05-05-2020 - AGENDA ITEM 03 CONSIDERATION OF INVESTMENT REPORT FOR THE MONTH ENDED FEBRUARY 29, 2020AGENDA ITEM NO.3
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AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: May 5, 2020
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF INVESTMENT REPORT FOR THE MONTH ENDED FEBRUARY
29, 2020
RECOMMENDATION:
It is recommended that the City Council receive and file the Investment Report for the month ended February 29,
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 February 29, 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 February 29, 2020, the investment portfolio had a market value of $75,443,526 and the bond reserves had a
market value of $6,659,042.
Prepared by: Robbeyn Bird, Finance Director
Additional Approval: David Carmany, City Manager
City of West
Covina Short Term
Transaction Ledger
OR
Account #10479
As of February 29,
2020
Transaction
Type
ACQUISITIONS
Settlement
Date
CUSIP
Quantity
Security Description
Price Acq/Disp
Yield
Amount
Interest
Pur/Sold
Total Amount
Gain/Loss
Purchase
02/03/2020
31846V203
1,166.83
First American Govt Obligation Fund
1.000
1.17%
1,166.83
0.00
1,166.83
0.00
Class Y
Purchase
02/18/2020
31846V203
2,406.25
First American Govt Obligation Fund
1.000
1.17%
2,406.25
0.00
2,406.25
0.00
Class Y
Purchase
02/18/2020
31846V203
4,842.79
First American Govt Obligation Fund
1.000
1.17%
4,842.79
0.00
4,842.79
0.00
Class Y
Purchase
02/18/2020
31846V203
16,535.42
First American Govt Obligation Fund
1.000
1.17%
16,535.42
0.00
16,535.42
0.00
Class Y
Purchase
02/18/2020
31846V203
2,840.02
First American Govt Obligation Fund
1.000
1.17%
2,840.02
0.00
2,840.02
0.00
Class Y
Purchase
02/18/2020
31846V203
4,202.43
First American Govt Obligation Fund
1.000
1.17%
4,202.43
0.00
4,202.43
0.00
Class Y
Purchase
02/25/2020
31846V203
576.67
First American Govt Obligation Fund
1.000
1.17%
576.67
0.00
576.67
0.00
Class Y
Subtotal
32,570.41
32,570.41
0.00
32,570.41
0.00
TOTAL ACQUISITIONS
32,570.41
32,570.41
0.00
32,570.41
0.00
DISPOSITIONS
i '
me
Paydown
02/18/2020
43811BACS
4,786.87
Honda Auto Receivables Trust 2017-2
100.000
4,786.87
55.92
4,842.79
0.00
A3
1.68% Due 8/16/2021
Paydown
02/18/2020
43814WAB1
16,185.76
Honda Auto Receivables Trust 2019-1
100.000
16,185.76
349.66
16,535.42
0.00
A2
2.75% Due 9/20/2021
Paydown
02/18/2020
47788BAD6
2,818.03
John Deere Owner Trust 2017-B A3
100.000
2,818.03
21.99
2,840.02
0.00
1.82% Due 10/15/2021
Paydown
02/18/2020
47788CAC6
4,118.39
John Deere Owner Trust 2018-A A3
100.000
4,118.39
84.04
4,202.43
0.00
2.66% Due 4/18/2022
Paydown
02/25/2020
3137BFDQ1
204.01
FHLMC K717 A2
100.000
204.01
372.66
576.67
0.00
2.991% Due 9/25/2021
Subtotal
28,113.06
28,113.06
884.27
28,997.33
0.00
Chandler Asset Management
- CONFIDENTIAL
Page 6
Execution
Time: 3/2/2020 9:47:09 PM
City of West Covina Short Term Transaction Ledger
Account #10479 As of February 29, 2020 OR
Transaction Settlement CUSIP Quantity Security Description Price Acq/Disp Interest
Type Date Yield Amount Pur/Sold Total Amount Gain/Loss
DISPOSITIONS
Security 02/05/2020 31846V203 391.86 First American Govt Obligation Fund 1.000 391.86 0.00 391.86 0.00
Withdrawal Class
Security 02/05/2020
31846V203
1,940,000.00
First American Govt Obligation Fund
1.000
1,940,000.00
0.00
1,940,000.00
0.00
Withdrawal
Class Y
Security 02/24/2020
31846V203
43.50
First American Govt Obligation Fund
1.000
43.50
0.00
43.50
0.00
Withdrawal
Class Y
Subtotal
1,940,435.36
1,940,435.36
0.00
1,940,435.36
0.00
TOTAL DISPOSITIONS
1,968,548.42
1,968,548.42
884.27
1,969,432.69
0.00
OTHER TRANSACTIONS
_
Interest 02/18/2020
3130A7CV5
350,000.00
FHLB Note
0.000
2,406.25
0.00
2,406.25
0.00
1.375% Due 2/18/2021
Subtotal
350,000.00
2,406.25
0.00
2,406.25
0.00
Dividend 02/03/2020
31846V203
1,950,833.67
First American Govt Obligation Fund
0.000
1,166.83
0.00
1,166.83
0.00
Class Y
Subtotal
1,950,833.67
1,166.83
0.00
1,166.83
0.00
TOTAL OTHER TRANSACTIONS
2,300,833.67
3,573.08
0.00
3,573.08
0.00
Chandler Asset Management - CONFIDENTIAL Page 7 Execution Time: 3/2/2020 9:47:09 PM
Attachments
Attachment No. 1 - Investment Report February 2020
Attachment No. 2 - Chandler Report February 2020
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability
City of West Covina
Investment Report
For the Month Ended February 29, 2020
Cash and Cash Equivalents
Wells Fargo Checking Account
Pacific Western Bank Checking - HPP (CDBG)
Pacific Western Bank Checking - HPP (LMIHF)
Los Angeles County Investment Pool (LACIP)
Los Angeles County Investment Pool (LACIP) - CFD
Local Agency Investment Fund (LAIF)
Wells Fargo Checking Account - Successor Agency
Wells Fargo Checking Account - CFD
Investments - Chandler Asset Management
Asset -Backed Securities
Federal Agencies
Collateralized Mortgage Obligation
Money Market Funds
US Treasury
Total Cash and Investments
Bond Reserves
Lease Revenue Bonds, 2006 Series A & 2006 Series B (Taxable)
First American Treasury Obligations Fund Class D
First American Treasury Obligations Fund Class D
1996 Special Tax Refunding Bonds - Successor Agency
First American Treasury Obligations Fund Class D
First American Treasury Obligations Fund Class D
Total Bond Reserves
ATTACIEMNT NO. 1
Book Value Market Value
Interest/
Yield to
Maturity
Maturity
Date
% of
Portfolio
$ 6,271,272 $ 5,271,272
0.00%
n/a
6.42%
15,556
15,556
0.00%
n/a
0.02%
12,030
12,030
0.00%
n/a
0.01%
15,622,902
15,622,902
1.89%
n/a
19.03%
893,013
893,013
1.89%
n/a
1.09%
45,170,324
45,170,324
1.91%
n/a
55.02%
3,436,247
3,436,247
0.00%
n/a
4.19%
1,730,680
1,730,680
0.00%
n/a
2.11%
216,776
217,945
1.44%
See attached
0.27%
1,752,771
1,752,862
1.20%
See attached
2.13%
150,502
152,016
1.76%
See attached
0.19%
42,969
42,969
1.17%
See attached
0.05%
1,126,455
1,125,710
1.33%
See attached
1.37%
$ 75,441,497 $ 75,443,526
$ 1,071,000 $ 1,071,000 1.39%
685,372 585,372 1.39%
5,002,670 5,002,670 7.01%
- - 1.39%
Total Investment Portfolio $ 82,100,539 $ 82,102,568
Blend.d Yield of Cash and Investments
1.87%
Benchmarks:
LAIF
1.91%
LACIP
1.89%
6mo U.S. Treasury
1.11 %
2yr U.S. Treasury
0.86%
Syr U.S. Treasury
0.89%
n/a 1.30%
n/a 0.71%
9/1/2022 6.09%
n/a 0.00%
100.00%
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:
REVIEWED BY:
Robbeyn Bird - Finance Director Colleen B. Rozatti - City Treasurer
APPROVED BY:
David Carmity Manager
ATTACHMENT NO.2 OR
City of West Covina Short Term - Account #10479
MONTHLY ACCOUNT STATEMENT
FEBRUARY 1, 2020 THROUGH FEBRUARY 29, 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 Portfolio Summary
Account #10479 As of February 29, 2020 OR
PORTFOLIO CHARACTERISTICS
Average Modified Duration
0.60
Average Coupon
1.52%
Average Purchase YTM
1.23%
Average Market YTM
1.29%
Average S&P/Moody Rating
AA+/Aaa
Average Final Maturity
0.70 yrs
Average Life
0.61 yrs
SECTOR ALLOCATION
Ag—y 53.3%
Us--, 34.2%
ABS, 6.6%
CMO' 4.6%
Money MM Fd 11.3%
PERFORMANCE REVIEW
ACCOUNT SUMMARY
Beg. Values
End Values
as of 1/31/20
as of 2/29/20
Market Value
5,220,498
3,291,502
Accrued Interest
8,181
8,979
Total Market Value
5,228,678
3,300,481
Income Earned
4,309
4,554
Cont/WD
-1,940,435
Par
5,220,279
3,284,301
Book Value
5,226,152
3,289,473
Cost Value
5,257,722
3,321,816
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
42.6%
Government of United States
34.2%
Federal Home Loan Bank
10.6%
Honda ABS
5.2%
Federal Home Loan Mortgage Corp
4.6%
John Deere ABS
1.4%
First American Govt Oblig Fund
1.3%
Total
100.0%
CREDIT QUALITY (S&P)
AA (87.5%)
Annualized
TOTAL RATE OF RETURN
1M 3M YTD 1YR 2YRS 3YRS 5YRS
10YRS
7/31/2016
City of West Covina Short Term
0.37% 0.69% 0.53% 3.39% 2.93% 2.08% N/A
N/A
1.71%
ICE BAML 1-3 Yr US Treasury/Agency Index
0.86% 1.62% 1.41% 4.61% 3.45% 2.25% N/A
N/A
1.81%
Chandler Asset Management - CONFIDENTIAL Paee 1 Execution Time: 3/2/2020 9:47:09 PM
Statement of Compliance
As of February 29, 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 February 29, 2020
BOOK VALUE RECONCILIATION
BEGINNING BOOK VALUE
$5,226,152.42
Acquisition
+Security Purchases $0.00
+ Money Market Fund Purchases $32,570.41
+ Money Market Contributions $0.00
+Security Contributions $0.00
+ Security Transfers $0.00
Total Acquisitions
$32,570.41
Dispositions
Security Sales
$0.00
- Money Market Fund Sales
$0.00
MMF Withdrawals
$1,940,435.36
- Security Withdrawals
$0.00
- Security Transfers
$0.00
- Other Dispositions
$0.00
- Maturites
$0.00
Calls
$0.00
Principal Paydowns
$28,113.06
Total Dispositions
$1,968,548.42
Amortization/Accretion
+/- Net Accretion
($701.56)
($701.56)
Gain/Loss on Dispositions
+/- Realized Gain/Loss
$0.00
$0.00
ENDING BOOK VALUE
$3,289,472.85
BEGINNING BALANCE
$1,950,833.67
Acquisition
Contributions
$0.00
Security Sale Proceeds
$0.00
Accrued Interest Received
$0.00
Interest Received
$3,290.52
Dividend Received
$1,166.83
Principal on Maturities
$0.00
Interest on Maturities
$0.00
Calls/Redemption (Principal)
$0.00
Interest from Calls/Redemption
$0.00
Principal Paydown
$28,113.06
Total Acquisitions
$32,570.41
Dispositions
Withdrawals
$1,940,435.36
Security Purchase
$0.00
Accrued Interest Paid
$0.00
Total Dispositions
$1,940,435.36
ENDING BOOK VALUE
1 $42,968.72
Chandler Asset Management -CONFIDENTIAL Page 3 Execution Time: 3/2/2020 9:47:09 PM
City of West Covina Short Term
Holdings Report
Account #10479
As of February 29, 2020
ABS
Security Description
Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTIVI
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
DurationCUSIP
43811BACS
Honda Auto Receivables Trust 2017-2
35,154.82
04/27/2018
34,608.27
100.06
35,177.21
1.07%
Aaa / AAA
1.46
A3
2.62%
34,912.87
1.49%
26.25
264.34
NR
0.33
1.68% Due 8/16/2021
43814WAB1
Honda Auto Receivables Trust 2019-1
136,394.34
02/19/2019
136,385.55
100.50
137,070.44
4.16%
NR/AAA
1.56
A2
2.77%
136,389.01
1.46%
135.45
681.43
AAA
0.38
2.75% Due 9/20/2021
47788BAD6
John Deere Owner Trust 2017-B A3
11,679.69
07/11/2017
11,678.84
100.10
11,691.00
0.35%
Aaa / NR
1.63
1.82%Due 10/15/2021
1.83%
11,679.36
1.44%
9.45
11.64
AAA
0.25
47788CAC6
John Deere Owner Trust 2018-A A3
33,795.53
02/21/2018
33,793.11
100.62
34,006.43
1.03%
Aaa / NR
2.13
2.66%Due 4/18/2022
2.68%
33,794.28
1.31%
39.95
212.15
AAA
0.46
216,465.77
217,945.08
6.61%
Aaa / AAA
1.64
Total ABS
217,024.38
2.68%
216,775.52
1.44%
211.10
1,169.56
AAA
0.38
AGENCY
3135GOD75
FNMA Note
700,000.00
07/29/2016
712,474.00
100.05
700,379.40
21.28%
Aaa /AA-
0.31
1.5%Due 6/22/2020
1.03%
700,989.86
1.32%
2,012.50
(610.46)
AAA
0.31
3135GOF73
FNMA Note
350,000.00
07/29/2016
355,939.50
100.24
350,847.00
10.67%
Aaa /AA+
0.75
1.5% Due 11/30/2020
1.10%
351,026.77
1.18%
1,327.08
(179.77)
AAA
0.74
313OA7CV5
FHLB Note
350,000.00
07/29/2016
353,846.50
100.22
350,759.15
10.63%
Aaa / AA+
0.97
1.375% Due 2/18/2021
1.13%
350,817.81
1.15%
173.78
(58.66)
AAA
0.96
3135GOK69
FNMA Note
350,000.00
07/22/2016
349,744.50
100.25
350,876.05
10.67%
Aaa /AA+
1.18
1.25%Due 5/6/2021
1.27%
349,936.89
1.04%
1,397.57
939.16
AAA
1.17
1,772,004.50
1,752,861.60
53.26%
Aaa / AA+
0.71
Total Agency
1,750,000.00
1.11%
1,752,771.33
1.20%
4,910.93
90.27
AAA
0.70
CIVIC,
3137BFDQ1
FHLMC K717 A2
149,307.88
01/04/2018
152,130.74
101.81
152,016.02
4.62%
NR/NR
1.57
2.991% Due 9/25/2021
2.37%
150,501.61
1.76%
372.15
1,514.41
AAA
1.35
152,130.74
152,016.02
4.62%
NR/NR
1.57
Total CMO
149,307.88
2.37%
150,501.61
1.76%
372AS
1,514.41
AAA
1.35
Chandler Asset Management - CONFIDENTIAL Page 4 Execution Time: 3/2/2020 9:47:09 PM
City of West Covina Short Term
Holdings Report
Account #10479
As of February 29, 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
42,968.72
Various 42,968.72
1.00
42,968.72
1.30%
Aaa / AAA
0.00
Class Y
1.17% 42,968.72
1.17%
0.00
0.00
AAA
0.00
42,968.72
42,968.72
1.30%
Aaa / AAA
0.00
Total Money Market Fund FI
42,968.72
1.17% 42,968.72
1.17%
0.00
0.00
AAA
0.00
US TREASURY
'
-
912828UV0 US Treasury Note
375,000.00
08/05/2016 377,799.11
99.97
374,904.38
11.41%
Aaa /AA+
0.08
1.125% Due 3/31/2020
0.92% 375,063.09
1.42%
1,763.58
(158.71)
AAA
0.08
912828VF4 US Treasury Note
375,000.00
08/05/2016 380,391.88
99.98
374,926.88
11.40%
Aaa /AA+
0.25
1.375% Due 5/31/2020
0.99% 375,352.49
1.45%
1,296.11
(425.61)
AAA
0.25
91282SN89 US Treasury Note
375,000.00
08/11/2016 380,054.97
100.23
375,879.00
11.40%
Aaa /AA+
0.92
1.375% Due 1/31/2021
1.07% 376,040.09
1.12%
424.97
(161.09)
AAA
0.91
1,138,245.96
1,125,710.26
34.21%
Aaa /AA+
0.42
Total US Treasury
1,125,000.00
0.99% 1,126,455.67
1.33%
3,484.66
(745.41)
AAA
0.42
3,321,815.69
3,291,501.68
100.00%
Aaa / AA+
0.70
TOTAL PORTFOLIO
3,284,300.98
1.23% 3,289,472.85
1.29%
8,978.84
2,028.83
AAA
0.60
TOTAL MARKET VALUE PLUS ACCRUED
3,300,480.52
Chandler Asset Management - CONFIDENTIAL Page 5 Execution Time: 3/2/2020 9:47:09 PM