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Agenda 02/09/2021 Item #16J2 (Investment of County Funds Quarter Ending 12-31-20)02/09/2021 EXECUTIVE SUMMARY Report to the Board regarding the investment of County funds as of the quarter ended December 31, 2020. OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter ended December 31, 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 first quarter of FY-2021. The total managed portfolio at December 31, 2020 was $1.54B, at par value. For September 2020, Collier’s short and long-term yields exceeded their respective benchmarks by .03% and .77%. 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%, .11% over the short-term benchmark, as of December 31, 2020. 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 1.61% 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 with strategic purchases. 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 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, Finance Director, Office of the Clerk of the Circuit Court and Comptroller 16.J.2 Packet Pg. 1284 02/09/2021 ATTACHMENT(S) 1. 12.31.20 Investment Exhibits (PDF) 16.J.2 Packet Pg. 1285 02/09/2021 COLLIER COUNTY Board of County Commissioners Item Number: 16.J.2 Doc ID: 14911 Item Summary: Report to the Board regarding the investment of County funds as of the quarter ended December 31, 2020. Meeting Date: 02/09/2021 Prepared by: Title: – Clerk of the Circuit Court Name: Erin Roxberry 02/02/2021 12:15 PM Submitted by: Title: Senior Staff Assistant – Clerk of the Circuit Court Name: Jennifer Milum 02/02/2021 12:15 PM Approved By: Review: Clerk of the Circuit Court Derek Johnssen Additional Reviewer Completed 02/02/2021 1:12 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 02/02/2021 1:15 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 02/02/2021 2:37 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/02/2021 4:16 PM County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 02/02/2021 4:28 PM Board of County Commissioners MaryJo Brock Meeting Pending 02/09/2021 9:00 AM 16.J.2 Packet Pg. 1286 Collier County Investment Portfolio as of 12/31/2020 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 US Treasury Note 9128285F3 10/15/2018 none N/A 25,000,000.00$ 25,551,750.00$ 24,977,915.58$ 10/15/2021 0.04 0.04 2.88 0.15 2.99 0.15 FFCB 3133EJY60 12/3/2018 none N/A 9,548,000.00 10,136,863.35 9,553,021.84 3/3/2023 0.04 0.04 3.02 0.06 2.99 0.06 US Treasury Note 912828YZ7-1 12/31/2019 none N/A 50,000,000.00 50,757,800.00 49,999,000.63 12/31/2021 0.10 0.10 1.63 0.17 1.63 0.17 US Treasury Note 912828YZ7-2 12/31/2019 none N/A 50,000,000.00 50,757,800.00 49,999,021.35 12/31/2021 0.10 0.10 1.63 0.17 1.63 0.17 FFCB 3133ELKR4 2/3/2020 2/3/2021 continuously 25,000,000.00 25,028,950.00 24,998,838.80 2/3/2022 0.06 0.00 1.54 0.08 1.57 0.08 FHLMC 3134GW6E1 11/13/2020 11/2/2021 continuously 25,000,000.00 25,009,075.00 25,000,000.00 11/2/2023 0.15 0.04 0.32 0.02 0.32 0.02 FHLMC 3134GXAY0 11/13/2020 5/13/2022 continuously 25,000,000.00 25,009,300.00 24,993,159.34 11/13/2023 0.15 0.07 0.30 0.02 0.31 0.02 FHLB 3130AKFU5 11/24/2020 none N/A 25,000,000.00 24,994,600.00 24,975,724.35 5/24/2024 0.17 0.17 0.35 0.02 0.38 0.02 FHLMC 3134GXCA0 11/24/2020 none N/A 25,000,000.00 25,001,150.00 25,000,000.00 11/24/2023 0.15 0.15 0.32 0.02 0.32 0.02 FHLMC 3134GXDT8 11/24/2020 none N/A 25,000,000.00 25,010,925.00 25,000,000.00 11/24/2023 0.15 0.15 0.35 0.02 0.35 0.02 FHLMC 3134GXDM3 12/1/2020 none N/A 25,000,000.00 25,003,550.00 25,000,000.00 12/1/2025 0.25 0.25 0.62 0.03 0.62 0.03 FHLMC 3134GXEX8 12/4/2020 12/1/2021 quarterly 27,200,000.00 27,204,161.60 27,194,231.59 6/1/2023 0.14 0.05 0.25 0.01 0.26 0.01 FNMA 3135G06J7 12/10/2020 none N/A 25,000,000.00 25,018,475.00 25,000,000.00 12/10/2025 0.25 0.25 0.65 0.03 0.65 0.03 FHLMC 3134GXGR9 12/11/2020 none N/A 50,000,000.00 50,004,800.00 50,000,000.00 12/11/2023 0.30 0.30 0.35 0.04 0.35 0.04 FNMA 3135G06M0 12/16/2020 none N/A 25,000,000.00 25,002,850.00 25,000,000.00 12/16/2024 0.20 0.20 0.50 0.03 0.50 0.03 FHLMC 3134GXFV1 12/17/2020 none N/A 25,000,000.00 25,022,000.00 25,000,000.00 12/17/2025 0.25 0.25 0.63 0.03 0.63 0.03 Bank of America Corp Note 06048WK74 12/21/2020 12/21/2021 quarterly 25,000,000.00 24,879,225.00 25,000,000.00 6/21/2023 0.13 0.05 0.40 0.02 0.40 0.02 Total long term investments 486,748,000.00 489,393,274.95 486,690,913.48 2.63 2.21 0.92 0.92 Deposit / LGIP Accounts Balance BoCC FFIB Concentration Account 51,587,216.53$ 0.25% BoCC SBA Florida LGIP Account 577,628,324.54$ 0.18% BoCC FLCLASS LGIP Account 260,201,361.26$ 0.19% BoCC FL PALM LGIP Account 110,130,583.30$ 0.10% BoCC FL PALM LGIP Account - Term Investment 55,000,000.00$ 0.17% Total Funds on Deposit 1,054,547,485.63$ Total managed portfolio 1,541,295,485.63$ 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 current 7-Day Participant Yield as published on the respective LGIP websites. 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. 1287 Attachment: 12.31.20 Investment Exhibits (14911 : Investment Report) US Treasuries Notes & T-Bills $125,000,000.00 8.1% Bank Deposit Account $51,587,216.53 3.4% Federal Agencies / GSE (FHLB,FNMA,FHLMC,FFCB) $336,748,000.00 21.8% Corporates 25,000,000.00 1.6% SBA Florida LGIP $577,628,324.54 37.5% FLCLASS LGIP $260,201,361.26 16.9% FL PALM LGIP, $165,130,583.30 10.7% Collier County Portfolio Composition as of December 31, 2020 (At Par Value) $1,541,295,485.63 Sector Allowed (%)Current (%) Sector Maximum Total Cash Based Interest & Gains Fiscal Year to Date $ 2,191,917 Bank Deposit Account 100% 3.4% U.S. Treasury Notes & T-Bills 100% 8.1% Federal Agency / GSE 80% 21.8% SBA Florida LGIP 50% 37.5% Corporates 25% 1.6% FLCLASS LGIP 25% 16.9% FL PALM LGIP 25% 10.7% 16.J.2.a Packet Pg. 1288 Attachment: 12.31.20 Investment Exhibits (14911 : Investment Report) 0.25% 0.17% 0.14% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% Jan. 2020 Feb. 2020 Mar. 2020 Apr. 2020 May. 2020 June. 2020 July. 2020 Aug. 2020 Sept. 2020 Oct. 2020 Nov. 2020 Dec. 2020 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 of SBA Florida Prime, FLCLASS, & FL PALM LGIP Accounts 16.J.2.a Packet Pg. 1289 Attachment: 12.31.20 Investment Exhibits (14911 : Investment Report) 0.92% 0.15% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% Jan. 2020 Feb. 2020 Mar. 2020 Apr. 2020 May. 2020 June. 2020 July. 2020 Aug. 2020 Sept. 2020 Oct. 2020 Nov. 2020 Dec. 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.2.a Packet Pg. 1290 Attachment: 12.31.20 Investment Exhibits (14911 : Investment Report) 3.01% 1.40% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% Jan. 2020 Feb. 2020 Mar. 2020 Apr. 2020 May. 2020 June. 2020 July. 2020 Aug. 2020 Sept. 2020 Oct. 2020 Nov. 2020 Dec. 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.2.a Packet Pg. 1291 Attachment: 12.31.20 Investment Exhibits (14911 : Investment Report)