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2012 11 14 IABInvestment Advisory Board agendas and staff reports are now available on the City's web page. www.la-guinta.org INVESTMENT ADVISORY BOARD AGENDA CITY HALL STUDY SESSION ROOM 78-495 Calle Tampico, La Quinta REGULAR MEETING on WEDNESDAY, NOVEMBER 14, 2012 AT 4:00 P.M. CALL TO ORDER 1 . Roll Call 2. Pledge of Allegiance PUBLIC COMMENT At this time members of the public may address the Board on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. CONFIRMATION OF AGENDA APPROVAL OF MINUTES Approval of the Minutes of October 17, 2012 CONSENT CALENDAR Receive and File Treasurer's Report for September 30, 2012 BUSINESS SESSION CORRESPONDENCE AND WRITTEN MATERIALS 1 . Month End Cash Report - October 2012 2. Pooled Money Investment Board Reports - September 2012 INVESTMENT ADVISORY BOARD AGENDA 1 NOVEMBER 14, 2012 BOARD MEMBER ITEMS ADJOURNMENT The next regular meeting of the Investment Advisory Board will be held on December 12, 2012, commencing at 4:00 p.m. at the La Quinta Study Session Room, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING 1, Vianka Orrantia, Senior Secretary, of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta Investment Advisory Board meeting was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico, and the bulletin boards at 78-630 Highway 111, and the La Quinta Cove Post Office at 51-321 Avenida Bermudas, on November 8, 2012. DATED: November 8, 2012 VIANKA ORRANTIA, Senior Secretary City of La Quinta, California Public Notices The La Quinta Study Session Room is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's office at 777-7123, 1wenty-four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the City Council, arrangements should be made in advance by contacting the City Clerk's office at 777-7123. A one 11) week notice is required. If background material is to be presented to the Investment Advisory Board during a Investment Advisory Board meeting, please be advised that five J5) copies of all documents, exhibits, etc., must be supplied to the Senior Secretary for distribution. It is requested that this take place prior to the beginning of the meeting. Any writings or documents provided to a majority of the Investment Advisory Board regarding any item(s) on this agenda will be made available for public inspection at the City Clerk's counter at City Hall located at 78-495 Calle Tampico, La Quints, California, 92253, during normal business hours. INVESTMENT ADVISORY BOARD AGENDA 2 NOVEMBER 14, 2012 INVESTMENT ADVISORY BOARD MINUTES SPECIAL MEETING WEDNESDAY, OCTOBER 17, 2012 CALL TO ORDER A special meeting of the La Quinta Investment Advisory Board was called to order at 4:00 p.m. by Chairman Blum. PRESENT: Board Members Donais, Mortenson, Blum and Park (4:03) Spirtos ABSENT: None STAFFORESENT: Finance Director, Robbeyn Bird and Senior Secretary, Vianka Orrantia PUBLIC COMMENT - None CONFIRMATION OF AGENDA— Confirmed APPROVAL OF MINUTES Motion — A motion was made by Board Members Spirtos/Mortenson to approve the Minutes of September 12, 2012, as submitted. Motion passed unanimously. CONSENT CALENDAR ITEMS 1 . Transmittal of Treasury Report for August 2012 Ms. Bird presented and reviewed the staff report for the month of August 2012. In response to Board Member Spirtos, Ms. Bird clarified that the decrease in the LAIF fund balance was a result of a $25.3 million payment for the Coral Mountain Apartments. Board Member Mortenson suggested that the Board and staff consider extending out investment maturities with an emphasis on the extension of CID maturities at this time. General discussion ensued amongst the Board and staff regarding the extension of CD maturities. INVESTMENT ADVISORY MINUTES OCTOBER 17, 2012 SPECIAL MEETING Motion - A motion was made by Board Members Spirtos/Mortenson to review, receive and file the Treasurer's Report for August 2012, as submitted. Motion passed unanimously. BUSINESS SESSION - None CORRESPONDENCE AND WRITTEN MATERIAL 1 . Month End Cash Report - September 2012 Ms. Bird presented and reviewed the Month End Cash Report for September 2012. Noted and Filed 2. Pooled Money Investment Board Reports - August 2012 Ms. Bird presented and reviewed the Pooled Money Investment Board Report for August 2012. Noted and Filed BOARD MEMBER ITEMS Board Member Spirtos advised the Board that on Sunday, November 11, 2012 at 11:00 a.m. the City will host a Veteran's tribute. In response to Board Member Blum, Ms. Bird advised the Board that at this time staff has not implemented any changes within the current reporting of financial information and has no recommended changes to the investment policy. Ms. Orrantia advised the Board of the upcoming changes to the Board's agenda packets. ADJOURNMENT There being no further business, it was moved by Board Members Mortenson/Spirtos to adjourn this meeting at 4:35 p.m. Motion passed unanimously. Vianka/Orrantia, Senior Sbci City of La Quinta, California INVESTMENT ADVISORY MINUTES 2 OCTOBER 17, 2012 SPECIAL MEETING F INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: November 14, 2012 ITEM TITLE: Receive and File Treasurer's Report for September 30, 2012 BACKGROUND: Attached please find the Treasurer's Report for September 30, 2012. RECOMMENDATION: Review, Receive and File the Treasurer's Report for September 30, 2012. Robbeyntird, Finance Director MEMORANDUM TO: La Quinta City Council FROM: RObbeyn Bird, Finance Director/Treasurer SUBJECT: Treasurer's Report for September 30, 2012 DATE: October 31, 2012 Attached is the Treasurer's Report for the month ending September 30, 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: Investment Be innin Purchased —Notes Sold/Matured Other Endin Chan e LAW I�ntemst beating active bank deposit a $ 17,769,005 $ 39,941,367 $ 9,500,000 14,370 $ (750,000) 0 $ 26,519,005 8,750.000 e C Certificates of Deposit 480,000 0 39,955.737 14,370 US Treasuries US Gov't Sponsored Enterprises 70,986,318 8,999,709 09 10.800,000 (10,800,000) (7) 480,000 70,986,311 0 (7) Commercial Paper '999 4,999,025 (91000,000) 291 0 (8�999,709) Corporate Notes �p 696 4,999,721 696 Mutual Funds Subtotal 15,464,Bj�13.338 $ 158,640,261 1 $ Z0,327,708 (12.9_17.9151,) N ! T13 0 0 2,540,266 0 12,924,571 !Cash I $ 1,13 9W $ 145,481,040 $ 13,159,221 i; 1 I I I . $ 347,529 $ 439,771 Iota[ i 1� 29,427.561 1 $ 20,327,708 $ (33,927,68 $ 980 $ 14q A�R --992) 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 Quinla 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. 15WIF, E Robbeyn BjrdV I — Finance DirectorfTreasurer Date Footnote (1) The amount reported represents the net increase (decrease) of deposits and withdrawals fro, the previous month. (2) The amount reported in the other column represents the amortization of Premium/discount for the month on US Treasury, Cormnercial 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 am presented for payment by the payee at the bank. K Treasurer's Commentary For the Month of September 2012 Cash Balances - The portfolio size decreased by $13.60 million to end the month at $145-83 million. The major reason for the decrease was due to payments of $12.8 million for interest and principal payments on the outstanding bonds of the Successor Agency of the former Redevelopment Agency. Investment Activity - The investment activity resulted in an average maturity increase of three (3) days from the prior month to end the month of September at 34 days. The Treasurer follows a buy and hold investment policy with no Commercial Paper investments maturing during the month of September. Certificates of Deposit remained the same as the prior month. The sweep account earned $17 in interest income for the month of September and the bank fees for the month were $ 1,690 which resulted in a net decrease of $1,673 in real savings. Portfolio Performance - The overall portfolio performance increased four (4) basis points from the prior month and ended at .33% for the month, with the pooled cash investments at .43%. 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 x z z z 0 z z 0 z 0 z 0 z z W .0 E > 4i E I 1 1, E 00 w T 19 ag 89 89 8R e El0 a' ESE ag ag aR qq dw .0 0 21 ap ag 89 w �06 coo.. oo ap o ap 0. d goo t2.� d 0 < 2 Lo cs o 16 E EL mo 'o o w—H a mo J, kE�m Vom < u �5 a E lo E > z o E X Z M V w E DE� www Fl �.3 Iggp�, Z Z Z Z Z 22 M vs ol a 0 .98808. C9 cc 9c — — — — — — — — — — — — — — — — — — 2z z z zzz �R �2 ..... ....... 66 ........ ... E E Do= 0 0 0 E -0 E (0 o E 2�'E. M.- 0 4�4 m 00 w 0 0 � m � C� Ci Ct Cli 0 00 Q m 0 0 0 0 a. a. 0 0 0 U) Q) 76 U) U) 4) CL 00 E LL LL U) Z F- F- 05 Ili N m '0 Z4 Q m m 0 0 am�o 00 �WNM CL 66 6d6 �: Ili a 00 O�mw m c cI Oct E2 _0 o LL 12 CL w to U) U) 0 D 0 U) 2 m c c 0 c 0 2 Z 0 E (n MCL E > 0) IL 'a C 0 CL Lu E E U) N > M > > 'r c 0 r= c 0 E CEI D = E E > co - U) 0 Z c > 7) 1E �- :) E CL a- 5 N F r cp Re % 1 Jj Is A T%2�121 82 2 x MIM ---------- 22., MM9 A�a -7 91 �28�2 �vd �!As- - -.1 �- 3 ---------- -6t 26. T.- Z.- -V m 19 S RI 2 V V-33 mggg E E is E E E2.9 979M; Ts�--Ds T7.— Mv 19! 8 1981H v A N, n is 'A RE WHO E. HH.� i-TE o I �my-i tE UETERB, � I M m.-M; tu oMo ,u I F-I < J2 LO P 8 Ct 2M, 29 LO ck low 00 w CZ CL wm M q at .6 6 ql� IQ -q N v v CO 19 2E� Ci � 3 PI City of La Quinta Compa,ative Rates of Inbu-ast Septearther 30, 2012 City of � Quints Aoa.g. I I Tneasuar SiOallote, I Th. August 2006 316% 1,92% 2N% 51 1.69% 189% 2 14% 2.M% 208% 218% Sept 208 2,81% 1.92% 2 U% 37 142% 1.79% 1.96% 200% 213% 277% Oct 2008 2.66% 2J61% 2,61% 29 090% 140% 172% 1,50% 207% 2,71% Nm 2008 2.M% 230% 236% 6't 015% 049% 104% 1,25% 1,45% 2,57% Dec 2008 1.60% 0,18% 1 �Q% 116 005% 0,25% 059% 0,88% 097% 2,35% Jah 2009 IM% 0,18% 123% 82 015% 035% 0,43% 068% 031% 2.05% Fan 20<19 1.23% OA8% 1 11% 75 030% 050% 061% 088% 048% 187% Wr 2009 1.215% 018% 1 13% 69 020% 042% 0.70% 088% 037% 182% AV 2009 Op4% 018% 085% S4 031% 033% 059% ON% 028% 161% Wy 2009 0,92% 0,18% OU% w 018% 030% 053% 088% 023% 1,53% June 2009 085% 029% 080% Ill 020% 035% 055% 1,13% 026% 1 311% FY OMO July 2009 069% 030% 065% Ill 019% 028% 047% 100% 028% 104% August2009 064% 030% 061% 92 016% 026% 046% 100% 024% 093% Sept 2009 ON% 031% 053% 112 012% 0 19% 041% 100% 019% 075% Oal 2009 052% 031% 050% w 008% a 19% 038% 100% 019% 065% Nov200Q ON% 031% 053% 152 004% 0 14% 032% 0�75% 015% 0,61% Dec 2009 056% 0,15% 051% 239 011% 020% 016% 1,00% 016% 057% Jan 20 10 046% 0.16% 0,43% 179 006% 0 14% 034% 0,88% 013% ON% Feb 20 10 051% 0 16% 048% 162 0,13% 0.19% 032% 0AM1% 015% 0 58% W,2010 050% 016% 047% 172 015% 0,24% am% 100% 020% 0,55% A,pr2010 052% 016% 048% 162 015% 024% 0,49% 100% 023% 0,51)% May 2010 052% 0.16% 0,48% 116 0 17% 022% 037% 075% 026% 0 N% June 2010 043% 009% 0,33% 134 0,16% OU% OU% 063% 032% 0.63% FY 1011i July 20 10 050% 0.15% 0,47% 119 016% 020% am% 063% 028% 0,53% August 20 10 049% (015% 0.46% 108 D15% 0A9% 026% 038% 025% 051% S,12010 055% 015% 051% 107 016% 019% 027% 038% 024% 050% Oct 2010 055% 015% 051% N D13% 017% 023% 038% 0.23% 04f3% Nov2010 053% 0,15% 0.49% Ift 0.18% 021% 028% a 50% 023% 045% Dec20IO 057% 014% 052% 265 0 15% 019% 030% 063% 0.23% 046% Jah 2011 0,51% 014% 0,43% 206 0A6% 018% 028% 063% 024% 054% Fet,2011 0.55% 017% OAK3% 210 OA5% 017% 031% 0,63% 023% 051% �,2011 0,54% 017% 045% 218 005% 013% 026% 075% 0,23% am% Apr2011 oz� 0,17% 0,443% 192 (Y05% 010% 028% 063% 020% 0 m14 Wy 2011 0"443% 0,17% 041% 1% 0,06% 012% 020% 0,50% 016% 041% June 2011 053% 000% 035% 126 003% 010% 020% 030% 015% 0,45% FY 11/12 July 2011 053% 000% 036% 112 007% 012% 015% 020% 014% am% August 2011 ON% 000% 0,38% 102 0,02% 0,05% 0,10% 0 13% 016% 041% Sel,12011 068% 003% 039% 124 002% 006% 009% 0 13% 014% am% 002011 053% 003% 0,35% 117 0,01% 006% 012% 025% G15% 039% Nov2011 0,52% 003% 037% 94 0,03% 007% 010% 025% 0,14% 0,40% Dec 2011 0.�% 003% 0,35% 86 0,02% 006% 011% 013% 0,14% 039% Join 2012 0.45% 003% am% 74 005% 008% 011% 025% 014% 039% Fab 2012 0,49% 005% 036% 72 0 12% 015% 017% 025% 0 17% 0,39% Mai,2012 044% 005% 034% 74 008% 0,14% 0.19% 0.25% 0A8% am% A� 2012 0.44% 0.09% 036% 61 0.10% 015% 019% 0,25% 020% 037% Wy 2012 043% 009% 034% 62 009% 014% 0.19% 025% 019% 036% June 2012 038% 0.08% 029% 47 010% 015% 021% 025% 021% 036% FY 12113 July 2012 041% 008% 031% 112 011% 015% 018% 022% 0.22% 036% Auqust 2012. 041% 008% 0,29% 31 011% 014% 020% 025% 020% 038% 10 CIA 12 E OE 4) > c rn *6 E C14 w Z5 cli 14 7 E oft =.Z it a 40 d) 0 a CN 0 CY C14 hl -ja 0 0 4— 0 CL 0 C4 U� Q LO C) LO 4) Lo Lf) It El) C14 C-4 2 7 C) C) CL ci ci 6 c; C6 4) C) a 6 6 CL INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A Meeting Date: November 14, 2012 TITLE: Month End Cash Report — October 2012 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. Robbeyn BiM, Finance birector S! 0 0 . . . . 00 . . . R "Aqqq.q !2 !2 02 . 0 z E 't 0 CD q 0 .0 0 P. 0 0 C5 .5 iz 02 E E 0 vi 0.4, 0 <1 w Mozo 5<24w' 0 E a E v 0 v Se woo 0 .S.S Bill Lockyer, State Treasurer Mft Inside the� State Treasurer's Office It Local Agency Investment Fund (LAIF) PMIA Performance Report 10/1612012 0.33 0.35 10/17/2012 0.33 0.35 244 10/18/2012 0.33 0.35 246 10/19/2012 0.33 0.35 246 10/20/2012 0.33 0.35 2461 10/21/2012 0.33 0.35 2461 10122/2012 0.33 0.35 2471 10/23/2012 0.33 0.35 247 10/24/2012 0.33 0.34 246 10/2512012 0.33 0.34 244 10/26/2012 0.33 0.34 24� 10/27/221fl 033 034 24� 1 i6;2��Oi H31 0!34 242 110/29/20121 0.331 0.34 237 LAIF Performance Report Quarter ending 09/30/2012 Apportionment Rate: 0.35% Earnings Ratio: .00000970563155028 Fair Value Factor: 1.001314072 Daily: 0.35% Quarter To Date: 0.36% Average Life: 242 PMlA Average Monthly Effective Yields SEPTEMBER 2012 0.348% AUGUST 2012 0.377% JULY 2012 0.363% *Daily yield does not reflect capital gains or losses Pooled Money Investment Account Portfolio Composition $62.2 Billion 09/30/12 Loans 4a r,61 Corporate Bon 0.00% Commercial Pape 1.33% Time Deposits 7.08% CDs1BNs 8.93% Treasuries 55.73% A� 9.94% Mortgages 0.46% � 91 ray'v I U1 I TreasuryDirect "NOR I LESMINKU oil, R�.111 Recent Bill Auction Results SWKWrftv O&K-hy 01i I... P. Twm a.. 0. .... z R.. % ft� St. CUSEP II-wli 1��-X)12 02-07-M13 0.105 O.IM 99.9734% 9�2795sZO M--- :2 05-M 2l 0.150 0.152 W.924167 %2� 4 WE" -el-M 2 II-n M'2 . 130 OA32 99,969. 912195EN 13-WEEK 11-01 M12 01.31 20t3 0,125 0,127 9?'�bj 9127957D7 '-WEi 11-01-2012 05-02-MI3 0". 0162 Wiel9fit 912795NO 4-WEEK 10.25-2012 11-D M12 0,125 0.127 S9.9l gliiMli� 13-WEEK I 10-�-20�2 l 0.100 0,101 99,974M 9127957� �WEEK 10-M M 2 N-25-W13 0.150 0.152 91 9127WSA11S 4-WEEK 10-18-13ti? 11-15 XI2 0.125 OA27 ".�279 9t2795RI 13-WEEK " 20 �2 01-17-M:3 0105 O.Iw %.97MSB 912M78I 1, E W - jo_�g m e 2 N 18 20 3 0.1. 01152 ".924167 9127�1 51-'EEK 10-18 MI2 10-0-�13 (l G�,83 "Ahlow 9II195Z87 4�WEEK IM-11 M12 It 09-2312 0.10 OtI7 W."IM 912T%S55S 13- :0- 1- t 1 202 01 10413 O"m 0101 N,9.722 9127955V9 "WEEK WEEK 0-11-MI2 .11-M13 0.1�5 0,147 seem. 912795M 4_WEEK '� M12 11 l 0 IN (1,101 99,9922a 91279SWI 13-.K 1044 .12 01-03-�13 a..5 0 �m ",9785. 912n%zg , WEEK '�-M'2 . 04 2013 0 135 0,137 99.931750 91279WF3 4 WEEK 09 27 2012 1()-�-i!012 01M 01055 s9N5722 9127956M 13-WEEK W-27 20�2 12-27-M 2 0110 0,112 ",9721. 9IL27956W �Wk. M_27 w 2 03-�"13 0.140 0.142 se 929222 912MM 4 WEEK ww M12 10-18-Mi! amO 0.081, "%3778 9127955� 13 WEEK M-M-2012 12 20 wit 0.105 01% W".97M58 912 �X4 �WEEX 09-20 M12 03-21-"13 013C, 0.132 ".9M278 912M 7147 52�WEEK 09-m-mu m 19 W13 0,175 0.178 W.823M 9I27957KI 4-WEEK M-13-2012 1.11-W12 0.0% (1091 "'MOK) 9V2795... 13 WEEK 09-13-MI2 12 13-2012 0.10) 0,101 N974722 912�!!QO �WEEX N-13-M12 03-14-2013 alm 0,132 W,91427. 91279570 11-�' 09-DS-MI2 0-17 2012 0.5 0.141 W.995569 912195�3 .-WEEK M�M12 10-N-2012 0.105 OLIN 99.99tan 9I279S6Q O-WEEK Ol M12 12-WM12 l 0 lot 99 97�712 912MM 26 WEEK ln-06-MQ 03 07 MIA (i OA31 91 9M956E6 IS -DAY Ol W17-MI2 0,125 0 127 W 993M 912MCN3 4-WEEK M-3�2012 N 27 W12 0,120 OA22 91 912�ls 13-WM M 30-M12 il-N-20I2 O'Its O�t% W,.7M58 9127956N 26�WEEK M 30-M12 02 28-2013 0140 0 112 eI,9N222 9127957HS 14-Ml M-D�b)12 N W M12 O.Im 0,101 .12N%Gl 4 WEEK W-23-MI2 09-w-mt� 0.110 OAl2 99�99t. 912795�1 13 WEEK 08 23-MIZ it 23 MIZ 0.105 0 Im 91 912m6n 26-WEEK 03-0-1,12 02-h-MI3 0.145 0,147 99.9266W 9127957M Effecti. with Me 1112/98 a,xUw, all bills aM audionmi US',IQ the sjngle-pn� methM 4 http://www.treasurydirect.gov/RI/0FBills 11/5/2012 ��VIIL INVLV� �VIIU,, MIU 1117 0 �U�LIVLL �V�UiLb ragv I U1 I TreasuryDirect �-e - IflstitaWnAl I � LatesdJAMIN11,2". - Recent Note, Bond, and TIPS Auction Results S—.' 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CUSIP Rate % , ., $Iw 2-YEAK ante VD-31-2012 10-31-2014 0�25) 0.295 .%0331 912828T,I seem WTE 10-31-2012 IO-M-20V 0.750 0.774 W832135 912328TWO 7-� "OTE to 31-WI2 10-31-2019 1,250 1.267 Ii)alki 9t28WTd2 '�Wklt 4 IVO� TERS 10-31 2012 02-15-�2 01. 0,479 IN 477963 912SIOW3 3-� WTE 10-15-2012 10-15-2015 0 �O 0 M6 99,713736 912828TT7 9-YEAR a0m 10 Is 2012 06-15-20n 1.625 1�700 90,321876 912828T)9 29 � tl�h Solid) 10-15-2012 WAS-�2 2.750 2.a04 oli 91WIDQX9 2�� Wn 10-01-2012 M 30-2014 0.250 0.273 99.9�211S 91282M3 5 rbul HOM 10-01-M12 N M-2017 0�625 `X647 99.89,985 912828TS9 7-MR WTE 10 01-2012 09-�2019 I.000 loss s4.6MM 9128MMI 9 �k lu-MO� 71� 09 W M12 07-25-2022 0325 41.750 IN.5n783 9�2820TFO 3-MR flOTe N-17-2012 W-15-2015 0250 0,331 W.74MOM o1282un 9 YEAR 114K)M NOTE 09-17-2012 W-IS-M22 1.625 1.7� 98.140W 912828T19 �YEAR 11 MOWK HOME) N 17-MIZ 08-15-2042 2.150 2.896 �1 NTM 91281�sq Z-MAR Nun W-31-MIZ N-3t-2014 0,250 0.273 ",954157 912828T4 4 VTM 8-linuth Tod's M-31 W12 04 15-2017 U.125 -1.2a6 t07.850753 912828S� 5-Mu, MOTE 06-31-2012 W-31 2017 0.625 0308 ".59N67 91202�2 7-YEJuk W� 01-31-2siz W 31-2019 1.000 1 Ol Io 455337 9t2828M 3-MUk WTE 08-1�2012 W-I5-20ts 0 250 I'M " 641120 91282SU6 tai hOTE W-I5-M12 011 1,625 I,W 99.495660 91M. 30-YEAR Who 011 08-15-�2 2,750 2,825 IISAN4159 9taINX9 2-MkR NOTE 07-31-2012 07-31-2014 GA25 O.M ".810521 91282877 5 'EI'I WIT 07-32-2012 07 31-M7 0,500 0,534 99 586667 912828TGS '-VSkK WTE 07-31-2012 07-31-MIg 0.875 ).� 99,465290 9128287hO 10-inuIR TUS 07-31-2012 07 15-2022 01125 -0,637 107 7797M 91282811a 3-MUt WIT 07-16-2012 07-15-2015 0.25D 0�366 99.6�520 91282STD2 �Mla 10-"Q� NOTE 07-16-MI2 0152022 17% L459 102,GM933 912828W3 29-WAR IO-MOM Wild 07-16-2012 05-15-2G42 3.000 2 W 108,697683 91281WWI 2yW flOTF 07-02-2012 W M-2014 0 250 0313 W HMSM 912satm 5 YEAR flOTE 07-02-2012 N M-2017 0�750 0.752 WWO199 9IA828� 7-VVkI HOIT 07 02-2012 06-30�2019 I.000 I..11 W495918 912828TC4 .N. 8 NOflT4 TIPS 0,5 29 2012 02 15-�2 0750 0,520 108,226791 912810�3 �MUk NOTE %-VS M12 06-15-�2015 0,375 0.387 WIA243 912828SZ4 9 Y� 11 "MUH a0M 06-15-2012 05 15-20� 17% 1.622 101,167093 91)82�V3 N-�Alil II-u0WH Sold) 011 05 15-�2 3.000 2.720 105,7037" 9128t�n-Jt 2-Y. WM N-31 W12 05-31-2014 02W 0�30i) W.900374 912AMW1 5 � ati 05-31 MI2 05-31-MI7 0425 0... .397164 9�28285� 7-� PRIME N-31-M2 05-31-2019 1,125 1.203 9).477861 9120MX9 9MR B-M� TV'S 05-31 M12 01 15 2022 ),� -03o' 105,458589 112528SAS) 3-Mut NOTE N 15-2012 O-IS 2015 0 � 0362 99"5661�8 gtansu, * ttenotes TIPS bond; all other TIn without astenslis am notes LFII�Lrrl PUnMFNP�IqA�' I Ulw kV9ini!C Tffri� ai C�Jjoo�ilS I Aa�Sjbfftl onts��Ojhj �ijr,,. i u, Puh_!.� L%bt 5 http://www.treasurydirect.gov/RI/0FNtebnd 11/5/2012 r" . V1 Selected Interest Rates (Daily) - H. 15 CurrentRelease ReleaseDates DailyUpdate HistoriraiData About Announcements P*IyUpda.t.e.-.- ------- ------- ...... Release Date: November 2,2012 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. November 2, 2012 Selected Interest Rates Yields in percent per annum Instruments 2012 Oct 29 2012 Oct 30* 2012 Oct 31 2012 Nov 1 Federal funds (effective) 123 0.17 0.17*** 0.18 OA7 Commercial Paper 24 5 A Nonfinancial 1-month 0.18 0.17 0.15 0.15 2-month 0.19 n.a. 0.16 0.16 3-manth 0.21 n.a. 0.21 0.15 Financial 1-month 0.15 0.15 0.14 0.13 2-month 0.17 0.17 0.17 0.15 3-month 0.20 0.20 0.19 0.20 CDs (secondary market) 2 1 I -month 0.20 0.21 0.18 3-month 0.26 0.26 0.22 6-month 0.37 0.37 0.32 Eurodollar deposits (London) 2 9! 1-month 0.27 0.27 0.27 0.27 3-month 0.30 0.30 0.30 0.30 6-month 0.57 0.57 0.57 0.57 Bank prime loan 2 3.25 3.25 3.25 3.25 6 http://www.federalreserve.gov/releases/H I 5/update/ 11/5/2012 Discount window primary credit a LO 0.75 0.75 0.75 0.75 U.S. government securities Treasury bills (secondary market) 2 1 4-week 0.13 0.09 0.06 3-month 0.14 0.11 0.09 6-month 0.16 0.16 0.15 1-year 0.17 0.17 0.17 Treasury constant maturities Nominal 1-1 1-month 0.13 0.09 0.06 3-month 0.14 0.11 0.09 6-month 0.16 0.16 0.15 1-year 0.18 0.18 0.18 2-year 0.30 0.30 0.30 3-year 0.40 0.38 0.38 5-year 0.74 0.72 0.73 7-year 1.16 1.14 1.16 10-year 1.74 1.72 1.75 20-year 2.48 2.46 2.50 30-year 2.87 2.85 2.89 Inflation indexed 12 5-year -1.35 -1.40 -1.40 7-year -1.11 -1.15 -1.14 10-year -0.73 -0.78 -0.77 20-year -0.03 -0.07 -0.06 30-year 0.39 0.35 0.36 Inflation -indexed long-term average 13 -0.08 -0.11 -0.09 Interest rate swaps 14 1-year 0.33 0.33 0.33 2-year 0.39 0.39 0.38 3-year 0.49 0.49 0.47 4-year 0.65 0.64 0.63 5-year 0.84 0.83 0.83 7-year 1.26 1.25 1.26 10-year 1.75 1.74 1.77 7 http://www.federaireserve.gov/releases/H I 5/update/ 11/5/2012 ragc; 3 U1 -t 30-year 2.62 2.62 2.64 Corporate bonds Moody's seasoned Aaa is n.a.** n.a.** n.a.** Saa n.a.** n.a.** n.a.** State & local bonds 16 n.a. Conventional mortgages 17 3.39 Markets closed. As a result of the disruption caused by Hurricane Sandy, Moody's offices have been closed since Monday, October 29, 2012. Therefore, corporate bond data are currently unavailable. As part of the market disruptions and closures associated with Hurricane Sandy, the major brokers were closed on Tuesday, October 30, 2012. As a result, the daily effective rate for Tuesday, October 30, is the same as Monday, October 29. n.a. Not available. Footnotes 1. The daily effective federal funds rate is a weighted average of rates on brokered trades. 2. Weekly figures we 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 (w��.federalrese�e.gov/relea,se,Vci) ). 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. http://www.federalreserve.gov/releases/H 15/update/ 11/5/2012 8 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 larther information, see ��.federairese�e.govfboarddoc�/pressibereg/2002/2002103 1�/defiault.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.federaireserve.jzov/releasesihI5/dat-,i.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-yeahr nominal rate. The historical adjustment factor can be found at www.tre�su�.gov/resource-center/data-charl-center/interest-rateq. 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 wNv%v.treasti�.2ov!resotirce�enter/data-chart- center/interest-rate . 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 (ISDAO) 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 ISDAFIXOL ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited. 15. Moody's Am rates through December6, 2001, are averages of Am utility and Am industrial bond rates. AsofDecember7, 2001, these rates are averages of Am 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 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 onthe 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). 1 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. 9 http://www.federaireserve.gov/releases/H I 5/update/ 11/5/2012 1161 1 VL Commercial Paper Summary Rates Volume Statistics Outstanding Year-end Maturity Distribution About Announcements Commercial Paper Rates and Outstanding SummaryDerived from data supplied by The Depository Trust & Clearing Data as of November 2, 2012 Posted November 5, 1 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. This policy is subject to change at any time without notice. Rates .Period AA nonfinancial 1- day 0.37 0.41 0.43 0.40 0.38 1 A2/P2 nonfinancial 1- day 7- day Is- day 30- day 60 day 90- day 7- day Is- day 30- day 60- day 90- day Oct. 29 0.17 0.22 0.16 0.18 0.19 0.21 0.43 0.41 0.49 0.61 n.a. Oct. 30 0.27 n.a. 0.15 0.17 n.a. n.a. 0.47 0.49 0.49 n.a. n.a. Oct. 31 0.06 0.12 0.13 0.15 0.16 0.21 0.45 0.45 0.48 0.49 0.50 Nov. 1 0.11 0.11 0.13 0.15 0.16 0.15 0.45 0.44 0.45 0.43 0.40 Nov. 2 0.08 1 0.10 1 0.13 1 0.15 1 0.15 0.16 0.43 0.45, 0.1;�J 0.52 Note: n.a. indicates that trade data was insufficient to support calculation of the particular rate. Period AA financial 1- day 0.21 0.27 0.27 0.24 0.24, AA asset -backed 1- day 7- day is- day 30- day 60- day 90- day 7- day IS- day 30- day 60- day 90- day Oct. 29 0.10 n.a. 0.15 0.15 0.17 0.20 0.27 0.27 0.27 0.31 0.35 Oct. 30 0.07 n.a. n.a. 0.15 0.17 0.20 0.32 0.28 0.24 n.a. 0.23 Oct. 31 0.15 0.08 n. a. 0.14 0.17 0.19 0.26 0.26 0.27 0.31 0.35 Nov. 1 0.11 0.12 0.11 0.13 0.15 0.20 0.31 0.29 0.27 0.28 0.31 I Nov. 2 1 0.10 1 0.11 1 0.13 1 0.15 0.20 0.24 027T 0.22 1 0.28 1 0.32, 0,2�9 Note: n.a. indicates that trade data was insufficient to support calculation of the particular rate. Outstanding Levels Seasonally adjusted Billions of dollars 10 https:Hfederalreserve.gov/releases/cp/ 11/5/2012 r-dgl: / UL Period Total Nonfinancial Financial Asset- backed Other Total Domestic I Foreign I Total EDomestic I Foreign Monthly -end levels 2012-June 966.0 177.5 147.31 30.2 469.7 280.9 188.8 318.81 .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 .0 Sept. 976.0 179.4 139.8 39.6 495.0 269.9 225.1 301.3 .3 Oct. 967.9 182.3 136.8 45.5 493.0 284.4 208.6 292.3 .3 Weekly (Wednesday) levels Oct. 3 975.1 189.2 148.81 40.3 492.21 257.5 234.7 293.2 .4 Oct. 10 964.9 188.7 145.31 43.4 484.31 249.4 234.9 291.4 .5 Oct. 17 943.6 186.8 141.7 45.1 472.4 244.9 227.4 284.0 .5 Oct. 24 924.4 186.9 138.7 48.2 462.7 245.9 216.8 274.3 .5 Oct. 31 945.8 184.2 137.9 46.4 478.0 271.4 1 206.7 1 283.0 1 .5 Not seasonally adjusted Billions of dollars Period Total I Nonfinancial Financial Asset- backed Other al Domestic - Foreign Monthly -end levels 2012-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 Oct. 948.4 200.9 157.7 43.2 451.3 272.1 179 2 295.7 .5 Weekly (Wednesday) levels Oct. 3 972.1 202.0 161.2 40.8 465.2 273.0 192.2 304.4 .4 OCL 10 961.4 200.5 155.3 45.2 456.8 263.7 193.1 303.6 .4 Oct. 17 964.7 207.0 160.9 46.0 458.4 266.5 191.9 298.9 .5 Oct. 24 969.0 205.6 159.5 46.1 465.2 275.7 189.5 297.7 .5 Oct. 31 1 948.4 1 200.9 157.7 43.2 451.3 272.1 179.2 295.7 .5 Return to to 11 hftps:Hfederalreserve.gov/releases/cp/ 11/5/2012 OF T INVESTMENT ADVISORY BOARD Meeting Date: November 14, 2012 TITLE: Pooled Money Investment Board Report for September 2012 BACKGROUND: Correspondence & Written Material Item B The Pooled Money Investment Board Report for September 2012 is included in the agenda packet. RECOMMENDATION: Receive & File -94ALA� Robbeyn eird, Finance Director POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF SEPTEMBER 2012 WITH SEPTEMBER 2011 (DOLLARS IN THOUSANDS) 'SEPTEMBER M2 spwrm'am gol t Average Daily Portfolio $ Accrued Earnings $ Effective Yield Average Life -Month End (in Days) 60,044,038 $ 17,157 $ 0.348 % Pt, P1 61,490,914 $ -1,"6,876 19,074 $ -1,917 0.378% -0.03% 236 +6 Total Security Transactions Amount $ 13,396,219 $ 19,653,209 $ -6,257,990 Number 268 396 -127 Total Time Deposit Transactions Amount $ 1,470,000 $ 2,488,000 $ -1,018,000 Number 74 112 -38 Average Workday Investment Activity $ 782,380 $ 1,064,343 $ -271,963 Prescribed Demand Account Balances For Services $ 1,910,786 $ 1,679,943 $ +230,843 1 BILL LOCKYER TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLEDMONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) September 30, 2012 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOLIN PORTFOLIO PRIOR MONTH Government Bills $ 18,622,718 29.95 +11.72 Bonds 0 0.00 0 Notes 16,030,416 25.78 -0.79 Strips 0 0.00 0 Total Government $ 34,653,134 55.73 +0.93 Federal Agency Debentures $ 1,288,371 2.07 -0.08 Certificates of Deposit 5,550,000 8.93 +0.23 Bank Notes 0 0.00 0 Bankers'Acceptances 0 0.00 0 Repurchases 0 0.00 0 Federal Agency Discount Notes 4,493,107 7.23 -0.22 Time Deposits 4,402,640 7.08 -0.16 GNMAs 9 0.00 0 Commercial Paper 824,860 1.33 -1.70 FHLMC/Remics 289,018 0.46 -0.04 Corporate Bonds 0 0.00 0 AB 55 Loans 276,083 0.44 -0.01 GIF Loans 10,004,700 16.09 +11.07 NOW Accounts 0 0.00 0 Other 399,952 0.64 -0.02 Reversed Repurchases 0 0.00 0 Total (All Types) $ 62,181,874 100.00 INVESTMENT ACTIVITY SEPTEMBER 2012 AUGUST 2012 NUMBER AMOUNT NUMBER AMOUNT Pooled Money 268 $ 13,395,219 "1 $ 21,807,290 Other 29 669,147 19 359,278 Time Deposits 74 _ 1 �470,000 102 1,994,980 Totals 371 $ 16,534,366 562 $ 24,161,648 PMIA Monthly Average Effective Yield 0.348 0.377 Year to Date Yield Last Day of Month 0.363 0.370 Pooled Money Investment Account Portfolio Composition $62.2 Billion 09/30/12 Corporate Boi 0.00% Commercial Pap( 1.33% Time Deposits 7.08% CDs/BNs 8.93% Loans Mortgages 0.46% Treasuries 55.73% Ak OF BOARD MEMBER ITEMS