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Agenda 05/10/2016 Item #16J 65/10/2016 16.16. /'1 EXECUTIVE SUMMARY Report to the Board regarding the investment of County funds as of the quarter ended March 31, 2016. OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter ended March 31, 2016. CONSIDERATIONS: Florida Statute 28.33 provides for the investment of County surplus funds by the Clerk of Courts. The Clerk manages the investment of Board funds in accordance with Florida Statute and the Board of County Commissioners' lawful adopted investment policy using best practices and financial advice. The Clerk will continue to provide a monthly summary of investments on the Clerk's website for public access. Additionally, the Clerk is providing this update as to the status of the Board's investment portfolio on a quarterly basis, or as necessary, at a publicly noticed Board of County Commissioners meeting. Attached, as exhibits to this executive summary, are the investment portfolio inventory, portfolio composition pie chart and yield graphs as of the end of the second quarter of FY -2016. Changes have been made to the attached exhibits to reflect amendments made to the Board's investment policy on December 9, 2014, Agenda Item I I (C). Please note that the yield charts indicate that the Collier portfolio's long term sector performance exceeded the bench mark by.30%. The long term measure was exceeded as the bench mark is comprised solely of 1 to 3 year Treasuries, while the Collier long term sector includes both Treasuries and higher yielding agencies. Collier's short term sector yield exceeded the benchmark due to the establishment of a First Florida Integrity Bank (FFIB) overnight investment account that pays interest indexed to Florida PRIME, which exceeded the benchmark. The Board's Concentration (Operating) Account has also been included on the chart and bears interest at 95% of the daily Effective Federal Funds Rate, or .36% for March 2016. In order to maximize short term yield only funds necessary to meet current Board obligations will be kept in the Concentration Account. Both FFIB accounts are fully collateralized through the Qualified Public Depositor program. GROWTH MANAGEMENT IMPACT: None. FISCAL IMPACT: None. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issue, and requires majority vote for acceptance of the report. -JAK RECOMMENDATION: The investment report exhibits are provided to the Board as information only, no action is required. Prepared by: Derek M. Johnssen, Assistant Finance Director, Office of the Clerk of the Circuit Court Packet Page -1239- 5/10/2016 16.J.6. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.1.16.1.6. Item Summary: Report to the Board regarding the investment of County funds as of the quarter ended March 31, 2016. Meeting Date: 5/10/2016 Prepared By Name: MilumJennifer Title: Office Assistant, Clerk of Courts 5/4/2016 11:55:09 AM Approved By Name: KinzelCrystal Date: 5/4/2016 12:14:35 PM Name: IsacksonMark Title: Division Director - Corp Fin & Mgmt Svc, Office of Management & Budget Date: 5/4/2016 1:51:07 PM Name: KlatzkowJeff Title: County Attorney, Date: 5/4/2016 3:21:19 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 5/4/2016 3:56:19 PM Packet Page -1240- FNMA 3136G1LT4 5/28/2013 5/28/2014 quarterly -$, 25,000,000.00 $ 25,007,450.00 $ 24,998,818.36.' 11/28/2016 0.02 0.02 0.50 0.02 FHLMC 3137EADSS 8/16/2013 none N/A ' 25,000,000.00 25,040,600.00 ; 24,999,360.39.. 10/14/2016 0.02 0.02 0.88 0.03 US Treasury Note 912828A91 1/15/2014 none N/A .60,000,000.00 60,046,860.00 59,985,219.69 1/15/2017 0.07 0.07 0.75 0.06 US Treasury Note 912828874 2/18/2014 none N/A 25,000,000.00 24,991,200.00 24,983,724.52 -'. 2/15/2017 0.03 0.03 0.63 0.02 US Treasury Note 91282SC32 3/17/2014 none N/A - 10,000,000.00 :10,00S,860.00 9,995,289.30 3/15/2017 0.01 0.01 0.75 0.01 US Treasury Note 912828G46 12/12/2014 none N/A ' 25,000,000.00 124,986,325.00 24,989,394.99 11/30/2016 0.02 0.02 0.50 0.02 FHLMC 3134G6CT8 2/13/2015 2/13/2017 once "25,000,000.00 ; 25,024,900.00 25,OD0,000.00': 2/13/2020 0.13 0.03 1.00 0.03 FNMA 3136G2G35 3/30/2015 9/29/2015 quarterly :35,000,000.00 X35,061,180.00 35,000,000.00 itis. 3/29/2018 0.10 0.10 1.16 0.06 FNMA 3136G2G43 3/30/2015 3/30/2016 quarterly 50,000,000.00 50,131,900.00 50,000,000.00. 3/30/2020 0.28 0.28 1.70 0.12 FFCB 3133EEWLO 4/1/2015 4/1/2016 continuously : `.40,000,000.00 40,002,840.00 40,000,000.00". 4/1/2020 0.22 0.00 1.78 0.10 FNMA 3136G2G27 4/2/2015 10/2/2015 quarterly 50,000,000.00 50,091,300.00 5000,000.00 4/2/2018 0.14 0.14 1.16 0.08 FHLB 3130A61B4 10/21/2015 1/21/2016 quarterly 25,000,000.00 24,935,925.00 25,000,000.00. 7/21/2017 0.05 0.05 0.70 0.02 FHLMC 3134G7U25 10/27/2015 1/27/2016 quarterly 25,000,000.00 -(24,920,200.00 25,000,000.00` 10/27/2017 0.05 0.05 0.80 0.03 US Treasury Note 91282BUA6 11/9/2015 none N/A 25,000,000.00 24,905,275.00 -24,873,462.431 11/30/2017 0.06 0.06 0.63 0.02 FHLB 3130A6SW8 11/20/2015 none N/A 23,000,000.00 23,029,716.00. 22,995,736.21` 12/19/2017 0.05 0.05 1.00 0.03 FHLMC 3134G74Q1 11/24/2015 2/24/2016 quarterly '.:: 25,000,000.00 24,969,700.00 25,000,000.00 - 11/24/2017 0.06 0.06 0.85 0.03 FHLMC 3134G7503 11/30/2015 2/23/2016 quarterly -25,000,000.00 25,004,050.00 25,000,000.00-. 11/23/2018 0.09 0.09 1.20 0.04 reasury Note 91282SM72 12/3/2015 none N/A .50,000,000.00 50,023,450.00 49,930,380.84 11/30/2018 0.18 0.18 0.88 0.06 S 313381820 12/8/2015 none N/A 20,000,000.00 19,939,700.00 19,908,336.25 12/8/2017 0.05 0.05 0.75 0.02 S � 3130A6V95 12/9/2015 none N/A 9,000,000.00 9,012,087.00. 9,00,000.00. 12/1/2017 0.02 0.02 1.02 0.01 rD I 3133EFSG3 12/14/2015 none N/A ,. 25,000,000.00 25,049,025.00 25,000,000.00 3/14/2018 0.07 0.07 1.10 0.04 r+ dC 3134G8CM9 12/15/2015 6/15/2016 once 50,000,000.00;., .10,002,470.00 30,000,000.00 6/15/2018 0.03 0.00 1.20 0.02 S 313379FW4 12/18/2015 none N/A' 10,000,000.00 10,022,030.00 10,001,170.22 6/9/2017 0.02 0.02 1.00 0.01 00 I 3133EFSWB 12/21/2015 12/21/2016 continuously 25,000,000.00 25,037,500.00 25,000,000.00 12/21/2018 0.09 0.03 1.38 0.05 fD S 3130A6TY3 12/28/2015 6/28/2016 quarterly 25,000,000.00 25,017,050.00 X25,000,000.00 6/28/2018 0.08 0.01 1.25 0.04 IA 3136G2YM3 2/26/2016 8/26/2016 quarterly 30,000,000.00 29,952,900.00 30,000,000.00 2/26/2021 0.20 0.02 1.00 0.04 F� N I long term investments $ 722,000,000.00 $ 722,211,493.00 $ 721,660,893.20 2.14 1.48 ':1.01 I-� � Balance BoCC FFIB Concentration Account ':- $" 41,172,001.91 - 036- 'BoCC FFIBO/N Investment Account, $. 35,011,393.55 0.5s Total Funds on Deposit $ 76,183,395.46 Total managed portfolio $ 798,183,39S.46 A -Weighted Years to Maturity calculation is based on individual par value divided by total long term investment par value multiplied by the remaining number of year(s) to full maturity. B -Weighted Years To First Call/Maturity calculation is based on individual par value divided by total long term investment par value multiplied by the remaining number of year(s) to full maturity, or to the first call date if applicable. When an investment passes the first call date the calculation is adjusted based on date of final maturity. C -An Overnight Contractual Rate is provided for overnight investments (BoCC Concentration and BoCC Investment Accounts) pursuant to contracts with First Florida Integrity Bank. Concentration Account Rate is indexed at 95% of the daily Effective Federal Funds Rate with a floor (minimum) rate of .25%. The Investment Account Rate is the greater of (1) 95% of the Fed Funds Effective Rate, or (2) 7 day SEC Yield published on the Florida Prime website, adjusted monthly to previous month end rate. D -Coupon Rate is taken from the respective investment trade tickets. Step coupons, if any, are shown at their current rate. E -Coupon Weighted Yield calculation is based on individual par value divided by total long term investment par value multiplied by the coupon rate. F -Purchased Yield is taken from the respective investment trade tickets and is based upon yield to worst, or the minimum yield the investment will achieve. G -Weighted Purchased Yield calculation is based on individual par value divided by total long term investment par value multiplied by the Purchased Yield. 0.51 0.02 0.88 0.03 0.50 0.07 0.70 0.02 0.80 0.01 0.56 0.02 1.00 0.03 1.16 0.06 1.70 0.12 1.78 0.10 1.16 0.08 0.70 0.02 0.80 0.03 0.93 0.03 1.02 0.03 0.85 0.03 1.20 0.04 0.94 0.07 1.02 0.03 1.02 0.01 1.10 0.04 1.20 0.02 0.99 0.01 1.38 0.05 1.25 0.04 1.00 0.04 `1.05 C-71 0 N O L Sector Bank Deposit Accounts U.S.Treasury Federal Agency / GSE Cash Based Interest Fiscal Year to Date Collier County Portfolio Composition as of March 31, 2016 (At Par Value) $798,183,395.46 Sector Maximum Allowed M Current (%) 100% - -- 100% 80% $3,511,018 Agencies (FHLB,FNMA,FHLMC,FF( $527,000,000.00 66.0% Notes 100.00 BoCC Deposit Accounts $76,183,395.46 9.6 C.T7 O fV O Cy) CA i_ WE Collier County Short Term Sector Yields FFIB Deposit Accounts VS. S&P Rated GIP Benchmark 0.80% i 0.60% 0.55% 0.50% v v 'n 77 rD '-r 40% am 0.36% N A W 0.20% 0.00% Apr. 2015 May. 2015 Jun. 2015 Jul. 2015 Aug. 2015 Sept. 2015 Oct. 2015 Nov. 2015 Dec. 2015 Jan. 2016 Feb. 2016 Mar. 2016 C IS C Concentration Account (FFIB) -:° O/N Investment Account (FFIB) sk S&P Rated GIP Benchmark C Account Established March 2016 C C C Collier County Long Term Sector Yields Collier Long Term Portfolio Yield VS. B of A 1-3 Yr. Treasury Note Benchmark 1.50% 1.05% 1.00% -v v n r� r+ 0.75% oq m 0.50% 0.00% Apr. 2015 May. 2015 Jun. 2015 Jul. 2015 Aug. 2015 Sept. 2015 Oct. 2015 Nov. 2015 Dec. 2015 Jan. 2016 Feb. 2016 Mar. 2016 Collier Long Term Portfolio Yield —R—B of A 1-3 Yr Treasury Note Benchmark M