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HomeMy WebLinkAbout05(I) - Approve the 4th Quarter 2019 Investment Report Report MEETING DATE:January 21, 2020 PREPARED BY:Jason Etter, Accounting Manager PRESENTED BY:Cathy Erickson, Finance Director AGENDA ITEM:Approval of 4 th Quarter Investment Report GOAL AREAHigh-Value City Services OBJECTIVE: 1. Establish financial stability for all funds. RECOMMENDED ACTION: Approve the 2019 4 th Quarter Investment Report as submitted. BACKGROUND: The purpose of this agenda item is for the Council to consider approval of the investment report for the fourth quarter of 2019. Staff has prepared a list of investments as of December 31, 2019. The Investment Report Summary Narrative provides some supplementary information with respect to the investments currently held and the allowable forms of investments permitted by Minnesota Statute. The investment software provides the ability to generate reports and charts by broker, security type, maturities, etc. The software also enables staff to track interest earned on an accrual basis versus a cash basis as well as changes in market value. ALTERNATIVES: ⦁ Motion and second as part of the consent agenda to approve the 2019 4th Quarter Investment Report as submitted. ⦁ Motion and second to remove the Investment Report from the consent agenda for additional discussion. ATTACHMENTS: ⦁ 5I 2019 4th Q Year to Year Summary Analysis (attach 1) ⦁ 2019 4th Q Investment Reports Attachments (attach 2) ⦁ 2019 4th Q Investment Reports Attachments (attach 3) 1 YTM @ Cost Cost Value Days to Maturity % of Portfolio Cash - 4,307,757 1 11.39% Certificate of Deposit 2.356 14,475,059 971 38.28% FHLMC Bond 2.071 2,540,000 511 6.72% FNMA Bond 1.733 400,000 566 1.05% LGIP 1.422 7,959,253 1 21.05% Municipal Bond 2.367 8,290,089 1,010 21.51% Total / Average 1.868 37,972,158 630 100.00% CITY OF PRIOR LAKE, MINNESOTA Investment Portfolio - Diversification, by Security Type December 31, 2019 Description City of Prior Lake - Quarterly Investment Report YTM @ Cost Cost Value Days to Maturity % of Portfolio 0-1 Month 0.988 12,512,010 1 33.09% 1-3 Months 1.930 1,043,013 49 2.74% 3-6 Months 2.700 245,000 114 0.64% 6-9 Months 2.113 793,366 249 2.09% 9-12 Months 2.022 2,429,000 320 6.42% 1-2 Years 2.176 5,427,762 519 14.27% 2-3 Years 2.374 5,776,091 953 15.23% 3-4 Years 2.758 5,426,968 1,324 14.20% 4-5 Years 2.056 4,318,948 1,716 11.32% Total / Average 1.868 37,972,158 630 100.00% CITY OF PRIOR LAKE, MINNESOTA Investment Portfolio - Diversification, by Maturity Range December 31, 2019 Description City of Prior Lake - Quarterly Investment Report Change from one 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 year prior Market Value 10,231,597 5,559,979 13,668,660 10,371,851 12,267,010 2,035,413 1 1 1 1 1 0 2.01% 2.07% 1.95% 1.71% 0.92%-1.09% Fixed Income Assets 26,580,050 26,207,580 25,631,026 26,844,156 25,705,148 (874,902) 26,249,015 26,145,555 25,752,883 27,109,395 25,941,106 (307,909) 929 870 841 903 931 2 716 678 642 720 861 145 2.42% 2.36% 2.37% 2.33% 2.32%-0.10% Total Portfolio Value 36,811,647 31,767,559 39,299,686 37,216,007 37,972,158 1,160,512 36,480,612 31,705,534 39,421,544 37,481,246 38,208,116 1,727,504 129,632 120,321 111,297 119,459 112,473 (17,159) (331,035) (62,025) 121,857 265,239 235,958 566,993 670 718 549 651 630 (40) 517 559 419 519 582 65 2.30% 2.31% 2.22% 2.16% 1.87% -0.43% BENCHMARK 90 Day T-Bill 2.45% 2.40% 2.12% 1.88% 1.55% -0.90% 2.56% 2.44% 2.09% 1.83% 1.60% -0.96% 2.63% 2.40% 1.92% 1.75% 1.59% -1.04% Weighted Average Yield to Maturity @ Cost 6 Month Treasury 1 Year Treasury Cost Value Market Value Accrued Interest Unrealized Gain / Loss WAM (1) in Days WAM / Callable (1) in Days Weighted Average Yield to Maturity @ Cost CITY OF PRIOR LAKE, MINNESOTA Quarterly Investment Report December 31, 2019 Local Government Investment Pools / Money Market Quarterly WAM (1) in Days Weighted Average Yield to Maturity Cost Value Market Value WAM (1) in Days WAM / Callable (1) in Days City of Prior Lake - Quarterly Investment Report