03-17-2020 - AGENDA ITEM 03 INVESTMENT REPORT FOR THE MONTH ENDED JANUARY 31, 202011/16/2020
Print Staff Report
AGENDA ITEM NO.3
DATE: March 17, 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 JANUARY 31, 2020
RECOMMENDATION:
It is recommended that the City Council receive and file the Investment Report for the month ended January
31, 2020.
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 January 31, 2020. 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 January 31, 2020, the investment portfolio had a market value of $72,207,476 and the bond reserves had a
market value of $6,659,241.
Prepared by: Robbeyn Bird, Finance Director
Additional David Carmany, City Manager
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City of West Covina Short Term
Transaction Ledger
OR
Account #10479
As of January 31, 2020
Transaction
Type
ACQUISITIONS
Settlement
Date
CUSIP
Quantity
Security Description
Price Acq/Disp
Yield
Amount
Interest
Pur/Sold
Total Amount
Gain/Loss
Purchase
01/02/2020
31846V203
91.02
First American Govt Obligation Fund
1.000
1.20%
91.02
0.00
91.02
0.00
Class Y
Purchase
01/15/2020
31846V203
4,966.08
First American Govt Obligation Fund
1.000
1.20%
4,966.08
0.00
4,966.08
0.00
Class Y
Purchase
01/15/2020
31846V203
2,329.64
First American Govt Obligation Fund
1.000
1.20%
2,329.64
0.00
2,329.64
0.00
Class Y
Purchase
01/15/2020
31846V203
3,715.20
First American Govt Obligation Fund
1.000
1.20%
3,715.20
0.00
3,715.20
0.00
Class Y
Purchase
01/17/2020
31846V203
2,625.00
First American Govt Obligation Fund
1.000
1.20%
2,625.00
0.00
2,625.00
0.00
Class Y
Purchase
01/17/2020
31846V203
350,000.00
First American Govt Obligation Fund
1.000
1.20%
350,000.00
0.00
350,000.00
0.00
Class Y
Purchase
01/21/2020
31846V203
350,000.00
First American Govt Obligation Fund
1.000
1.20%
350,000.00
0.00
350,000.00
0.00
Class Y
Purchase
01/21/2020
31846V203
2,843.75
First American Govt Obligation Fund
1.000
1.20%
2,843.75
0.00
2,843.75
0.00
Class Y
Purchase
01/21/2020
31846V203
15,911.78
First American Govt Obligation Fund
1.000
1.20%
15,911.78
0.00
15,911.78
0.00
Class Y
Purchase
01/27/2020
31846V203
576.49
First American Govt Obligation Fund
1.000
1.20%
576.49
0.00
576.49
0.00
Class Y
Purchase
01/31/2020
31846V203
375,000.00
First American Govt Obligation Fund
1.000
1.17%
375,000.00
0.00
375,000.00
0.00
Class Y
Purchase
01/31/2020
31846V203
5,156.26
First American Govt Obligation Fund
1.000
1.17%
5,156.26
0.00
5,156.26
0.00
Class Y
Subtotal
1,113,215.22
1,113,215.22
0.00
1,113,215.22
0.00
TOTAL ACQUISITIONS
1,113,215.22
1,113,215.22
0.00
1,113,215.22
0.00
DISPOSITIONS
Paydown 01/15/2020 43811BAC8 4,903.30 Honda Auto Receivables Trust 2017-2 100.000 4,903.30 62.78 4,966.08 0.00
A3
1.68% Due 8/16/2021
Chandler Asset Management - CONFIDENTIAL Page 6 Execution Time: 2/3/2020 9:52:52 PM
City of West
Covina Short Term
Transaction Ledger
OR
Account #10479
As of January 31,
2020
Transaction
Type
DISPOSITIONS
Settlement
Date
CUSIP
Quantity
Security Description
Price Acq/Disp
Yield
Amount
Interest
Pur/Sold
Total Amount Gain/Loss
Paydown
01/15/2020
47788BAD6
2,304.16
John Deere Owner Trust 2017-B A3
100.000
2,304.16
25.48
2,329.64
0.00
1.82% Due 10/15/2021
Paydown
01/15/2020
47788CAC6
3,623.13
John Deere Owner Trust 2018-A A3
100.000
3,623.13
92.07
3,715.20
0.00
2.66% Due 4/18/2022
Paydown
01/21/2020
43814WAB1
15,526.54
Honda Auto Receivables Trust 2019-1
100.000
15,526.54
385.24
15,911.78
0.00
A2
2.75% Due 9/20/2021
Paydown
01/27/2020
3137BFDQ1
203.32
FHLMC K717 A2
100.000
203.32
373.17
576.49
0.00
2.991% Due 9/25/2021
Subtotal
26,560.45
26,560.45
938.74
27,499.19
0.00
Maturity
01/17/2020
3137EAEE5
350,000.00
FHLMC Note
100.000
350,000.00
0.00
350,000.00
0.00
1.5% Due 1/17/2020
Maturity
01/21/2020
3135GOA78
350,000.00
FNMA Note
100.000
350,000.00
0.00
350,000.00
0.00
1.625% Due 1/21/2020
Maturity
01/31/2020
912828UL2
375,000.00
US Treasury Note
100.000
375,000.00
0.00
375,000.00
0.00
1.375% Due 1/31/2020
Subtotal
1,075,000.00
1,075,000.00
0.00
1,075,000.00
0.00
Security
01/06/2020
31846V203
391.27
First American Govt Obligation Fund
1.000
391.27
0.00
391.27
0.00
Withdrawal
Class Y
Security
01/27/2020
31846V203
43.39
First American Govt Obligation Fund
1.000
43.39
0.00
43.39
0.00
Withdrawal
Class Y
Subtotal
434.66
434.66
0.00
434.66
0.00
TOTAL DISPOSITIONS
1,101,995.11
1,101,995.11
938.74
1,102,933.85
0.00
OTHER TRANSACTIONS
J
Interest
01/17/2020
3137EAEES
350,000.00
FHLMC Note
0.000
2,625.00
0.00
2,625.00
0.00
1.5% Due 1/17/2020
Interest
01/21/2020
3135GOA78
350,000.00
FNMA Note
0.000
2,843.75
0.00
2,843.75
0.00
1.625% Due 1/21/2020
Interest
01/31/2020
912828N89
375,000.00
US Treasury Note
0.000
2,578.13
0.00
2,578.13
0.00
1.375% Due 1/31/2021
Chandler Asset Manaaement - CONFIDENTIAL
Paee 7
Execution
Time: 2/3/2020 9:52:52
PM
City of West Covina Short Term
Transaction Ledger
OR
Account #10479
As of January 31, 2020
Transaction Settlement CUSIP
Type Date
OTHER TRANSACTIONS
Quantity
Security Description Price Acq/Disp
Yield
Amount
Interest
Pur/Sold
Total Amount
Gain/Loss
Interest 01/31/2020 912828UL2
375,000.00
US Treasury Note 0.000
2,578.13
0.00
2,578.13
0.00
1.375% Due 1/31/2020
Subtotal
1,450,000.00
10,625.01
0.00
10,625.01
0.00
Dividend 01/02/2020 31846V203
838,053.11
First American Govt Obligation Fund 0.000
91.02
0.00
91.02
0.00
Class Y
Subtotal
838,053.11
91.02
0.00
91.02
0.00
TOTAL OTHER TRANSACTIONS
2,288,053.11
10,716.03
0.00
10,716.03
0.00
Chandler Asset Management - CONFIDENTIAL Page 8 Execution Time: 2/3/2020 9:52:52 PM
11/16/2020 Print Staff Report
Approval:
Attachments
Attachment No. 1 - Investment Report January 31, 2020
Attachment No. 2 - Chandler January 31, 2020
CITY Achieve Fiscal Sustainability and Financial Stability
COUNCIL
GOALS &
OBJECTIVES:
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ATTACHMENT NO. 1
City of West Covina
Investment Report
For the Month Ended January 31, 2020
Interest/
Yield to
Maturity
% of
Description
Book Value
Market Value
Maturity
Date
Portfolio
Cash and Cash Equivalents
Wells Fargo Checking Account
$ 4,311,949
$ 4,311,949
0.00%
n/a
5.47 %
Pacific Western Bank Checking - HPP (CDBG)
3,630
3,630
0.00%
n/a
0.00%
Pacific Western Bank Checking - HPP (LMIHF)
10,622
10,622
0.00%
n/a
0.01 %
Los Angeles County Investment Pool (LACIP)
17,892,575
17,892,575
1.86%
n/a
22.69%
Los Angeles County Investment Pool (LACIP) - CFD
891,632
891,632
1.86%
n/a
1.13%
Local Agency Investment Fund (LAIF)
38,470,324
38,470,324
1.97%
n/a
48.78%
Wells Fargo Checking Account- Successor Agency
3,453,080
3,453.080
0.00%
n/a
4.38%
Wells Fargo Checking Account -CFD
1,953,166
1,953,166
0.00%
n/a
2.48%
Investments - Chandler Asset Management
Asset -Backed Securities
244,635
245,708
1.80%
See attached
0.31%
Federal Agencies
1,753,197
1,748,467
1.53%
See attached
2.22%
Collateralized Mortgage Obligation
150,768
151,621
2.09 %
See attached
0.19%
Money Market Funds
1,950,834
1,950,834
1.17%
See attached
2.47%
US Treasury
1,126,719
1,123,868
1.58%
See attached
1.43%
Total Cash and Investments
$ 72,213,131
$ 72,207,476
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
1.36%
First American Treasury Obligations Fund Class D
685,372
585,372
1.39%
n/a
0.74%
1996 Special Tax Refunding Bonds - Successor Agency
First American Treasury Obligations Fund Class D
5,002,869
5,002,869
7.01 %
9/l2022
6.34%
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
$ 78,872,372 $ 78,866,717
100.00%
Blended Yield of Cash and Investments •
1.89%
Benchmarks:
LAIF
1.97%
LACIP
1.86%
6mo U.S. Treasury
1.49%
2yr U.S. Treasury
1.26%
5yr U.S. Treasury
1.21%
I hereby certify that the investments are in compliance vdth 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 Bird - finance Director Colleen B. Rozatti •City Trea er
APPROVED BY:
David Carmany- City Manager
ATTACHMENT NO.2 Q11
City of West Covina Short Term - Account #10479
MONTHLY ACCOUNT STATEMENT
JANUARY 1, 2020 THROUGH JANUARY 31, 2020
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
Account #10479
PORTFOLIO CHARACTERISTICS
Average Modified Duration
0.43
Average Coupon
1.40%
Average Purchase YTM
1.22%
Average Market YTM
1.44%
Average S&P/Moody Rating
AAA/Aaa
Average Final Maturity
0.50 yrs
Average Life
0.43 yrs
SECTOR ALLOCATION
Money Mkt Fd 37.3%
Agency 33.5%
USTre._ 21.5%
ABS, 4.7%
cmo' 2.9%
PERFORMANCE REVIEW
Portfolio Summary
As of January 31, 2020
ACCOUNT SUMMARY
Beg. Values
End Values
as of 12/31/19
as of 1/31/20
Market Value
5,206,431
5,220,498
Accrued Interest
14,555
8,181
Total Market Value
5,220,986
5,228,678
Income Earned
5,222
4,309
Cont/WD
-435
Par
5,209,059
5,220,279
Book Value
5,215,903
5,226,152
Cost Value
5,257,247
5,257,722
MATURITY DISTRIBUTION
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+
Maturity (Yrs)
cap
TOP ISSUERS
First American Govt Oblig Fund
37.3%
Federal National Mortgage Assoc
26.8%
Government of United States
21.5%
Federal Home Loan Bank
6.7%
Honda ABS
3.7%
Federal Home Loan Mortgage Corp
2.9%
John Deere ABS
1.0%
Total
100.0%
CREDIT QUALITY (S&P)
(3.9%)
Annualized
TOTAL RATE OF RETURN
1M imr 3M YTD 1YR
2YRS 3YRS 5YR5
10YRS
7/31/2016
City of West Covina Short Term
0.16% 0.44% 0.16% 3.18%
2.71% 2.00% N/A
N/A
1.65%
ICE BAML 1-3 Yr US Treasury/Agency Index
0.54% 0.72% 0.54% 3.82%
2.99% 1.99% N/A
N/A
1.61%
Chandler Asset Management - CONFIDENTIAL Page 1 Execution Time: 2/3/2020 9:52:52 PM
Statement of Compliance
As of January 31, 2020
CA
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
A-1/P-1 rating or higher by both 5&P and Moody's; 25% maximum; 5% per issuer; 270 days max maturity; Eligible paper is
Commercial Paper
limited to corporations organized and operating within the U.S. with total assets of at least $500 million
Complies
Asset -Backed Securities/ Mortgage -
Backed Securities
"AA" or better by a NRSRO; "A" rated issuer rating or higher by a NRSRO; 20%maximum
Complies
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 37.3%pending client withdrawal
City of West Covina Short Term Reconciliation Summary
Account #10479 As of January 31, 2020
BOOK VALUE RECONCILIATION
BEGINNING BOOK VALUE
$5,215,903.29
Acquisition
+Security Purchases $0.00
+ Money Market Fund Purchases $1,113,215.22
+ Money Market Contributions $0.00
+Security Contributions $0.00
+ Security Transfers $0.00
Total Acquisitions
$1,113,215.22
Dispositions
Security Sales
$0.00
- Money Market Fund Sales
$0.00
- MMF Withdrawals
$434.66
- Security Withdrawals
$0.00
- Security Transfers
$0.00
- Other Dispositions
$0.00
Maturites
$1,075,000.00
Calls
$0.00
Principal Paydowns
$26,560.45
Total Dispositions
$1,101,995.11
Amortization/Accretion
+/- Net Accretion
($970.98)
($970.98)
Gain/Loss on Dispositions
+/- Realized Gain/Loss
$0.00
$0.00
ENDING BOOK VALUE
$5,226,152.42
BEGINNING BALANCE
Acquisition
Contributions
Security Sale Proceeds
Accrued Interest Received
Interest Received
Dividend Received
Principal on Maturities
Interest on Maturities
Calls/Redemption (Principal)
Interest from Calls/Redemption
Principal Paydown
Total Acquisitions
$11,563.
$838,053.11
Dispositions
Withdrawals
$434.66
Security Purchase
$0.00
Accrued Interest Paid
$0.00
Total Dispositions
$434.66
ENDING BOOK VALUE
$1,950,833.67
Chandler Asset Management - CONFIDENTIAL Page 3 Execution Time: 2/3/2020 9:52:52 PM
City of West Covina Short Term
Holdings Report
Q11
Account #10479
As of January 31, 2020
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
39,941.69
04/27/2018
39,320.72
99.98
39,935.33
0.76%
Aaa / AAA
1.54
A3
2.62%
39,651.84
1.73%
29.82
283.49
NR
0.36
1.68% Due 8/16/2021
43814WAB1
Honda Auto Receivables Trust 2019-1
152,580.10
02/19/2019
152,570.27
100.40
153,191.33
2.93%
NR/AAA
1.64
A2
2.77%
152,573.83
1.81%
151.52
617.50
AAA
0.42
2.75% Due 9/20/2021
47788BAD6
John Deere Owner Trust 2017-B A3
14,497.72
07/11/2017
14,496.67
99.97
14,493.06
0.28%
Aaa / NR
1.71
1.82%Due 10/15/2021
1.83%
14,497.30
1.93%
11.73
(4.24)
AAA
0.30
47788CAC6
John Deere Owner Trust 2018-A A3
37,913.92
02/21/2018
37,911.20
100.46
38,088.32
0.73%
Aaa / NR
2.21
2.66%Due 4/18/2022
2.68%
37,912.47
1.78%
44.82
175.85
AAA
0.51
244,298.86
245,708.04
4.70%
Aaa/AAA
1.72
Total ABS
244,933.43
2.68%
244,635.44
1.80%
237.89
1,072.60
AAA
0.42
AGENCY
3135GOD75
FNMA Note
700,000.00
07/29/2016
712,474.00
99.96
699,740.30
13.40%
Aaa /AA-
0.39
1.5% Due 6/22/2020
1.03%
701,243.90
1.59%
1,137.50
(1,503.60)
AAA
0.39
3135GOF73
FNMA Note
350,000.00
07/29/2016
355,939.50
99.97
349,911.80
6.71%
Aaa /AA+
0.83
1.5% Due 11/30/2020
1.10%
351,135.44
1.53%
889.58
(1,223.64)
AAA
0.82
313OA7CV5
FHLB Note
350,000.00
07/29/2016
353,846.50
99.85
349,465.90
6.73%
Aaa / AA+
1.05
1.375% Due 2/18/2021
1.13%
350,884.81
1.52%
2,178.99
(1,418.91)
AAA
1.03
3135GOK69
FNMA Note
350,000.00
07/22/2016
349,744.50
99.81
349,349.00
6.70%
Aaa /AA+
1.26
1.25%Due 5/6/2021
1.27%
349,932.65
1.40%
1,032.99
(583.65)
AAA
1.25
1,772,004.50
1,748,467.00
33.54%
Aaa / AA+
0.79
Total Agency
1,750,000.00
1.11%
1,753,196.80
1.53%
5,239.06
(4,729.80)
AAA
0.78
CIVIC,
'
In
3137BFDQ1
FHLMC K717 A2
149,511.89
01/04/2018
152,338.61
101.41
151,621.34
2.91%
NR/NR
1.65
2.991% Due 9/25/2021
2.37%
150,767.75
2.09%
372.66
853.59
AAA
1.42
152,338.61
151,621.34
2.91%
NR/NR
1.65
Total CMO
149,511.89
2.37%
150,767.75
2.09%
372.66
853.59
AAA
1.42
Chandler Asset Management - CONFIDENTIAL Page 4 Execution Time: 2/3/2020 9:52:52 PM
City of West Covina Short Term
Holdings Report
Q11
Account #10479
As of January 31, 2020
Security Description
MONEY MARKET FUND FI
Par Value/Units
Purchase Date Cost Value
Book Yield Book Value
Mkt Price
Mkt YTIVI
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
DurationCUSIP
31846V203 First American Govt Obligation Fund
1,950,833.67
Various 1,950,833.67
1.00
1,950,833.67
37.31%
Aaa / AAA
0.00
Class Y
1.17% 1,950,833.67
1.17%
0.00
0.00
AAA
0.00
1,950,833.67
1,950,833.67
37.31%
Aaa / AAA
0.00
Total Money Market Fund FI
1,950,833.67
1.17% 1,950,833.67
1.17%
0.00
0.00
AAA
0.00
US TREASURY
'
91282SUVO US Treasury Note
375,000.00
08/05/2016 377,799.11
99.92
374,702.25
7.19%
Aaa /AA+
0.16
1.125%Due 3/31/2020
0.92% 375,124.08
1.60%
1,429.30
(421.83)
AAA
0.16
912828VF4 US Treasury Note
375,000.00
08/05/2016 380,391.88
99.91
374,677.88
7.18%
Aaa /AA+
0.33
1.375% Due 5/31/2020
0.99% 375,464.82
1.63%
887.55
(786.94)
AAA
0.33
91282SN89 US Treasury Note
375,000.00
08/11/2016 380,054.97
99.86
374,487.38
7.16%
Aaa /AA+
1.00
1.375% Due 1/31/2021
1.07% 376,129.86
1.51%
14.17
(1,642.48)
AAA
0.99
1,138,245.96
1,123,867.51
21.54%
Aaa /AA+
0.50
Total US Treasury
1,125,000.00
0.99% 1,126,718.76
1.58%
2,331.02
(2,851.25)
AAA
0.49
5,257,721.60
5,220,497.56
100.00%
Aaa / AAA
0.50
TOTAL PORTFOLIO
5,220,278.99
1.22% 5,226,152.42
1.44%
8,180.63
(5,654.86)
AAA
0.43
TOTAL MARKET VALUE PLUS ACCRUED
5,228,678.19
Chandler Asset Management - CONFIDENTIAL Page 5 Execution Time: 2/3/2020 9:52:52 PM