02-18-2020 - AGENDA ITEM 03 INVESTMENT REPORT FOR THE MONTH ENDED DECEMBER 31, 201911/16/2020
Print Staff Report
AGENDA ITEM NO.3
DATE: February 18, 2020
TO: Mayor and City Council
FROM: David Carmany
City Manager
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
SUBJECT: INVESTMENT REPORT FOR THE MONTH ENDED DECEMBER 31, 2019
RECOMMENDATION:
It is recommended that the City Council receive and file the Investment Report for the month ended December
31, 2019.
BACKGROUND:
California Government Code Section 53646 requires that cities report detailed information on all securities,
investments, and monies of the City and to report the market value of the investments held. California
Government Code Section 53601 and the City's Investment Policy define the types of investments allowed.
The City's Investment Policy was last revised and adopted by the City Council on July 2, 2019. The City's
Investment Policy has set primary goals of the portfolio management of safety, liquidity and yield.
Bond reserves are held and invested by a Trustee. The investment of these funds is governed by an investment
policy approved by the City Council as a part of the governing documents for each specific bond issue.
DISCUSSION:
The Investment Report (Attachment No. 1) presents the City's and the Successor Agency's cash and
investments for the month ended December 31, 2019. This report is in compliance with California
Government Code Section 53646 regarding the reporting of detailed information on all securities, investments,
and monies of the City, as well as, reporting of the market value of the investments held. All the investments
contained within the portfolio are in full compliance with Government Code Section 53601 and the City's
Investment Policy as to the types of investments allowed. As stated in the attached report, there are sufficient
funds to meet the budgeted expenditures over the next six months. The City's surplus funds are deposited with
the Los Angeles County Investment Pool (LACIP), the Local Agency Investment Fund (LAIF) and Chandler
Asset Management (Attachment No. 2).
At December 31, 2019, the investment portfolio had a market value of $62,860,007 and the bond reserves had
a market value of $6,659,241.
Prepared by: Robbeyn Bird, Finance Director
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City of West
Covina Short Term
Transaction Ledger
OR
Account #10479
As of December 31,
2019
Transaction
Type
ACQUISITIONS
Settlement
Date
CUSIP
Quantity
Security Description
Price Acq/Disp
Yield
Amount
Interest
Pur/sold
Total Amount Gain/Loss
Purchase
12/02/2019
31846V203
25.80
First American Govt Obligation Fund
1.000
1.26%
25.80
0.00
25.80
0.00
Class Y
Purchase
12/16/2019
31846V203
5,083.90
First American Govt Obligation Fund
1.000
1.26%
5,083.90
0.00
5,083.90
0.00
Class Y
Purchase
12/16/2019
31846V203
1,494.36
First American Govt Obligation Fund
1.000
1.26%
1,494.36
0.00
1,494.36
0.00
Class Y
Purchase
12/16/2019
31846V203
3,423.30
First American Govt Obligation Fund
1.000
1.26%
3,423.30
0.00
3,423.30
0.00
Class Y
Purchase
12/16/2019
31846V203
1,180.08
First American Govt Obligation Fund
1.000
1.26%
1,180.08
0.00
1,180.08
0.00
Class Y
Purchase
12/18/2019
31846V203
15,957.12
First American Govt Obligation Fund
1.000
1.26%
15,957.12
0.00
15,957.12
0.00
Class Y
Purchase
12/22/2019
31846V203
5,250.00
First American Govt Obligation Fund
1.000
1.26%
5,250.00
0.00
5,250.00
0.00
Class Y
Purchase
12/26/2019
31846V203
589.47
First American Govt Obligation Fund
1.000
1.26%
589.47
0.00
589.47
0.00
Class Y
Purchase
12/31/2019
31846V203
750,000.00
First American Govt Obligation Fund
1.000
1.20%
750,000.00
0.00
750,000.00
0.00
Class Y
Purchase
12/31/2019
31846V203
6,093.75
First American Govt Obligation Fund
1.000
1.20%
6,093.75
0.00
6,093.75
0.00
Class Y
Subtotal
789,097.78
789,097.78
0.00
789,097.78
0.00
TOTAL ACQUISITIONS
789,097.78
789,097.78
0.00
789,097.78
0.00
DISPOSITIONS
in
i
Paydown
12/16/2019
43811BAC8
5,014.10
Honda Auto Receivables Trust 2017-2
100.000
5,014.10
69.80
5,083.90
0.00
A3
1.68% Due 8/16/2021
Paydown
12/16/2019
47788BAD6
1,466.65
John Deere Owner Trust 2017-B A3
100.000
1,466.65
27.71
1,494.36
0.00
1.82% Due 10/15/2021
Paydown
12/16/2019
47788CAC6
3,323.86
John Deere Owner Trust 2018-A A3
100.000
3,323.86
99.44
3,423.30
0.00
2.66% Due 4/18/2022
Chandler Asset Management
- CONFIDENTIAL
Paee 6
Execution
Time: 1/2/2020 9:48:19
PM
City of West Covina Short Term Transaction Ledger
Account #10479 As of December 31, 2019 OR
Transaction Settlement CUSIP Quantity Security Description Price Acq/Disp Interest
Type Date Yield Amount Pur/sold Total Amount Gain/Loss
DISPOSITIONS
Paydown 12/16/2019 89238BAB8 1,178.02 Toyota Auto Receivables Trust 2018-A 100.000 1,178.02 2.06 1,180.08 0.00
A2A
2.1% Due 10/15/2020
Paydown
12/18/2019
43814WAB1
15,536.27
Honda Auto Receivables Trust 2019-1
100.000
15,536.27
420.85
15,957.12
0.00
A2
2.75% Due 9/20/2021
Paydown
12/26/2019
3137BFDQ1
215.77
FHLMC K717 A2
100.000
215.77
373.70
589.47
0.00
2.991% Due 9/25/2021
Subtotal
26,734.67
26,734.67
993.56
27,728.23
0.00
Maturity
12/31/2019
912828G95
750,000.00
US Treasury Note
100.000
750,000.00
0.00
750,000.00
0.00
1.625% Due 12/31/2019
Subtotal
750,000.00
750,000.00
0.00
750,000.00
0.00
Security
12/04/2019
31846V203
390.76
First American Govt Obligation Fund
1.000
390.76
0.00
390.76
0.00
Withdrawal
Class Y
Security
12/23/2019
31846V203
43.23
First American Govt Obligation Fund
1.000
43.23
0.00
43.23
0.00
Withdrawal
Class Y
Subtotal
433.99
433.99
0.00
433.99
0.00
TOTAL DISPOSITIONS
777,168.66
777,168.66
993.56
778,162.22
0.00
OTHER TRANSACTIONS
J1111
Interest
12/22/2019
3135GOD75
700,000.00
FNMA Note
0.000
5,250.00
0.00
5,250.00
0.00
1.5% Due 6/22/2020
Interest
12/31/2019
91282BG95
750,000.00
US Treasury Note
0.000
6,093.75
0.00
6,093.75
0.00
1.625% Due 12/31/2019
Subtotal
1,450,000.00
11,343.75
0.00
11,343.75 0.00
Dividend 12/02/2019 31846V203
49,389.32 First American Govt Obligation Fund 0.000
25.80
0.00
25.80 0.00
Class Y
Subtotal
49,389.32
25.80
0.00
25.80 0.00
TOTAL OTHER TRANSACTIONS
1,499,389.32
11,369.55
0.00
11,369.55 0.00
Chandler Asset Management - CONFIDENTIAL
Paee 7
Execution
Time: 1/2/2020 9:48:19 PM
11/16/2020 Print Staff Report
Additional David Carmany, City Manager
Approval:
Attachments
Attachment No. 1 - Investment Report December 31, 2019
Attachment No. 2 - Chandler Report December 31, 2019
CITY Achieve Fiscal Sustainability and Financial Stability
COUNCIL Enhance the City Image and Effectiveness
GOALS &
OBJECTIVES:
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ATTACHMENT NO. 1
City of West Covina
Investment Report
For the Month Ended December 31. 2019
Interest/
Yield to
Maturity
% of
Description
Book Value
Market Value
Maturity
Date
Portfolio
Cash and Cash Equivalents
Wells Fargo Checking Account
$ 5,907,498
$ 5,907,498
0.00%
n/a
8.50 %
Pacific Western Bank Checking - HPP (CDBG)
3,570
3,570
0.00%
n/a
0.01 %
Pacific Western Bank Checking - HPP (LMIHF)
10,672
10,672
0.00%
n/a
0.02%
Los Angeles County Investment Pool (LACIP)
18,654,637
18,654,637
1.83%
n/a
26.83%
Los Angeles County Investment Pool (LACIP) - CFD
889,935
889,935
1.83%
n/a
1.28%
Local Agency Investment Fund (LAIF)
30,649,332
30,649,332
2.04%
n/a
44.09%
Wells Fargo Checking Account- CFD
1,537,931
1,537,931
0.00%
n/a
2.21%
Investments - Chandler Asset Management
Asset -Backed Securities
270,938
272,043
1.93%
See attached
0.39%
Federal Agencies
2,453,733
2,446,849
1.62 %
See attached
3.52%
Collateralized Mortgage Obligation
151,038
151,548
2.31%
See attached
0.22%
Money Market Funds
838,053
838,053
1.20%
See attached
1.21%
US Treasury
1,502,141
1,497,939
1.64%
See attached
2.15%
Total Cash and Investments
$ 62,869,478
$ 62,860,007
Bond Reserves
Lease Revenue Bonds, 2006 Series A & 2006 Series B (Taxable)
First American Treasury Obligations Fund Class D
$ 1,071,000
$ 1,071,000
1,39%
n/a
1.54%
First American Treasury Obligations Fund Class D
585,372
585,372
1.39%
n/a
0.84%
1996 Special Tax Refunding Bonds - Successor Agency
First American Treasury Obligations Fund Class D
5,002,869
5,002,869
7.01%
9/1/2022
7.20%
First American Treasury Obligations Fund Class D
1.39%
n/a
0.00%
Total Bond Reserves
$ 6,659,241
$ 6,659,241
Total Investment Portfolio
$ 69,628,719 $ 69,519,248
100.00 %
Blended Yield of Cash and Investments ` 1.92%
Benchmarks:
LAIF 2.04%
LACIP • 1,83%
6mo U.S. Treasury 1.60%
2yr U.S. Treasury 1.58 %
5 r U.S. Treasury 1.69%
To ensure timely submission of the Investment Report, the prior month's LACIP percentage yield is used.
I hereby certify that the investments are in compliance with the investment policy adopted by the City Council. The investment portfolio
provides sufficient funds to meet the budgeted expenditures over the next six months. This report meets the requirements of Government
Code Section 53646.
PREPARED BY:
Robbeyn Bir - Finance Director
APPROVED BY:
David C.-am- City Manager
REVIEWED BY:
Colleen B. Rozatti - City Treasurer
ATTACHMENT NO.2 C11%
City of West Covina Short Term - Account #10479
MONTHLY ACCOUNT STATEMENT
DECEMBER 1, 2019 THROUGH DECEMBER 31, 2019
Chandler Team:
For questions about your account, please call (800) 317-4747,
or contact operations@chandlerasset.com
Custodian
US Bank
Christopher Isles
(503)464-3685
CHANDLER ASSET MANAGEMENT
chandlerasset.com
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures.
City of West Covina Short Term Portfolio Summary
Account #10479 As of December 31, 2019 OR
PORTFOLIO CHARACTERISTICS
Average Modified Duration
0.49
Average Coupon
1.48%
Average Purchase YTM
1.23%
Average Market YTM
1.59%
Average S&P/Moody Rating
AA+/Aaa
Average Final Maturity
0.58 yrs
Average Life
0.50 yrs
SECTOR ALLOCATION
Aaencv 47.0%
us rreasurv- 28.8%
Money Mkl Fa- 16.1%
nest 5.2%
cmo' 2.9%
PERFORMANCE REVIEW
ACCOUNT SUMMARY
Beg. Values
End Values
as of 11/30/19
as of 12/31/19
Market Value
5,192,547
5,206,431
Accrued Interest
20,279
14,555
Total Market Value
5,212,826
5,220,986
Income Earned
5,847
5,222
Cont/WD
-434
Par
5,197,130
5,209,059
Book Value
5,205,392
5,215,903
Cost Value
5,262,090
5,257,247
MATURITY DISTRIBUTION
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+
Maturity (Yrs)
TOP ISSUERS
Federal National Mortgage Assoc
33.6%
Government of United States
28.8%
First American Govt Oblig Fund
16.1%
Federal Home Loan Mortgage Corp
9.7%
Federal Home Loan Bank
6.7%
Honda ABS
4.1%
John Deere ABS
1.1%
Total
100.0%
CREDIT QUALITY (S&P)
AA (75.8%) —
(4.0%)
31
Annualized
TOTAL RATE OF RETURN
_
1M 3M YTD 1YR 2YRS 3YRS 5YR5
10YRS
7/31/2016
City of West Covina Short Term
0.16% 0.56% 3.38% 3.38% 2.55% 2.00% N/A
N/A
1.64%
ICE BAML 1-3 Yr US Treasury/Agency Index
0.21% 0.51% 3.55% 3.55% 2.57% 1.85% N/A
N/A
1.49%
Chandler Asset Management - CONFIDENTIAL Paee 1 Execution Time: 1/2/2020 9:48:19 PM
Statement of Compliance GIR
As of December 31, 2019
City of West Covina
Assets managed by Chandler Asset Management are in full compliance with state law and the District's investment policy.
Category
Standard
Comment
Treasury Issues
No limitations
Complies
Federal Agencies
No limitations
Complies
Municipal Securities
"A" or higher by a NRSRO; 30% maximum; 5% max per issuer
Complies
Supranationals
"AA" rated or higher by a NRSRO; 30% max; 10% max per issuer; Unsubordinated obligations issued by: IBRD, IFC, IADB
Complies
Medium Term Notes
"A" rated or higher by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporations organized and operating within
Complies
the U.S.
Collateralized Certificates of Deposit
25% maximum
Complies
Negotiable Certificates of Deposit
"A" rated or better by a NRSRO; 30% maximum
Complies
Banker's Acceptances
40% maximum; 30% max per one commercial bank; 180 days max maturity
Complies
Commercial Paper
A-1/P-1 rating or higher by both S&P and Moody's; 25% maximum; 5% per issuer; 270 days max maturity; Eligible paper is
Complies
limited to corporations organized and operating within the U.S. with total assets of at least $500 million
Asset -Backed Securities/ Mortgage -
"AA" or better by a NRSRO; "A" rated issuer rating or higher by a NRSRO; 20%maximum
Complies
Backed Securities
Money Market Mutual Funds
"AAA" rated or highest rating by a NRSRO; 20% maximum; 10% per fund
Does not comply*
Prohibited Securities
Inverse floaters; Ranges notes, Interest -only strips from mortgaged backed securities; Zero interest accrual securities;
Complies
Reverse Repurchase Agreements
Repurchase Agreements
20% maximum; 100 days max maturity; collateralized 102%of market value; Not used by investment adviser
Complies
Local Agency Investment Fund (LAIF)
Maximum program; Not used by investment adviser
Complies
Los Angeles County Investment Pool
Maximum program; Not used by investment adviser
Complies
Max per Security Type
No more than 40% of the City's total portfolio shall be invested in a single security type or with a single financial institution
Complies
Max per Issuer
No more than 5% in any single issuer except US Gov, Agencies, Supranationals, Money Market Funds, LAIF, or LGIP
Complies
Maximum Maturity
5 years
Complies
*MMF concentration is at 16.1% pending client withdrawal
City of West Covina Short Term Reconciliation Summary
Account #10479 As of December 31, 2019
BOOK VALUE RECONCILIATION
BEGINNING BOOK VALUE
$5,205,391.50
Acquisition
+Security Purchases $0.00
+ Money Market Fund Purchases $789,097.78
+ Money Market Contributions $0.00
+Security Contributions $0.00
+ Security Transfers $0.00
Total Acquisitions
$789,097.78
Dispositions
Security Sales
$0.00
- Money Market Fund Sales
$0.00
MMF Withdrawals
$433.99
- Security Withdrawals
$0.00
- Security Transfers
$0.00
- Other Dispositions
$0.00
Maturites
$750,000.00
Calls
$0.00
Principal Paydowns
$26,734.67
Total Dispositions
$777,168.66
Amortization/Accretion
+/- Net Accretion
($1,417.33)
($1,417.33)
Gain/Loss on Dispositions
+/- Realized Gain/Loss
$0.00
$0.00
ENDING BOOK VALUE
$5,215,903.29
BEGINNING BALANCE
Acquisition
Contributions
$0.
Security Sale Proceeds
$0.
Accrued Interest Received
$0.
Interest Received
$12,337.
Dividend Received
$25.
Principal on Maturities
$750,000.
Interest on Maturities
$0.
Calls/Redemption (Principal)
$0.
Interest from Calls/Redemption
$0.
Principal Paydown
$26,734.
Total Acquisitions
$789,097.
$49,389.32
Dispositions
Withdrawals
$433.99
Security Purchase
$0.00
Accrued Interest Paid
$0.00
Total Dispositions
$433.99
ENDING BOOK VALUE
$838,053.11
Chandler Asset Management - CONFIDENTIAL Page 3 Execution Time: 1/2/2020 9:48:19 PM
City of West Covina Short Term
Holdings Report
Account #10479
As of December 31, 2019
ABS
Security Description
Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
DurationCUSIP
43811BACS
Honda Auto Receivables Trust 2017-2
44,844.99
04/27/2018
44,147.79
99.91
44,803.32
0.86%
Aaa / AAA
1.63
A3
2.62%
44,501.60
1.92%
33.48
301.72
NR
0.40
1.68% Due 8/16/2021
43814WAB1
Honda Auto Receivables Trust 2019-1
168,106.64
02/19/2019
168,095.81
100.39
168,759.55
3.24%
NR/AAA
1.72
A2
2.77%
168,099.37
1.91%
166.94
660.18
AAA
0.45
2.75% Due 9/20/2021
47788BAD6
John Deere Owner Trust 2017-B A3
16,801.88
07/11/2017
16,800.66
99.91
16,786.90
0.32%
Aaa / NR
1.79
1.82%Due 10/15/2021
1.83%
16,801.37
2.11%
13.59
(14.47)
AAA
0.31
47788CAC6
John Deere Owner Trust 2018-A A3
41,537.05
02/21/2018
41,534.07
100.38
41,693.55
0.80%
Aaa / NR
2.30
2.66%Due 4/18/2022
2.68%
41,535.40
1.95%
49.11
158.15
AAA
0.52
270,578.33
272,043.32
5.22%
Aaa / AAA
1.80
Total ABS
271,290.56
2.67%
270,937.74
1.93%
263.12
1,105.58
AAA
0.44
AGENCY
3137EAEE5
FHLMC Note
350,000.00
01/12/2017
349,622.00
99.99
349,965.70
6.75%
Aaa / AA-
0.05
1.5% Due 1/17/2020
1.54%
349,994.48
1.71%
2,391.67
(28.78)
AAA
0.04
3135GOA78
FNMA Note
350,000.00
10/14/2016
355,204.50
100.00
350,009.45
6.75%
Aaa /AA+
0.06
1.625% Due 1/21/2020
1.16%
350,087.40
1.57%
2,527.78
(77.95)
AAA
0.06
3135GOD75
FNMA Note
700,000.00
07/29/2016
712,474.00
99.93
699,507.90
13.40%
Aaa /AA+
0.48
1.5% Due 6/22/2020
1.03%
701,515.46
1.65%
262.50
(2,007.56)
AAA
0.47
3135GOF73
FNMA Note
350,000.00
07/29/2016
355,939.50
99.97
349,878.20
6.71%
Aaa /AA+
0.92
1.5% Due 11/30/2020
1.10%
351,251.60
1.54%
452.08
(1,373.40)
AAA
0.91
3130A7CV5
FHLB Note
350,000.00
07/29/2016
353,846.50
99.75
349,137.60
6.72%
Aaa / AA+
1.14
1.375%Due 2/18/2021
1.13%
350,956.43
1.60%
1,777.95
(1,818.83)
AAA
1.11
3135GOK69
FNMA Note
350,000.00
07/22/2016
349,744.50
99.53
348,349.75
6.68%
Aaa /AA+
1.35
1.25%Due 5/6/2021
1.27%
349,928.11
1.60%
668.40
(1,578.36)
AAA
1.33
2,476,831.00
2,446,848.60
47.02%
Aaa / AA+
0.64
Total Agency
2,450,000.00
1.18%
2,453,733.48
1.62%
8,080.38
(6,884.88)
AAA
0.63
Chandler Asset Management - CONFIDENTIAL Page 4 Execution Time: 1/2/2020 9:48:19 PM
City of West Covina Short Term
Holdings Report
Account #10479
As of December 31, 2019
CLISIP Security Description
CIVIC,
Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3137BFDQ1 FHLMC K717 A2
149,715.21
01/04/2018
152,545.77
101.22
151,547.56
2.91%
NR/NR
1.74
2.991% Due 9/25/2021
2.37%
151,037.53
2.31%
373.17
510.03
AAA
1.49
152,545.77
151,547.56
2.91%
NR/NR
1.74
Total CMO
149,715.21
2.37%
151,037.53
2.31%
373.17
510.03
AAA
1.49
MONEY MARKET FUND FI
=
-
31846V203 First American Govt Obligation Fund
838,053.11
Various
838,053.11
1.00
838,053.11
16.05%
Aaa / AAA
0.00
Class Y
1.20%
838,053.11
1.20%
0.00
0.00
AAA
0.00
838,053.11
838,053.11
16.05%
Aaa/AAA
0.00
Total Money Market Fund FI
838,053.11
1.20%
838,053.11
1.20%
0.00
0.00
AAA
0.00
US TREASURY
us
912828UL2 US Treasury Note
375,000.00
08/05/2016
380,992.47
99.98
374,916.00
7.22%
Aaa /AA+
0.08
1.375% Due 1/31/2020
0.91%
375,141.44
1.63%
2,157.78
(225.44)
AAA
0.08
91282SUVO US Treasury Note
375,000.00
08/05/2016
377,799.11
99.87
374,502.00
7.19%
Aaa /AA+
0.25
1.125%Due 3/31/2020
0.92%
375,189.27
1.66%
1,071.98
(687.27)
AAA
0.25
912828VF4 US Treasury Note
375,000.00
08/05/2016
380,391.88
99.88
374,560.50
7.18%
Aaa /AA+
0.42
1.375% Due 5/31/2020
0.99%
375,584.90
1.66%
450.82
(1,024.40)
AAA
0.41
912828N89 US Treasury Note
375,000.00
08/11/2016
380,054.97
99.72
373,960.13
7.20%
Aaa /AA+
1.09
1.375% Due 1/31/2021
1.07%
376,225.82
1.63%
2,157.78
(2,265.69)
AAA
1.07
1,519,238.43
1,497,938.63
28.80%
Aaa / AA+
0.46
Total US Treasury
1,500,000.00
0.97%
1,502,141.43
1.64%
5,838.36
(4,202.80)
AAA
0.45
S,257,246.64
5,206,431.22
100.00%
Aaa / AA+
0.58
TOTAL PORTFOLIO
5,209,058.88
1.23%
5,215,903.29
1.59%
14,555.03
(9,472.07)
AAA
0.49
TOTAL MARKET VALUE PLUS ACCRUED
5,220,986.25
Chandler Asset Management - CONFIDENTIAL Page 5 Execution Time: 1/2/2020 9:48:19 PM