Agenda 01/22/2019 Item #16J201/22/2019
EXECUTIVE SUMMARY
Report to the Board regarding the investment of County funds as of the quarter ended
December 31, 2018.
______________________________________________________________________________
OBJECTIVE: To provide the Board a report regarding the investment of County funds as of
the quarter ended December 31, 2018.
CONSIDERATIONS: Florida Statutes § 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 the Florida Statutes 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,
along with yield and return graphs as of the end of the first quarter of FY -2019. The total
managed portfolio at December 31, 2018 was $764,914,000, at par value. For December 2018,
Collier’s short-term yield and long-term return exceeded the respective benchmarks by .26% and
.29%, primarily due to investment in a certificate of deposit at Florida Community Bank and
balances with the Florida Prime Local Government Investment Pool. The Board’s Concentration
(Operating) Account has also been included on the chart and bore interest of 2.24% as of
December 2018. 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 yield performance was .17% lower than the benchmark due to the relative
market volatility of the 1 to 3 year Treasury index yield. Continued shortening of the overall
maturity of the long-term investments sector will allow Collier County to take adv antage of
recent increases in yield and provide 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, raises no
legal issues, and requires majority vote for acceptance of the report.-SRT
RECOMMENDATION: The investment report exhibits are provided to the Board as
information only, no action is required.
Prepared by: Derek M. Johnssen, Finance Director,
Office of the Clerk of the Circuit Court
ATTACHMENT(S)
1. Investment Exhibits QTR1 FY 2019 (PDF)
16.J.2
Packet Pg. 1165
01/22/2019
16.J.2
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.J.2
Doc ID: 7798
Item Summary: Report to the Board regarding the investment of County funds as of the quarter
ended December 31, 2018.
Meeting Date: 01/22/2019
Prepared by:
Title: – Clerk of the Circuit Court
Name: Lisa Doyle
01/16/2019 10:49 AM
Submitted by:
Title: Senior Staff Assistant – Clerk of the Circuit Court
Name: Jennifer Milum
01/16/2019 10:49 AM
Approved By:
Review:
County Attorney's Office Scott Teach Level 3 County Attorney's Office Review Completed 01/16/2019 11:10 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 01/16/2019 11:49 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 01/16/2019 12:40 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 01/16/2019 12:50 PM
Board of County Commissioners MaryJo Brock Meeting Pending 01/22/2019 9:00 AM
16.J.2
Packet Pg. 1167
Collier County Investment Portfolio
as of 12/31/2018 A B C D E F G
Weighted Weighted Bond Cont. Rate/Bond Cont. Rate/
FNBB Final Years Years O/N Equiv. /Coupon Equiv. /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 3133EFW52 4/1/2016 none N/A 40,000,000.00$ 39,716,960.00$ 39,995,519.06$ 7/1/2019 0.03 0.03 1.15 0.07 1.17 0.07
FNMA 3135G0L50 7/12/2016 1/12/2017 quarterly 25,000,000.00 24,801,600.00 25,000,000.00 7/12/2019 0.02 0.02 1.05 0.03 1.05 0.03
FNMA 3136G3XR1 7/27/2016 1/27/2017 quarterly 25,000,000.00 24,428,425.00 24,980,355.92 7/27/2020 0.05 0.05 1.13 0.04 1.18 0.04
FHLMC 3134GAFY5 8/31/2016 11/28/2016 quarterly 25,000,000.00 24,763,250.00 25,000,000.00 8/28/2019 0.02 0.02 1.30 0.04 1.30 0.04
FNMA 3135G0P49 9/2/2016 none N/A 15,000,000.00 14,838,045.00 14,994,847.71 8/28/2019 0.01 0.01 1.00 0.02 1.05 0.02
FHLB 3130A9JZ5 9/27/2016 12/27/2016 continuously 25,000,000.00 24,324,950.00 25,000,000.00 9/27/2021 0.09 0.09 1.60 0.05 1.60 0.05
FNMA 3136G4BS1 9/30/2016 3/30/2017 quarterly 25,000,000.00 24,067,875.00 25,000,000.00 9/30/2021 0.09 0.09 1.60 0.05 1.60 0.05
US Treasury Note 912828T59 10/27/2016 none N/A 25,000,000.00 25,199,225.00 24,996,883.66 10/15/2019 0.03 0.03 1.00 0.03 1.02 0.03
FHLB 3130ACVH4 11/28/2017 11/28/2018 quarterly 25,000,000.00 24,550,500.00 25,000,000.00 11/28/2022 0.13 0.13 2.30 0.08 2.30 0.08
FHLMC 3134GB5A6 12/7/2017 12/7/2018 quarterly 25,000,000.00 24,540,000.00 25,000,000.00 12/7/2022 0.13 0.13 2.36 0.08 2.36 0.08
FFCB 3133EJBX6 2/8/2018 8/8/2018 continuously 25,000,000.00 24,906,425.00 25,000,000.00 2/8/2021 0.07 0.07 2.40 0.08 2.40 0.08
FFCB 3133EJEJ4 3/1/2018 6/1/2018 monthly 10,000,000.00 10,000,010.00 10,000,000.00 9/1/2021 0.03 0.03 2.75 0.04 2.75 0.04
FHLMC 3134GSEK7 3/8/2018 6/8/2018 quarterly 11,960,000.00 11,960,693.68 11,960,000.00 3/8/2023 0.07 0.07 3.00 0.05 3.00 0.05
FHLB 3130ADXE7 4/4/2018 none N/A 10,000,000.00 9,990,300.00 9,999,150.14 4/4/2019 0.00 0.00 2.13 0.03 2.16 0.03
FHLB 3130AAXX1 4/5/2018 none N/A 15,000,000.00 14,963,265.00 14,976,400.72 3/18/2019 0.00 0.00 1.38 0.03 2.13 0.04
FHLB 3130A8Y72 4/9/2018 none N/A 25,000,000.00 24,738,850.00 24,804,115.94 8/5/2019 0.02 0.02 0.88 0.03 2.22 0.07
US Treasury Bill 912796QC6 5/2/2018 none N/A 50,000,000.00 49,598,750.00 49,652,604.11 4/25/2019 0.02 0.02 2.24 0.15 2.24 0.15
US Treasury Bill 912796QR3-1 8/2/2018 none N/A 20,000,000.00 19,720,060.00 19,739,918.05 7/18/2019 0.01 0.01 2.43 0.06 2.43 0.06
US Treasury Bill 912796QR3-2 8/15/2018 none N/A 20,000,000.00 19,720,060.00 19,741,852.78 7/18/2019 0.01 0.01 2.41 0.06 2.41 0.06
US Treasury Bill 912796QV4 8/16/2018 none N/A 50,000,000.00 49,189,200.00 49,255,944.45 8/15/2019 0.04 0.04 2.44 0.16 2.44 0.16
FHLMC 3134GSYH2 10/4/2018 10/4/2019 quarterly 25,000,000.00 25,052,350.00 25,000,000.00 10/4/2021 0.09 0.02 3.02 0.10 3.02 0.10
US Treasury Note 9128285F3 10/15/2018 none N/A 25,000,000.00 24,674,800.00 24,921,861.02 10/15/2021 0.09 0.09 2.88 0.09 2.99 0.10
FHLMC 3134GSYW9 10/29/2018 10/29/2019 quarterly 25,000,000.00 25,066,125.00 25,000,000.00 10/29/2021 0.09 0.03 3.08 0.10 3.08 0.10
FHLMC 3130AF5L7 11/1/2018 11/1/2019 quarterly 25,000,000.00 25,089,075.00 25,000,000.00 2/1/2022 0.10 0.03 3.20 0.10 3.20 0.10
FHLB 3130AFEA1 11/26/2018 11/26/2019 quarterly 25,000,000.00 25,091,250.00 25,000,000.00 11/26/2021 0.10 0.03 3.25 0.11 3.25 0.11
FFCB 3133EJY60 12/3/2018 none N/A 9,548,000.00 9,645,475.53 9,557,656.90 3/3/2023 0.05 0.05 3.02 0.04 2.99 0.04
FFCB 3133EJDL0 12/6/2018 12/12/2018 continuously 13,406,000.00 13,406,040.22 13,310,809.26 11/21/2023 0.09 0.09 3.15 0.06 3.31 0.06
FHLB 3130AFH34 12/10/2018 12/10/2019 continuously 25,000,000.00 25,052,050.00 25,000,000.00 12/10/2021 0.10 0.03 3.15 0.10 3.15 0.10
FHLMC 3134GSG74 12/24/2018 12/24/2019 annually 25,000,000.00 25,066,975.00 25,000,000.00 12/24/2021 0.10 0.03 3.15 0.10 3.15 0.10
FHLB 3130AFKK2 12/27/2018 12/27/2019 quarterly 25,000,000.00 25,035,900.00 25,000,000.00 12/27/2023 0.16 0.03 3.30 0.11 3.30 0.11
FHLMC 3134GSL29 12/27/2018 12/27/2019 quarterly 25,000,000.00 25,028,175.00 25,000,000.00 12/27/2023 0.16 0.03 3.30 0.11 3.30 0.11
FHLMC 3134GSJ63 12/28/2018 3/28/2019 quarterly 25,000,000.00 25,005,875.00 25,000,000.00 9/28/2020 0.06 0.01 3.00 0.10 2.98 0.10
Total long term investments 764,914,000.00$ 759,232,534.43$ 762,887,919.72$ 2.06 1.34 2.30 2.36
Balance
BoCC FFIB Concentration Account 88,134,621.17$ 2.24
BoCC FFIB O/N Investment Account 324,044.36$ 2.39
BoCC SBA Florida LGIP Account 160,210,177.07$ 2.61
BoCC FCB CD 51,602,067.02$ 2.37
Total Funds on Deposit 300,270,909.62$
Total managed portfolio 1,065,184,909.62$
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 deposit (CD) pursuant to a contract with Florida Community Bank (FCB). The rate is based on a term of 18 months, but the CD doesn't have an early withdrawal 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-Bond Equivalent / 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.2.a
Packet Pg. 1168 Attachment: Investment Exhibits QTR1 FY 2019 (7798 : Investment Qtr1 FY 2019)
US Treasury Notes &
T-Bills
$190,000,000.00
17.9%
BoCC Deposit Accounts
$88,458,665.53
8.3%
Federal Agencies / GSE
(FHLB,FNMA,FHLMC,FFCB)
$574,914,000.00
54.0%
BoCC Bank CD
$51,602,067.02
4.8%
BoCC SBA Florida LGIP
$160,210,177.07
15.0%
Collier County Portfolio Composition
as of December 30, 2018 (At Par Value)
$1,065,184,909.62
Sector Allowed (%)Current (%)
Sector Maximum
Total Cash Based Interest
Fiscal Year to Date
$2,559,543
Bank Deposit Accounts 100% 8.3%
U.S. Treasury Notes & T-Bills 100% 17.9%
Federal Agency / GSE 80% 54.0%
SBA Florida LGIP 50% 15.0%
Bank CDs 30% 4.8%
16.J.2.a
Packet Pg. 1169 Attachment: Investment Exhibits QTR1 FY 2019 (7798 : Investment Qtr1 FY 2019)
2.24%
2.56%
2.30%
1.00%
1.25%
1.50%
1.75%
2.00%
2.25%
2.50%
2.75%
Jan. 2018 Feb. 2018 Mar. 2018 Apr. 2018 May. 2018 June. 2018 July. 2018 Aug. 2018 Sept. 2018 Oct. 2018 Nov. 2018 Dec. 2018
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
Note: September Combined Short Term Yield increase is the result of a LIBOR litigation settlement. SBA Prime pool participants benefited from an additional $5.9mm allocated to interest earnings.
16.J.2.a
Packet Pg. 1170 Attachment: Investment Exhibits QTR1 FY 2019 (7798 : Investment Qtr1 FY 2019)
2.36%
2.53%
1.00%
1.25%
1.50%
1.75%
2.00%
2.25%
2.50%
2.75%
3.00%
Jan. 2018 Feb. 2018 Mar. 2018 Apr. 2018 May. 2018 June. 2018 July. 2018 Aug. 2018 Sept. 2018 Oct. 2018 Nov. 2018 Dec. 2018
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 Bank of America 1-3 Yr Treasury Note Benchmark
16.J.2.a
Packet Pg. 1171 Attachment: Investment Exhibits QTR1 FY 2019 (7798 : Investment Qtr1 FY 2019)
1.58
1.87
-0.40
0.10
0.60
1.10
1.60
2.10
Jan. 2018 Feb. 2018 Mar. 2018 Apr. 2018 May. 2018 Jun. 2018 Jul. 2018 Aug. 2018 Sept. 2018 Oct. 2018 Nov. 2018 Dec. 2018
Collier County Long Term Sector
12 Month Total Return
vs.
B of A 1-3 US T Index 12 Month Total Return Index
Bank of America 12 Month Return Index Collier County 12 Month Return
Note: Total return includes both interest earnings and changes in the market value of the underlying securities.
16.J.2.a
Packet Pg. 1172 Attachment: Investment Exhibits QTR1 FY 2019 (7798 : Investment Qtr1 FY 2019)