Agenda 02/13/2018 Item #16J102/13/2018
EXECUTIVE SUMMARY
Report to the Board regarding the investment of County funds as of the quarter ended December
31, 2017.
OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter
ended December 31, 2017.
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 at a publicly noticed Board of County Commissioners meeting.
Attached as exhibits are the investment portfolio inventory, portfolio composition pie chart and yield
graphs as of the end of the first quarter of FY-2018. The total managed portfolio at December 31, 2017
was $920,825,679, at par value. For December 2017, Collier’s short -term yield exceeded the benchmark
by .49%, primarily due to investment in certificates of deposit at First Florida Integrity Bank and Florida
Community Bank. The Board’s Concentration (Operating) Account has also been included on the chart
and bears interest at 1.16% as of December 2017. In order to maximize yield, only funds necessary to
meet current Board obligations are kept in the Concentration Account. Over the same period, the Collier
portfolio’s long-term sector performance was .62% lower than the benchmark due to the relative market
volatility of the 1 to 3 year Treasury index yields upon which the benchmark is based. The short overall
maturity of the long-term investments sector, 1.65 weighted years to final maturity, coupled with the short
maturity of the total managed portfolio will allow Collier to take advantage of any future increases in
yield while providing sufficient liquidity for operations. There is no loss of principal associated with the
performance to benchmark of the long or short-term portfolio.
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 for acceptance. -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 QTR1 FY 2018 (PDF)
16.J.1
Packet Pg. 1531
02/13/2018
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.J.1
Doc ID: 4617
Item Summary: Report to the Board regarding the investment of County funds as of the quarter
ended December 31, 2017.
Meeting Date: 02/13/2018
Prepared by:
Title: Senior Staff Assistant – Clerk of the Circuit Court
Name: Jennifer Milum
01/22/2018 8:18 AM
Submitted by:
Title: Senior Staff Assistant – Clerk of the Circuit Court
Name: Jennifer Milum
01/22/2018 8:18 AM
Approved By:
Review:
Clerk of the Circuit Court Derek Johnssen Additional Reviewer Completed 01/22/2018 9:25 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 01/22/2018 11:24 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 01/24/2018 9:03 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 01/26/2018 9:07 AM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 01/31/2018 11:31 AM
Board of County Commissioners MaryJo Brock Meeting Pending 02/13/2018 9:00 AM
16.J.1
Packet Pg. 1532
Collier County Investment Portfolio
as of 12/31/2017 A B C D E F G
Weighted Weighted Cont. Rate/Cont. Rate/
FNBB Final Years Years O/N Coupon Weighted
Settlement First Call Market Amortized Maturity to to First Cont.Coupon Weighted Purchased Purchased
Instrument CUSIP Date Call Date Frequency Par Value Value Cost Date Maturity Call/Maturity Rate Rate Yield Yield Yield
FFCB 3133EFSG3 12/14/2015 none N/A 25,000,000.00$ 24,987,925.00$ 25,000,000.00$ 3/14/2018 0.01 0.01 1.10 0.05 1.10 0.05
FFCB 3133EFSW8 12/21/2015 12/21/2016 continuously 25,000,000.00 24,869,925.00 25,000,000.00 12/21/2018 0.05 0.05 1.38 0.06 1.38 0.06
FFCB 3133EFW52 4/1/2016 none N/A 40,000,000.00 39,553,840.00 39,986,532.55 7/1/2019 0.11 0.11 1.15 0.09 1.17 0.09
FHLB 313379DT3 6/22/2016 none N/A 25,000,000.00 24,967,550.00 25,042,303.77 6/8/2018 0.02 0.02 1.25 0.06 0.86 0.04
FNMA 3135G0L50 7/12/2016 1/12/2017 quarterly 25,000,000.00 24,610,275.00 25,000,000.00 7/12/2019 0.07 0.07 1.05 0.05 1.05 0.05
FNMA 3136G3XR1 7/27/2016 1/27/2017 quarterly 25,000,000.00 24,190,625.00 24,967,864.48 7/27/2020 0.12 0.12 1.13 0.05 1.18 0.06
FHLB 3130A8VQ3 8/23/2016 11/23/2016 quarterly 25,000,000.00 24,903,000.00 25,000,000.00 8/23/2018 0.03 0.03 1.13 0.05 1.13 0.05
FHLMC 3134GAFY5 8/31/2016 11/28/2016 quarterly 25,000,000.00 24,722,175.00 25,000,000.00 8/28/2019 0.08 0.08 1.30 0.06 1.30 0.06
FNMA 3135G0P49 9/2/2016 none N/A 15,000,000.00 14,768,820.00 14,987,011.93 8/28/2019 0.05 0.05 1.00 0.03 1.05 0.03
FHLMC 3134GAGF5 9/13/2016 12/13/2016 quarterly 25,000,000.00 24,884,925.00 25,000,000.00 9/13/2018 0.03 0.03 1.10 0.05 1.10 0.05
FHLB 3130A9JZ5 9/27/2016 12/27/2016 continuously 25,000,000.00 24,429,275.00 25,000,000.00 9/27/2021 0.18 0.18 1.60 0.08 1.60 0.08
FNMA 3136G4BS1 9/30/2016 3/30/2017 quarterly 25,000,000.00 24,108,250.00 25,000,000.00 9/30/2021 0.18 0.18 1.60 0.08 1.60 0.08
US Treasury Note 912828T59 10/27/2016 none N/A 25,000,000.00 24,602,550.00 24,992,934.12 10/15/2019 0.08 0.08 1.00 0.05 1.02 0.05
US Treasury Note 912828T83 10/31/2016 none N/A 25,000,000.00 24,791,025.00 24,976,412.67 10/31/2018 0.04 0.04 0.75 0.04 0.87 0.04
FHLMC 3134G8L98 11/23/2016 2/26/2017 quarterly 21,000,000.00 20,987,568.00 21,000,000.00 2/26/2018 0.01 0.01 1.05 0.04 1.05 0.04
FHLMC 3134GABQ6 12/6/2016 8/15/2017 once 20,000,000.00 19,914,100.00 19,981,530.96 8/15/2018 0.02 0.02 1.00 0.04 1.15 0.04
FNMA 3135G0L68 12/12/2016 7/27/2017 once 50,000,000.00 49,746,350.00 49,898,108.11 7/27/2018 0.05 0.05 0.75 0.07 1.11 0.10
FFCB 3133EGW84 12/19/2016 none N/A 10,000,000.00 9,946,650.00 9,998,065.75 12/19/2018 0.02 0.02 1.20 0.02 1.22 0.02
FFCB 3133EGZ24 12/27/2016 12/27/2017 continuously 24,050,000.00 23,911,255.55 24,050,000.00 12/27/2018 0.04 0.04 1.37 0.06 1.37 0.06
FHLB 3130ACVH4 11/28/2017 11/28/2018 quarterly 25,000,000.00 24,759,100.00 25,000,000.00 11/28/2022 0.23 0.04 2.30 0.11 2.30 0.11
FHLMC 3134GB5A6 12/7/2017 12/7/2018 quarterly 25,000,000.00 24,751,725.00 25,000,000.00 12/7/2022 0.23 0.04 2.36 0.11 2.36 0.11
Total long term investments 530,050,000.00$ 524,406,908.55$ 529,880,764.34$ 1.65 1.27 1.25 1.27
Balance
BoCC FFIB Concentration Account 48,692,932.57$ 1.16
BoCC FFIB O/N Investment Account 317,924.03$ 1.42
BoCC FFIB CD 50,043,168.27$ 1.78
BoCC SBA Florida LGIP Account 191,522,927.17$ 1.47
BoCC FCB CD 100,198,726.68$ 1.74
Total Funds on Deposit 390,775,678.72$
Total managed portfolio 920,825,678.72$
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 current Fed Funds Rate, as published in the Wall Street Journal. The SBA Florida LGIP rate is the current Participant Yield as published on the SBA Florida Prime website. A term rate is provided
for the certificate of deposits (CD) pursuant to contracts with First Florida Integrity Bank (FFIB) and Florida Community Bank (FCB). The rate is based on a term of 18 months, but neither CD has an early withdrwal penalty.
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.
G-Weighted Purchased Yield calculation is based on individual par value divided by total long term investment par value multiplied by the Purchased Yield.
16.J.1.a
Packet Pg. 1533 Attachment: Investment Exhibits QTR1 FY 2018 (4617 : Investment of County Funds)
US Treasury Notes
$50,000,000.00
5.4%
BoCC Deposit Accounts
$49,010,856.60
5.3%
Federal Agencies / GSE
(FHLB,FNMA,FHLMC,FFCB)
$480,050,000.00
52.2%
BoCC Bank CDs
$150,241,894.95
16.3%
BoCC SBA Florida LGIP
$191,522,927.17
20.8%
Collier County Portfolio Composition
as of December 31, 2017 (At Par Value)
$920,825,678.72
Sector Allowed (%)Current (%)
Sector Maximum
Total Cash Based Interest
Fiscal Year to Date
$2,304,835
Bank Deposit Accounts 100% 5.3%
U.S. Treasury Notes 100% 5.4%
Federal Agency / GSE 80% 52.2%
SBA Florida LGIP 50% 20.8%
Bank CDs (FCB/FFIB) 30% 16.3%
16.J.1.a
Packet Pg. 1534 Attachment: Investment Exhibits QTR1 FY 2018 (4617 : Investment of County Funds)
1.16%
1.72%
1.23%
0.50%
0.75%
1.00%
1.25%
1.50%
1.75%
2.00%
Jan. 2017 Feb. 2017 Mar. 2017 Apr. 2017 May. 2017 June. 2017 July. 2017 Aug. 2017 Sept. 2017 Oct. 2017 Nov. 2017 Dec. 2017
Collier County Short Term Sector Yields
Collier Short Term Portfolio Yield
vs.
S&P Rated GIP Government Index
Concentration Account (FFIB)Collier Short Term Portfolio Yield S&P Rated GIP Government Index
Combined Yield on FFIB O/N Investment,
SBA Florida Prime LGIP Account, FCB CD
(as of July 2017), & FFIB CD (as of December 2017)
16.J.1.a
Packet Pg. 1535 Attachment: Investment Exhibits QTR1 FY 2018 (4617 : Investment of County Funds)
1.27%
1.89%
0.00%
0.50%
1.00%
1.50%
2.00%
Jan. 2017 Feb. 2017 Mar. 2017 Apr. 2017 May. 2017 June. 2017 July. 2017 Aug. 2017 Sept. 2017 Oct. 2017 Nov. 2017 Dec. 2017
Collier County Long Term Sector Yields
Collier Long Term Portfolio Yield
vs.
B of A 1-3 Yr. Treas. Note Benchmark
Collier Long Term Portfolio Yield B of A 1-3 Yr Treasury Note Benchmark
16.J.1.a
Packet Pg. 1536 Attachment: Investment Exhibits QTR1 FY 2018 (4617 : Investment of County Funds)