10-06-2020 - AGENDA ITEM 03 INVESTMENT REPORT FOR THE MONTH ENDED AUGUST 31, 202012/1/2020
Print Staff Report
AGENDA ITEM NO. 3
DATE: October 6, 2020
TO: Mayor and City Council
FROM: David Cannany
City Manager
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
SUBJECT: INVESTMENT REPORT FOR THE MONTH ENDED AUGUST 31, 2020
RECOMMENDATION:
It is recommended that the City Council receive and file the Investment Report for the month ended August
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 August 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 August 31, 2020, the investment portfolio had a market value of $78,423,600 and the bond reserves had a
market value of $6,833,411.
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 August 31, 2020
Transaction Settlement CUSIP
Type Date
DISPOSITIONS
Quantity
Security Description Price Acq/Disp
Yield
Amount
Interest
Pur/sold
Total Amount
Gain/Loss
Security 08/25/2020 31846V203
41.67
First American Govt Obligation Fund 1.000
41.67
0.00
41.67
0.00
Withdrawal
Class Y
Subtotal
67.17
67.17
0.00
67.17
0.00
TOTAL DISPOSITIONS
24,262.06
24,262.06
580.57
24,842.63
0.00
OTHER TRANSAcnoNs �
Dividend 08/03/2020 31846V203
88,435.24
First American Govt Obligation Fund 0.000
0.38
0.00
0.38
0.00
Class Y
Subtotal
88,435.24
0.38
0.00
0.38
0.00
TOTAL OTHER TRANSACTIONS
88,435.24
0.38
0.00
0.38
0.00
Chandler Asset Management -CONFIDENTIAL Page 6 Execution Time: 9/1/2020 6:52:25 PM
f 2/l/2020
Approval:
Print Staff Report
Attachments
Attachment No. 1 - Investment Report
Attachment No. 2 - Chandler Report
CITY Achieve Fiscal Sustainability and Financial Stability
COUNCIL Respond to the Global COVID-19 Pandemic
GOALS &
OBJECTIVES:
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ATTACHMENT NO. 1
City of West Covina
Investment Report
For the Month Ended August 31, 2020
Interest]
Yield to
Maturity
% of
Description
Book Value
Market Value
Maturity
Date
Portfolio
Cash and Cash Equivalents
Wells Fargo Checking Account
$ 3,573,937
$ 3,573,937
0.00%
n/a
4.19%
Pacific Western Bank Checking - HPP (CDBG)
3,664
3,664
0.00%
n/a
0.00%
Pack Western Bank Checking - HPP (LMIHF)
2,064
2,064
0.00%
We
0.00%
Los Angeles County Investment Pool (LACIP)
64,229
64,229
0.68 %
n/a
0.08%
Los Angeles County Investment Pool (LACIP) - CFD
5,654
5,654
0.68 %
n/a
0.01 %
Local Agency Investment Fund (LAIF)
70,926,040
70,926,040
1.22 %
n/a
83.19%
Wells Fargo Checking Account- Successor Agency
2,321,624
2,321,624
0.00%
n/a
2.72%
Wells Fargo Checking Account -CFD
1,186,698
1,186,698
0.00%
n/a
1.39%
Investments - Chandler Asset Management
Asset -Backed Securities
75,494
75,822
0.43%
See attached
0.09%
Federal Agencies
-
-
0.00%
See attached
0.00%
Collateralized Mortgage Obligation
148,820
150,724
1.34%
See attached
0.18%
Money Market Funds
113,144
113,144
0.01 %
See attached
0.13 %
US Treasury
0.00%
See attached
0.00%
Total Cash and Investments
$ 78,421,368 $ 78,423,600
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
0.01 %
n/a
1.26 %
First American Treasury Obligations Fund Class D
585,372
585,372
0.01 %
n/a
0.69 %
1996 Special Tax Refunding Bonds - Successor Agency
First American Treasury Obligations Fund Class D
5,177,039
5,177,039
7.01 %
9/1/2022
6.07 %
First American Treasury Obligations Fund Class D
0.01 %
n/a
0.00%
Total Bond Reserves
$ 6,833,411
$ 6,833,411
Total Investment Portfolio
$ 85,264,779 $ 86,267,011
10o.00%
Blended Yield of Cash and Investments
0.78%
Benchmarks:
LAIF
0.78%
LACIP
0.68%
6mo U.S. Treasury
0.13%
2yr U.S. Treasury
0.14%
5y, U.S. Treasury
0.28%
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 - ance Director Colleen B. Rozatti - City Trea
APPROVED BY:
David Carmany -C X
IV Manager
ATTACHMENT NO.2 C11%
City of West Covina Short Term - Account #10479
MONTHLY ACCOUNT STATEMENT
AUGUST 1, 2020 THROUGH AUGUST 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
1.89%
Average Purchase YTM
1.65%
Average Market YTM
0.69%
Average S&P/Moody Rating
AAA/Aaa
Average Final Maturity
0.74 yrs
Average Life
0.44 yrs
SECTOR ALLOCATION
44.4%
Money — Ftl = 33.3%
ABS M
22.3%
PERFORMANCE REVIEW
Portfolio Summary
As of August 31, 2020
ACCOUNT SUMMARY
Beg. Values
End Values
as of 7/31/20
as of 8/31/20
Market Value
339,656
339,689
Accrued Interest
468
444
Total Market Value
340,124
340,133
Income Earned
569
516
Cont/WD
-67
Par
336,190
336,703
Book Value
336,985
337,458
Cost Value
338,760
339,333
MATURITY DISTRIBUTION
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+
Maturity (Yrs)
cap
TOP ISSUERS
Federal Home Loan Mortgage Corp
44.4%
First American Govt Oblig Fund
33.3%
Honda ABS
16.7%
John Deere ABS
5.6%
Total
100.0%
CREDIT QUALITY (S&P)
_ -- —AM (49.9%)
Annualized
TOTAL RATE OF RETURN
_
1M 31M YTD 1YR 2YRS 3YRS 5YR5
10YRS
7/31/2016
City of West Covina Short Term
0.02% 0.19% 1.61% 2.34% 3.03% 2.17% N/A
N/A
1.77%
ICE BAML 1-3 Yr US Treasury/Agency Index
-0.02% 0.11% 3.01% 3.42% 3.88% 2.57% N/A
N/A
1.98%
Chandler Asset Management - CONFIDENTIAL Paee 1 Execution Time: 9/1/2020 6:52:25 PM
Category
Treasurylssues
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 August 31, 2020
City of West Covina
Assets managed by Chandler Asset Management are in full compliance with state law and the District's investment policy.
CAN
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: BIRD, 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 NRSRO; 30% maximum
Complies
40% maximum; 30% max per one commercial bank; 180 days max maturity
Complies
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
"AA" or better by a NRSRO; "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
all positions as they mature
City of West Covina Short Term Reconciliation Summary
Account #10479 As of August 31, 2020
BOOK VALUE RECONCILIATION
BEGINNING BOOK VALUE
$336,984.58
Acquisition
+Security Purchases $0.00
+ Money Market Fund Purchases $24,775.84
+ Money Market Contributions $0.00
+Security Contributions $0.00
+ Security Transfers $0.00
Total Acquisitions
$24,775.84
Dispositions
Security Sales
$0.00
- Money Market Fund Sales
$0.00
- MMF Withdrawals
$67.17
- Security Withdrawals
$0.00
- Security Transfers
$0.00
- Other Dispositions
$0.00
- Maturites
$0.00
Calls
$0.00
Principal Paydowns
$24,194.89
Total Dispositions
$24,262.06
Amortization/Accretion
+/- Net Accretion
($40.85)
($40.85)
Gain/Loss on Dispositions
+/- Realized Gain/Loss
$0.00
$0.00
ENDING BOOK VALUE
$337,457.51
BEGINNING BALANCE 1 $88,435.24
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
$67.17
Security Purchase
$0.00
Accrued Interest Paid
$0.00
Total Dispositions
$67.17
ENDING BOOK VALUE
$113,143.91
Chandler Asset Management - CONFIDENTIAL Page 3 Execution Time: 9/1/2020 6:52:25 PM
City of West Covina Short Term
Holdings Report
Account #10479
As of August 31, 2020
Security Description
ABS
Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
MktYTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
DurationCUSIP
43811BACS Honda Auto Receivables Trust 2017-2
10,570.99
04/27/2018
10,406.65
100.16
10,587.90
3.12%
Aaa/AAA
0.96
A3
2.62%
10,523.35
0.40%
7.89
64.55
NR
0.13
1.68% Due 8/16/2021
43814WAB1 Honda Auto Receivables Trust 2019-1
45,910.87
02/19/2019
45,907.91
100.32
46,059.85
13.56%
NR/AAA
1.05
A2
2.77%
45,909.66
0.46%
45.59
150.19
AAA
0.14
2.75% Due 9/20/2021
47788BAD6 John Deere Owner Trust 2017-B A3
1,979.53
07/11/2017
1,979.38
100.10
1,981.49
0.58%
Aaa / NR
1.12
1.82%Due 10/15/2021
1.83%
1,979.49
0.17%
1.60
2.00
AAA
0.07
47788CAC6 John Deere Owner Trust 2018-A A3
17,081.89
02/21/2018
17,080.67
100.65
17,192.51
5.06%
Aaa / NR
1.63
2.66%Due 4/18/2022
2.68%
17,081.41
0.38%
20.19
111.10
AAA
0.28
75,374.61
75,821.75
22.31%
Aaa / AAA
1.17
Total ABS
75,543.28
2.70%
75,493.91
0.43%
75.27
327.84
AAA
0.17
CMO !
in
3137BFDQ1 FHLMC K717 A2
148,016.30
01/04/2018
150,814.74
101.83
150,723.52
44.42%
NR/NR
1.07
2.991% Due 9/25/2021
2.37%
148,819.69
1.34%
368.93
1,903.83
AAA
0.88
150,814.74
150,723.52
44.42%
NR/NR
1.07
Total CIAO
148,016.30
2.37%
148,819.69
1.34%
368.93
1,903.83
AAA
0.88
MONEY MARKET FUND FI
31846V203 First American Govt Obligation Fund
113,143.91
Various
113,143.91
1.00
113,143.91
33.26%
Aaa / AAA
0.00
Class
0.01%
113,143.91
0.01%
0.00
0.00
AAA
0.00
113,143.91
113,143.91
33.26%
Aaa/AAA
0.00
Total Money Market Fund FI
113,143.91
0.01%
113,143.91
0.01%
0.00
0.00
AAA
0.00
339,333.26
339,689.18
100.00%
Aaa / AAA
0.74
TOTAL PORTFOLIO
336,703.49
1.65%
337,4S7.S1
0.69%
444.20
2,231.67
AAA
0.43
TOTAL MARKET VALUE PLUS ACCRUED
340,133.38
Chandler Asset Management -CONFIDENTIAL Page 4 Execution Time: 9/1/2020 6:52:25 PM
City of West
Covina Short Term
Transaction Ledger
OR
Account #10479
As of August 31,
2020
Transaction
Type
ACQUISITIONS
Settlement
Date
CUSIP
Quantity
Security Description
Price Acq/Disp
Yield
Amount
1111
Interest
Pur/sold
Total Amount Gain/Loss
Purchase
08/03/2020
31846V203
0.38
First American Govt Obligation Fund
1.000
0.01%
0.38
0.00
0.38
0.00
Class Y
Purchase
08/17/2020
31846V203
3,988.75
First American Govt Obligation Fund
1.000
0.01%
3,988.75
0.00
3,988.75
0.00
Class Y
Purchase
08/17/2020
31846V203
1,263.97
First American Govt Obligation Fund
1.000
0.01%
1,263.97
0.00
1,263.97
0.00
Class Y
Purchase
08/17/2020
31846V203
2,947.51
First American Govt Obligation Fund
1.000
0.01%
2,947.51
0.00
2,947.51
0.00
Class Y
Purchase
08/18/2020
31846V203
15,997.41
First American Govt Obligation Fund
1.000
0.01%
15,997.41
0.00
15,997.41
0.00
Class Y
Purchase
08/25/2020
31846V203
577.82
First American Govt Obligation Fund
1.000
0.01%
577.82
0.00
577.82
0.00
Class Y
Subtotal
24,775.84
24,775.84
0.00
24,775.84
0.00
TOTAL ACQUISITIONS
24,775.84
24,775.84
0.00
24,775.84
0.00
DISPOSITIONS
i
i
EL
Paydown
08/17/2020
43811BACS
3,968.39
Honda Auto Receivables Trust 2017-2
100.000
3,968.39
20.36
3,988.75
0.00
A3
1.68% Due 8/16/2021
Paydown
08/17/2020
47788BAD6
1,259.06
John Deere Owner Trust 2017-B A3
100.000
1,259.06
4.91
1,263.97
0.00
1.82% Due 10/15/2021
Paydown
08/17/2020
47788CAC6
2,903.21
John Deere Owner Trust 2018-A A3
100.000
2,903.21
44.30
2,947.51
0.00
2.66% Due 4/18/2022
Paydown
08/18/2020
43814WAB1
15,855.86
Honda Auto Receivables Trust 2019-1
100.000
15,855.86
141.55
15,997.41
0.00
A2
2.75% Due 9/20/2021
Paydown
08/25/2020
3137BFDQ1
208.37
FHLMC K717 A2
100.000
208.37
369.45
577.82
0.00
2.991% Due 9/25/2021
Subtotal
24,194.89
24,194.89
580.57
24,775.46
0.00
Security
08/05/2020
31846V203
25.50
First American Govt Obligation Fund
1.000
25.50
0.00
25.50
0.00
Withdrawal
Class Y
Chandler Asset Management
- CONFIDENTIAL
Page 5
Execution
Time: 9/1/2020 6:52:25
PM