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2013 01 09 IABry go - W#M Investment Advisory Board agendas and staff reports are now available on the City's web page. wwwdo-gainta, INVESTMENT ADVISORY BOARD AGENDA CITY HALL CAUCUS ROOM 78-495 Calle Tampico, La Quinta REGULAR MEETING on WEDNESDAY, JANUARY 9, 2013 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 I - Approval of the Minutes of December 12, 2012 CONSENT CALENDAR Receive and File Treasurer's Report for November 2012 BUSINESS SESSION - None CORRESPONDENCE AND WRITTEN MATERIALS 1 Month End Cash Report, December 2012 and Pooled Money Investment Board Reports - November 2012 INVESTMENT ADVISORY BOARD AGENDA 1 JANUARY 9, 2013 BOARD MEMBER ITEMS — None ADJOURNMENT The next regular meeting of the Investment Advisory Board will be held on February 13, 2013, 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 January 3, 2013. DATED: January 3, 2013 VIANKA ORRANTIA, Senior Secretary City of La Quinta, California Public Notices The La Quints 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, twenty-four (24) hours in advance of the meeting and accommodations will barnacle. 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 (1) 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 (5) 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 Quinta, California, 92253, during normal business hours. INVESTMENT ADVISORY BOARD AGENDA 2 JANUARY 9, 2013 INVESTMENT ADVISORY BOARD MINUTES WEDNESDAY, DECEMBER 12, 2012 CALL TO ORDER A regular meeting of the La Quinta Investment Advisory Board was called to order at 4:08 p.m. by Vice -Chairman Mortenson. PRESENT: Board Members Mortenson (4:08), Park and Spirtos ABSENT: Board Member Blum and Donais STAFF PRESENT: Finance Director, Robbeyn Bird, Mr. Bryan Gruber, Audit Manager, Lance Soil & Lunghard LLC, and Senior Secretary, Vianka Orrantia PUBLIC COMMENT - None Yvonne Ferra, Student at College of the Desert and resident of the City of La Quinta was present durin ,g the Investment Advisory Board meeting to observe the functions of the Investment Advisory Board and the process of the investments made within the City. i CONFIRMATION OF AGENDA Ms. Bird requested that upon approval of the confirmation of the agenda that Item 1 of the Correspondence and Written Materials be the first item of discussion. Motion - A motion was made by Board Members Spirtos/Park to approve the agenda, as amended. Motion passed unanimously. At this time Consent Calendar, Item 1 was discussed. APPROVAL OF MINUTES Approval of the Minutes of November 14, 2012 Motion - A motion was made by Board Members Mortenson/Park to approve the Minutes of November 14, 2012. Motion passed unanimously. INVESTMENT ADVISORY MINUTES I DECEMBER 12, 2012 CONSENT CALENDAR ITEMS 1 - City of La Quinta FY 2011/2012 Audited Financial Statements Mr. Gruber presented the Audited Financial Statement for year ended June 30, 2012. Mr. Gruber advised the Board on the audit and the audit process. He further advised that the audit process is conducted in two steps: 1) Interim Audit, which is conducted during the month of June, at that time the City's internal controls are reviewed. These procedural controls are in place to protect the City's assets and to ensure proper financial reporting. Mr. Gruber further advised that at this time there are various tests and various verifications to the City's policies and procedures to design an audit program during the second phase of the audit. In response to Board Member Spirtos, Mr. Gruber gave examples of "tests" conducted during the audit of the City's policies and procedures. Mr. Gruber further advised that the second phase of the audit is conducted after the year-end (during the month of August, 2012); at this time the amounts of the disclosures that are reported in the financial statements are audited, in addition, to confirming investments amounts through third party confirmation letters. The first letter issued to the City is in accordance with auditing standards and various other standards that are related to this particular communication. As a result, the final report issued to the City is the independent auditors report (the financial statements), which is an unqualified opinion and the best opinion that could be received in a financial statement audit. In addition, another form of communication is a report of internal controls and compliance, which there were no noted material weaknesses or issues of non-compliance for fiscal year ended June 30, 2012. Mr. Gruber advised that the most significant impact to this year's Comprehensive Annual Report is the dissolution of the Redevelopment Agency. As of a result of the dissolution, the reporting of the RDA holdings are reported as all former RDA assets taken from the City and held in a separate "Fiduciary Trust" account. Mr. Gruber advised that on page 3, the City provides a management discussion and analysis which provides an overview of the audit. Mr. Gruber further advised that page 46 of the financial statements is a reporting of cash and investments according to GASB 40. In response to Board Member Spirtos, Mr. Gruber advised that the reporting of the RDA within the financial statements were the first seven months of the fiscal year and at that time was still considered the "Redevelopment Agency" and not yet the Successor Agency. . INVESTMENT ADVISORY MINUTES 2 DECEMBER 12, 2012 In response to Board Member Mortenson, Mr. Gruber summarized for the Board the process of the financial statements. The Board at this time thanked Mr. Gruber for his attendance. 2. Transmittal of Treasury Report for October 2012 Ms. Bird presented and reviewed the staff report for the month October 2012. In response to Board Member Spirtos, "Other" represents the amortization of footnote 2 also on page 2. Ms. Bird clarified that page 2, Column premiums/discounts, and is clarified in It was suggested by the Board that staff consider retitling this column. Motion - A motion was made by Board Members Spirtos/Mortenson to review, receive and file the Treasurer's Report for October 2012, as submitted. Motion passed unanimously, BUSINESS SESSION - None CORRESPONDENCE AND WRITTEN MATERIAL 1. Month End Cash Report, November 2012 and Pooled Money Investment Board Report - October 2012 Ms. Bird advised that at the direction of the Board at the previous Board meeting, staff combined the Pooled Money Investment Board Report with the Month End Cash Report. Ms. Bird presented and reviewed the Month End Cash Report for the month of November and the Pooled Money Investment Board Report for October 2012. Noted and Filed. BOARD MEMBER ITEMS Ms. Bird reminded the Board that the joint Board/Commission meeting with the City Council is scheduled for Tuesday, January 22, 2013 at 5:00 p.m. at the La Quinta Library. The City Clerk's office has requested RSVPs no later than January 8, 2013. INVESTMENT ADVISORY MINUTES 3 DECEMBER 12, 2012 Mr. Bird requested that the February 13, 2013 Board meeting be rescheduled. Staff will follow-up with the Board on available dates. ADJOURNMENT Th . ere being no further business, it was moved by Board members Spirtos/Park to adjourn this meeting at 4:47 p.m. Motion passed unanimously. Viankaprrant'la, Senior,teci City of La Quinta, California INVESTMENT ADVISORY MINUTES 4 DECEMBER 12, 2012 INVESTMENT ADVISORY BOARD Business Session: 1 Meeting Date: January 9, 2013 ITEM TITLE: Transmittal of Treasury Report for November 30, 2012 BACKGROUND: Attached please find the Treasury Report November 30, 2012 RECOMMENDATION: Review, Receive and File the Treasury Report for November 30, 2012 e�-A� aizJ Robbeyn'gird, Finance Director MEMORANDUM TO: La Quinta City Council FROM: Robbeyn Bird, Finance Director[Treasurer SUBJECT: Treasurers Report for November 30, 2012 DATE: December 31, 2012 Attached is the Treasurer's Report for the month ending November 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 Beginning I Purchased Notes I Sold/Matured Other Ending Change LAIF Interest bearing active bank deposit 29,646,825 39,972,429 $ 400,000 14,578 $ (3,800,000) 0 0 $ 26,246,825 39,987,007 (3,400,000) 14,578 Certificates of Deposit 480,000 480,000 0 US Treasuries US Gov't Sponsored Enterprises Commercial Paper Corporate Notes 70,992,223 - 32,000,000 (42,000,000) 38,1147 0 0 61,031,070 0 0 0 (9,961.153) 0 0 0 Mutual Funds '7:6� 22 1,794 2 .. .. 16 Subtotal 1 $ 1A3:15F8 $ 32.4 5 00 19:2 $ (45,800,00 Ng 69 $ (13,3319!Z859) Cash I s o7ox-761T 1 (1) & (3)1 $ 12,019.6 ),988,854 $ 12,019.6 Total 1 $ 142,557,903 1 $ 32.419,5 00 1 1 $ (33.780,385)1 $ 40.641 1 $ 141,237.659 $ (1,320,2-4-4)1 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. RW11 , 16., -3 ardl Date Finance DirectorfTreasurer Footnote (1) The amount reported represents the net increase (decrease) of deposits and withdrawals from the previous.morth. (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 refiect 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 November 2012 Cash Balances - The portfolio size decreased by $1.32 million to end the month at $141.24 million. The major reason for the decrease was due to payments of $888 thousand for the police contract and the Capital Improvement Program expenditures were $625 thousand. Investment Activity - The investment activity resulted in an average maturity increase of 139 days from the prior month to end the month of November at 161 days. The Treasurer follows a buy and hold investment policy. During the month of November, US Treasury Notes of $30 million matured, of which $10 million was invested in LAIF and $20 million was reinvested in US Treasury Notes, Certificates of Deposit remained the same as the prior month, and US Treasuries of $12 million matured and were reinvested in US Treasuries. The sweep account earned $6 in interest income for the month of November and the bank fees for the month were $1579 which resulted in a net decrease of $1,573 in real savings. Portfolio Performance - The overall portfolio performance remained the same as the prior month and ended at .36% for the month, with the pooled cash investments at .49%. The portfolio yield should continue to stay at these levels for the near future. At this time last year, the portfolio was yielding .37% which reflects the current interest rate environment. Looking Ahead In the short term, the Treasurer will be investing in negotiable certificates of deposit, short term commercial paper or GSE paper and rolling over bond proceeds and reserves into U.S. Treasury bills or notes. 3 E E 16 2 E 8g. a? c 6 A ag 6 cl N. ae aR 6 0 so Eo S S c c as I m 22 -4 E 02 z Mel? 0 m 0 E x z m e zi E E L T e T 0 E 0 ul 60 E 0 0 "6 z 16 E E E , mm 9 E E o� E ,E�. 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CL as G Z�E t I ! —1 M R G, �2 A § I sl r 0 HOW 22 Hai E I 21Na Mel I A A 9� .. . ....... . ....... . .... ma OHM TXV V- I HIM Ran - - - - - - - - I - - - - - - - AMH �gg HUME B" i Mig PH �� ,R� E P e R Ag� u.m iff R OHM Hg� 2- E991 FIR AE mu RmaR Z§ M—HK AH 9 ......... 46 9 ........ -Magg'- 91 M- �§Gl RH EVER io EZI& zfl MB F9 S�'T MR mg. -I M Ell m M" J t7i �P, aim 0 0 Zq C-4 Mo Lo 0 Ci c; 19 C5 CK,� a C5 .6 0 C,5 t2 c4 16 Ro . . . 01 i N . 9 R .6 N So Iq o oN u R m c5 m -v - j 10 d ';2 cK IR m �EL z c. ca Cc 0 2L SO Ul o .E 2 7ja — w 0 wJ 0 W. x '2 Ld N ml S a �— Iq PA 1�; M w E 27 3 a 0 N City of La Quirde Comparative Rates of Interest November 30, 2012 City of I-c, Wind, Year Month Annualized Earmums Average Maturity (days) Treasury BWWNote Three Month Non -Financial LAT Ral --i _799A Pooled Cash Fiscal About 0..11 Three Month Six Month One Year Two Year FY 08109 July 2008 2.09% 1,93% 2.77% 62 170% IN% 229% 2.76% 218% August 21)(H) 3,16% 1.92% 288% 51 1.69% 189% 214% 238% 208% 278% Sep2008 281% 1.92% 264% 37 142% 179% IN% 200% 2.13% 277% Oct 2008 266% 2,61% 261% 29 090% 1,40% 172% 1.50% 207% 2.71% Noy 2008 238% 2,36% 236% 016% 0,49% 1.04% 1 25% 146% 2Z7% Dec 2008 1.60% 0,18% 1,42% 116 005% 0,25% 0,59% 0.88% 0.97% 2,35% Jan 2009 I.W% 0.18% 123% 82 015% 036% 043% 088% 031% 205% Feb 2009 123% 0,18% 1.11% 75 030% 0�60% 0,61% 0�811% 048% 187% Mar2009 1.26% 0.18% 1,13% 69 0,20% 042% O�70% 088% 037% 182% AJpr2009 0'"% 0,18% 085% 54 0,31% 033% 059% 088% 028% 161% May 2009 0.92% 0,10% (),"% 80 OA8% 030% 053% ON% 023% 1 53% June 20N OJ85% 029% 0,80% 111 020% 035% 055% 1,13% 026% 138% FY 09110 July 2009 069% ON% 0,65% Ill 019% 028% 047% IN% 028% 104% August2009 0,64% 030% 061% 92 0.16% 026% 046% 100% 024% 093% Sept 2000 056% 031% 053% 112 0 12% 0 19% 041% 100% 019% 075% Otn 2009 052% 031% 050% IN 008% 0,19% OW% 100% 019% 065% Ncy 2009 0%% 031% 053% 152 0.04% 014% On% 075% 015% 061% Dec 2009 0 N% OA5% 0,51% 239 011% 020% (J16% 100% 016% 057% Jan 2010 0,46% 016% 043% 179 006% 014% OU% 088% 013% 056% Feb2010 0,51% 016% 0"111% 162 0.13% 019% O,K% ON% 015% O'N% Mm20lO OW% 016% 0,47% 172 0 15% 024% 038% IN% 020% OM% AV 2010 052% 016% 0,48% 162 015% 0,24% 049% 100% 023% 059% May2010 052% 016% 00% 116 0,17% 022% 037% 075% 028% 056% June 2010 048% 010% ON% 134 016% 022% 032% 063% 032% 053% FY 10111 July2010 050% 015% 047% 119 016% 020% 030% 063% 028% 063% Augus[2010 049% 0,15% 046% 108 015% 019% D 26% 038% 025% 051% 5ept 20 10 055% 015% 051% 107 016% 0.19% 027% 038% 024% 0,150% Obt2OIO 0,65% 0,15% 051% 88 013% 0,17% 023% 0.38% 023% 0�0% Noy 2010 053% 0 15% 049% 84 018% 021% 0,28% 050% 023% 0,45% Dec 20 10 0,57% 0,14% 052% 265 G15% 0,19% 0,30% 0.63% 023% O��% Jan 20 11 0,61% 0,14% 0,43% 206 016% O.IB% 028% 0,63% 024% O!p1% Feb 2011 0,55% 0.17% 0,46% 210 015% 0,17% 0,31% 063% 023% 051% Mar20ll 0 5,t% 0,17% 0,45% 218 0.05% 013% 0,26% 076% 023% 060% Ap,2011 0.69% 0,17% 0,48% 192 0.05% 010% 020% 063% 0,20% 0,59% Mah,2011 00% 0 17% OA1% IN 006% 012% 020% 0,50% 0.16% 041% June 2011 053% 000% 035% 126 003% 0,10% 020% 038% 0,15% 045% FY I Ill 2 July 2011 053% 000% OM% 112 007% 0.12% 0,15% 020% 0.14% OM% August 2011 0,60% 0.00% 038% 102 002% 005% 0,10% 0.13% 010% 041% Sept2011 058% 003% 039% 124 G,02% 0,06% TOP% 013% 014% 038% Oct 2011 0,53% 003% 035% 117 0,01% 006% 0 12% 0,25% 0 15% 039% Noy 2011 OQ% 003% 037% 9,1, 003% 007% 0 113% 025% 014% 040% Dec 2011 OA8% 003% 0.35% 86 0,02% ON% 011% (113% 0,14% ON% Jan 2012 0.45% 003% O�34% 74 005% 008% 011% 025% 014% 039% Feb 2012 OA9% OJ05% 0,36% 72 0.12% 0 15% 0 17% 025% 0 17% 039% Mar2012 O'Pt% 005% 034% 74 008% 0,14% 0,19% 025% 018% 038% Apr2012 044% 009% 035% 61 010% 015% 019% 025% 0.20% 0,37% May 2012 043% 009% OU% 62 OOM 014% 0 1 gi; 025% 019% 0,36% June 2012 038% 008% 029% 47 010% 015% 021% D25% 021% 036% FY 12J13 JuIy2G12 14�% 008% 031% 112 011% 015% 018% 022% 022% 036% Abgust2012 04 % 008% 029% 31 011% 014% 020% D25% 0,20% 038% Sep12012 043% 0 09% On% U 011% 014% 018% 0,25% 020% 035% OcI2012 047% 0.10% 036% 22 013% 016% 0,18% 025% 0.19% O.U% 10 C14 E 0 z CN E w C14 (D m E 0) < U) z o 2� 2 E Cq 2 E CM C14 21 C4 E w C5 U) c a 0 �4) d) < 0 C 0 C cc N 4) C) W 0 w Q C� CJC3 Cl) L<4 C) C> C) ci ci ci 11 INVESTMENT ADVISORY BOARD Correspondence & Written Material Item 1 Meeting Date: January 9, 2013 TITLE: Month End Cash Report for December 2012 and Pooled Money Investment Board Report for November 2012 BACKGROUND: The December 31, 2012 Month End Cash Report is hereby submitted for your review. This cash report is not a complete Treasury Report and excludes petty cash, deferred compensation and fiscal agent balances. Selected cash balances are reported to provide current cash balances to the Board. In addition, the Pooled Money Investment Board report for November 2012 is included in the agenda packet. RECOMMENDATION: Information item only. Robbeyn BiPd, Finance Director 6 6 6 6 6 �2 �2 �2 V Ci ci C6 ca ci v IQ ol M Zq mq I c; 42 -OE w w o z w <j 0 E �.cC ou 11 Bill Lockyer, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund (LAIF) PMIA Performance Report DaW�, r0aWY JbId: atuiity �L, f 12/1312012 0.34 0.33 239 12/14/2012 o:14 0.33 236 12/15/2012 0.34 0.33 236 12/16/2012 0.34 0.33 236 12/17/2012 0.33-- 0.33 2261 12/18/2012 0.33 0.33 2251 12/19/2012 0.33 0.33 2231 12/20/2012 0.33 0.33 2241 12/21/2012 032 0.33 223 12/22/2012 0.32 0.33 2F3 12123/2012 0.32 0.33 2E 2 3?1 2 353 220 11212�L250,1? JF 25/2 21 0�52 0�5 220 112/26/20121 0.321 0.33 220 -uaily yielo was not reflect capital gains or losses LAW 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 PMIA Average Monthly Effective Yields NOVEMBER 2012 0.324% OCTOBER 2012 0.340% SEPTEMBER 2012 0.348% Pooled Money Investment Account Portfolio Composition $60.0 Billion 11/30/12 Corporate BondE 0.00% Commercial Paper 2.50% Time Deposits 7.27% Treasuries 56.32% CDs/l3Ns 6.08% Ag 1.0070 Mortgages 0.45% 3 TreasuryDirect qcjm , Jnytaurtl , Aormumernorts, Van, � kesults lat,t pit riduft, Recent Bill Auction Results .... W I ... 1. Maturity orea,mr, a., - Term a.. Data M. . a.,. Z I... Cali WEEK 01 03 2013 01 31 2DI3 Ob75 0 Y`6 9degal 912795707 -WE, , 12 27 2012 01-24 2013 ...5 a.. 99.9%. 9127%7� " WEEK 12 27 2012 03 28 20tl 0085 0 Oft Is 918514 912795Z61 26 WEEK 12-27-2012 06 27-20" 0 111 0 132 99M4228 91279MW6 4 WEEK 12 20 2012 01 17 2013 0015 a ols as.998833 912795781 0 WEE. 12-20-2012 03 23-2013 card Goal 99 98Wdea 9127957M7 26MEEK U 2D-2012 M-20-2013 how Q.09r Goe.30D 9121.T 3 MY 12 14 M12 12 17-2012 am trust 99 99921. 9t2M.113 4-WEEK �2-13-2012 wl-�0-20�3 Jd50 0 OS� 99 996 Ill 9127955V9 13 WEEK 2 3 20 2 03 4 20 3 a Old 0 09 Is 977250 9127957l9 26 W Ed K 1 2- �3-20:2 05 :3 2013 C.;35 0 gg,:31750 9127961 52-WEEK 12. 3 20 2 12 2 W13 a Ed ;37 0 Q 99 Ill 912�Wi It -DAY �2 Cal 2 12-17-2W2 0.165 0167 99 99ag" 912�971 4-WFEK 2�06 20�2 0 1-03 2013 0 ow am, 99995333 90.56N 3 . E K ;6ZEEK �2 W20 �2 03 7 20 �3 0 (0 0. 1 9 977250 9 9127956E6 2 06-20 2 06� 06 20 3 0090 140 0 142 99 s29222 912795�8 4 WEEK 11 29 2012 12-27 2012 0.175 0.177 " 986389 9127955Y2 ;3 WEEK 11-29-2012 02 28 200 0.100 orror %,97�722 9127957l frWEEK 1�-2" 20 :2 Ol 2D13 0 145 0147 99 926694 9127956R7 21 MY 1 23 20 2 12-14-2012 0 iss 0 157 99 990958 9127961)[16 4 WFEK 11 23."12 12 20-2012 0 155 0.15� 99 988375 9121956X4 13-WEEK 13 23 2012 02-21 2013 00% 001 99 977WO 9127957GO 26 WEEK 't_'3-2012 05-23-2013 0.115 0.137 99 932125 912796a.2 4 WEEK 11 15 2012 12 13 2DE2 0,145 0,147 " 963 722 912"'55cO 46 MY 11-15 2012 12 31-2012 0.190 0193 %o75722 912 MIAMI 13-WEEK 11 15 M12 02-14 2013 010 01% Ell 93275571� 26 WEEK 11-15�2012 05-16-2013 0 145 0,147 99 926GN 91I.79MG4 52-WEEK it Is 2012 11-14-2013 1 ad 0,83 99 $18000 90196AE9 4 WEEK 11 M2012 12-06-2032 O.,b) (l 99 `?90661 912795il 42 MY 11-08-2012 L2-� 2OL2 Crin 0.127 99,98l 17 912795U4 13-WEEK 11 W 2012 02-07 2013 0105 0106 99 97.18 912795%N) 26 WEEK 11-Oul 05 01,20D 0,150 0 152 9l 91279doF6 4 WEEK 11 01 2012 11-29 2012 0 130 0 132 99 g8ol 9127955LJO It WEEK ll-01-2012 01-3J-20I3 0 325 0,127 99 SEEM., 9127957137 25-WEEK 1101-2032 05-0�-2013 CTESD 0.162 as star IT 401956W 4 WEEK Jell 41 23 2012 0.125 0.127 99 gswy31 912795613 13 WEEK 10-25-2012 01-24-2013 (l 0 101 99.974722 9I27957C9 26-WEEK 10 25 2012 N 25 20oI 0 150 0 152 99,924167 91279MBS 4 WEEK 10-18 2012 11-15-2012 0 123 0.127 99 9WZ78 912795SLI 13-WEEK 10 18 2012 01-17-2013 0,105 0.106 99 97MSS 912795781 Effective with the 11/2/98 auction, all bills are auctioned using the single -priced method Act a d�j I L,,rp9t.� I Adel I Aq,,pbw I Mr. Qrn, v.5� theraumpt ,, .,e or bill ,,ot http://www.treasurydirect.gov/RI/0FBills 1/2/2013 4 ir�5 PLucaun-Kesuits -Fage7I-0T1- TreasuryDirect HAUX: I b`�- emmal I Rew!5 I U1,R.A1Q1Q11,L%1t1 � PlYnt Nq�, E.., �,,d IWS Recent Note, Bond, and TIPS Auction Results S.cu'." T.'. Teed I.. M..'dY Intw.." Yield IN,l. DAN, D.� R., % , .' STTAQ CUSw 2-YEAR NOTE 12 31 2012 32 31-2014 0125 0245 ".760733 91282SUM 4 WAR 4-MONM TIM 2 3� 20 �2 N 15-"0 0 125 -1.49N IN9.103SU7 912828SQ4 , YEAR NOTE , 2 3 WO 2 12 3t '0 7 0750 0,769 99.906978 91282OUEB 7- YEAR NOW 12 33-2012 12-31 2019 1 125 1 233 99.277836 91282SUFS 3 WAR NOW 12 V 2012 12- 15_ m 5 0250 0 327 99.770732 912USUC2 �WAN 11 MNTN NNW , I 'N',, 1 625 1 6S2 99.753105 gT28?FM 29-WAN 1 �-N. No 2-11 200 11 15-20,2 2,150 2�90 96 6'..26 �' mlixiy' 2 YEAR NOTE 31-30 2012 11 30 2014 0250 0 270 SIN 960T35 9�2828TIJ , WATi NOTE 11-30 2012 11-30 2017 0,625 064� 99 92 T 392 9T2828UM 7 WAR NOW 11 30 2012 11 30 MT9 I " ',.5 99.6970CM3 �TZSMUM 9 WAR 8 MQNW1 TEM 11-30-20U2 07 15 M22 0 l25 -0 7M Nid-1011XX) 9T282MO 3 WAR NOTE 11-15-2M 22 15 M5 0375 0 392 99 %9ma 912928TY 8 10 WAR NOTE 11-35-2012 11-15-2M 1 625 1 &`5 N9 �,1393 9128281� 30 YFAN BOND t 1 15 201 � 11-35 20,12 2,150 ? 820 9. smss 912MC)QY7 2 WAR NOW 1 0 31 M12 10-31-2T)14 0250 0 295 99.91033T Rl2RM)T,,`, '- WAR NOTE TO-3; 20 2 7 0,750 0 714 99882515 912028MO NOTE 10 3 20�2 ;�3:-M 0 3 ��q I 2� 11�7 W.Mwe 912828TN2 .7-YEAR 29 'YEAR 4-MONTN TIPS 10 31-2012 02 15 2042 0.750 0479 109477%3 9128TOQV3 3-YEAR NOTE 10 15�2012 10-15-1015 0,250 0 346 99 713736 91282 3117 9 WAR 10-MONT4 NOTE 10-15-MIZ 08-15-422 1625 T,700 99 321876 91282UJ9 29-WAR JO-NK)NNH EOND 10-15-201? (IN 15-�2 2.1,11 2.90e 96 936227 932810QX9 2-nAR NOTE �00-��2012 ENT 30 2014 0.250 0 M 99,9�218 91282UTQ3 5 WAR NOTE 0 -2D12 1)9-30-201? 0.625 06'17 99 691N85 91282Mg 7 YEAR NOTE JO 01 2012 09 30 1019 1,000 1055 99,629938 91232STRI 9 WAR 10,MONTH TWS Eli 28 W12 07 15 M22 0.125 0,750 ITAR522783 912928THO 3-WAR RYW (Mi 17 2012 M-15 MT5 0 25D 0337 99,741M5 91282SW5 9 YEAR 11-MURIN NOTE M-17 W12 ON 15-2022 1625 1�7" 9&M0142 9IM28TY9 29'WAR I I-MOKH BOND 09-11-2012 �l 5.�2 2.750 2 8% N I 088"a 9l28100�9 2 WAR NOTE 011-31-.�12 08-31-2014 0�210 0 213 99954157 912828114 4 YEAR 8-MONTH TIPS 05 31-2012 114 15-2011 0 12S 1.286 107,850753 912828SQ4 S-YEAR NOW N 31 20U2 OR 3� 20T7 0,625 0 108 99,59�67 91282PMI 7 WAR NOTE 08 31-MU2 03-M MT9 i.000 IMT NO 455337 9128MTA) 3-WAR NOTE 08 15 2012 043,15 M11 0250 0 370 99 6,42320 91287RTK6 JO-YEAR NOTE 06 15-2012 08-15-2022 1 625 T GTO 99",95660 912828TY) 30 YEAR SOND 08 1 S.MJ2 08.15-7N2 2 150 2 $25 98,4114169 91�81(Oeg 2-WAR NOW 07 31-2012 07-31-2014 0125 0220 99,810521 91282ST11 5-WeA NEW 07-31 20Q 07 31-MT7 0.500 0,58e 99,53665 7 91282M5 7 WAR NOTE 07 31 W12 07-31 M19 0.875 0 IiNi 99 46�2% 9T202M 3 10 WAR TVS 07 3T-2012 07 T5 2022 0 T25 0637 107.779708 912828TEO 3-YEAR NOTE 07 16 2012 07�15�2015 0 250 0 366 99.654528 9T282SM2 DiEriotesTln borld; .11 dthelTIn �0..t lltd,,�k, �re ruite� Aq] JJV, & �10d�pm I f OyTlyk'�, NQUM, I iyp""N, TAMT, " �-)'Aitjolni I N�La O,"Illy V—S. http://www.treasurydirect.gov/RI/OFNtebnd 1/2/2013 5 Me H-demal-RZ-serve ys em lrag-e-l-oT-4- Selected Interest Rates (Daily) - H. 15 Current Release Release Dates Daily Update Historical Data About Announcernellt Release Date: December 28, 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. December 28, 2012 Selected Interest Rates Yields in percentper annum Instruments 2012 Dec 24 2012 Dec 25* 2012 Dec 26 2012 Dec 27 Federal funds (effective) 123 0.18 0.18 0.17 0.17 Commercial Paper id! § § Nonfinancial 1-month 0.13 0.12 0.11 2-month n.a. n.a. n.a. 3-month n.a. n.a. n.a. Financial 1-month 0.12 0.13 0.11 2-month 0.13 0.18 0.15 3-month 0.15 0.27 0.18 CDs (secondary market) 37 1-month 0.19 0.19 0.19 3-month 0.23 0.23 0.23 6-month 0.31 0.31 0.31 Eurodollar deposits (London) 2 L� 1-month 0.27 0.27 0.27 3-month 0.31 0.31 0.31 6-month 0.53 0.53 0.53 Bank prime loan 239 3.25 3.25 http://www.federalreserve.gov/releases/H I 5/update/ 1/2/2013 6 Board of Gove-m-ors of t1we FRe-ral-Re-serve System PWe-2-oTT-- Discount window primary credit 9 1_0 0.75 0.75 0.75 0.75 U.S. government securities Treasury bills (secondary market) 4-week 0.02 0.05 0.01 3-month 0.06 0.09 0.08 6-month 0.11 0.13 0.12 1-year 0.15 0.15 0.14 Treasury constant maturities Nominal 1-month 0.03 0.05 0.01 3-month 0.06 0.09 0.08 6-month 0.11 0.13 0.12 1-year 0.16 0.16 0.15 2-year 0.26 0.26 0.26 3-year 0.38 0.39 0.37 5-year 0.77 0.76 0.72 7-year 1.22 1.20 1.15 10-year 1.79 1.77 1.74 20-year 2.53 2.52 2.48 30-year 2.94 2,94 2.89 Inflation indexed 12 5-year -1.36 -1.35 -1.39 7-year -1.09 -1.08 -1.12 10-year -0.69 -0.71 -0.73 20-year 0.10 0.05 0.05 30-year 0.35 0.35 0.34 Inflation -indexed long-term average L3 -0.08 -0.09 -0.11 Interest rate swaps 14 1-year 0.35 0.35 0.35 2-year 0.41 0.41 0.41 3-year 0.52 0.51 0.50 4-year 0.68 0.67 0.66 5-year 0.89 0.88 0.86 7-year 1 1.32 1.30 1.28 10-year 1.83 1.81 1.79 7 http://www.federaireserve.gov/releases/H I 5/update/ 1/2/2013 %Jovemurs Or TrIe_r e=I_Keserve_3ysTeM —Fage-3—OrF- 30-year 2.75 2.75 2.72 Corporate bonds Moody's seasoned Aaa Is 3.68 3.68 3.62 Bee 4.65 4.64 4.58 State & local bonds 16 3.58 Conventional mortgages 17 * Markets closed. 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 Board's Commercial Paper Web page (\Yww.federalre,serve.2ov/release.s/ct)/). 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 CTRI3 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.federalre�er% e.t.,ov/boardd(ics/r)ress/bcrec�/2002/2002103 12/default.litm. 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.federalrese�e,pov/releases/h 15/data.htm. 8 http://www.federaireserve.gov/releases/H I 5/update/ 1/2/2013 ol (Jioveftlors—oT T]ffeF6cIe—rM Vne74-0rF-- 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 � w�v,tre&sun,.�,.oviresoLirce-cen(er/dala-ch�irl-cen(ei,,Iinterest-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.treastirY.2ov,,'res�)urce-centetidtita-chirt- 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 (ISDAC) 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 ISDAFIX91. ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited. 15. Moody's Aaa rates through December 6, 2001, are averages of Ana utility and Aaa industrial bond rates. As of December 7, 2001, these rates are averages of Ana 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 SurveyS 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.fedcralrcscrve.tov/). 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 -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 hftp://www.federalreserve.gov/releases/H I 5/update/ 1/2/2013 13oard ot Uovemors of the-H-deral-Re-serve Sys m - Pa-ge I-oT2- Commercial Paper Summary Rates Volume Statistics Outstanding Year-end Maturity Distribution About Announcement Commercial Paper Rates and Outstarlding Summary Derived from data supplied by The Depository Trust & Clearing _---------------- ___ ......... __ ......... ........... __ .... ..... ... __ ......... __ ................ Data as of December 31, 2012 Posted January 2, 2013 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 AA nonfinancial Period 1- - 7- �daydy is- IS- 30_ tyday 0-7 60- 90 90- day a z day day Dec. 26 0.14 0.12 0.08 0.12 n.a. n.a. Dec. 27 0.13 0.14 0.10 0.11 n.a. n.a. Dec. 28 0.15 0.13 0.11 0.12 0.15 0.18 Dec. 31 0.08 0.21 0.13 0.10 n.a. 0.19 Jan. 1 n.a. n.a. n.a. n.a. n.a. n.a. A2/P2 nonfinancial day 30- day 60- day go - day 0.37 0.44 n.a. th.a. 0.38 0.39 0.37 0.42 n.a. n.a. 0.38 0.37 0.37 0.40 0.44 n.a. 0.38 _n.a. 0.42 0.40 0.42 0.44 n.a. -na. -n.a. 1-n.a. _n. a. =n a Note: n.a. indicates that trade data was insufficient to support calculation of the particular rate. AA financial AA asset -backed Period 1- 1- 7- 15- 30- 60- 90- 30- 60- go - day day day day day day day 0.22 0.22 0.21 0.2 n.a. day day day Dec. 26 0.08 0.04 0.09 0.13 0.18 0.27 0.23 0.23 0.22 0.23 0.23 Dec. 27 0.11 0.06 0.04 0.11 0.15 0.18 0.32 0.22 0.23 0.31 0.26 Dec. 28 n.a. 0.02 0.03 0.05 0.09 0.23 0.25 0.24 0.25 0.29 0.24 Dec. 31 0.07 n.a. n.a. 0.05 0.09 0.12 1 0.20 0.24 0.28 0.32 Jan. 1 n. a. n.a. n. a. n. a. n.a. n. a. ::i n. a. I n. a. n.a. n. a. n.a. Note: n.a. indicates that trade data was insufficient to support calculation of the particular rate. 10 http://www.federaireserve.g6v/releases/ep/ 1/2/2013 Printer Version - Board of Gow-emors of tFe-FEde-rI-We-serve ystern Pa-ge 2-Uf - 2- Outstanding Levels Seasonally adjusted Billions of dollars Period Total :ial Financial Asset- backed Other Total Domestic I Fo ; ign re Total Domestic Foreign Monthly -end levels 2012-Aug. 996.6 186.0 41.9 500.0 283.1 216.9 310.7 .0 Sept. 976.0 179.4 139.81 39.6 49.5.0 269.9 225.1 301.3 .3 Oct. 967.9 182.3 136.8 45.5 493.0 284.4 208.6 292.3 .3 Nov. 984.5 190.0 140.7 49.4 500.8 284.7 216.0 293.1 .5 Dec. 1 1,009.7 207.8 158.8 48.9 508.2 297.4 210.8 293.3 .5 Weekly (Wednesday) levels Nov. 28 1,025.6 205.7 153.2 52.5 515.7 306.7 208.9 303.7 .5 Dec. 5 1,035.5 209.9 158.0 51.9 516.7 307.1 209.6 308.5 .5 Dec. 12 1,049.3 216.2 162.6 53.6 521.4 307.0 214.4 311.2 .5 Dec. 19 1,058.3 218.4 165.4 53.0 521.8 302.1 219.6 317.6 .5 Dec. 26 1,065.6 219.3 168.2 51.1 526.7 309.5 217.2 319.0 5 Not seasonally adjusted Billions of dollars Period Total Nonfinancial Financial Asset - backed Other Total I Domesl al Domestic Foreign Monthly -end levels 2012-Aug. Sept. 991.0 957.2 202.3 175.2 157.9 136.0 44.4 39.2 484.4 476.1 287.9 276.7 196.4 199.3 304.3 305.5 .0 .5 Oct. 948.4 200.9 157.7 43.2 451.3 272.1 179.2 295.7 .5 Nov. 953.3 197.4 155.2 42.2 458.3 265.7 192.7 297.1 .5 Dec. 1 952.31 170.8 130.3 40.4 477.4 274.3 203.1 303.7 .5 Weekly (Wednesday) levels Nov. 28 959.4 199.5 157.2 42.3 462.6 274.1 188.6 296.8 .5 Dec. 5 955.5 198.8 157.4 41.4 459.0 269.3 189.7 297.3 .5 Dec. 12 950.7 198.4 152.8 45.7 454.7 264.8 189.9 297.0 .5 Dec. 19 956.8 193.2 149.8 43.5 463.2 266.9 196.3 299.8 .5 Dec. 26 1 951.7 1 183.1 1 141.11 42.0 1 468.7 271.2 197.5 299.4 .5 Return to to 11 http://www.federalreserve.gov/releases/cp/ 1/2/2013 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF NOVEMBER 2012 WITH NOVEMBER 2011 (DOLLARS IN THOUSANDS) 1:,NOV,kMBER.20121 1, N , OVEMBIER 1 2011 Average Daily Portfolio $ 60,140,620 $ 64,646,903 $ -4,606,383 Accrued Earnings $ 15,993 $ 21,243 $ -6,260 Effective Yield 0.324 % 0.401 % .0.077% Average Life -Month End (in Days) 228 220 +8 Total Security Transactions Amount $ 18,455,789 $ 19,581,652 $ -1,125,763 Number 371 394 -23 Total Time Deposit Transactions Amount $ 1,670,480 $ 1,786,980 $ -116,500 Number 97 110 -13 Average Workday Investment Activity $ 1,069,277 $ 1,124,660 $ -65,383 Prescribed Demand Account Balances For Services $ 1,656,083 $ 1,777,405 $ .121,322 1 12 BILL LOCKYER .TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) November 30, 2012 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOUN PORTFOLIO PRIOR MONTH Government Bills $ 19,064,888 31.77 +11.49 Bonds 0 0.00 0 Notes 14,730,318 24.55 +11.15 Strips 0 0.00 0 Total Government $� � . - 33,795,206 56.32 +2.64 Federal Agency Debentures $ 1,130,390 1.89 -0.15 Certificates of Deposit 3,650,000 6.08 +0.04 Bank Notes 0 0.00 0 Bankers' Acceptances 0 0.00 0 Repurchases 0 0.00 0 Federal Agency Discount Notes 3,194,941 5.32 -1.50 Time Deposits 4,361,640 7.27 +0.33 GNMAs 6 0.00 0 Commercial Paper 1,499,882 2.50 -2.20 FHLMC/Remice 267,693 0.45 +0.01 Corporate Bonds 0 0.00 0 AB 65 Loans 218,641 0.36 +0.02 GF Loans 11,483,200 19.14 +0.77 NOWAccounts 0 0.00 0 Other 399,962 0.67 +0.04 Reversed Repurchases 0 T 0.00 - 0 Total (All Types) $ 60,001,461 = 100.00 INVESTMENT ACTIVITY NOVEMBER 2012 OCTOBER 2012 NUMBER Am6UN NUMBER AMOUN Pooled Money 371 $ 18,455,789 426 $ 21,176,450 Other 21 673,975 20 862,342 Time Deposits 97 1,670,480 113 2,939,000 Totals 489 $ 20,800,244 558 $ 24,977,792 PMIA Monthly Average Effective Yield 0.324 0.340 Year to Date Yield Last Day of Month 0.350 0.357 13 Pooled Money Investment Account Portfolio Composition $60.0 Billion 11130/12 Loans Corporate Bonds 0.00% Commercial Paper 2.50% Time Deposits 7.27% CDs/BNi 6.08% Mortgages 0,45% Treasuries 56.32% 14