DOLLARS IN THOUSANDS) MAY 2010 MAY 2009 CHANGE Average Daily Portfolio $ 70,962,676 $ 55,514,182 $ +15,448,494 Accrued Earnings $ 33,735 $ 72,151 $ -38,416 Effective Yield 0.560 % 1.530 % -0.97 Average Life -Month End (in Days) 182 186 -4 Total Security Transactions Amount $ 24,857,867 $ 8,731,989 $ +16,125,878 Number 508 175 +333 Total Time Deposit Transactions Amount $ 2,530,480 $ 3,693,700 $ -1,163,220 Number 126 167 41 Average Workday Investment Activity $ 1,369,417 $ 621,284 $ +748,133 Prescribed Demand Account Balances For Services $ 1,424,449 $ 1,009,662 $ +414,787 For Uncollected Funds $ 106,630 $ 133,204 $ -26,574 NOW Account Average Balance $ 0 $ 0 $ 0 1 BILL LOCKYER TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) May 31, 2010 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOUNT PORTFOLIO PRIOR MONTH Government Bills $ 27,619,021 38.38 +3.40 Bonds 0 0.00 0 Notes 7,454,433 10.36 -0.31 Strips 0 0.00 0 Total Government $ 35,073,454 48.74 +3.09 Federal Agency Debentures $ 2,068,975 2.88 -0.07 Certificates of Deposit 6,325,020 8.79 -2.92 Bank Notes 500,000 0.69 +0.28 Bankers' Acceptances 0 0.00 0 Repurchases 0 0.00 0 Federal Agency Discount Notes 4,922,917 6.84 -1.91 Time Deposits 4,054,640 5.63 +0.11 GNMAs 74 0.00 0 Commercial Paper 7,817,116 10.87 -0.40 FHLMCIRemics 692,696 0.96 -0.10 Corporate Bonds 125,120 0.17 0 AB 55 Loans 285,434 0.40 +0.01 GF Loans 9,795,800 13.61 +1.90 NOW Accounts 0 0.00 0 Other 300,000 0.42 +0.01 Reversed Repurchases 0 0.00 0 Total (All Types) $ 71,961,246 100.00 INVESTMENT ACTIVITY MAY 2010 APRIL 2010 NUMBER AMOUNT NUMBER AMOUNT Pooled Money 508 $ 24,857,867 426 $ 20,916,243 Other 52 3,244,277 7 15,031 Time Deposits 126 2,530,480 207 4,558,280 Totals 686 $ 30,632,624 640 $ 25,489,554 PMIA Monthly Average Effective Yield 0.560 0.588 Year to Date Yield Last Day of Month 0.663 0.675 2 Pooled Money Investment Account Portfolio Composition $72.0 Billion 05/31 /10 Corporate B 0.17% Commercial Paper 10.87% Time Deposits 5.63% CDs/B 9.489 Loans 14.01 % Agencies Mortgages 10.14% 0.96% Treasuries 48.74% BOARD MEMBER ITEMS