01-19-2021 - AGENDA ITEM 02 CONSIDERATION OF INVESTMENT REPORT FOR THE MONTH ENDED OCTOBER 31, 2020AGENDA ITEM NO.2
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: January 19, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF INVESTMENT REPORT FOR THE MONTH ENDED OCTOBER
31, 2020
RECOMMENDATION:
It is recommended that the City Council receive and file the Investment Report for the month ended October
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 for 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 October 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 Local
Agency Investment Fund (LAIF) and Chandler Asset Management (Attachment No. 2).
At October 31, 2020, the investment portfolio had a market value of $79,670,314 and the bond reserves had a
market value of $23,078,483.
Prepared by: Robbeyn Bud, Finance Director
Additional Approval: David Carmany, City Manager
Attachments
City of West Covina Short Term
Transaction Ledger
OR
Account #10479
As of October 31, 2020
Transaction Settlement CUSIP
Type Date
DISPOSITIONS
Quantity
Security Description Price Acq/Disp
Yield
Amount
Interest
Pur/Sold
Total Amount
Gain/Loss
Security 10/26/2020 31846V203
41.67
First American Govt Obligation Fund 1.000
41.67
0.00
41.67
0.00
Withdrawal
Class Y
Subtotal
67.19
67.19
0.00
67.19
0.00
TOTAL DISPOSITIONS
21,940.91
21,940.91
483.92
22,424.83
0.00
OTHER TRANSACTIONS
Dividend 10/02/2020 31846V203
135,439.23
First American Govt Obligation Fund 0.000
0.61
0.00
0.61
0.00
Class Y
Subtotal
135,439.23
0.61
0.00
0.61
0.00
TOTAL OTHER TRANSACTIONS
135,439.23
0.61
0.00
0.61
0.00
Chandler Asset Management - CONFIDENTIAL Paee 6 Execution Time: 11/2/2020 6:57:24 PM
Attachment No. 1 - Investment Report
Attachment No. 2 - Chandler Report
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability
Enhance the City Image and Effectiveness
ATTACHMENT NO. 1
City of West Covina
Investment Report
For the Month Ended October 31, 2020
Interest/
Yield to
Maturity
%of
Description
Book Value Market Value
Maturity
Date
Portfolio
Cash and Cash Equivalents
Wells Fargo Checking Account
$ 8,205,872 $
8,205,872
0.00%
n1a
7.99%
Pacific Western Bank Checking - HPP (CDBG)
3,664
3,664
0.00%
n/a
0.00%
Pacific Western Bank Checking-HPP(LMIHF)
2,102
2,102
0.00%
n1a
0.00%
Local Agency Investment Fund (LAIF)
67,570,299
67,570,299
0.62%
n/a
65.76%
Wells Fargo Checking Account- Successor Agency
2,260,553
2,260,553
0.00%
n/a
2.20%
Wells Fargo Checking Account -CFD
1,287,691
1,287,691
0.00%
Na
1.25%
Investments - Chandler Asset Management
Asset -Backed Securities
32,256
32,350
0.47 %
See attached
0.03 %
Collateralized Mortgage Obligation
148,260
150,053
0.45%
See attached
0.15%
Money Market Funds
157,730
157,730
0.01%
See attached
0.15%
US Treasury
0.00%
See attached
0.00%
Total Cash and Investments
$ 79,668,427 $ 79,670,314
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
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 1,04%
585,372 585,372 0.01% n/a 0.57%
5,002,670 5,002,670 7.01 % 9/1/2022 4.87%
- - 1.87% n/a 0.00%
- - 0.00% n/a 0.00%
16,419,441 16,419,441 0.01% 8/1/2035 15.98%
0.01% n/a 0.00%
$ 23,078,483 $ 23,078,483
Total Investment Portfolio $102,746,910 $ 102,748,797 100.00%
Blended Yield of Cash and Invesments
0.62 %
Benchmarks:
LAIF
0.62%
6mo U.S. Treasury
0.11%
2yr U.S. Treasury
0.14 %
5 rU.S. Treasury
0.38%
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 ED BY:
R.
Robbeyn Bird - n Director Colleen B. Rozatti - City e s er
APPROVED BY:
David Carmany - City anager
ATTACHMENT NO.2 Q11
City of West Covina Short Term - Account #10479
MONTHLY ACCOUNT STATEMENT
OCTOBER 1, 2020 THROUGH OCTOBER 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 October 31, 2020
PORTFOLIO CHARACTERISTICS
Average Modified Duration
0.33
Average Coupon
1.56%
Average Purchase YTM
1.30%
Average Market YTM
0.25%
Average S&P/Moody Rating
AAA/Aaa
Average Final Maturity
0.50 yrs
Average Life
0.33 yrs
SECTOR ALLOCATION
money — Id 46.3%
cmo 44.2%
ABS 1
9.5%
PERFORMANCE REVIEW
ACCOUNT SUMMARY
TOP ISSUERS
Beg. Values
End Values
First American Govt Oblig Fund
46.3%
as of 9/30/20
as of 10/31/20
Federal Home Loan Mortgage Corp
44.2%
Market Value
339,954
340,134
Accrued Interest
423
401
Honda ABS
5.9%
John Deere ABS
3.6%
Total Market Value
340,377
340,535
Income Earned
466
414
Total
100.0%
Cont/WD
-67
Par
337,167
337,584
Book Value
337,877
338,246
Cost Value
339,850
340,318
MATURITY DISTRIBUTION
CREDIT QUALITY (S&P)
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+
Maturity (Yrs)
AAA (52.2%)— —
NR(47.8%)
Annualized
TOTAL RATE OF RETURN
1M 31M YTD 1YR 2YRS 3YRS 5YR5
10YRS
7/31/2016
City of West Covina Short Term
0.07% 0.18% 1.77% 2.05% 3.08% 2.25% N/A
N/A
1.74%
ICE BAML 1-3 Yr US Treasury/Agency Index
-0.04% -0.04% 2.99% 3.18% 3.86% 2.64% N/A
N/A
1.90%
Chandler Asset Management -CONFIDENTIAL Page 1 Execution Time: 11/2/2020 6:57:24 PM
Statement of Compliance
As of October 31, 2020
C31
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 October 31, 2020
BOOK VALUE RECONCILIATION
BEGINNING BOOK VALUE
$337,877.25
Acquisition
+Security Purchases $0.00
+ Money Market Fund Purchases $22,358.25
+ Money Market Contributions $0.00
+Security Contributions $0.00
+ Security Transfers $0.00
Total Acquisitions
$22,358.25
Dispositions
Security Sales
$0.00
- Money Market Fund Sales
$0.00
- MMF Withdrawals
$67.19
- Security Withdrawals
$0.00
- Security Transfers
$0.00
- Other Dispositions
$0.00
- Maturites
$0.00
Calls
$0.00
Principal Paydowns
$21,873.72
Total Dispositions
$21,940.91
Amortization/Accretion
+/- Net Accretion
($48.83)
($48.83)
Gain/Loss on Dispositions
+/- Realized Gain/Loss
$0.00
$0.00
ENDING BOOK VALUE
$338,245.76
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
$21,873.
$135,439.23
Dispositions
Withdrawals
$67.19
Security Purchase
$0.00
Accrued Interest Paid
$0.00
Total Dispositions
$67.19
ENDING BOOK VALUE
$157,730.29
Chandler Asset Management - CONFIDENTIAL Page 3 Execution Time: 11/2/2020 6:57:24 PM
City of West Covina Short Term
Holdings Report
Account #10479
As of October 31, 2020
Security Description
ABS
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
3,485.21
04/27/2018
3,431.03
100.06
3,487.28
1.02%
Aaa/AAA
0.79
A3
2.62%
3,472.25
0.45%
2.60
15.03
NR
0.05
1.68% Due 8/16/2021
43814WAB1 Honda Auto Receivables Trust 2019-1
16,603.95
02/19/2019
16,602.88
100.15
16,629.37
4.89%
NR/AAA
0.89
A2
2.77%
16,603.58
0.51%
16.49
25.79
AAA
0.07
2.75% Due 9/20/2021
47788BAD6 John Deere Owner Trust 2017-B A3
59.56
07/11/2017
59.56
100.05
59.59
0.02%
Aaa / NR
0.96
1.82%Due 10/15/2021
1.83%
59.56
0.47%
0.05
0.03
AAA
0.04
47788CAC6 John Deere Owner Trust 2018-A A3
12,120.47
02/21/2018
12,119.61
100.44
12,173.95
3.58%
Aaa / NR
1.46
2.66%Due 4/18/2022
2.68%
12,120.17
0.43%
14.33
53.78
AAA
0.04
32,213.08
32,350.19
9.51%
Aaa / AAA
1.09
Total ABS
32,269.19
2.72%
32,255.56
0.47%
33.47
94.63
AAA
0.06
CMO
3137BFDQ1 FHLMC K717 A2
147,584.48
01/04/2018
150,374.76
101.67
150,053.14
44.17%
NR/NR
0.90
2.991% Due 9/25/2021
2.37%
148,259.91
0.45%
367.85
1,793.23
AAA
0.73
150,374.76
150,053.14
44.17%
NR/NR
0.90
Total CMO
147,584.48
2.37%
148,259.91
0.45%
367.85
1,793.23
AAA
0.73
MONEY MARKET FUND FI
31846V203 First American Govt Obligation Fund
157,730.29
Various
157,730.29
1.00
157,730.29
46.32%
Aaa / AAA
0.00
Class
0.01%
157,730.29
0.01%
0.00
0.00
AAA
0.00
157,730.29
157,730.29
46.32%
Aaa / AAA
0.00
Total Money Market Fund FI
157,730.29
0.01%
157,730.29
0.01%
0.00
0.00
AAA
0.00
340,318.13
340,133.62
100.00%
Aaa/AAA
0.50
TOTAL PORTFOLIO
337,583.96
1.30%
338,245.76
0.25%
401.32
1,887.86
AAA
0.33
TOTAL MARKET VALUE PLUS ACCRUED
340,534.94
Chandler Asset Management - CONFIDENTIAL Page 4 Execution Time: 11/2/2020 6:57:24 PM
City of West
Covina Short Term
Transaction Ledger
OR
Account #10479
As of October 31,
2020
Transaction
Type
ACQUISITIONS
Settlement
Date
CUSIP
Quantity
Security Description
Price Acq/Disp
Yield
Amount
Interest
Pur/Sold
Total Amount Gain/Loss
Purchase
10/02/2020
31846V203
0.61
First American Govt Obligation Fund
1.000
0.01%
0.61
0.00
0.61
0.00
Class Y
Purchase
10/15/2020
31846V203
3,466.23
First American Govt Obligation Fund
1.000
0.01%
3,466.23
0.00
3,466.23
0.00
Class Y
Purchase
10/15/2020
31846V203
942.71
First American Govt Obligation Fund
1.000
0.01%
942.71
0.00
942.71
0.00
Class Y
Purchase
10/15/2020
31846V203
2,526.61
First American Govt Obligation Fund
1.000
0.01%
2,526.61
0.00
2,526.61
0.00
Class Y
Purchase
10/19/2020
31846V203
14,830.94
First American Govt Obligation Fund
1.000
0.01%
14,830.94
0.00
14,830.94
0.00
Class Y
Purchase
10/26/2020
31846V203
591.15
First American Govt Obligation Fund
1.000
0.01%
591.15
0.00
591.15
0.00
Class Y
Subtotal
22,358.25
22,358.25
0.00
22,358.25
0.00
TOTAL ACQUISITIONS
22,358.25
22,358.25
0.00
22,358.25
0.00
DISPOSITIONS
Paydown
10/15/2020
43811BACS
3,456.51
Honda Auto Receivables Trust 2017-2
100.000
3,456.51
9.72
3,466.23
0.00
A3
1.68% Due 8/16/2021
Paydown
10/15/2020
47788BAD6
941.19
John Deere Owner Trust 2017-B A3
100.000
941.19
1.52
942.71
0.00
1.82% Due 10/15/2021
Paydown
10/15/2020
47788CAC6
2,494.21
John Deere Owner Trust 2018-A A3
100.000
2,494.21
32.40
2,526.61
0.00
2.66% Due 4/18/2022
Paydown
10/19/2020
43814WAB1
14,759.07
Honda Auto Receivables Trust 2019-1
100.000
14,759.07
71.87
14,830.94
0.00
A2
2.75% Due 9/20/2021
Paydown
10/26/2020
3137BFDQ1
222.74
FHLMC K717 A2
100.000
222.74
368.41
591.15
0.00
2.991% Due 9/25/2021
Subtotal
21,873.72
21,873.72
483.92
22,357.64
0.00
Security
10/06/2020
31846V203
25.52
First American Govt Obligation Fund
1.000
25.52
0.00
25.52
0.00
Withdrawal
Class Y
Chandler Asset Management
- CONFIDENTIAL
Page 5
Execution
Time: 11/2/2020 6:57:24
PM