11-17-2020 - AGENDA ITEM 03 CONSIDERATION OF INVESTMENT REPORT FOR THE MONTH ENDED SEPTEMBER 30, 2020AGENDA ITEM NO.3
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: November 17, 2020
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF INVESTMENT REPORT FOR THE MONTH ENDED
SEPTEMBER 30, 2020
RECOMMENDATION:
It is recommended that the City Council receive and file the Investment Report for the month ended September
30, 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 September 30, 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 Local Agency Investment Fund (LAIF) and Chandler Asset Management (Attachment No. 2).
At September 30, 2020, the investment portfolio had a market value of $76,820,036 and the bond reserves had
a market value of $23,077,998.
Prepared by: Robbeyn Bird, Finance Director
Additional Approval: David Carmany, City Manager
Attachments
City of West Covina Short Term
Transaction Ledger
OR
Account #10479
As of September 30, 2020
Transaction Settlement CUSIP
Type Date
DISPOSITIONS
Quantity
Security Description Price Acq/Disp
Yield
Amount
Interest
Pur/Sold
Total Amount
Gain/Loss
Security 09/25/2020 31846V203
41.67
First American Govt Obligation Fund 1.000
41.67
0.00
41.67
0.00
Withdrawal
Class Y
Subtotal
67.18
67.18
0.00
67.18
0.00
TOTAL DISPOSITIONS
21,899.37
21,899.37
529.80
22,429.17
0.00
OTHER TRANSACTIONS
Dividend 09/01/2020 31846V203
113,143.91
First American Govt Obligation Fund 0.000
0.51
0.00
0.51
0.00
Class Y
Subtotal
113,143.91
0.51
0.00
0.51
0.00
TOTAL OTHER TRANSACTIONS
113,143.91
0.51
0.00
0.S1
0.00
Chandler Asset Management - CONFIDENTIAL Page 6 Execution Time: 10/1/2020 6:58:35 PM
Attachment No. 1 - September 2020 Investment Report
Attachment No. 2 - Chandler Report
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability
ATTACHMENT NO.1
City of West Covina
Investment Report
For the Month Ended September 30, 2020
Interest/
Yield to
Maturity
% of
Description
Book Value Market Value Maturity
Date
Portfolio
Cash and Cash Equivalents
Wells Fargo Checking Account
$ 5,566,237
$ 5,566,237
0.00%
n/a
5.57%
Pacific Western Bank Checking-HPP(CDBG)
3,664
3,664
0.00%
n/a
0.00%
Pacific Western Bank Checking- HPP (LMIHF)
2,064
2,064
0.00%
n1a
0.00%
Los Angeles County Investment Pool (LACIP)
-
-
0.68%
Na
0.00%
Los Angeles County Investment Pool(LACIP) -CFD
-
-
0.68%
Na
0.00%
Loral Agency Investment Fund (LAIF)
67,426,040
67,426,040
1.22%
n/a
67.49%
Wells Fargo Checking Account -Successor Agency
2.268,404
2,268,404
0.00%
n/a
2.27%
Wells Fargo Checking Account -CFD
1.213,673
1,213,673
0.00%
n/a
1.21%
Investments - Chandler Asset Management
Asset -Backed Securities
53,890
54,086
0.20%
See attached
0.05%
Federal Agencies
-
-
0.00%
See attached
0.00%
Collateralized Mortgage Obligation
148,548
150,429
1.45%
See attached
0.15%
Money Market Funds
135,439
135,439
0.01%
See attached
0.14%
US Treasury
0.00%
See attached
0.00%
Total Cash and Investments
$ 76,817,959 $ 76,820,036
Bond Reserves
Lease Revenue Bonds, 2006 Sense A 8 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
Income Cash
First American Treasury Obligations Fund Class D
Lease Revenue Bonds - 2020 Series A (Taxable)
First American Treasury Obligations Fund Class Z
First American Treasury Obligations Fund Class D
Total Bond Reserves
$ 1,071,000 $ 1,071,000 0.01% n/a 1.07%
585,372 585,372 0.01% n/a 0.59%
5,002,670 5,002,670 7.01% 9/1/2022 5.01%
- - 1.87% n/a 0.00%
- - 0.00% n/a 0.00%
16,418,956 16,418,956 0.01% 8/12035 16.44%
- - 0.01% n/a 0.00%
Total Investment Portfolio $ 99,895,957 $ 99,898,034 100.00%
Blended Yield of Cash and Investments
0.69%
Benchmarks:
LAIF
0.69%
LACIP
0.68%
6- U.S. Treasury
0.11%
2yr U.S. Treasury
0.13%
5yr U.S. Treasury
0.28%
1 hereby certify that the investments are in compliance vrith 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 - ante Director Colleen B. RoratO -City Tre TO
APPROVED BY:
David Carman - ity Manager
ATTACHMENT NO.2 C11%
City of West Covina Short Term - Account #10479
MONTHLY ACCOUNT STATEMENT
SEPTEMBER 1, 2020 THROUGH SEPTEMBER 30, 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
0.37
Average Coupon
1.72%
Average Purchase YTM
1.47%
Average Market YTM
0.67%
Average S&P/Moody Rating
AAA/Aaa
Average Final Maturity
0.61 yrs
Average Life
0.38 yrs
SECTOR ALLOCATION
44.3%
Money — FJ 39.8%
ABS
PERFORMANCE REVIEW
Portfolio Summary
G11
As of September 30, 2020
ACCOUNT SUMMARY
TOP ISSUERS
Beg. Values
End Values
Federal Home Loan Mortgage Corp
44.3%
as of 8/31/20
as of 9/30/20
First American Govt Oblig Fund
39.8%
Market Value 339,689
339,954
Accrued Interest 444
423
Honda ABS
11.3%
John Deere ABS
4.6%
Total Market Value 340,133
340,377
Income Earned 516
466
Total
100.0%
Cont/WD
-67
Par 336,703
337,167
Book Value 337,458
337,877
Cost Value 339,333
339,850
MATURITY DISTRIBUTION
CREDIT QUALITY (S&P)
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+
Maturity (Yrs)
AAA (51.1%) —
-
--NR (48.9%)
Annualized
TOTAL RATE OF RETURN
_
1M 31M YTD 1YR 2YRS 3YRS 5YR5
10YRS
7/31/2016
City of West Covina Short Term
0.09% 0.18% 1.70% 2.27% 3.10% 2.23% N/A
N/A
1.76%
ICE BAML 1-3 Yr US Treasury/Agency Index
0.03% 0.11% 3.03% 3.56% 3.95% 2.64% N/A
N/A
1.95%
Chandler Asset Management -CONFIDENTIAL Page 1 Execution Time: 10/1/2020 6:58:35 PM
Statement of Compliance
As of September 30, 2020
Q11
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
Commercial Paper
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
Asset -Backed Securities/ Mortgage-
"AA" or better by a NRSRO; "A" rated issuer rating or higher by a NRSRO; 20% maximum
Complies*
Backed Securities
Money Market Mutual Funds
"AAA" rated or highest rating by a NRSRO; 20% maximum; 10% per fund
Complies
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
*Account is terminating and liquidating all positions as they mature.
City of West Covina Short Term Reconciliation Summary
Account #10479 As of September 30, 2020
BOOK VALUE RECONCILIATION
BEGINNING BOOK VALUE
$337,457.51
Acquisition
+Security Purchases $0.00
+ Money Market Fund Purchases $22,362.50
+ Money Market Contributions $0.00
+Security Contributions $0.00
+ Security Transfers $0.00
Total Acquisitions
$22,362.50
Dispositions
Security Sales
$0.00
- Money Market Fund Sales
$0.00
- MMF Withdrawals
$67.18
- Security Withdrawals
$0.00
- Security Transfers
$0.00
- Other Dispositions
$0.00
- Maturites
$0.00
Calls
$0.00
Principal Paydowns
$21,832.19
Total Dispositions
$21,899.37
Amortization/Accretion
+/- Net Accretion
($43.39)
($43.39)
Gain/Loss on Dispositions
+/- Realized Gain/Loss
$0.00
$0.00
ENDING BOOK VALUE
$337,877.25
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
$21,832.
$113,143.91
Dispositions
Withdrawals
$67.18
Security Purchase
$0.00
Accrued Interest Paid
$0.00
Total Dispositions
$67.18
ENDING BOOK VALUE
$135,439.23
Chandler Asset Management - CONFIDENTIAL Page 3 Execution Time: 10/1/2020 6:58:35 PM
City of West Covina Short Term
Holdings Report
Account #10479
As of September 30, 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
6,941.72
04/27/2018
6,833.80
100.11
6,949.20
2.04%
Aaa / AAA
0.88
A3
2.62%
6,913.13
0.36%
5.18
36.07
NR
0.08
1.68% Due 8/16/2021
43814WAB1 Honda Auto Receivables Trust 2019-1
31,363.02
02/19/2019
31,361.00
100.25
31,440.50
9.25%
NR/AAA
0.97
A2
2.77%
31,362.26
0.10%
31.15
78.24
AAA
0.09
2.75% Due 9/20/2021
47788BAD6 John Deere Owner Trust 2017-B A3
1,000.75
07/11/2017
1,000.67
100.05
1,001.30
0.29%
Aaa / NR
1.04
1.82%Due 10/15/2021
1.83%
1,000.73
0.15%
0.81
0.57
AAA
0.03
47788CAC6 John Deere Owner Trust 2018-A A3
14,614.68
02/21/2018
14,613.64
100.55
14,694.63
4.32%
Aaa / NR
1.55
2.66%Due 4/18/2022
2.68%
14,614.29
0.35%
17.28
80.34
AAA
0.24
53,809.11
54,085.63
15.91%
Aaa/AAA
1.12
Total ABS
53,920.17
2.71%
53,890.41
0.20%
54.42
195.22
AAA
0.13
CMO
3137BFDQ1 FHLMC K717 A2
147,807.22
01/04/2018
150,601.71
101.77
150,429.32
44.30%
NR/NR
0.99
2.991% Due 9/25/2021
2.37%
148,547.61
1.45%
368.41
1,881.71
AAA
0.79
150,601.71
150,429.32
44.30%
NR/NR
0.99
Total CMO
147,807.22
2.37%
148,547.61
1.45%
368.41
1,881.71
AAA
0.79
MONEY MARKET FUND FI
31846V203 First American Govt Obligation Fund
135,439.23
Various
135,439.23
1.00
135,439.23
39.79%
Aaa / AAA
0.00
Class
0.01%
135,439.23
0.01%
0.00
0.00
AAA
0.00
135,439.23
135,439.23
39.79%
Aaa / AAA
0.00
Total Money Market Fund FI
135,439.23
0.01%
135,439.23
0.01%
0.00
0.00
AAA
0.00
339,850.05
339,954.18
100.00%
Aaa / AAA
0.61
TOTAL PORTFOLIO
337,166.62
1.47%
337,877.25
0.67%
422.83
2,076.93
AAA
0.37
TOTAL MARKET VALUE PLUS ACCRUED
340,377.01
Chandler Asset Management - CONFIDENTIAL Page 4 Execution Time: 10/1/2020 6:58:35 PM
City of West
Covina Short Term
Transaction Ledger
OR
Account #10479
As of September 30,
2020
Transaction
Type
ACQUISITIONS
Settlement
Date
CUSIP
Quantity
Security Description
Price Acq/Disp
Yield
Amount
Interest
Pur/Sold
Total Amount Gain/Loss
Purchase
09/01/2020
31846V203
0.51
First American Govt Obligation Fund
1.000
0.01%
0.51
0.00
0.51
0.00
Class Y
Purchase
09/15/2020
31846V203
3,644.07
First American Govt Obligation Fund
1.000
0.01%
3,644.07
0.00
3,644.07
0.00
Class Y
Purchase
09/15/2020
31846V203
981.78
First American Govt Obligation Fund
1.000
0.01%
981.78
0.00
981.78
0.00
Class Y
Purchase
09/15/2020
31846V203
2,505.07
First American Govt Obligation Fund
1.000
0.01%
2,505.07
0.00
2,505.07
0.00
Class Y
Purchase
09/18/2020
31846V203
14,653.06
First American Govt Obligation Fund
1.000
0.01%
14,653.06
0.00
14,653.06
0.00
Class Y
Purchase
09/25/2020
31846V203
578.01
First American Govt Obligation Fund
1.000
0.01%
578.01
0.00
578.01
0.00
Class Y
Subtotal
22,362.50
22,362.50
0.00
22,362.50
0.00
TOTAL ACQUISITIONS
22,362.50
22,362.50
0.00
22,362.50
0.00
DISPOSITIONS
0
.
Paydown
09/15/2020
43811BACS
3,629.27
Honda Auto Receivables Trust 2017-2
100.000
3,629.27
14.80
3,644.07
0.00
A3
1.68% Due 8/16/2021
Paydown
09/15/2020
47788BAD6
978.78
John Deere Owner Trust 2017-B A3
100.000
978.78
3.00
981.78
0.00
1.82% Due 10/15/2021
Paydown
09/15/2020
47788CAC6
2,467.21
John Deere Owner Trust 2018-A A3
100.000
2,467.21
37.86
2,505.07
0.00
2.66% Due 4/18/2022
Paydown
09/18/2020
43814WAB1
14,547.85
Honda Auto Receivables Trust 2019-1
100.000
14,547.85
105.21
14,653.06
0.00
A2
2.75% Due 9/20/2021
Paydown
09/25/2020
3137BFDQ1
209.08
FHLMC K717 A2
100.000
209.08
368.93
578.01
0.00
2.991% Due 9/25/2021
Subtotal
21,832.19
21,832.19
529.80
22,361.99
0.00
Security
09/03/2020
31846V203
25.51
First American Govt Obligation Fund
1.000
25.51
0.00
25.51
0.00
Withdrawal
Class Y
Chandler Asset Management
- CONFIDENTIAL
Page 5
Execution
Time: 10/1/2020 6:58:35
PM