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Agenda 12/13/2022 Item #16J 4 (Report regarding investment of County funds)12/13/2022 EXECUTIVE SUMMARY Report to the Board regarding the investment of County funds as of the quarter ended September 30, 2022. OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter ended September 30, 2022. CONSIDERATIONS: Florida Statute 28.33 provides for the investment of County surplus funds by the Clerk of Courts and Comptroller (Clerk). 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 and return graphs as of the end of the fourth quarter of FY-2022. The total managed portfolio as of September 30, 2022, was $1.82B, at par value. As of September 2022, Collier’s 12-month short-term yield exceeded the benchmark by .22%. The short-term yield exceeded the Standard and Poor’s benchmark yield primarily due to the performance of funds with the SBA Florida PRIME and Florida PALM local government investment pools. The Board’s Concentration (Operating) Account has also been included on the chart and bore interest of 2.47%, .23% over the short-term benchmark, as of September 30, 2022. Over the same period, the Collier portfolio’s long -term sector 12-month yield and total return were lower by 3.61% and 1.56%, respectively, than the Bank of America 1 to 3-year Treasury index’s yield and total return. The continued rising rate environment favors the benchmark as it resets at the beginning of each month with new purchases versus buying and holding investments to maturity. The current investment strategy focuses on ensuring sufficient short-term liquidity, particularly due to additional cash needs created by Hurricane Ian. There is no realized gain or loss of principal associated with the performance to benchmark of the long or short-term portfolio as investments will be held to maturity, or call, or sold at a gain if market conditions change. 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 and 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 ATTACHMENT(S) 1. Investment Exhibits QTR4 FY 2022 (PDF) 16.J.4 Packet Pg. 2434 12/13/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.J.4 Doc ID: 24012 Item Summary: Report to the Board regarding the investment of County funds as of the quarter ended September 30, 2022. Meeting Date: 12/13/2022 Prepared by: Title: – Clerk of the Circuit Court Name: Erin Roxberry 11/28/2022 4:18 PM Submitted by: Title: Senior Staff Assistant – Clerk of the Circuit Court Name: Jennifer Milum 11/28/2022 4:18 PM Approved By: Review: Clerk of the Circuit Court Derek Johnssen Additional Reviewer Completed 11/28/2022 4:24 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 11/28/2022 4:26 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 12/01/2022 10:15 AM Office of Management and Budget Susan Usher Additional Reviewer Completed 12/05/2022 9:54 AM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 12/06/2022 5:39 PM Board of County Commissioners Geoffrey Willig Meeting Pending 12/13/2022 9:00 AM 16.J.4 Packet Pg. 2435 Collier County Investment Portfolio A B C D E F G as of 09/30/2022 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 3133EJY60 12/3/2018 none N/A 9,548,000.00$ 9,524,760.17$ 9,548,976.47$ 3/3/2023 0.00 0.00 3.02 0.02 2.99 0.02 FHLMC 3134GW6E1 11/13/2020 11/2/2021 annual 25,000,000.00 23,905,750.00 25,000,000.00 11/2/2023 0.02 0.02 0.32 0.01 0.32 0.01 FHLMC 3134GXAY0 11/13/2020 5/13/2022 semi-annual 25,000,000.00 23,899,175.00 24,997,198.63 11/13/2023 0.02 0.02 0.30 0.01 0.31 0.01 FHLB 3130AKFU5 11/24/2020 2/24/2021 continuously 25,000,000.00 23,337,000.00 24,988,214.57 5/24/2024 0.03 0.03 0.35 0.01 0.38 0.01 FHLMC 3134GXCA0 11/24/2020 11/24/2021 quarterly 25,000,000.00 23,845,375.00 25,000,000.00 11/24/2023 0.02 0.02 0.32 0.01 0.32 0.01 FHLMC 3134GXDM3 12/1/2020 12/1/2021 quarterly 25,000,000.00 22,160,525.00 25,000,000.00 12/1/2025 0.06 0.06 0.62 0.01 0.62 0.01 FHLMC 3134GXEX8 12/4/2020 12/1/2021 quarterly 27,200,000.00 26,456,324.80 27,198,174.70 6/1/2023 0.01 0.01 0.25 0.01 0.26 0.01 FNMA 3135G06J7 12/10/2020 6/10/2021 quarterly 25,000,000.00 22,164,000.00 25,000,000.00 12/10/2025 0.06 0.06 0.65 0.01 0.65 0.01 FNMA 3135G06M0 12/16/2020 6/16/2021 quarterly 25,000,000.00 22,906,450.00 25,000,000.00 12/16/2024 0.04 0.04 0.50 0.01 0.50 0.01 FHLMC 3134GXFV1 12/17/2020 12/17/2021 quarterly 25,000,000.00 22,130,750.00 25,000,000.00 12/17/2025 0.06 0.06 0.63 0.01 0.63 0.01 Bank of America Corp Note 06048WK74 12/21/2020 12/21/2021 quarterly 25,000,000.00 24,229,475.00 25,000,000.00 6/21/2023 0.01 0.01 0.45 0.01 0.45 0.01 CitiGroup Global Markets 17328YK86 1/29/2021 1/29/2022 quarterly 25,000,000.00 23,308,750.00 24,986,130.14 1/29/2024 0.03 0.03 0.40 0.01 0.44 0.01 Bank of America Corp Note 06048WL24 2/25/2021 2/16/2022 quarterly 28,147,000.00 26,334,896.14 28,133,937.31 2/16/2024 0.03 0.03 0.35 0.01 0.38 0.01 FHLB 3130ALJ70 3/12/2021 4/12/2021 monthly 25,000,000.00 23,548,275.00 25,000,000.00 3/12/2024 0.03 0.03 0.40 0.01 0.40 0.01 US Treasury Note 91282CBR1 3/15/2021 none N/A 25,000,000.00 23,580,075.00 24,963,816.84 3/15/2024 0.03 0.03 0.25 0.00 0.35 0.01 FHLB 3130ALKB9 3/17/2021 6/17/2021 quarterly 25,000,000.00 22,338,100.00 25,000,000.00 3/17/2026 0.07 0.07 0.75 0.01 0.75 0.01 Farmer Mac 31422XCV2 4/1/2021 none N/A 10,000,000.00 9,441,590.00 10,000,000.00 4/1/2024 0.01 0.01 0.36 0.00 0.36 0.00 US Treasury Note 91282CBV2 4/15/2021 none N/A 25,000,000.00 23,545,900.00 25,000,000.00 4/15/2024 0.03 0.03 0.38 0.01 0.38 0.01 FHLB 3130AM6U1 4/28/2021 7/28/2021 quarterly 25,000,000.00 22,244,875.00 25,000,000.00 4/28/2026 0.07 0.07 0.63 0.01 0.63 0.01 FHLB 3130AM3A8 4/29/2021 7/29/2021 quarterly 16,950,000.00 16,030,530.30 16,950,000.00 1/29/2024 0.02 0.02 0.35 0.00 0.35 0.00 FHLB 3130ALY65 4/29/2021 7/29/2021 quarterly 23,250,000.00 21,304,905.00 23,250,000.00 1/29/2024 0.02 0.02 0.75 0.01 0.75 0.01 FFCB 3133EMYN6 5/6/2021 5/6/2022 continuously 25,000,000.00 22,689,575.00 25,000,000.00 5/6/2025 0.05 0.05 0.71 0.01 0.71 0.01 FHLB 3130AMBY7 5/26/2021 11/26/2021 quarterly 25,000,000.00 22,956,575.00 25,000,000.00 11/26/2024 0.04 0.04 0.55 0.01 0.55 0.01 FHLB 3130AMR46 6/16/2021 9/16/2021 quarterly 25,000,000.00 22,101,850.00 25,000,000.00 6/16/2026 0.07 0.07 0.75 0.01 0.75 0.01 FHLB 3130AMS45 6/24/2021 9/24/2021 quarterly 25,000,000.00 22,086,075.00 25,000,000.00 6/24/2026 0.07 0.07 0.75 0.01 0.75 0.01 FHLB 3130AMXF4 6/30/2021 9/30/2021 quarterly 25,000,000.00 22,900,475.00 25,000,000.00 12/30/2024 0.04 0.04 0.60 0.01 0.60 0.01 FHLB 3130AMXW7 6/30/2021 9/30/2021 quarterly 25,000,000.00 22,186,950.00 25,000,000.00 6/30/2026 0.07 0.07 0.80 0.02 0.80 0.02 US Treasury Note 91282CCL3 7/15/2021 none N/A 25,000,000.00 23,348,625.00 24,976,901.00 7/15/2024 0.04 0.04 0.38 0.01 0.43 0.01 US Treasury Note 91282CCT6 8/16/2021 none N/A 50,000,000.00 46,529,300.00 49,927,913.93 8/15/2024 0.07 0.07 0.38 0.01 0.45 0.02 FHLB 3130ANP61 8/26/2021 11/26/2021 quarterly 25,000,000.00 22,803,900.00 25,000,000.00 2/26/2025 0.05 0.05 0.68 0.01 0.68 0.01 FHLB 3130ANQC7 8/27/2021 9/27/2021 monthly 25,000,000.00 22,493,250.00 25,000,000.00 8/27/2025 0.06 0.06 0.85 0.02 0.85 0.02 FFCB 3133EM3T7 9/1/2021 9/1/2022 continuously 25,000,000.00 21,823,600.00 25,001,986.30 9/1/2026 0.08 0.08 0.87 0.02 0.87 0.02 FHLB 3130ANV31 9/16/2021 9/16/2022 quarterly 15,000,000.00 13,094,820.00 14,994,056.68 9/16/2026 0.05 0.05 0.95 0.01 0.95 0.01 FHLB 3130AP5V3 9/30/2021 12/30/2021 quarterly 24,000,000.00 21,607,440.00 24,000,000.00 9/30/2025 0.06 0.06 0.50 0.01 0.50 0.01 FHLB 3130AP6V2 9/30/2021 12/30/2021 quarterly 25,000,000.00 21,888,650.00 25,000,000.00 9/30/2026 0.08 0.08 1.05 0.02 1.05 0.02 FHLB 3130APBX2 10/14/2021 1/14/2022 quarterly 25,000,000.00 21,930,675.00 25,000,000.00 10/14/2026 0.08 0.08 1.13 0.02 1.13 0.02 FHLB 3130APAY1 10/21/2021 1/21/2022 quarterly 25,000,000.00 21,896,650.00 25,000,000.00 10/21/2026 0.08 0.08 1.10 0.02 1.10 0.02 FHLB 3130APBF1 10/22/2021 11/22/2021 monthly 25,000,000.00 21,939,400.00 25,000,000.00 10/22/2026 0.08 0.08 1.15 0.02 1.15 0.02 US Treasury Note 91282CDD0-1 11/1/2021 none N/A 15,000,000.00 14,383,590.00 14,978,038.19 10/31/2023 0.01 0.01 0.38 0.00 0.51 0.01 FHLB 3130APPK5 11/15/2021 2/15/2022 quarterly 100,000,000.00 92,660,200.00 100,000,000.00 11/15/2024 0.17 0.17 0.91 0.07 0.91 0.07 FFCB 3133ENDT4 11/16/2021 5/16/2022 continuously 15,000,000.00 14,328,240.00 15,000,000.00 11/16/2023 0.01 0.01 0.44 0.01 0.44 0.01 US Treasury Note 91282CDD0-2 11/16/2021 none N/A 25,000,000.00 23,972,650.00 24,958,836.66 10/31/2023 0.02 0.02 0.38 0.01 0.53 0.01 US Treasury Note 91282CDM0-1 11/30/2021 none N/A 25,000,000.00 23,928,700.00 24,969,593.37 11/30/2023 0.02 0.02 0.50 0.01 0.50 0.01 US Treasury Note 91282CDM0-2 11/30/2021 none N/A 25,000,000.00 23,928,700.00 24,968,147.36 11/30/2023 0.02 0.02 0.50 0.01 0.50 0.01 FFCB 3133ENDK3 12/6/2021 none N/A 25,000,000.00 24,361,850.00 24,979,426.23 6/8/2023 0.01 0.01 0.35 0.01 0.35 0.01 US Treasury Note 91282CDM0-3 12/6/2021 none N/A 25,000,000.00 23,928,700.00 24,961,501.32 11/30/2023 0.02 0.02 0.50 0.01 0.50 0.01 FFCB 3133ENML1 1/31/2022 7/27/2022 continuously 10,000,000.00 9,803,420.00 9,992,585.37 4/27/2023 0.00 0.00 0.74 0.01 0.74 0.01 US Treasury Bill 912796U31-1 4/14/2022 none N/A 15,000,000.00 14,739,105.00 14,881,100.00 3/23/2023 0.01 0.01 0.77 0.01 0.77 0.01 US Treasury Bill 912796N96 5/10/2022 none N/A 10,000,000.00 9,977,110.00 9,987,722.22 11/3/2022 0.00 0.00 1.33 0.01 1.33 0.01 FFCB 3133ENLB4 6/1/2022 6/8/2022 continuously 9,800,000.00 9,706,517.80 9,762,386.67 1/18/2023 0.00 0.00 0.46 0.00 1.75 0.01 US Treasury Bill 912796X87 6/28/2022 none N/A 25,000,000.00 24,823,700.00 24,860,513.89 12/22/2022 0.00 0.00 2.48 0.05 2.48 0.05 US Treasury Bill 912796U31-2 9/22/2022 none N/A 20,000,000.00 19,652,140.00 19,639,916.67 3/23/2023 0.01 0.01 0.77 0.01 0.77 0.01 Total long term investments 1,273,895,000.00$ 1,180,709,914.21$ 1,272,835,482.52$ 2.04 2.04 0.65 0.69 Deposit / LGIP Accounts Balance BoCC FFB Concentration Account 64,380,479.01$ 2.46% BoCC SBA Florida LGIP Account 199,723,185.90$ 2.61% BoCC FLCLASS-Daily LGIP Account 20,549,600.13$ 2.54% BoCC FLCLASS-Enhanced LGIP Account 120,203,599.47$ 2.22% BoCC FL PALM LGIP Account - Liquidity Fund 100,986,102.22$ 2.65% BoCC FL PALM LGIP Account - Term Investment 45,000,000.00$ 1.20% Total Funds on Deposit 550,842,966.73$ Total managed portfolio 1,824,737,966.73$ 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 Foundation 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.4.a Packet Pg. 2436 Attachment: Investment Exhibits QTR4 FY 2022 (24012 : 4th Qtr Investments) US Treasuries Notes & T-Bills $310,000,000.00 17.0% Bank Deposits $64,380,479.01 3.5% Federal Agencies / GSE (FHLB,FNMA,FHLMC,FFCB) $885,748,000.00 48.5% Corporates $78,147,000.00 4.3% SBA Florida LGIP $199,723,185.90 11.0% FLCLASS LGIP $140,753,199.60 7.7%FL PALM LGIP, $145,986,102.22 8.0% Collier County Portfolio Composition as of September 30, 2022 (At Par Value) $1,824,737,966.73 Sector Allowed (%)Current (%) Sector Maximum Total Cash Based Interest & Gains Fiscal Year to Date $ 11,649,018 Bank Deposits 100% 3.5% U.S. Treasury Notes & T-Bills 100% 17.0% Federal Agency / GSE 80% 48.5% SBA Florida LGIP 50% 11.0% Corporates 25% 4.3% FLCLASS LGIP 25% 7.7% FL PALM LGIP 25% 8.0% 16.J.4.a Packet Pg. 2437 Attachment: Investment Exhibits QTR4 FY 2022 (24012 : 4th Qtr Investments) 2.46% 2.47% 2.24% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% Oct 2021 Nov 2021 Dec 2021 Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 June 2022 July 2022 Aug 2022 Sept 2022 Collier County Short Term Sector Yields Collier Short Term Portfolio Yield vs. S&P Rated GIP Government Index Concentration Account (FFB)Collier Short Term Portfolio Yield S&P Rated GIP Government Index Combined Yield of SBA Florida Prime, FLCLASS, & FL PALM LGIP Accounts 16.J.4.a Packet Pg. 2438 Attachment: Investment Exhibits QTR4 FY 2022 (24012 : 4th Qtr Investments) 0.69% 4.30% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% Oct 2021 Nov 2021 Dec 2021 Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 June 2022 July 2022 Aug 2022 Sept 2022 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.4.a Packet Pg. 2439 Attachment: Investment Exhibits QTR4 FY 2022 (24012 : 4th Qtr Investments) -4.86% -6.42% -7.00% -6.50% -6.00% -5.50% -5.00% -4.50% -4.00% -3.50% -3.00% -2.50% -2.00% -1.50% -1.00% -0.50% 0.00% 0.50% Oct 2021 Nov 2021 Dec 2021 Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 June 2022 July 2022 Aug 2022 Sept 2022 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.4.a Packet Pg. 2440 Attachment: Investment Exhibits QTR4 FY 2022 (24012 : 4th Qtr Investments)