05-05-2020 - AGENDA ITEM 04 CONSIDERATION OF INVESTMENT REPORT FOR THE MONTH ENDED MARCH 31, 2020AGENDA ITEM NO.4
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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 MARCH 31,
2020
RECOMMENDATION:
It is recommended that the City Council receive and file the Investment Report for the month ended March 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 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 March 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 March 31, 2020, the investment portfolio had a market value of $73,779,393 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 March 31,
2020
Transaction
Type
ACQUISITIONS
Settlement
Date
CUSIP
Quantity
Security Description
Price Acq/Disp
Yield
Amount
Interest
Pur/Sold
Total Amount
Gain/Loss
Purchase
03/02/2020
31846V203
276.34
First American Govt Obligation Fund
1.000
1.17%
276.34
0.00
276.34
0.00
Class Y
Purchase
03/16/2020
31846V203
4,462.73
First American Govt Obligation Fund
1.000
1.17%
4,462.73
0.00
4,462.73
0.00
Class Y
Purchase
03/16/2020
31846V203
2,163.05
First American Govt Obligation Fund
1.000
1.17%
2,163.05
0.00
2,163.05
0.00
Class Y
Purchase
03/16/2020
31846V203
2,834.82
First American Govt Obligation Fund
1.000
1.17%
2,834.82
0.00
2,834.82
0.00
Class Y
Purchase
03/18/2020
31846V203
15,466.13
First American Govt Obligation Fund
1.000
1.17%
15,466.13
0.00
15,466.13
0.00
Class Y
Purchase
03/25/2020
31846V203
603.08
First American Govt Obligation Fund
1.000
1.17%
603.08
0.00
603.08
0.00
Class Y
Purchase
03/31/2020
31846V203
375,000.00
First American Govt Obligation Fund
1.000
0.12%
375,000.00
0.00
375,000.00
0.00
Class Y
Purchase
03/31/2020
31846V203
2,109.38
First American Govt Obligation Fund
1.000
0.12%
2,109.38
0.00
2,109.38
0.00
Class Y
Subtotal
402,915.53
402,915.53
0.00
402,915.53
0.00
TOTAL ACQUISITIONS
402,915.53
402,915.53
0.00
402,915.53
0.00
DISPOSITIONS
.
Paydown
03/16/2020
43811BACS
4,413.51
Honda Auto Receivables Trust 2017-2
100.000
4,413.51
49.22
4,462.73
0.00
A3
1.68% Due 8/16/2021
Paydown
03/16/2020
47788BAD6
2,145.34
John Deere Owner Trust 2017-B A3
100.000
2,145.34
17.71
2,163.05
0.00
1.82% Due 10/15/2021
Paydown
03/16/2020
47788CAC6
2,759.91
John Deere Owner Trust 2018-A A3
100.000
2,759.91
74.91
2,834.82
0.00
2.66% Due 4/18/2022
Paydown
03/18/2020
43814WAB1
15,153.56
Honda Auto Receivables Trust 2019-1
100.000
15,153.56
312.57
15,466.13
0.00
A2
2.75% Due 9/20/2021
Chandler Asset Management-
CONFIDENTIAL
Paee 6
Execution
Time: 4/1/202010:54:41 PM
City of West Covina Short Term Transaction Ledger
Account #10479 As of March 31, 2020 OR
Transaction Settlement CUSIP Quantity Security Description Price Acq/Disp Interest
Type Date Yield Amount Pur/Sold Total Amount Gain/Loss
DISPOSITIONS
Paydown 03/25/2020 3137BFDQ1 230.93 FHLMC K717 A2 100.000 230.93 372.15 603.08 0.00
2.991% Due 9/25/2021
Subtotal
24,703.25
24,703.25
826.56
25,529.81
0.00
Maturity 03/31/2020
91282SUVO
375,000.00
US Treasury Note
1.125% Due 3/31/2020
100.000
375,000.00
0.00
375,000.00
0.00
Subtotal
375,000.00
375,000.00
0.00
375,000.00
0.00
Security 03/04/2020
Withdrawal
31846V203
319.84
First American Govt Obligation Fund
Class
1.000
319.84
0.00
319.84
0.00
Security 03/25/2020
Withdrawal
31846V203
41.67
First American Govt Obligation Fund
Class Y
1.000
41.67
0.00
41.67
0.00
Subtotal
361.51
361.51
0.00
361.51
0.00
TOTAL DISPOSITIONS
400,064.76
400,064.76
826.56
400,891.32
0.00
OTHER TRANSACTIONS
Interest 03/31/2020
912828UVO
375,000.00
US Treasury Note
1.125% Due 3/31/2020
0.000
2,109.38
0.00
2,109.38
0.00
Subtotal
375,000.00
2,109.38
0.00
2,109.38
0.00
Dividend 03/02/2020
31846V203
42,968.72
First American Govt Obligation Fund
Class Y
0.000
276.34
0.00
276.34
0.00
Subtotal
42,968.72
276.34
0.00
276.34
0.00
TOTAL OTHER TRANSACTIONS
417,968.72
2,385.72
0.00
2,385.72
0.00
Chandler Asset Management- CONFIDENTIAL Page 7 Execution Time: 4/1/202010:54:41 PM
Attachments
Attachment No. 1 - Investment Report March 2020
Attachement No. 2 - Chandler Report March 2020
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability
ATTACHMENT NO. 1
City of West Covina
Investment Report
For the Month Ended March 31, 2020
Interest/
Yield to
Maturity
% of
Description
Book Value
Market Value
Maturity
Date
Portfolio
Cash and Cash Equivalents
Wells Fargo Checking Account
$ 4,078,457
$ 4,078,457
0.00%
n/a
5.07%
Pacific Western Bank Checking - HPP (CDBG)
3,664
3,664
0.00%
n/a
0.00%
Pacific Western Bank Checking - HPP(LMIHF)
2,114
2,114
0.00%
n/a
0.00%
Los Angeles County Investment Pool (LACIP)
11,849,529
11,849,529
1.71%
n/a
14.73%
Los Angeles County Investment Pool (LACIP) - CFD
894,252
894,252
1.71%
n/a
1.11 %
Local Agency Investment Fund (LAIF)
48,570,324
48,570,324
1.79%
n/a
60.38 %
Wells Fargo Checking Account - Successor Agency
3,399,277
3,399,277
0.00%
n/a
4.23%
Wells Fargo Checking Account -CFD
1,676,412
1,676,412
0.00%
n/a
2.08%
Investments - Chandler Asset Management
Asset -Backed Securities
192,347
191,923
2.82%
See attached
0.24%
Federal Agencies
1,752,317
1,760,285
0.37%
See attached
2.19%
Collateralized Mortgage Obligation
150,204
152,741
1.90 %
See attached
0.19 %
Money Market Funds
445,523
445,523
0.12 %
See attached
0.55%
US Treasury
751,176
754,892
0.09%
See attached
0.94%
Total Cash and Investments
$ 73,765,596 $ 73,779,393
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
1.33%
First American Treasury Obligations Fund Class D
585,372
585,372
1.39%
n1a
0.73%
1996 Special Tax Refunding Bonds - Successor Agency
First American Treasury Obligations Fund Class D
5,002,670
5,002,670
7.01 %
9/1/2022
6.22%
FirstAmerican Treasury Obligations Fund Class D
1.39%
n/a
0.00%
Total Bond Reserves
$ 6,659,042
$ 6,659,042
Total Investment Portfolio
$ 80,424,638 $ 80,438,435
100.00%
Blended Yield of Cash and Investments'
1.71%
Benchmarks:
LAIF
1.79%
LACIP
1.71%
6mo U.S. Treasury
0.15%
2yr U.S. Treasury
0,23 %
5 rU.S. Treasury
0.37%
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:
Y YAiA.cHFY��
Robbeyn Bi - Finance Director Colleen B. Rozatti - City Treasurer
APPROVED BY:
A
David Carmany - CFy Manager
ATTACHMENT NO.2 Q11
City of West Covina Short Term - Account #10479
MONTHLY ACCOUNT STATEMENT
MARCH 1, 2020 THROUGH MARCH 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 Portfolio Summary
Account #10479 As of March 31, 2020 C11%
PORTFOLIO CHARACTERISTICS
Average Modified Duration
0.52
Average Coupon
1.37%
Average Purchase YTM
1.11%
Average Market YTM
0.49%
Average S&P/Moody Rating
AA+/Aaa
Average Final Maturity
0.61 yrs
Average Life
0.52 yrs
SECTOR ALLOCATION
Aaencv 53.3%
us rreasurv_ 22.8%
..-m-do
13.4%
-1 1.
cmo' 11-
PERFORMANCE REVIEW
ACCOUNT SUMMARY
TOP ISSUERS
Beg. Values
End Values
Federal National Mortgage Assoc
42.6%
as of 2/29/20
as of 3/31/20
Government of United States
22.8%
Market Value
3,291,502
3,305,364
First American Govt Oblig Fund
13.4%
Accrued Interest
8,979
10,145
Federal Home Loan Bank
10.7%
Total Market Value
3,300,481
3,315,509
Income Earned
4,554
3,622
Federal Home Loan Mortgage Corp
4.6%
Cont/WD
-362
Honda ABS
4.6%
Par
3,284,301
3,287,152
John Deere ABS
1.2%
Book Value
3,289,473
3,291,567
Total
100.0%
Cost Value
3,321,816
3,321,933
MATURITY DISTRIBUTION
CREDIT QUALITY (S&P)
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+
Maturity (Yrs)
AA (76.2%)
(5.8%)
Annualized
TOTAL RATE OF RETURN
1M 3M'WYTD 1YR
2YRS 3YRS 5YR5
10YRS
7/31/2016
City of West Covina Short Term
0.47% 0.99% 0.99% 3.35%
3.08% 2.21% N/A
N/A
1.80%
ICE BAML 1-3 Yr US Treasury/Agency Index
1.35% 2.78% 2.78% 5.39%
4.05% 2.70% N/A
N/A
2.15%
Chandler Asset Management - CONFIDENTIAL Page 1 Execution Time: 4/1/202010:54:41 PM
Statement of Compliance
As of March 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 13.4%pending client withdrawal
City of West Covina Short Term Reconciliation Summary
Account #10479 As of March 31, 2020
BOOK VALUE RECONCILIATION
BEGINNING BOOK VALUE
$3,289,472.85
Acquisition
+Security Purchases $0.00
+ Money Market Fund Purchases $402,915.53
+ Money Market Contributions $0.00
+Security Contributions $0.00
+ Security Transfers $0.00
Total Acquisitions
$402,915.53
Dispositions
Security Sales
$0.00
- Money Market Fund Sales
$0.00
- MMF Withdrawals
$361.51
- Security Withdrawals
$0.00
- Security Transfers
$0.00
- Other Dispositions
$0.00
Maturites
$375,000.00
Calls
$0.00
Principal Paydowns
$24,703.25
Total Dispositions
$400,064.76
Amortization/Accretion
+/- Net Accretion
($756.50)
($756.50)
Gain/Loss on Dispositions
+/- Realized Gain/Loss
$0.00
$0.00
ENDING BOOK VALUE
$3,291,567.12
BEGINNING BALANCE
$42,968.72
Acquisition
Contributions
$0.00
Security Sale Proceeds
$0.00
Accrued Interest Received
$0.00
Interest Received
$2,935.94
Dividend Received
$276.34
Principal on Maturities
$375,000.00
Interest on Maturities
$0.00
Calls/Redemption (Principal)
$0.00
Interest from Calls/Redemption
$0.00
Principal Paydown
$24,703.25
Total Acquisitions
$402,915.53
Dispositions
Withdrawals
$361.51
Security Purchase
$0.00
Accrued Interest Paid
$0.00
Total Dispositions
$361.51
ENDING BOOK VALUE
$445,522.74
Chandler Asset Management - CONFIDENTIAL Page 3 Execution Time: 4/1/202010:54:41 PM
City of West Covina Short Term
Holdings Report
Account #10479
As of March 31, 2020
ABS
Security Description
Par Value/Units
Purchase Date
Book Yield
Cost Value Mkt
Book Value Mkt
Price
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
DurationCUSIP
43811BACS
Honda Auto Receivables Trust 2017-2
30,741.31
04/27/2018
30,263.38
99.76
30,666.47
0.93%
Aaa/AAA
1.38
A3
2.62%
30,542.04
2.50%
22.95
124.43
NR
0.30
1.68% Due 8/16/2021
43814WAB1
Honda Auto Receivables Trust 2019-1
121,240.78
02/19/2019
121,232.97
99.76
120,948.54
3.65%
NR/AAA
1.47
A2
2.77%
121,236.30
3.47%
120.40
(287.76)
AAA
0.34
2.75% Due 9/20/2021
47788BAD6
John Deere Owner Trust 2017-B A3
9,534.35
07/11/2017
9,533.66
99.63
9,499.46
0.29%
Aaa / NR
1.54
1.82%Due 10/15/2021
1.83%
9,534.10
3.56%
7.71
(34.64)
AAA
0.21
47788CAC6
John Deere Owner Trust 2018-A A3
31,035.62
02/21/2018
31,033.40
99.27
30,808.92
0.93%
Aaa / NR
2.05
2.66%Due 4/18/2022
2.68%
31,034.52
0.41%
36.69
(225.60)
AAA
0.43
192,063.41
191,923.39
5.79%
Aaa/AAA
1.55
Total ABS
192,552.06
2.69%
192,346.96
2.82%
187.75
(423.57)
AAA
0.34
AGENCY
L
-
-
3135GOD75
FNMA Note
700,000.00
07/29/2016
712,474.00
100.28
701,964.90
21.26%
Aaa /AA-
0.23
1.5%Due 6/22/2020
1.03%
700,718.30
0.25%
2,887.50
1,246.60
AAA
0.22
3135GOF73
FNMA Note
350,000.00
07/29/2016
355,939.50
100.67
352,358.30
10.68%
Aaa /AA+
0.67
1.5% Due 11/30/2020
1.10%
350,910.60
0.49%
1,764.58
1,447.70
AAA
0.66
313OA7CV5
FHLB Note
350,000.00
07/29/2016
353,846.50
100.90
353,164.70
10.67%
Aaa / AA+
0.89
1.375% Due 2/18/2021
1.13%
350,746.20
0.35%
574.83
2,418.50
AAA
0.88
3135GOK69
FNMA Note
350,000.00
07/22/2016
349,744.50
100.80
352,797.55
10.69%
Aaa /AA+
1.10
1.25%Due 5/6/2021
1.27%
349,941.43
0.52%
1,762.15
2,856.12
AAA
1.09
1,772,004.50
1,760,285.45
53.30%
Aaa / AA+
0.62
Total Agency
1,750,000.00
1.11%
1,752,316.53
0.37%
6,989.06
7,968.92
AAA
0.62
CIVIC,
'
3137BFDQ1
FHLMC K717 A2
149,076.95
01/04/2018
151,895.44
102.46
152,740.65
4.62%
NR/NR
1.49
2.991%Due 9/25/2021
2.37%
150,204.35
1.90%
371.57
2,536.30
AAA
1.26
151,895.44
152,740.65
4.62%
NR/NR
1.49
Total CMO
149,076.95
2.37%
150,204.35
1.90%
371.57
2,536.30
AAA
1.26
Chandler Asset Management - CONFIDENTIAL Page 4 Execution Time: 4/1/202010:54:41 PM
City of West Covina Short Term
Holdings Report
Account #10479
As of March 31, 2020
Security Description
MONEY MARKET FUND FI
Par Value/Units
Purchase Date Cost Value
Book Yield Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
DurationCUSIP
31846V203 First American Govt Obligation Fund
445,522.74
Various 445,522.74
1.00
445,522.74
13.44%
Aaa / AAA
0.00
Class Y
0.12% 445,522.74
0.12%
0.00
0.00
AAA
0.00
445,522.74
445,522.74
13.44%
Aaa / AAA
0.00
Total Money Market Fund FI
445,522.74
0.12% 445,522.74
0.12%
0.00
0.00
AAA
0.00
US TREASURY
'
'
A166'
912828VF4 US Treasury Note
375,000.00
08/05/2016 380,391.88
100.21
375,789.75
11.39%
Aaa /AA+
0.17
1.375% Due 5/31/2020
0.99% 375,232.41
0.11%
1,732.84
557.34
AAA
0.17
91282SN89 US Treasury Note
375,000.00
08/11/2016 380,054.97
101.09
379,101.75
11.46%
Aaa /AA+
0.84
1.375% Due 1/31/2021
1.07% 375,944.13
0.06%
864.10
3,157.62
AAA
0.83
760,446.85
754,891.50
22.85%
Aaa / AA+
0.50
Total US Treasury
750,000.00
1.03% 751,176.54
0.09%
2,596.94
3,714.96
AAA
0.50
3,321,932.94
3,305,363.73
100.00%
Aaa / AA+
0.61
TOTAL PORTFOLIO
3,287,151.75
1.11% 3,291,567.12
0.49%
10,145.32
13,796.61
AAA
0.52
TOTAL MARKET VALUE PLUS ACCRUED
3,315,509.05
Chandler Asset Management - CONFIDENTIAL Page 5 Execution Time: 4/1/202010:54:41 PM