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Agenda 12/08/2020 Item #16J 1 (Investment of County Funds Report - Quarter end September 30, 2020)12/08/2020 EXECUTIVE SUMMARY Report to the Board regarding the investment of County funds as of the quarter ended September 30, 2020. OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter ended September 30, 2020. 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, along with yield and return graphs as of the end of the fourth quarter of FY-2020. The total managed portfolio at September 30, 2020 was $1.20B, at par value. For September 2020, Collier’s short and long-term yields exceeded their respective benchmarks by .11% and 1.20%. Short-term yield exceeded the Standard and Poor’s benchmark primarily due to the performance of funds with the Florida Prime Local Government Investment Pool, FLCLASS and Florida PALM (LGIPs). The Board’s Concentration (Operating) Account has also been included on the chart and bore interest of .25% as of September 30, 2020. In order to maximize yield, only funds necessary to meet current obligations are kept in the Concentration Account. Over the same period, the Collier portfolio’s long-term sector total return was 1.75% lower than the benchmark due to the relative market volatility of the Bank of America 1 to 3 year Treasury index’s total return. Total return measures include the unrealized gains and losses related to changes in the fair value of the investments. The current investment strategy is to utilize our overnight LGIPs thus maintaining the flexibility to take advantage of anticipated yield increases. There is no realized gain or 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. -JAK 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 and Comptroller 16.J.1 Packet Pg. 3516 12/08/2020 ATTACHMENT(S) 1. Investment Exhibits QTR4 FY 2020 (PDF) 16.J.1 Packet Pg. 3517 12/08/2020 COLLIER COUNTY Board of County Commissioners Item Number: 16.J.1 Doc ID: 14173 Item Summary: Report to the Board regarding the investment of County funds as of the quarter ended September 30, 2020. Meeting Date: 12/08/2020 Prepared by: Title: – Clerk of the Circuit Court Name: Erin Roxberry 11/04/2020 1:46 PM Submitted by: Title: Senior Staff Assistant – Clerk of the Circuit Court Name: Jennifer Milum 11/04/2020 1:46 PM Approved By: Review: Clerk of the Circuit Court Derek Johnssen Additional Reviewer Completed 11/04/2020 3:12 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 11/04/2020 3:24 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 11/05/2020 8:57 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 11/06/2020 11:08 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 11/24/2020 10:56 AM Board of County Commissioners MaryJo Brock Meeting Pending 12/08/2020 9:00 AM 16.J.1 Packet Pg. 3518 Collier County Investment Portfolio as of 09/30/2020ABCDEFGWeighted Weighted Bond Cont. Rate/ Bond Cont. Rate/FNBB Final Years Years O/N Equiv. / Coupon Equiv. / WeightedSettlement First Call Market Amortized Maturity to to First Cont. Coupon Weighted Purchased PurchasedInstrument CUSIP Date Call Date Frequency Par Value Value Cost Date Maturity Call/Maturity Rate Rate Yield Yield YieldUS Treasury Note 9128285F3 10/15/2018 none N/A 25,000,000.00$ 25,708,975.00$ 24,970,860.83$ 10/15/2021 0.09 0.09 2.88 0.24 2.99 0.25FFCB 3133EJY6012/3/2018 none N/A 9,548,000.00 10,197,288.44 9,553,605.19 3/3/2023 0.08 0.08 3.02 0.09 2.99 0.09FHLB 3130AH7J6‐1 10/1/2019 none N/A 10,000,000.00 10,000,000.00 9,999,980.68 10/1/2020 0.00 0.00 1.75 0.06 1.82 0.06FHLB 3130AH7J6‐2 10/1/2019 none N/A 10,000,000.00 10,000,000.00 9,999,980.87 10/1/2020 0.00 0.00 1.75 0.06 1.82 0.06FHLB 3130AH7J6‐3 10/2/2019 none N/A 25,000,000.00 25,000,000.00 24,999,965.75 10/1/2020 0.00 0.00 1.75 0.14 1.80 0.15US Treasury Note 912828YZ7‐112/31/2019 none N/A 50,000,000.00 50,929,700.00 49,998,748.74 12/31/2021 0.21 0.21 1.63 0.27 1.63 0.27US Treasury Note 912828YZ7‐212/31/2019 none N/A 50,000,000.00 50,930,000.00 49,998,774.68 12/31/2021 0.21 0.21 1.63 0.27 1.63 0.27FFCB 3133ELKR42/3/2020 2/3/2021 continuously25,000,000.00 25,098,153.00 24,995,696.72 2/3/2022 0.11 0.03 1.54 0.13 1.57 0.13US Treasury Bill 9127963A5 5/21/2020 none N/A 100,000,000.00 99,987,700.00 99,980,208.33 11/19/20200.04 0.04 0.15 0.05 0.15 0.05Total long term investments 304,548,000.00$ 307,851,816.44$ 304,497,821.79$ 0.74 0.66 1.31 1.33 Deposit / LGIP Accounts BalanceBoCC FFIB Concentration29,118,861.41$ 0.25%BoCC SBA Florida562,380,703.27$ 0.33%BoCC FLCLASS150,128,825.25$ 0.26%BoCC FL PALM150,073,482.29$ 0.29%Total Funds on Deposit891,701,872.22$ Total managed portfolio 1,196,249,872.22$ 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 Account) pursuant to a contract 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 SBA Florida, FLCLASS, and FL PALM LGIP rates are the average Participant Yields for the month as provided on the individual monthly account statements.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.16.J.1.aPacket Pg. 3519Attachment: Investment Exhibits QTR4 FY 2020 (14173 : Quarter 4 Investment Report) US Treasuries Notes & T-Bills $225,000,000.00 18.8% Bank Deposit Account $29,118,861.41 2.4% Federal Agencies / GSE (FHLB,FNMA,FHLMC,FFCB) $79,548,000.00 6.7%SBA Florida LGIP $562,380,703.27 47.0% FLCLASS LGIP $150,128,825.25 12.6% FL PALM LGIP $150,073,482.29 12.5% Collier County Portfolio Composition as of September 30, 2020 (At Par Value) $1,196,249,872.22 Sector Allowed (%)Current (%) Sector Maximum Total Cash Based Interest & Gains Fiscal Year to Date $21,378,963 Bank Deposit Account 100% 2.4% U.S. Treasury Notes & T-Bills 100% 18.8% Federal Agency / GSE 80% 6.7% SBA Florida LGIP 50% 47.0% FLCLASS LGIP 25% 12.6% FL PALM LGIP 25% 12.5% 16.J.1.a Packet Pg. 3520 Attachment: Investment Exhibits QTR4 FY 2020 (14173 : Quarter 4 Investment Report) 0.25%0.30%0.19%0.00%0.25%0.50%0.75%1.00%1.25%1.50%1.75%2.00%2.25%2.50%Oct. 2019 Nov. 2019 Dec. 2019 Jan. 2020 Feb. 2020 Mar. 2020 Apr. 2020 May. 2020 June. 2020 July. 2020 Aug. 2020 Sept. 2020Collier County Short Term Sector YieldsCollier Short Term Portfolio Yield vs.S&P Rated GIP Government Index Concentration Account (FFIB)Collier Short Term Portfolio YieldS&P Rated GIP Government IndexCombined Yield of SBA Florida Prime,FLCLASS, & FL PALM LGIP Accounts 16.J.1.aPacket Pg. 3521Attachment: Investment Exhibits QTR4 FY 2020 (14173 : Quarter 4 Investment Report) 1.33% 0.13% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% Oct. 2019 Nov. 2019 Dec. 2019 Jan. 2020 Feb. 2020 Mar. 2020 Apr. 2020 May. 2020 June. 2020 July. 2020 Aug. 2020 Sept. 2020 Collier County Long Term Sector Yields Collier Long Term Portfolio Yield vs. B of A 1-3 Yr. Treas. Note Yield Benchmark Collier Long Term Portfolio Yield Bank of America 1-3 Yr Treasury Note Benchmark 16.J.1.a Packet Pg. 3522 Attachment: Investment Exhibits QTR4 FY 2020 (14173 : Quarter 4 Investment Report) 3.58% 1.83% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% Oct. 2019 Nov. 2019 Dec. 2019 Jan. 2020 Feb. 2020 Mar. 2020 Apr. 2020 May. 2020 June. 2020 July. 2020 Aug. 2020 Sept. 2020 Collier County Long Term Sector 12 Month Total Return vs. B of A 1-3 US T Index 12 Month Total Return 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.1.a Packet Pg. 3523 Attachment: Investment Exhibits QTR4 FY 2020 (14173 : Quarter 4 Investment Report)