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2012 10 17 IABcp P.O. Box 1504 LA QUINTA, CALIFORNIA 92247-1504 78-495 CAFi,C TAMPICO LA QUINIA, CALIFORNIA 92253 AGENDA INVESTMENT ADVISORY BOARD SPECIAL MEETING Study Session Room 78-495 Calla Tampico- La Quinta, CA 92253 October 17, 2012 - 4:00 P.M. I CALL TO ORDER a. Pledge of Allegiance b. Roll Call (7 6 0) 7 7 7 - 7 0 0 0 FAX (760) 777-7101 11 PUBLIC COMMENT- (This is the time set aside for public comment on any matter not scheduled on the agenda.) I I I �elel ki I A Ifl �TA F-1 I A 1111110 llel;w_lw 4 ki 117-11 IV CONSENT CALENDAR Approval of Minutes of Meeting on September 12, 2012 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for August 2012 Vi CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - September 2012 B. Pooled Money Investment Board Report - August 2012 Vil BOARD MEMBER ITEMS Vill ADJOURNMENT PUBLIC NOTICES The La Quinta Study Session 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 Calla Tampico, La Quinta, CA 92253, during normal business hours. E1114111011161 INVESTMENT ADVISORY BOARD Meeting September 12, 2012 CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 4:00 p.m. by Chairman Blum followed by the Pledge of Allegiance. PRESENT: Board Members Mortenson (via teleconference), Donais Blum, Spirtos and Park ABSENT: None OTHERS PRESENT: Robbeyn Bird, Finance Director, Louise West, Accounting Manager and Vianka Orrantia, Senior Secretary At this time Ms. Robbeyn Bird, Finance Director introduced herself and gave a brief background of her employment history. 11 PUBLIC COMMENT - None III CONFIRMATION OF AGENDA - Confirmed IV CONSENT CALENDAR A. Approval of Minutes of Meeting on July 11, 2012 for the Investment Advisory Board. Board Member Donais requested that a correction be made to page 3 Item B, second paragraph to read; Mr. Falconer further advised that the yield decreased by approximately 5 basis points and the maturity increased by approximately 40 basis peints &A'. MOTION - It was moved by Board Members Park/Donais to approve the Minutes of July 11, 2012 as amended. Motion carried unanimously. V BUSINESS SESSION A. Transmittal of Treasury Report for June and July 2012 Ms. Bird presented and reviewed the staff report for the month of June 2012. In response to Chairman Blum, Ms. Bird advised that she is pleased with the current format of the Treasurer's report and staff is open to any suggestions and/or changes. MOTION — It was moved by Board Members Spirtos/Park to review, receive, and file the Treasurers Report for June 30, 2012. Motion carried unanimously. Ms. Bird presented and reviewed the staff report for the month of July. In response to Board Member Spirtos, Board Member Donais clarified that the City has been investing in short-term investments due to the current interest rate environment. MOTION — It was moved by Board Members Donais/Park to review, receive, and file the Treasurers Report for July 2012. Motion carried unanimously. VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report — August 2012 Ms. Bird presented and reviewed the Month End Cash report for the month of August. Noted and Filed B. Pooled Money Investment Board Reports — June and July 2012 Ms. Bird presented and reviewed the Pooled Money report for the month of June and July 2012. General Discussion ensued amongst the Board regarding future attendance to the LAIF Conference in Sacramento. Noted and Filed N Vil BOARD MEMBER ITEMS In response to Board Member Mortenson, Ms. Bird advised that the broker considered for future purchases of CD's is First Empire Securities located in New York. She further advised that staff would consider any other brokers recommended by the Board. Chairman Blum asked staff to follow-up on who is required to attend this year's AB 1234 Ethics Training. Vill ADJOURNMENT MOTION - It was moved by Board Members Spirtos/Park to adjourn the meeting at 4:24 p.m. Motion carried unanimously. 3 INVESTMENT ADVISORY BOARD Business Session: A SPECIAL MEETING Meeting Date: October 17, 2012 ITEM TITLE: Transmittal of Treasury Report for August 31, 2012 BACKGROUND: Attached please find the Treasury Report for August 31, 2012. 1 RECOMMENDATION: Review, Receive and File the Treasury Report for August 31, 2012. RobbeynvBird, Finance Director V? mW 95 IT#M MEMORANDUM uinta Ci Co : ly unc I FROM - Robbeyn Bird. Finance DirectOrfrreasurer SUBJECT Treasurers Report for August 31, 2012 DATE September 30. 2012 Attached is the Treasurer's Report for the month ending Augst 31, 2012. 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 �jr Interest bearing active bank deposit is 37:91744,005 39 5,735 $ 2,500:603020 15 $ (21�875,000) 0 $ 17.769.005 (19,375,000) Certificates of Deposit US 724000 000 240:0 $ (50,000) 0 39,941,367 (34,368) (484,000) Treasuries US Gov't Sponsored Enterprises 72,981:334 8,999, 5 015 3,200 00 480,000 (244,000) (5,200,000) 4.984 70,986,318 (1.995,016) Commercial Paper Corporate Notes 11,998,605 5,000,00 0 694 8�999,709 694 (15.000,000) 3,000,420 4,999,025 (6,999,580) Mutual Funds 16 Wq nAR 0 a 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. U. he yn o1roj Finance DireCto(fTreasurer 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 amorlization of premiumidiscount 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. Treasurer's Commentary For the Month of Auaust 2012 Cash Balances - The portfolio size decreased by $27.90 million to end the month at $159.43 million. The major reason for the decrease was due to payments of $25.3 million for the Coral Mountain Apartment project and $370,000 for the Torre Nissan agreement. Investment Activity - The investment activity resulted in an average maturity decrease of three (3) days from the prior month to end the month of August at 31 days. The Treasurer follows a buy and hold investment policy with three (3) Commercial Paper investments maturing and one (1) purchase during the month of August. There was also one (1) Certificate of Deposit that matured for $244,000 and one (1) rollover of $240,000 made. The sweep account earned $25 in interest income for the month of August and the bank fees for the month were $ 1,648 which resulted in a net decrease of $1,623 in real savings. Portfolio Performance - The overall portfolio performance decreased two (2) basis points from the prior month and ended at .29% for the month, with the pooled cash investments at .41 %. The portfolio yield should continue to stay at these levels for the near future. At this time last year, the portfolio was yielding .38% which reflects the current interest rate environment. Looking Ahead In the short term, the Treasurer will be investing in short term commercial paper or GSE paper and rolling over bond proceeds and reserves in U.S. Treasury bills or notes. 3 E E E ai o M . . . C5 0 8.0. & 105 i�,� L '-- �2� L 1 25- EE2E 00 m 0 z x E AE- E F! e 2 o E =j E > > 80 0 0,100 L� E 2 E < �- E 0 WX 'd 16 16 E E E 9 zzzzzz �zz < �2 �2 Hs. G Ell < o c . > '22 AM go Nll 0 ------------------ < < < ,Zzz ON NIN.NNN .,NN --o ...... ... o.. og a m di 0 0 0 Co t C oa Milli lm5 M.C—< ie =M�M. EE� w co -, N < CNN I N No o N NN NN::;:NN �j e Fo E E EWZ; E -6 0 m — C5 C5 6 cs a,.. 1414 E-It 7-,q m 2 2 g! 8 0 0 0 0 0 0 M�M� P��t EEE woo EEE 22BS 2 0 00 2 B B 2 2 �noo 00 0 ou wow. 0 c E 0 W� 00 wo CTI 63' 22Z 0 c Eto 9 El 8 8,9 29 S-9884 I�j CIly Of -a Queno CO-P..b.a Rates f I.tem, August3l.2012 FY 09/10 FY 10111 FY 11112 FY 1V13 Sept2OO8 Oct 2008 Nw 2008 Dec 2008 Jan 2009 Feb 2009 Wr2009 Apr20N Wy 2009 June2009 July 2009 Oct 2009 Nh� 2009 Dec 2009 Jan 2010 Feb 2010 M.,2010 Alh,2010 hkay 2010 June 2010 July 2010 August2014 Sept2010 W2010 Noy2010 Dec 2010 Jan 2011 Feb 2011 Mar2011 AW2011 �y 2011 June 2011 Judyall S.02DIl OcI2011 Nw2011 Dec2011 Jan 2012 Feb 2042 Wr2012 Apr20f2 Ita,2012 June 2012 July 20 Q �nual,!W oolw cash Lanung. ul oye'll I e e Ta.h wlsa�. le, . ..... ne�., ape, Thnee Minna, MF Re nee club ax Month On.Year 2 IM4 1: F, 277% 12 170% T.Y., —2-75—% Non -Financial 316% 1,92% 2A8% II.V% in% 2 29 218% 79—% 2.81% ' Z 2,,�% 1 3,7 189% 2.14% 238% 208% 278% 266% :2 , 2 % 2 " % 2 79% 196% 2.00% 213% 277% 2,38% 2.3 % 23 6% 1�% 'al, 172% 1 N% 207% T0,28% 271% teo% 0 :% , . .2% 1,, 049% lw% 1,25% 145% 257% 136% 018% 123% 82 025% 059% 088% 0,97% 235% 123% 0,18% 111% 75 035% 00% 043% ON% 031% 205% 126% 0,18% 113% 69 641% 061% 088% 048% 107% 09,t% 0.18% 085% bI 033% 0,70% 088% 037% 182% OV% 018% 0.134% 80 v 10� v " v "Z 059% 088% 161% 0.85% 0,29% ON% 0 2OZ% u In% u Jul% 035% 053% 088% 023% 1 U% 0.69% O.W% 065% , "% 0 19% 055% 1.13% 026% 138% 0,64% OW% 061% 92 016% 0.28% 047% 10% 028% 1 N% on% 031% 053% 112 0.12% 026% 046% 100% 024% 093% O�52% 031% 0,50% 90 008% 019% 041% 100% 019% 0,75% am% 0,31% 053% 152 004% 019% 014% am% 100% 0,19% On% 0 n% 015% 051% 239 0.11% 020% 032% 075% 015% 061% 046% 015% 043% 179 0,06% 014% 0 n6% l00% 016% 057% 0,51% 0,16% 0,48% 162 0,13% 019% 034% 088% 0.13% 056% O.W% 0.16% 047% 172 0 15% 024% 032% 088% 0,15% 058% 052% 016% 048% 162 015% 024% am% 100% 020% 055% 052% 016% 048% 116 0.17% 022% 049% 100% 023% 059% OA1% 008% 029% lu 016% 022% 037% 075% 028% 056% 050% 015% 047% 119 016% 020% 032% 063% 0,32% on% 04M 015% 046% 108 0,15% 019% 030% 026% 0.63% 020% 053% 0�55% 0.15% 0,51% 107 016% 019% 027% am% 025% 0.51% On% 015% 051% 88 013% 0,17% 023% 038% 038% 0,24% 050% 0.53% 0.15% 0 4l^ M 0.18% 021% 0,28% 050% 023% 048% 0,57% 0.14% 052% 265 0,15% 019% 030% 063% 023% 0,45% 0.61% 014% OC1% 206 016% 018% 028% 0.63% 0.23% 024% 046% 0,55% 017% O'�% 210 0 15% 0 17% 031% 063% 023% 054% 054% 0 17% O'�% 218 005% 013% 026% 075% 0,23% Oa1% 059% 0,17% 048% 192 0 G5% 010% 028% 063% 020% ON% 048% 0.17% 041% 156 0,06% 0 12% 020% 050% 016% 059% 053% 000% O�W% 126 003% 010% 020% 038% 015% 041% 0.53% 0,00% 035% 112 007% 012% a 15% 020% 014% 0,45% OW% OaO% 038% 102 002% 005% 0 10% 013% 016% 038% 0,58% 0,03% 039% 124 002% 006% 009% 0 13% 014% 0.41% O��% 0,03% 035% 117 001% ON% 0 12% 025% 015% 038% 0,62% 003% 0,37% 94 003% 007% 0 10% 025% 014% 039% 048% 0.03% 035% 86 002% 006% 011% 013% 0.14% 040% 045% 0.03% OU% 74 005% 0 M% 0 11% 025% 0 039% 0,49% 0,05% am% 72 012% 015% 0 17% 025% ,�4% 7% 039% 044% Oc5% 034% 74 OM% 0 14% 019% 0.25% 0 18% 0,39% am% 044% ON% 035% 01 010% 0 15% 0 19% 025% 020% 037% 043% 009% ()�% 62 009% 014% 019% 025% 019% am% am% ON% 0.29% 47 0,10% 0,15% 021% 0,25% 021% 0,36% 041% 041% 008% n ()R� 0.29% h ?0� 112 0,11% 0 15% . 0 18% 022% 022% am% 10 CI4 c a) tm (a C.) C,4 LL >1 0 Co t4 -@ 0 C,4 X 0) < IF U) r- E C4 > (D E ID (D > -3 s 0 = iL < 16 cli z :3 C4 Im Cc C4 w w CD N 4) N im cc m >- :3 0 r_ c c C-4 < < cc -j In 0 o cm -o-,z 0 Lr) 0 Lf) 0 U) o 0 Lf) 0 V) CD U) IT In m 04 ("! 2 V7 T7 a 0 tv c; c; o 0 C) C) 6 ci 2 [L 11 INVESTMENT ADVISORY BOARD SPECIAL MEETING Meeting Date: October 17, 2012 TITLE: Month End Cash Report — September 2012 BACKGROUND: Correspondence & Written Material Item A 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. 0"Al2A� RobbeynyBird, Finance Director C5 at L o 0 mi 0 eg M 0 am aW CP 0 2? 2 2.-� E E 02 t5 0 i� EL w cy) o zo 0 M Bill Lockyer, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund (LAIF) 2012 LAW CONFERENCE REGISTRATION PMIA Performance Report own w- 9/13/2012 0.35 0.37 7 n- a-, 255 9/14/2012 0.35 0.37 254 9/15/2012 0.35 0.37 254 9/16/2012 0.35 0.37 254 9/17/2012 0.351 0.37 2511 9/18/2012 0.35 0.37 249 9/19/2012 0.35 0.37 248 9/20/2012 0.35 0.37 247 9/21/2012 0.34 0.36 247 9/22/2012 0.34 0.36 247 9123/2012 0.34 0.36 247 9/24/2012 0.34 0.36 244 9/25/2012 034 0!53g6l 217 9/26/201 �. ��4 25 21 *Daily yield does not reflect capital gains or losses Corporate Boni 0.00% Commercial Papei 3.03% Time Deposits 7.24% CDs/BNs 8.70% LAW Performance Report Quarter ending 06/3012012 Apportionment Rate: 0.36% Earnings Ratio: .00000976192855700 Fair Value Factor: 1.001219643 Daily: 0.36% Quarter To Date: 0.36% Average Life: 268 PMIA Average Monthly Effective Yields AUGUST 2012 0.377% JULY 2012 0.363% JUNE 2012 0.358% Pooled Money Investment Account Portfolio Composition $60.3 Billion 08/31/12 Loans 1 A A701 Treasuries 54.80% A 10.26% Mortgages 0.50% :C] xecent tsm Auculon Kesuits Page I Ot I mum= Mori, - ImUl LOV,�'�IZIWIIVM I R,ert Bill Auction R�ufts Recent Bill Auction Results si u. ai ow...t xa...K.t Pril,e T. Date Rato � Bata, . Ear $100 CUSUP 4-WEEK 10,04 W12 11-01-2012 BICKB 0.101 99,992222 9127956al 13-WEEK 0�_2�2 01_03-2M 0.085 Dow 99 978514 912n5li 26-WEEK B104 20 2 Qi 01 '5 01137 99 931750 91279%F3 4-WEEK 09-27-2012 10 23 20, 2 0055 0,056 . 995722 9127956N6 13-WEEK De 27-2012 12-27-2Ot2 01110 01112 99,9721% 9127956Y2 26-WEEK w_ 27-M2 03-26-2013 OAQ 0.142 W,929M 912795Z61 4 WEEK 01 10-18-2012 Dow Owl 99 993778 912795SG2 13-WEEK Be 201 12-20-2012 01105 BABE 99.97345S 9127956X4 26-WEEK (9-201 021-2013 0.130 0.132 99 934278 9127957M7 52 WEEK 091 09-19-2013 OA75 0.178 99.8230% 9lL27957KI al -WEEK Mi In 11 2012 a wo 0.091 99,993000 9,L27956.8 13-WEEK 091 12-13-2012 0,100 BICI s9�9747n 9127955Q0 26-WEEK Ni 03 14-2013 0,130 0.132 S9.9N278 9127957L9 11-DaY 09-05-2012 M-17-2012 Bi's 0.147 99,991 9127�3 4-WEEK Ci 10 N-2012 0,105 0.106 99.991833 91L279561C2 13 WEEK 09-06-2012 12-05-2012 B1w 0.101 99.974722 9127956A 26 WEEK Be M-2012 03-07-2013 0 135 0.137 99.931750 9127956E6 IS DAY 08-30 2012 M 17 2012 0.125 0,127 9).993750 9127S(CrIl 4 WEEK CS-30-2012 09-27-2012 DiZG 01122 99S90667 912795WS 13 WEEK IS M 2012 11-29 2012 B105 0,106 99,973458 912795GUO 26-WEEK 08-30 2012 02-28 2013 0.140 0 142 99SN222 9127951HR 14-MY W-23 2012 09-06-2012 0.100 0.101 iies%III 91279556 1 4-WEEK W-23-2012 01 2012 0.110 0.112 99.991,144 M7955CI 13-MEK W-23 2012 11-23-2012 0.105 0.106 ".S73167 912n56T3 26 WEEK oi 02 21 2013 OJ45 0.147 So 9266st 9127957GO 52-WEEK 08-23-2012 GE-22-202 0,195 0.198 ".802833 912n57E5 4-WEEK 081 N 13-2012 0,110 ..112 .,.1.4 91 l3-.EEK oi 11-15-2012 0.110 D112 99,97211KI 91Z,9551.1 �WEEK Eli 01 0.145 0.147 99,9266ei Go2795M 15-DAY Ol M In M12 0.110 0.112 sa.995',11 S1219%co 4 WEEK OB-09 M12 OoOO W12 0.085 0 085 99.993389 9127956GI 13 WEEK oi 11 03-2012 DIED 0,101 99,974722 9127956S 5 �Wii 08,09 2012 02-07-2013 01135 0 137 We31750 9127955ZO 4-.SEK pi ED M 2012 0.075 0076 99,994167 9127956M 13-WEEK 01 11-01-2012 DIAG 0 112 99S121. 4127956PT 26-WEEK 08 02-2012 01 31 2013 0,145 0.147 99 926694 9127957DY al -WEEK 07 26-M2 08-23 2012 O.Owu owl 99,993778 912795'(96 13-WEEK 07 26 2012 10-25 2012 Boss ones " 9759M 9127956N6 26 WEEK 07 26-2012 01 N 2013 0,140 0.142 Be 929222 9127957M 52-.EK 07-262012 07 25 201a 0.175 B178 99,5DO55 9127957M Effective with the 11/2/98 auction, all bills are auctioned using the single -priced method. rLiMcolgr I Emmy-fum" NQBm I W11, 1111 1 V,$� CI,11i Ili Ulr TI,,-,1.m E,IiA,� or uh, PIN, NEI 4 http://www.treasurydirect.gov/RI/0FBills 10/8/2012 Kecent Note, Bona, ana i wN Auction Kesuns Fage I ot I W�� N,nrc I lortleaa-101 I Anng,nxenLanr. Data &RtsWa, I lorasst ADron 01IN I REIM NILE. B011d, and NPS AticUrn RE�Ufts Recent Note, Bond, and TIPS Auction Results U�a. Mat.'WL I.We't YL.14 P'R,. s-'ft' Term Can. D.b. ID, N % Par I,1W CUSIP 2-Y'AR NOTE VJ-01-2012 09-30-20�4 0.2W 0.273 99 9542VB gL282MQ3 5-1EA' NOB 10 at M12 OA-M-20 1 0.625 0641 9989198s 912828TS9 7�`Alt NOTE 10 01-M12 09-30 M19 low 1.055 99A29938 9128ZBTR� 91EAR Ja_MoN_LN MPS N-28 2012 07 15-2022 OA25 -0 7sO 1.522783 912828TED 3-'EAR NOTE ��7-ZD' 1 0911-2011 0250 0.337 W74DOOS 91282UPS 91sA L_M.. NOTT 00- 7-20' 2 08- - 2 1.625 1364 RB.740142 91282WILL 29-=R It MOWN BONI) 09 17- 2012 '5202 08- 5- �.2 2. SO 7 2896 97 Mass 912810(aC9 2-Y'AR NOTE W 31-2012 0.250 0.273 99,954157 912828TIL4 4-YeAR 8_MoNTN MRS 08.3L M12 04-0-20 7 UA25 -1.285 107�8!50753 qIMasqN 5-Y'AR Non Ge 31-M12 0-31-2017 0.625 0.708 99,592967 9128287142 7 Y�R NONE OB 31 2012 08 31-2019 low L M 99 455337 912828TNO 3-YEAR NOT� be-15-'02 Oa-t5-2015 0,250 0.370 99.642�20 qlzanTR6 lo'YFAR Rare 08-15-2012 W-15-2022 1.625 1eBD ",4956W 9�2828TM? ,,-y"A7 BONI) 08-15-7012 08-15-�2 2.750 2,825 9&48�.69 912&L0Q.9 2-YNAR NOTP 07-31- N 12 07-3 ' -2014 0.125 0.220 99.310521 91282STF7 5 YeAR No"I 07 31.2012 07-31-M17 0 SOD B5M 99. 585667 912KUG5 7-MR NOTE 07-3:L-�2012 07-31-2CO9 0.875 eg� 99.466290 912B28TH3 IC -YEAR TIPS 07-31 2012 07 15 W22 0,125 -OA37 107.7797" 912828"E0 3-YEAR NOTE 07-16-M12 07-15-2015 0,250 0.366 99,654528 91282SV2 9-YUka I�MORTH RULE 07 16 2012 05 15 W22 1,750 IA59 102,65�1933 91282nV3 29-YeAR 10-MONTH BOND 07-162012 05-IS-2fI12 3BW 2,580 Los 69703 912811)(PRI 2-YEAR NOTE 07-02-2012 06-M-2014 O.2t0 0.313 99.874629 9128mas 5 YEAR NOTE 0702 2012 W" 2017 0.750 0.752 99.990199 912828TER5 7-YEAR NOTP 07-02-2012 06-30-2019 1.000 1,075 99.495918 912K18TC4 -29 WAR 8 MONTH TIPS Be 29 2012 02-15-2042 0,750 0.520 108.226791 912810QV3 3-Y. NOTP M-15-MI2 06-15-2015 0.375 0.3117 99. RB4243 B 9-YEAR 11-MONTN WITE M-15-2012 05-15-2022 1.750 1.622 101.167M3 9�228=rl 29-YEAR 11-MOWH BOND 05 15-2012 05-15-2042 3.00U 2.720 105.703794 912810(PNI 2-YEAR NOTE 05-31-M2 05-33-2014 0.250 0.300 99.900374 91M28SW1 5-'VEAR NOTE 05-31-2012 05-31-2017 0.625 0.748 99.397464 quvwEa 7 YEAR NOTE 05-31 2012 0531-2019 1.125 1.203 ".477861 9128aSX9 9-�AR 8-HOM THES 05-31-2012 OL-�5-2022 0.125 -0 391 105.458589 912828SA9 3-YPAa NOTB 05-15-2012 05-15-2015 0.250, 0,362 99,666118 912828SU5 W-YEAR NOTT 05-15-M 12 05-15-2022 t.750 1.855 99.045657 912SMSV3 30-YEAR BOND 05-J5-2012 05-15-2042 3,00B 3,090 98�2.48216 912810(l.l. 2-YIEAR NOTP 04-30-2012 04-M-2014 0,250 0.270 99.960135 912828SR2 5-�AR TIM 04-30-MU2 04-�5 2017 0125 -two 10s.389051 91292.$� 51EAR NOTE 04-30 2012 04-30-2017 D875 0.887 99.941438 912828SSO 7-�AR NOTE N 30-2012 X M-2019 1.250 1.347 99354100 912526"Te 3-YEAR NOTE N-16-MIZ N-15-201S 0375 0,427 99,845296 91282SSPG * Denotes TIPS bond; all other TIPS wIthout asterisks am notes 11,E,111r, .1',0�1rIsMn Artl I U. �-kpllftlrrnn Publlr�nbt 5 http://www.treasurydirect.gov/RI/OFNtebnd 10/8/2012 rrintur version - t5oara oi tiovemors ot ttie kederal Keserve �iysteni Page I of 4 Selected Interest Rates (Daily) - H. 15 Current Releas Release Date Daily Update Historical Data About Announcements PqHy_ Vpdate ... - ... ---- --------- Rele ase Date: October 5, 2012 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. October 5, 2012 Selected Interest Rates Yields inpercentper annum Instruments 2012 Oct 1 2160 !. 2 c oc t .�2 2 20 12 160 0 t .�2 c c 3 2012 Oct 4 Federal funds (effective) 1 2,3 0.15 0.16 0.16 0.15 Commercial Paper 3!j § 6 Nonfinancial 1-month 0.11 0.12 0.13 0.13 2-month 0.15 0.12 0.15 0.15 3-month 0.19 0.18 0.18 0.20 Financial 1-month 0.09 0.10 0.11 0.13 2-month 0.10 0.11 n.a. 0.13 3-month 0.25 0.14 0.15 0.14 CDs (secondary market) 37 1-month 0.18 0.18 0.18 0.18 3-month 0.22 0.22 0.22 0.22 6-month 0.36 1 0.36 0.35 0.35 Eurodollar deposits (London) 1-month 0.29 0.29 0.29 0.29 3-month 0.40 0.40 0.40 0.40 6-month 0.57 0.57 0.57 0.57 Bank prime loan 239 3.25 3.25 3.25 3.25 r] http://www.federalreserve.gov/releases/fll 5/update/ 10/8/2012 r,111wr v urblun - inuaru oi %jovemors oi uie r eaerai xeserve �iystem Page 2 ot 4 Discount window primary credit;9 i-O 0.75 0.75 0.75 0.75 U.S. government securities Treasury bills (secondary market) 4-week 0.05 0.09 0.09 0.10 3-manth 0.09 0.09 0.09 0.10 6-month 0.14 0.14 0.14 0.14 1-year 0.16 0.16 0.15 0.17 Treasury constant maturities Nominal 1-month 0.05 0.09 0.09 0.10 3-month 0.09 0.09 0.09 0.10 6-month 0.14 0.14 1 0.14 0.14 1-year 0.17 0.16 0.16 0.18 2-year 0.25 0.23 0.23 0.23 3-year 0.31 0.31 0.31 0.32 5-year 0.62 0.61 0.61 0.63 7-year 1.04 1.03 1.02 1.07 10-year 1.64 1.64 1 1.64 1.70 20-year 2.41 2.41 2.42 2.48 30-year 2.81 2.81 2.82 2.89 Inflation indexed 1-2 5-year -1.49 -1.51 -1.57 -1.62 7-year -1.22 -1.22 -1.28 -1.33 10-year -0.78 -0.83 -0.83 -0.86 20-year -0.02 -0.07 -0.08 -0.09 30-year 0.42 0.37 0.35 0.34 Inflation -indexed long-term average L3 -0.05 -0.11 -0.11 -0.13 Interest rate swaps 14 1-year 0.34 0.35 0.34 0.35 2-year 0.38 0.38 0.37 0.38 3-year 0.44 0.44 0.44 0.45 4-year 0.58 0.57 0.56 0.57 5-year 0.77 0.76 0.74 0.75 7-year 1.20 1.18 1.17 1.. 8 10-year 1.71 1.70 1.69 1.71 7 http://www.federalreserve.gov/releases/Hl 5/update/ 10/8/2012 rillimr v vimun - ouara oi kiovemors oi Lne v eacrat xeserve 6ystem Page 3 of 4 30-year 2.62 2.60 2.61 2.63 Corporate bonds Moody's seasoned Aaa is 3.41 3.39 3.41 3.47 Bee 4.70 4.68 4.67 4.69 State & local bonds L6 3.61 Conventional mortgages 17 3.36 n.a. Not available. 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 Boards Commercial Paper Web page (www.fedmireserve.gov/releases�/cv/). 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. Source: Bloomberg and CTRB ICAP Fixed Income & Money Market Products. 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.eovfboarddoes/l)ress/bcreg/2002/200210312/delault.hum, 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/releaseA15/dat�Lhtm. 11. Yields on actively traded non -inflation -indexed issues adjusted to constant maturities. The 30-year Treasury constant maturity El http://www.federalreserve.gov/releases/H15/update/ 10/8/2012 . X..�X I - �X �� ..� . 1�1... .11.�. �, �,y ...... . �b� - �� - 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-yearconstant maturity in order to estimate a 30-year nominal rate. The historical adjustment factor can be found at ��vw.treasury.14ov/resource-center/d,-tia-chart-center/interest-rates/. 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.treasury.gov/resotirce-center/data-chart- center/interest-rates/. 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(g) 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 ple and published on Reuters Page ISDAFIX01. ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited. 15. Moody's Aaa rates through December 6,2001, are averages of Ann 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 SurveyV data provided by Freddie Mae. 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.feder-direserve.gov For information about individual copies or subscriptions, contact Publications Services at the Federal Reserve Board (phone 202- 452-3244, fax 202-728-5886). Description of the Treasury Nominal and Inflation-IndexedConstant 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. 9 http://www.federalreserve.gov/releases/11 I 5/update/ 10/8/2012 - -, , -a-, - "vmu v, uuvvillurb u, u1c reuerai i-,eserve aystem Page I of 2 Commercial Paper Summary Rates Volume Statistics Outstanding Year-end Maturity Distribution About Announcements Commercial Paper Rates and Outstanding Summary Derived from data supplied by The Depository Trust & Clearing Data as of October 4, 2012 Posted October 5,2012 The commercial paper release will usually be posted daily at 9:45 a.m. However, the Federal Reserve Board makes no guarantee regarding the timing of the daily posting. Ibis policy is subject to change at any time without notice. Rates A nonfinancial Period 1- day 7- day IS- day 30- day 60- day 1 90- day Sept. 28 0.11 0.07 1 0.11 0.12 0.11 0.18 Oct. 1 0.131 0.141 0.12 0.11 0.15 0,19. Oct. 2 0.16 0.20 0.111 0.12 0.12 0 1 8 Oct. 3 0.17 0.12 0.12 0.13 0.15 18 Oct. 4 0.15 0.14 0.12 0.13 0.15 020 A2/P2 nonfinancial 1- day 7- day is- day 30- day 60- day 90- day 0.38 0.41 0.43 0.46 0.53 0.61 0.38 0.42 0.45 0.49 0.51 0.52 0.38 0.42 1 0.40 1 0.44 0.48 0.52 0.37 0.44 0.39 0.45 0.56 n.a. 0.38 0.40 1 0.42 0.451 0.50 0.54 Note: n.& indicates that trade data was insufficient to support calculation of the particular rate. AA financial Period 1- day 1 7- day 1 IS- day 30- day 60- day 90- day Sept. 28 0.09 0.05 0.04 0.07 0.25 0.12 Oct. 1 0.11 0.09 0.09 0.09 0.10 0.25 Oct. 2 0.11 n.a. n.a. 0.101 0.11 1 0.14 Oct. 3 0.11 n.a. n.a. 0.111 n.a. 0.15 Oct. 4 0.11 0.12 0.13 1 1 AA asset -backed 1- day 7- day IS- day 1 30- day 60- day 90- day 0.20 0.23 0.23 0.26 0.29 0.31 0.23 0.22 0.23 0.25 0.26 0.27 0.23 0.37 0.23 0.28 0.331 0.32 0.23 0.25 0.24 0.26 0..29 0.30 0.23 0.27 0.26 0.24 0.291 0.34 Note: n.a. indicates that trade data was insufficient to support calculation of the particular rate. Outstanding Levels Seasonally adjusted 10 http://www.federalreserve.gov/releases/cp/ 10/8/2012 - 1 Y -a-, - �vmu v, %juvmnurzi ui Lne reaerai twserve Nystern Page 2 of 2 Billions of dollars Period Total Nonfinancial Financial Asset- backed Other Total I Domestic I Foreign Total DomesticTForeign Monthly -end levels 2012-May 970.9 191-�1_150-1 41.0 456.3 272.5 183.8 323.5 .0 June 966.0 177.5 147.3 30.2 469.7 280.9 188.8 318.8 .0 July 1,000.5 184.6 144.8 39.9 497.3 286.9 210.3 318.6 .0 Aug. 996.6 186.0 144.0 41.9 500.0 283.1 216.9 310.7 .01 Sept. 976.0 179.4 139.8 39.6 495.0 269.9 1 225.1 1. 301.3 1 .3 Weekly (Wednesday) levels Sept. 5 1,022.0 184.5 142.8 41.7 529.01 292.3 236.7 308.4 0 Sept. 12 1,015.4 185.2 142.1 43.1 526.1 290.9 235.3 303.91 .2 1,008.2 194.1 151.4 42.7 515.5 286.5 229.0 298.41 .2 990.1 189.0 148.6 40.4 507.7 275.7 232.0 293.01 .5 975.1 1 189.2 1 148.8. 40.3 492.2 257.5 1 234.7 293.21 .4 Not seasonally adjusted Billions of dollars Period Total Nonfinancial _[ Financial Asset- backed Other Total Do as tic Foreign Total Domestic For Monthly -end levels 2012-May 1,007.4 199.8 154.81 45.0 484.41 283.2 201.3 323.2 .0 June 962.0 172.8 132.1 40.7 476.5 285.3 191.2 312.7 .0 July 998.1 203.5 161.3 42.3 485.2 285.9 199.3 309.4 .0 Aug. 991.0 202.3 157.9 44.4 484.4 287.9 196.4 304.3 .0 Sept. 957.2 175.2 136.0 39.2 476.1 276.7 199.3 305.5 .5 Weekly (Wednesday) levels Sept. 5 984.6 204.0 160.0 44.1 475.7 282.2 193.5 304.9 .0 Sept. 12 972.8 202.0 156.6 45.4 464.9 274.0 190.9 305.5 .4 Sept. 19 984.9 212.6 168.2 44.5 465.7 278.7 187.0 306.2 .4 Sept. 26 970.2 192.8 152.6 40.1 473.0 280.6 192.4 304.0 .4 Oct. 3 1 972.1 1 202.0 1 161.2 1 40.81 465.2 1 273.0 1 192.2 1 304.4 1 .4 Returnio-top 11 http://www.federalreserve.gov/releases/cp/ 10/8/2012 INVESTMENT ADVISORY BOARD SPECIAL MEETING Meeting Date: October 17, 2012 TITLE: Pooled Money Investment Board Report for August 2012 BACKGROUND: Correspondence & Written Material Item B The Pooled Money Investment Board Report for August 2012 is included in the agenda packet. RECOMMENDATION: Receive & File 19L-h�A-- - Robbeyn tird, Finance Director POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF AUGUST 2012 WITH AUGUST 2011 (DOLLARS IN THOUSANDS) Average Daily Portfolio Accrued Earnings Effective Yield I Average Life -Month End (in Days) Total Security Transactions Amount $ Number Total Time Deposit Transactions Amount $ Number Average Workday Investment Activity $ Prescribed Demand Account Balances For Services $ 257 62,240,251 $ -2,060,395 21,523 $ -2,263 0.408% -0.031 % 227 +30 1 21,807,290 $ 7,637,846 $ +14,169,446 441 154 +287 1,994,900 $ 1,776,480 $ +219,600 102 99 +3 1,034,881 $ 409,276 $ +625,606 1,864,202 $ 1,702,107 $ +162,096 1 BILL LOCKYER TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) August 31, 2012 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOUN PORTFOLI PRIOR MONTH Government Bills $ 17,026,408 28.23 +3.81 Bonds 0 0.00 0 Notes 16,028,028 26.57 -0.12 Strips 0 0.00 0 Total Government $ 33,054,436; +3.69 Federal Agency Debentures $ 1,292,904 2.15 +0.04 Certificates of Deposit 5,250,003 8.70 +2.73 Bank Notes 0 0.00 0 Bankers' Acceptances 0 0.00 0 Repurchases 0 0.00 0 Federal Agency Discount Notes 4,493,107 7.45 +3.72 Time Deposits 4,364,640 7.24 +0.06 GNMAs 10 0.00 0 Commercial Paper 1,824,742 3.03 +0.42 FHLMC/Remics 303,434 0.50 -0.01 Corporate Bonds 0 0.00 0 AB 55 Loans 273,359 0.45 -0.01 GF Loans 9,061,800 15.02 -10.64 NOWAccounts 0 0.00 0 Other 399,942 0.66 +0.01 Reversed Repurchases 0 0.00 0 Total (All Types) $ 60,318,377 100.00 INVESTMENT ACTIVITY AUGUST 2012 JULY 2012 NUMBER AMOUNT NUMBER AMOUNT Pooled Money T41 $ 21,807,290 260 $ 12,889,231 Other 19 359,278 3 157,478 Time Deposits 102 136 4LO30 300 Totals 562 $ 24,161,548 399 $ 17,077,009 PMIA Monthly Average Effective Yield 0.377 0.363 Year to Date Yield Last Day of Month 0.370 0.363 Pooled Money Investment Account Portfolio Composition $60.3 Billion 08/31/12 Corporate S 0.00% Commercial Pal 3.03% Time Deposits 7.24% CDs/BNs 8.70% Loans .� .1.1 10.26% Mortgages 0.50% Treasuries 64.80%