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Agenda 11/15/2016 Item #16J4 16.J.4 11/15/2016 EXECUTIVE SUMMARY Report to the Board regarding the investment of County funds as of the quarter ended September 30,2016. OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter ended September 30,2016. 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 fourth quarter of FY-2016. Please note that the yield charts indicate that the Collier portfolio's long term sector performance exceeded the bench mark by.28%. This is the result of the benchmark being comprised solely of 1 to 3 year Treasuries,while the Collier long term sector includes both Treasuries and higher yielding agencies which are allowed for in the investment policy. Collier's short term sector yield exceeded the benchmark by .13% due to the establishment of a First Florida Integrity Bank (FFIB) overnight investment account that pays interest indexed to Florida PRIME. 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 .37% for September 2016. In order to maximize short term yield only funds necessary to meet current Board obligations are 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, is approved as to form and legality,and requires majority vote to accept 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 ATTACHMENT(S) 1.Investment Exhibits QTR4 FY 2016 (PDF) Packet Pg. 1719 16.J.4 11/15/2016 COLLIER COUNTY 0 Board of County Commissioners Item Number: 16.J.4 Item Summary: Report to the Board regarding the investment of County funds as of the quarter ended September 30,2016. Meeting Date: 11/15/2016 Prepared by: Title: Fiscal Technician I—Clerk of the Circuit Court Name: Jennifer Milum 11/03/2016 3:19 PM Submitted by: Title: Fiscal Technician I—Clerk of the Circuit Court Name: Jennifer Milum 11/03/2016 3:19 PM Approved By: Review: Clerk of the Circuit Court Crystal Kinzel Additional Reviewer Completed 11/09/2016 1:51 PM ii Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/09/2016 1:55 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 11/09/2016 2:00 PM County Attorneys Office MaryJo Brock Level 3 County Attorneys Office Review Skipped 11/09/2016 3:05 PM County Manager's Office Leo E.Ochs Level 4 County Manager Review Completed 11/09/2016 3:30 PM Board of County Commissioners MaryJo Brock Meeting Pending 11/15/2016 9:00 AM 1 Packet Pg. 1720 Collier County Investment Portfolio as of 09/30/2016 Instrument US Treasury Note US Treasury Note FHLMC FHL8 FHLMC US Treasury Note FHL8 FHLMC US T ree1sury Note FHL8 FHL8 FF C8 FHL8 FF C8 FFC8 FHL8 FH L8 FNMA FNMA FH L8 FHL MC FNMA FHLMC FHL8 FNMA Total long t erm Investments BoCC FFIB Concentration Account BoCC FF \8 O/N Investment Account Total Funds on Deposit Total managed portfolio CUSIP 912828A91 91 2828C32 3134G6CT8 3130A6JB4 3134G7U25 912828UA6 3130A6SW8 3134G74Ql 912828M72 313381820 3130A6V95 3133EFSG3 313379FW4 3133EF5W8 3133EFW52 313381820 3133790T3 3135GOLSO 3136G3XR1 3130A8VQ3 3134GAFY5 3135GOP49 3134GAGF5 3130A9JZS 3136G4851 settlement Date 1/15/2014 3/17/2014 2/13/2015 10/21/2015 10/27/2015 11/9/2015 11/20/2015 11/24/2015 12/3/2015 12/8/2015 12/9/2015 12/14/2015 12/18/2015 12/21/2015 4/1/2016 6/22/2016 6/22/2016 7/12/2016 7/27/2016 8/23/2016 8/31/2016 9/2/2016 9/13/2016 9/27/2016 9/30/2016 First call Date none none 2/13/2017 1/21/2016 1/27/2016 none none 2/24/2016 none none none none none 12/21/2016 none none none 1/12/2017 1/27/2017 11/23/2016 11/28/2016 none 12/13/2016 12/27/2016 3/30/2017 can Freouen~ N/A N/A Par Value FNBB Market Value Amortized Cost 10,000,000.00 10,012,130 .00 9,999,847.46 10,000,000.00 10,013,280.00 9,997,759.38 once 25,000,000.00 25,039,000.00 25,000,000.00 quarterly 25,000,000.00 25,000,700.00 25 ,000,000.00 quarterly 25,000,000.00 24,991 ,150.00 25,000,000.00 N/A 25,000,000.00 24,980,4 75 .00 24,911,486.04 N/A 23,000,000.00 23,067,666.00 22,996,978 .68 quarterly 25,000,000.00 25,004,225 .00 25 ,000,000.00 N/A 10,000,000.00 10,019,530.00 9,989,485.32 N/A 20,000,000.00 20,004,460.00 19,935,523 .39 N/A 9,000,000.00 9,022,293 .00 9,000,000.00 N/A 25,000,000.00 25,072,475.00 25,000,000.00 N/A 10,000,000.00 10,026,380.00 10,000,677.92 continuously 25,000,000.00 25,031,650.00 25,000,000.00 N/A 40,000,000.00 40,141,520.00 39,975,280.94 N/A 25,000,000.00 25,005,575 .00 25,000,000.00 N/A 25,000,000 .00 25 ,169,825.00 25,163,893.85 quarterly 25,000,000.00 24 ,961,100.00 25,000,000.00 quarterly 25,000,000.00 24,892,625 .00 24,967,663.04 quarterly 25,000,000.00 25,001,125 .00 25,000,000.00 quarterly 25,000,000.00 25,000,925 .00 25,000,000.00 N/A 15,000,000.00 14,993,100.00 14,977,201 .10 quarterly 25,000,000.00 25,001,675 .00 25,000,000.00 con t inuously 25,000,000.00 24,953,175 .00 25,000,000.00 quarterly __ _,2:::5:.:,0c::cOO::,OOO=o:·OO:;o.. __ ..:2::5,"00::8'",1"5"'0"'.o"'o __ .....:;25,,_,oo=o,,,ooo=·c::cOO:c... 547,000,000.00 547,4 14,209.00 546,915,797.12 Balance 33,868,092 .93 100,259,515 .03 134,127,607.96 681,127,607.96 A·Weighted Years to Maturity calculation is based on individual par value divided by total lone term Investment par value multiplied by the rema ining number of year(s) to full maturity. A B c Weighted Final Maturity Date Weighted Years to Maturity Years O/N to First Cont. call/Maturltv Rate 1/15/2017 0.01 0.01 3/15/2017 0.01 0.01 2/13/2020 0.15 0.02 7 /21/2017 0.04 0.04 10/27/2017 0.05 0.05 11/30/2017 0.05 0.05 12/19/2017 0.05 0.05 11/24/2017 0.05 0.05 11/30/2017 0.02 0.02 12/8/2017 0.04 0.04 12/1/2017 0.02 0.02 3/14/2018 0.07 0.07 6/9/2017 0.01 0.01 12/21/2018 0.10 0.01 7 /1/2019 0.20 0.20 12/8/2017 0.05 0.05 6/8/2018 0.08 0.08 7 /12/2019 0.13 0.01 7 /27 /2020 0.17 0.01 8/23/2018 0.09 0.01 8/28/2019 0.13 0.01 8/28/2019 0.08 0.08 9/13/2018 0.09 0,01 9/27 /2021 0.23 0.01 9/30/20 21 ___ ---'o"'.2:::3'-----'o"'.0"2'- 2.15 0.94 0.37 0.75 B-Weighted Years To First Call/Maturity calculation is based o n individual par value dNided by total long term investment par value mult iplied by the remaining number o f year(s) to full maturity, or to the first call date if applicable . When an investm ent passes the first call dat e the calculation is adjusted based on date of fina l maturity. D Coupon Rate Cont. Rate/ Coupon Weighted Yield 0 .75 0 .01 0.75 0.01 l.00 0 .05 0.70 0 .03 0.80 0 .04 0 .63 0.03 l.00 0 .04 0.85 0.04 0 .88 O.Q2 0.75 0 .03 1.02 0.02 1.10 0.05 l.00 0.02 l.38 0.06 1.15 0.08 0 .75 0 .03 1.25 0 .06 1.05 0 .05 1.13 0.05 l.13 0 .05 1.30 0 .06 l.00 0.03 1.10 0.05 l.60 0 .07 1.60 ----'0-'.0_7_ 1 .05 C-An Overnight Cont ractu al Rate is provided for overnight investments (BoCC Concentration and BoCC Investment Accounts) pursuant to cont racts with First Florida Integrity Bank. Concentration Accou nt Rate is indexed at 95% of the daily Effective Federal Funds Rate with a floor (minimum) rate of .25%. The Investment Account Ra t e is the greater of (1) 95% of the Fed Funds Effective Rate, or (2) 7 day SEC Yield published on t he Fk>rida Prime website, adjusted monthly t o previous month end rate . 0-Coupon Rate is take n from the respective invest ment trade tickets. Step coupons, if any, are shown at their current rate . E-Coupon Weighted Yield calculation is based on individual pa r value divided by total long term invest ment par value multiplied by t he coupon rate . F-Purchased Yield is taken from the respective invest ment 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 t erm Investment par value mu ltiplied by t he Purchased Yie ld . Purchased Yield G Cont . Rate/ Weighted Purchased Yield 0.80 0.01 0 .80 0.01 1.00 o.os 0.70 0.03 0.80 0.04 0 .93 0.04 1.02 0.04 0.85 0.04 0 .94 0.02 1.02 0.04 l.02 0.02 l.10 0.05 0.99 0.02 l.38 0.06 1.17 0.09 0.75 0.03 0 .86 0.04 LOS 0.05 1.18 0.05 l.13 0.05 l.30 0.06 1.05 0.03 1.10 0.05 l.60 0.07 i.60 ----'o"'.0"1_ 1 .06 Collier County Portfolio Composition as of September 30, 2016 (At Par Value) $681,127,607.96 Sector Maximum Allowed (%) Current(%) Bank Deposit Accounts 100% U.S . Treas ury 100% 19 .7% 8.1% 72.2% Federal Age ncy I GSE 80% Total Cash Ba sed Interest $7,814,099 Fi sca l Year to Date Agencies (FHLB ,FNMA,FHLMC ,FFCB) $492,000,000.00 72.2% US Treasury Notes $55,000,000.00 8.1% BoCC Deposit Accounts $134,127,607 .96 19.7% 0 .80% 0 .60% 0.40% 0 .20% 0 .00% Oct . 2015 Collier County Short Term Sector Yields FFIB Deposit Accounts vs. S&P Rated GIP Benchmark Nov . 20 15 Dec . 2015 Jan . 2016 Feb . 2016 Mar. 2016 Apr. 2016 May. 2016 0.75% 0.37 % June . 2016 July . 2016 Aug . 2016 Sept. 2016 L-____ -__ C_o_n_re_n_tr_a_fu_n_A_c_oo_u_n_t _~_Fl_B_) _______ O_/_N _~_·_·_~_M_t_A_cr_o_u_M_(_~_l _~ ______ -__ S _&_P _~_t_~_QP~~~ I Account Establis hed March 2016 ___J 1.50% 1.00% 0.50% 0.00% Collier County Long Term Sector Yields Collier Long Term Portfolio Yield vs. B of A 1-3 Yr. Treas. Note Benchmark 0 .78% Oct. 2015 Nov . 20 15 Dec . 2015 Jan . 20 16 Feb. 2016 Mar. 2016 Apr. 2016 May. 20 16 Ju ne. 2016 July. 2016 Aug . 20 16 Sept. 2016 Co ll ier Long Term Portfolio Yie ld -B of A 1-3 Yr Tre asury Note Benchmark