02-16-2021 - AGENDA ITEM 02 CONSIDERATION OF INVESTMENT REPORT FOR THE MONTH ENDED DECEMBER 31, 2020AGENDA ITEM NO. 2
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: February 16, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF INVESTMENT REPORT FOR THE MONTH ENDED
DECEMBER 31, 2020
RECOMMENDATION:
It is recommended that the City Council receive and file the Investment Report for the month ended December
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 December 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 December 31, 2020, the investment portfolio had a market value of $81,521,771 and the bond reserves had
a market value of $23,077,445.
City of West Covina Short Term Transaction Ledger
Account #10479 As of December 31, 2020 OR
DISPOSITIONS -
Security 12/24/2020 31846V203 41.67 First American Govt Obligation Fund 1.000 41.67 0.00 41.67 0.00
Withdrawal Class Y
Subtotal 67.21 67.21 0.00 67.21 0.00
TOTAL DISPOSITIONS 4,720.47 4,720.47 390.96 5,111.43 0.00
OTHER TRANSACTIONS
Dividend 12/01/2020 31846V203 179,965.65 First American Govt Obligation Fund 0.000 0.83 0.00 0.83 0.00
Class Y
Dividend 12/29/2020 31846V203 184,943.49 First American Govt Obligation Fund 0.000 0.21 0.00 0.21 0.00
Class Y
Subtotal 364,909.14 1.04 0.00 1.04 0.00
TOTAL OTHER TRANSACTIONS 364,909.14 1.04 0.00 1.04 0.00
Chandler Asset Management- CONFIDENTIAL Paee 6 Execution Time: 1/4/20217:18:54 PM
Attachments
Attachment No. 1 - Investment Report
Attachment No. 2 - Chandler Report
CITY Achieve Fiscal Sustainability and Financial Stability
COUNCIL
GOALS &
OBJECTIVES:
ATTACHMENT NO. 1
City of West Covina
Investment Report
For the Month Ended December 31, 2020
Interest/
Yield to
Maturity
%of
Description
Book Value
Market Value
Maturity
Date
Portfolio
Cash and Cash Equivalents
Wells Fargo Checking Account
$ 11,538,574
$ 11,538,574
0.00%
n/a
11.03%
Pacific Western Bank Checking - HPP (CDBG)
3,664
3,664
0.00%
n/a
0.00%
Pacific Western Bank Checking - HPP (LMIHF)
12,064
12,064
0.00%
n/a
0.01%
Local Agency Investment Fund (LAIF)
66,070,299
66,070,299
0.62%
n/a
63.17%
Wells Fargo Checking Account- Successor Agency
2,250,615
2,260,615
0.00%
n/a
2.15%
Wells Fargo Checking Account - CFO
1.306,379
1,306,379
0.00%
n/a
1.25%
Investments - Chandler Asset Management
Asset -Backed Securities
6,186
6,202
0.44%
See attached
0.01%
Collateralized Mortgage Obligation
147,698
149,030
0.40%
See attached
0.14%
Money Market Funds
184,944
184,944
0.01%
See attached
0.18%
US Treasury
0.00%
See attached
0.00%
Total Cash and Investments
$ 81,620,423
$ 81,621,771
Bond Reserves
Lease Revenue Bonds, 2006 Series A R 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
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 0.03% n/a 1.02%
585,372 585,372 0.03% n/a 0.56%
5,002,670 5,002,670 7.01% 9/1/2022 4.78%
16,418,403 16,418,403 0.03% 8/1/2035 15.70%
0.03% We 0.00%
$ 23,077,445 $ 23,077,445
Total Investment Portfolio $104,597,868 $104,599,216 100.00%
Blended Yield of Cash and Investments *
0.54%
Benchmarks:
LAIF
0.54%
6mo U.S. Treasury
0.09%
2yr U.S. Treasury
0.13 %
5yr U.S. Treasury
0.36%
I hereby certity 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:
e.Y�NA_�J�/
Robbeyn Bird - nance Director Colleen B. Rozatti -City r urer
APPROVED BY
David Carmany ity Manager
ATTACHMENT NO.2 OR
City of West Covina Short Term - Account #10479
MONTHLY ACCOUNT STATEMENT
DECEMBER 1, 2020 THROUGH DECEMBER 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
0.25
Average Coupon
1.35%
Average Purchase YTM
1.08%
Average Market YTM
0.19%
Average S&P/Moody Rating
AAA/Aaa
Average Final Maturity
0.35 yrs
Average Life
0.25 yrs
SECTOR ALLOCATION
M.-V Mkt Id 14.3%
cmoM 43.9%
— 1.8%
PERFORMANCE REVIEW
Portfolio Summary
As of December 31, 2020
ACCOUNT SUMMARY
Beg. Values
End Values
as of 11/30/20
as of 12/31/20
Market Value
340,159
340,176
Accrued Interest
379
374
Total Market Value
340,539
340,550
Income Earned
367
323
Cont/WD
-67
Par
337,955
338,280
Book Value
338,567
338,828
Cost Value
340,739
341,062
MATURITY DISTRIBUTION
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+
Maturity (Yrs)
TOP ISSUERS
First American Govt Oblig Fund
Federal Home Loan Mortgage Corp
John Deere ABS
Total
CREDIT QUALITY (S&P)
OR
54.3%
43.9 %
1.8 %
100.0%
---NR (45.7%)
Annualized
TOTAL RATE OF RETURN
11M �w 3M YTD 1YR
2YRS 3YRS 5YR5
10YRS
7/31/2016
City of West Covina Short Term
0.02% 0.11% 1.81% 1.81%
2.60% 2.30% N/A
N/A
1.68%
ICE BAML 1-3 Yr US Treasury/Agency Index
0.05% 0.05% 3.09% 3.09%
3.32% 2.74% N/A
N/A
1.85%
Chandler Asset Management- CONFIDENTIAL Page 1 Execution Time: 1/4/20217:18:54 PM
Statement of Compliance
As of December 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 December 31, 2020
BOOK VALUE RECONCILIATION
BEGINNING BOOK VALUE
$338,567.47
Acquisition
+Security Purchases $0.00
+ Money Market Fund Purchases $5,045.26
+ Money Market Contributions $0.00
+Security Contributions $0.00
+ Security Transfers $0.00
Total Acquisitions
$5,045.26
Dispositions
Security Sales
$0.00
- Money Market Fund Sales
$0.00
- MMF Withdrawals
$67.21
- Security Withdrawals
$0.00
- Security Transfers
$0.00
- Other Dispositions
$0.00
- Maturites
$0.00
Calls
$0.00
Principal Paydowns
$4,653.26
Total Dispositions
$4,720.47
Amortization/Accretion
+/- Net Accretion
($64.17)
($64.17)
Gain/Loss on Dispositions
+/- Realized Gain/Loss
$0.00
$0.00
ENDING BOOK VALUE
$338,828.09
BEGINNING BALANCE 1 $179,965.65
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
$67.21
Security Purchase
$0.00
Accrued Interest Paid
$0.00
Total Dispositions
$67.21
ENDING BOOK VALUE
$184,943.70
Chandler Asset Management- CONFIDENTIAL Page 3 Execution Time: 1/4/20217:18:54 PM
City of West Covina Short Term
Holdings Report
Account #10479
As of December 31, 2020
CUSIP Security Description
ABS
Par Value/Units
Purchase Date Cost Value Mkt
Book Yield Book Value Mkt
Price
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
47788CAC6 John Deere Owner Trust 2018-A A3
6,186.55
02/21/2018 6,186.11
100.25
6,202.08
1.82%
Aaa / NR
1.30
2.66%Due 4/18/2022
2.68% 6,186.41
0.44%
7.31
15.67
AAA
0.12
6,186.11
6,202.08
1.82%
Aaa / NR
1.30
Total ABS
6,186.55
2.68% 6,186.41
0.44%
7.31
15.67
AAA
0.12
CIVIC,
'
,
'
3137BFDQ1 FHLMC K717 A2
147,149.78
01/04/2018 149,931.84
101.28
149,030.22
43.87%
NR/NR
0.73
2.991%Due 9/25/2021
2.37% 147,697.98
0.40%
366.77
1,332.24
AAA
0.57
149,931.84
149,030.22
43.87%
NR/NR
0.73
Total CIVIC,
147,149.78
2.37% 147,697.98
0.40%
366.77
1,332.24
AAA
0.57
MONEY MARKET FUND FI
31846V203 First American Govt Obligation Fund
184,943.70
Various 184,943.70
1.00
184,943.70
54.31%
Aaa / AAA
0.00
Class
0.01% 184,943.70
0.01%
0.00
0.00
AAA
0.00
184,943.70
184,943.70
54.31%
Aaa / AAA
0.00
Total Money Market Fund FI
184,943.70
0.01% 184,943.70
0.01%
0.00
0.00
AAA
0.00
341,061.65
340,176.00
100.00%
Aaa/AAA
0.35
TOTAL PORTFOLIO
338,280.03
1.08% 338,828.09
0.19%
374.08
1,347.91
AAA
0.25
TOTAL MARKET VALUE PLUS ACCRUED
340,550.08
Chandler Asset Management- CONFIDENTIAL Page 4 Execution Time: 1/4/20217:18:54 PM
City of West Covina Short Term
Transaction Ledger
OR
Account #10479
As of December 31, 2020
Transaction
Type
ACQUISITIONS
Settlement
Date
CUSIP
Quantity
Security Description
Price Acq/Disp
Yield
Amount
Interest
Pur/sold
Total Amount
Gain/Loss
Purchase
12/01/2020
31846V203
0.83
First American Govt Obligation Fund
1.000
0.01%
0.83
0.00
0.83
0.00
Class Y
Purchase
12/15/2020
31846V203
91.85
First American Govt Obligation Fund
1.000
0.01%
91.85
0.00
91.85
0.00
Class Y
Purchase
12/15/2020
31846V203
2,049.67
First American Govt Obligation Fund
1.000
0.01%
2,049.67
0.00
2,049.67
0.00
Class Y
Purchase
12/18/2020
31846V203
2,311.21
First American Govt Obligation Fund
1.000
0.01%
2,311.21
0.00
2,311.21
0.00
Class Y
Purchase
12/28/2020
31846V203
591.49
First American Govt Obligation Fund
1.000
0.01%
591.49
0.00
591.49
0.00
Class Y
Purchase
12/29/2020
31846V203
0.21
First American Govt Obligation Fund
1.000
0.01%
0.21
0.00
0.21
0.00
Class Y
Subtotal
5,045.26
5,045.26
0.00
5,045.26
0.00
TOTAL ACQUISITIONS
5,045.26
5,045.26
0.00
5,045.26
0.00
DISPOSITIONS
Paydown
12/15/2020
43811BACS
91.72
Honda Auto Receivables Trust 2017-2
100.000
91.72
0.13
91.85
0.00
A3
1.68% Due 8/16/2021
Paydown
12/15/2020
47788CAC6
2,031.45
John Deere Owner Trust 2018-A A3
100.000
2,031.45
18.22
2,049.67
0.00
2.66% Due 4/18/2022
Paydown
12/18/2020
43814WAB1
2,305.93
Honda Auto Receivables Trust 2019-1
100.000
2,305.93
5.28
2,311.21
0.00
A2
2.75% Due 9/20/2021
Paydown
12/28/2020
3137BFDQ1
224.16
FHLMC K717 A2
100.000
224.16
367.33
591.49
0.00
2.991% Due 9/25/2021
Subtotal
4,653.26
4,653.26
390.96
5,044.22
0.00
Security
12/04/2020
31846V203
25.54
First American Govt Obligation Fund
1.000
25.54
0.00
25.54
0.00
Withdrawal
Class Y
Chandler Asset Management-
CONFIDENTIAL
Page 5
Execution
Time: 1/4/20217:18:54 PM