08-04-2020 - AGENDA ITEM 02 CONSIDERATION OF INVESTMENT REPORT FOR THE MONTH ENDED MAY 31, 202012/1/2020
Print Staff Report
AGENDA ITEM NO. 2
DATE: August 4, 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: CONSIDERATION OF INVESTMENT REPORT FOR THE MONTH ENDED MAY 31,
2020
RECOMMENDATION:
It is recommended that the City Council receive and file the Investment Report for the month ended May 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 May 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 May 31, 2020, the investment portfolio had a market value of $82,213,564 and the bond reserves had a
market value of $6,659,060.
Prepared by: Robbeyn Bird, Finance Director
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City of West Covina Short Term
Transaction Ledger
OR
Account #10479
As of May 31, 2020
Transaction Settlement CUSIP
Type Date
DISPOSITIONS
Quantity
Security Description Price Acq/Disp
Yield
Amount
Interest
Pur/Sold
Total Amount
Gain/Loss
Security 05/26/2020 31846V203
41.67
First American Govt Obligation Fund 1.000
41.67
0.00
41.67
0.00
Withdrawal
Class Y
Subtotal
178.75
178.75
0.00
178.75
0.00
TOTAL DISPOSITIONS
23,622.07
23,622.07
724.35
24,346.42
0.00
OTHER TRANSACTIONS
Dividend 05/01/2020 31846V203
17,661.29
First American Govt Obligation Fund 0.000
2.82
0.00
2.82
0.00
Class Y
Subtotal
17,661.29
2.82
0.00
2.82
0.00
TOTAL OTHER TRANSACTIONS
17,661.29
2.82
0.00
2.82
0.00
Chandler Asset Management -CONFIDENTIAL Page 6 Execution Time: 6/2/202012:54:03 AM
12/1/2020 Print Staff Report
Additional David Carmany, City Manager
Approval:
Attachments
Attachment No. 1 - Investment Report May 31, 2020
Attachment No. 2 - Chandler Report May 31, 2020
CITY Achieve Fiscal Sustainability and Financial Stability
COUNCIL Engage in Proactive Economic Development
GOALS &
OBJECTIVES:
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ATTACHMENT NO. 1
City of West Covina
Investment Report
For the Month Ended May 31, 2020
Interest]
Yield to
Maturity
% of
Description
Book Value
Market Value
Maturity
Date
Portfolio
Cash and Cash Equivalents
Wells Fargo Checking Account
$ 4,516,894
$ 4,516,894
0.00%
We
5.08%
Pacific Western Bank Checking - HPP (CDBG)
3,642
3,642
0.00%
n/a
0.00%
Pacific Western Bank Checking - HPP(LMIHF)
2,092
2,092
0.00%
n/a
0.00%
Los Angeles County Investment Pool (LACIP)
24,160
24,160
0.98 %
n/a
0.03%
Los Angeles County Investment Pool (LACIP) - CFD
2,168
2,168
0.98 %
n/a
0.00%
Local Agency Investment Fund (LAIF)
70,476,254
70,476,254
1.36%
n/a
79.30%
Wells Fargo Checking Account- Successor Agency
3,345,066
3,345,066
0.00%
n/a
3.76%
Wells Fargo Checking Account -CFD
3,604,098
3,504,098
0.00%
n/a
3.94%
Investments - Chandler Asset Management
Asset -Backed Securities
144,580
145,522
0.63%
See attached
0.16%
Federal Agencies
-
-
0.00%
See attached
0.00%
Collateralized Mortgage Obligation
149,650
152,015
1.52 %
See attached
0.17 %
Money Market Funds
41,653
41,653
0.01 %
See attached
0.05 %
US Treasury
0.00%
See attached
0.00%
Total Cash and Investments
$ 82,210,257
$ 82,213,564
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
1.21 %
First American Treasury Obligations Fund Class D
585,372
585,372
1.39%
n/a
0.66 %
1996 Special Tax Refunding Bonds - Successor Agency
First American Treasury Obligations Fund Class D
5,002,688
5,002,688
7.01 %
9/1/2022
5.63 %
First American Treasury Obligations Fund Class D
1.39%
n/a
0.00%
Total Bond Reserves
$ 6,659,060
$ 6,669,060
Total Investment Portfolio
$ 88,869,317 $ 88,872,624
100.00%
Blend.d Yield of Cash and Investments
1.36%
Benchmarks:
LAIF
1.36%
LACIP
0.98%
6mo U.S. Treasury
0.18%
2yr U.S. Treasury
0.16%
Syr U.S. Treasury
0.30%
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: RE WED BY:
Robbeyn Bird- Finance Director Colleen B. Rozatti - City Trea r r
APPROVED BY:
David Carman City Manager
ATTACHMENT NO.2 Q11
City of West Covina Short Term - Account #10479
MONTHLY ACCOUNT STATEMENT
MAY 1, 2020 THROUGH MAY 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 May 31, 2020 OR
PORTFOLIO CHARACTERISTICS
Average Modified Duration
0.62
Average Coupon
2.42%
Average Purchase YTM
2.22%
Average Market YTM
0.95%
Average S&P/Moody Rating
AAA/Aaa
Average Final Maturity
1.19 yrs
Average Life
0.63 yrs
SECTOR ALLOCATION
44.9%
ass 42.9%
Mo v kra 12.3%
PERFORMANCE REVIEW
ACCOUNT SUMMARY
TOP ISSUERS
Beg. Values
End Values
Federal Home Loan Mortgage Corp
44.9%
as of 4/30/20
as of 5/31/20
Honda ABS
34.0%
Market Value
339,325
339,190
First American Govt Oblig Fund
12.3%
Accrued Interest
535
512
John Deere ABS
8.9%
Total Market Value
339,860
339,702
Income Earned
2,344
672
Total
100.0%
Cont/WD
-179
Par
334,470
335,018
Book Value
335,367
335,883
Cost Value
336,863
337,469
MATURITY DISTRIBUTION
CREDIT QUALITY (S&P)
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5.
Maturity (Yrs)
Annualized
TOTAL RATE OF RETURN
11M 3M YTD 1YR 2YRS 3YRS 5YR5
10YRS
7/31/2016
City of West Covina Short Term
0.01% 0.89% 1.42% 3.05% 3.16% 2.25% N/A
N/A
1.84%
ICE BAML 1-3 Yr US Treasury/Agency Index
0.07% 1.47% 2.90% 4.56% 4.00% 2.65% N/A
N/A
2.08%
Chandler Asset Management -CONFIDENTIAL Page 1 Execution Time: 6/2/202012:54:03 AM
Category
Treasury Issues
Federal Agencies
Municipal Securities
Supranationals
Medium Term Notes
Collateralized Certificates of Deposit
Negotiable Certificates of Deposit
Banker's Acceptances
Commercial Paper
Asset -Backed Securities/ Mortgage -
Backed Securities
Money Market Mutual Funds
Prohibited Securities
Repurchase Agreements
Local Agency Investment Fund (LAIF)
Los Angeles County Investment Pool
Max per Security Type
Max per Issuer
Maximum Maturity
*Account is terminating and liquidat
Statement of Compliance
As of May 31, 2020
City of West Covina
CA
Assets managed by Chandler Asset Management are in full compliance with state law and the District's investment policy.
Standard
Comment
No limitations
Complies
No limitations
Complies
"A" or higher by a NRSRO; 30% maximum; 5% max per issuer
Complies
"AA" rated or higher by a NRSRO; 30% max; 10% max per issuer; Unsubordinated obligations issued by: IBRD, IFC, IADB
Complies
"A" rated or higher by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporations organized and operating within
Complies
the U.S.
25% maximum
Complies
"A" rated or better by a NR5RC; 30% maximum
Complies
40% maximum; 30% max per one commercial bank; 180 days max maturity
Complies
A-10-1 rating or higher by both 5&P and Moody's; 25% maximum; 5% per issuer; 270 days max maturity; Eligible paper is
limited to corporations organized and operating within the U.S. with total assets of at least $500 million
Complies
"AA" or better by a NR5RC; "A" rated issuer rating or higher by a NRSRO; 20% maximum
Complies*
"AAA" rated or highest rating by a NRSRO; 20% maximum; 10% per fund
Complies
Inverse floaters; Ranges notes, Interest -only strips from mortgaged backed securities; Zero interest accrual securities;
Complies
Reverse Repurchase Agreements
20% maximum; 100 days max maturity; collateralized 102%of market value; Not used by investment adviser
Complies
Maximum program; Not used by investment adviser
Complies
Maximum program; Not used by investment adviser
Complies
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
No more than 5% in any single issuer except US Gov, Agencies, Supranationals, Money Market Funds, LAIF, or LGIP
Complies
5 years
Complies
ig all positions as they mature
City of West Covina Short Term Reconciliation Summary
Account #10479 As of May 31, 2020
BOOK VALUE RECONCILIATION
BEGINNING BOOK VALUE
$335,367.18
Acquisition
+Security Purchases $0.00
+ Money Market Fund Purchases $24,170.49
+ Money Market Contributions $0.00
+Security Contributions $0.00
+ Security Transfers $0.00
Total Acquisitions
$24,170.49
Dispositions
Security Sales
$0.00
- Money Market Fund Sales
$0.00
- MMF Withdrawals
$178.75
- Security Withdrawals
$0.00
- Security Transfers
$0.00
- Other Dispositions
$0.00
- Maturites
$0.00
Calls
$0.00
Principal Paydowns
$23,443.32
Total Dispositions
$23,622.07
Amortization/Accretion
+/- Net Accretion
($32.15)
($32.15)
Gain/Loss on Dispositions
+/- Realized Gain/Loss
$0.00
$0.00
ENDING BOOK VALUE
$335,883.45
BEGINNING BALANCE 1 $17,661.29
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
Dispositions
Withdrawals
$178.75
Security Purchase
$0.00
Accrued Interest Paid
$0.00
Total Dispositions
$178.75
ENDING BOOK VALUE
$41,653.03
Chandler Asset Management - CONFIDENTIAL Page 3 Execution Time: 6/2/202012:54:03 AM
City of West Covina Short Term
Holdings Report
Account #10479
A5 of May 31, 2020
Security Description
ABS
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
22,607.71
04/27/2018
22,256.24
100.29
22,673.07
6.68%
Aaa / AAA
1.21
A3
2.62%
22,478.97
0.51%
16.88
194.10
NR
0.24
1.68% Due 8/16/2021
43814WAB1 Honda Auto Receivables Trust 2019-1
92,080.36
02/19/2019
92,074.43
100.61
92,644.04
27.30%
NR/AAA
1.31
A2
2.77%
92,077.34
0.57%
91.44
566.70
AAA
0.28
2.75% Due 9/20/2021
47788BAD6 John Deere Owner Trust 2017-B A3
5,365.59
07/11/2017
5,365.20
100.20
5,376.58
1.58%
Aaa / NR
1.38
1.82%Due 10/15/2021
1.83%
5,365.46
0.68%
4.34
11.12
AAA
0.18
47788CAC6 John Deere Owner Trust 2018-A A3
24,659.56
02/21/2018
24,657.80
100.69
24,828.55
7.32%
Aaa / NR
1.88
2.66%Due 4/18/2022
2.68%
24,658.76
0.97%
29.15
169.79
AAA
0.39
144,353.67
145,522.24
42.88%
Aaa / AAA
1.39
Total ABS
144,713.22
2.70%
144,580.53
0.63%
141.81
941.71
AAA
0.29
CMO
E
3137BFDQ1 FHLMC K717 A2
148,652.23
01/04/2018
151,462.69
102.26
152,014.43
44.86%
NR/NR
1.32
2.991% Due 9/25/2021
2.37%
149,649.89
1.52%
370.52
2,364.54
AAA
1.11
151,462.69
152,014.43
44.86%
NR/NR
1.32
Total CMO
148,652.23
2.37%
149,649.89
1.52%
370.52
2,364.54
AAA
1.11
MONEY MARKET FUND FI
31846V203 First American Govt Obligation Fund
41,653.03
Various
41,653.03
1.00
41,653.03
12.26%
Aaa / AAA
0.00
Class
0.01%
41,653.03
0.01%
0.00
0.00
AAA
0.00
41,653.03
41,653.03
12.26%
Aaa / AAA
0.00
Total Money Market Fund FI
41,653.03
0.01%
41,653.03
0.01%
0.00
0.00
AAA
0.00
337,469.39
339,189.70
100.00%
Aaa/AAA
1.19
TOTAL PORTFOLIO
335,018.48
2.22%
335,883.45
0.95%
512.33
3,306.25
AAA
0.62
TOTAL MARKET VALUE PLUS ACCRUED
339,702.03
Chandler Asset Management -CONFIDENTIAL Page 4 Execution Time: 6/2/202012:54:03 AM
City of West
Covina Short Term
Transaction Ledger
OR
Account #10479
As of May 31, 2020
Transaction
Type
ACQUISITIONS
Settlement
Date
CUSIP
Quantity
Security Description
Price Acq/Disp
Yield
Amount
Interest
Pur/Sold
Total Amount Gain/Loss
Purchase
05/01/2020
31846V203
2.82
First American Govt Obligation Fund
1.000
0.01%
2.82
0.00
2.82
0.00
Class Y
Purchase
05/15/2020
31846V203
3,941.17
First American Govt Obligation Fund
1.000
0.01%
3,941.17
0.00
3,941.17
0.00
Class Y
Purchase
05/15/2020
31846V203
2,167.65
First American Govt Obligation Fund
1.000
0.01%
2,167.65
0.00
2,167.65
0.00
Class Y
Purchase
05/15/2020
31846V203
3,523.86
First American Govt Obligation Fund
1.000
0.01%
3,523.86
0.00
3,523.86
0.00
Class Y
Purchase
05/18/2020
31846V203
13,944.69
First American Govt Obligation Fund
1.000
0.01%
13,944.69
0.00
13,944.69
0.00
Class Y
Purchase
05/26/2020
31846V203
590.30
First American Govt Obligation Fund
1.000
0.01%
590.30
0.00
590.30
0.00
Class Y
Subtotal
24,170.49
24,170.49
0.00
24,170.49
0.00
TOTAL ACQUISITIONS
24,170.49
24,170.49
0.00
24,170.49
0.00
DISPOSITIONS
MIENER.
0
Paydown
05/15/2020
43811BACS
3,904.05
Honda Auto Receivables Trust 2017-2
100.000
3,904.05
37.12
3,941.17
0.00
A3
1.68% Due 8/16/2021
Paydown
05/15/2020
47788BAD6
2,156.24
John Deere Owner Trust 2017-B A3
100.000
2,156.24
11.41
2,167.65
0.00
1.82% Due 10/15/2021
Paydown
05/15/2020
47788CAC6
3,461.52
John Deere Owner Trust 2018-A A3
100.000
3,461.52
62.34
3,523.86
0.00
2.66% Due 4/18/2022
Paydown
05/18/2020
43814WAB1
13,702.27
Honda Auto Receivables Trust 2019-1
100.000
13,702.27
242.42
13,944.69
0.00
A2
2.75% Due 9/20/2021
Paydown
05/26/2020
3137BFDQ1
219.24
FHLMC K717 A2
100.000
219.24
371.06
590.30
0.00
2.991% Due 9/25/2021
Subtotal
23,443.32
23,443.32
724.35
24,167.67
0.00
Security
05/05/2020
31846V203
137.08
First American Govt Obligation Fund
1.000
137.08
0.00
137.08
0.00
Withdrawal
Class Y
Chandler Asset Management
- CONFIDENTIAL
Page 5
Execution
Time: 6/2/202012:54:03
AM