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Agenda 09/12/2023 Item #16J 2 (Report to the Board regarding the investment of County funds as of the queaterended June 30th)09/12/2023 EXECUTIVE SUMMARY Report to the Board regarding the investment of County funds as of the quarter ended June 30, 2023. OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter ended June 30, 2023. 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 third quarter of FY-2023. The total managed portfolio as of June 30, 2023, was $2.06B, at par value. As of June 2023, Collier’s 12-month short-term yield trailed the benchmark by .03%. The short-term yield exceeded the Standard and Poor’s benchmark yield due to the performance of funds with the First Foundation Bank SBA PRIME indexed account and SBA Florida PRIME local government investment pool. The Board’s Concentration (Operating) Account has also been included on the chart and bore interest of 4.83% as of June 30, 2023. Over the same period, the Collier portfolio’s long-term sector 12-month yield was lower by 4.17%, but total return was higher by .42%, than the benchmark Bank of America 1 to 3-year Treasury index’s yield and total return. The rising rate environment favors the long-term benchmark yield 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 given the attractive short-term yields, while monitoring longer term yields for select purchases. 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 approved by the County Attorney, raises no legal issues and requires majority vote for any Board action. -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 QTR3 FY 2023 (PDF) 16.J.2 Packet Pg. 1238 09/12/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.J.2 Doc ID: 26526 Item Summary: Report to the Board regarding the investment of County funds as of the quarter ended June 30, 2023. Meeting Date: 09/12/2023 Prepared by: Title: – Clerk of the Circuit Court Name: Erin Roxberry 08/31/2023 2:28 PM Submitted by: Title: Assistant Finance Director – Clerk of the Circuit Court Name: Derek Johnssen 08/31/2023 2:28 PM Approved By: Review: Clerk of the Circuit Court Derek Johnssen Additional Reviewer Completed 08/31/2023 2:32 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/31/2023 2:52 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 08/31/2023 3:53 PM Office of Management and Budget Agnieszka Chudy Additional Reviewer Completed 09/01/2023 10:19 AM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 09/05/2023 1:01 PM Board of County Commissioners Geoffrey Willig Meeting Pending 09/12/2023 9:00 AM 16.J.2 Packet Pg. 1239 Collier County Investment Portfolio A B C D E F G as of 06/30/2023 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 FHLMC 3134GW6E1 11/13/2020 11/2/2021 annual 25,000,000.00$ 24,563,850.50$ 25,000,000.00$ 11/2/2023 0.01 0.01 0.32 0.01 0.32 0.01 FHLMC 3134GXAY0 11/13/2020 5/13/2022 semi-annual 25,000,000.00 24,525,260.75 24,999,068.49 11/13/2023 0.01 0.01 0.30 0.01 0.31 0.01 FHLB 3130AKFU5 11/24/2020 2/24/2021 continuously 25,000,000.00 23,841,473.00 24,993,559.12 5/24/2024 0.02 0.02 0.35 0.01 0.38 0.01 FHLMC 3134GXCA0 11/24/2020 11/24/2021 quarterly 25,000,000.00 24,496,091.75 25,000,000.00 11/24/2023 0.01 0.01 0.32 0.01 0.32 0.01 FHLMC 3134GXDM3 12/1/2020 12/1/2021 quarterly 25,000,000.00 22,533,885.25 25,000,000.00 12/1/2025 0.05 0.05 0.62 0.01 0.62 0.01 FNMA 3135G06J7 12/10/2020 6/10/2021 quarterly 25,000,000.00 22,532,489.50 25,000,000.00 12/10/2025 0.05 0.05 0.65 0.01 0.65 0.01 FNMA 3135G06M0 12/16/2020 6/16/2021 quarterly 25,000,000.00 23,270,132.25 25,000,000.00 12/16/2024 0.03 0.03 0.50 0.01 0.50 0.01 FHLMC 3134GXFV1 12/17/2020 12/17/2021 quarterly 25,000,000.00 22,503,414.50 25,000,000.00 12/17/2025 0.05 0.05 0.63 0.01 0.63 0.01 CitiGroup Global Markets 17328YK86 1/29/2021 1/29/2022 quarterly 25,000,000.00 24,105,818.75 24,993,921.23 1/29/2024 0.01 0.01 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 27,220,279.73 28,141,012.93 2/16/2024 0.02 0.02 0.50 0.01 0.50 0.01 FHLB 3130ALJ70 3/12/2021 4/12/2021 monthly 25,000,000.00 24,093,521.00 25,000,000.00 3/12/2024 0.02 0.02 0.40 0.01 0.40 0.01 US Treasury Note 91282CBR1 3/15/2021 none N/A 25,000,000.00 24,111,328.00 24,982,384.51 3/15/2024 0.02 0.02 0.25 0.01 0.35 0.01 FHLB 3130ALKB9 3/17/2021 6/17/2021 quarterly 25,000,000.00 22,679,065.00 25,000,000.00 3/17/2026 0.06 0.06 0.75 0.02 0.75 0.02 Farmer Mac 31422XCV2 4/1/2021 none N/A 10,000,000.00 9,622,495.30 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 24,032,226.50 25,000,000.00 4/15/2024 0.02 0.02 0.38 0.01 0.38 0.01 FHLB 3130AM6U1 4/28/2021 7/28/2021 quarterly 25,000,000.00 22,741,235.75 25,000,000.00 4/28/2026 0.06 0.06 1.25 0.03 1.25 0.03 FHLB 3130AM3A8 4/29/2021 7/29/2021 quarterly 16,950,000.00 16,441,868.83 16,950,000.00 1/29/2024 0.01 0.01 0.35 0.01 0.35 0.01 FHLB 3130ALY65 4/29/2021 7/29/2021 quarterly 23,250,000.00 21,593,236.16 23,250,000.00 1/29/2024 0.01 0.01 0.75 0.02 0.75 0.02 FFCB 3133EMYN6 5/6/2021 5/6/2022 continuously 25,000,000.00 23,016,444.75 25,000,000.00 5/6/2025 0.04 0.04 0.71 0.02 0.71 0.02 FHLB 3130AMBY7 5/26/2021 11/26/2021 quarterly 25,000,000.00 23,409,239.50 25,000,000.00 11/26/2024 0.03 0.03 0.55 0.01 0.55 0.01 FHLB 3130AMR46 6/16/2021 9/16/2021 quarterly 25,000,000.00 22,469,648.50 25,000,000.00 6/16/2026 0.07 0.07 0.75 0.02 0.75 0.02 FHLB 3130AMS45 6/24/2021 9/24/2021 quarterly 25,000,000.00 22,454,095.50 25,000,000.00 6/24/2026 0.07 0.07 0.75 0.02 0.75 0.02 FHLB 3130AMXF4 6/30/2021 9/30/2021 quarterly 25,000,000.00 23,270,015.75 25,000,000.00 12/30/2024 0.03 0.03 0.60 0.01 0.60 0.01 FHLB 3130AMXW7 6/30/2021 9/30/2021 quarterly 25,000,000.00 22,559,540.25 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 23,757,812.50 24,986,543.24 7/15/2024 0.02 0.02 0.38 0.01 0.43 0.01 US Treasury Note 91282CCT6 8/16/2021 none N/A 50,000,000.00 47,345,703.00 49,956,643.13 8/15/2024 0.05 0.05 0.38 0.02 0.45 0.02 FHLB 3130ANP61 8/26/2021 11/26/2021 quarterly 25,000,000.00 23,253,315.00 25,000,000.00 2/26/2025 0.04 0.04 0.68 0.02 0.68 0.02 FHLB 3130ANQC7 8/27/2021 9/27/2021 monthly 25,000,000.00 22,882,356.00 25,000,000.00 8/27/2025 0.05 0.05 0.85 0.02 0.85 0.02 FFCB 3133EM3T7 9/1/2021 9/1/2022 continuously 25,000,000.00 22,105,926.75 24,984,131.98 9/1/2026 0.07 0.07 0.87 0.02 0.89 0.02 FHLB 3130ANV31 9/16/2021 9/16/2022 quarterly 15,000,000.00 13,295,408.10 14,995,177.98 9/16/2026 0.04 0.04 0.95 0.01 0.96 0.01 FHLB 3130AP5V3 9/30/2021 12/30/2021 quarterly 24,000,000.00 22,057,731.36 24,000,000.00 9/30/2025 0.05 0.05 0.50 0.01 0.50 0.01 FHLB 3130AP6V2 9/30/2021 12/30/2021 quarterly 25,000,000.00 22,207,132.00 25,000,000.00 9/30/2026 0.07 0.07 1.05 0.02 1.05 0.02 FHLB 3130APBX2 10/14/2021 1/14/2022 quarterly 25,000,000.00 22,237,580.75 25,000,000.00 10/14/2026 0.07 0.07 1.13 0.02 1.13 0.02 FHLB 3130APAY1 10/21/2021 1/21/2022 quarterly 25,000,000.00 22,207,431.00 25,000,000.00 10/21/2026 0.07 0.07 1.10 0.02 1.10 0.02 FHLB 3130APBF1 10/22/2021 11/22/2021 monthly 25,000,000.00 22,243,061.25 25,000,000.00 10/22/2026 0.07 0.07 1.15 0.03 1.15 0.03 US Treasury Note 91282CDD0-1 11/1/2021 none N/A 15,000,000.00 14,753,906.25 14,993,178.53 10/31/2023 0.00 0.00 0.38 0.00 0.51 0.01 FHLB 3130APPK5 11/15/2021 2/15/2022 quarterly 100,000,000.00 93,875,621.00 100,000,000.00 11/15/2024 0.12 0.12 0.91 0.08 0.91 0.08 FFCB 3133ENDT4 11/16/2021 5/16/2022 continuously 15,000,000.00 14,706,387.30 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 24,589,843.75 24,987,214.42 10/31/2023 0.01 0.01 0.38 0.01 0.53 0.01 US Treasury Note 91282CDM0-1 11/30/2021 none N/A 25,000,000.00 24,493,164.00 24,989,079.31 11/30/2023 0.01 0.01 0.50 0.01 0.61 0.01 US Treasury Note 91282CDM0-2 11/30/2021 none N/A 25,000,000.00 24,493,164.00 24,988,559.97 11/30/2023 0.01 0.01 0.50 0.01 0.61 0.01 US Treasury Note 91282CDM0-3 12/6/2021 none N/A 25,000,000.00 24,493,164.00 24,986,173.01 11/30/2023 0.01 0.01 0.50 0.01 0.63 0.01 FNMA 3135GAFP1 3/30/2023 6/28/2023 quarterly 35,000,000.00 34,832,966.00 35,000,000.00 3/28/2024 0.02 0.02 5.20 0.16 5.20 0.16 Total long term investments 1,132,347,000.00$ 1,061,918,330.78$ 1,132,176,647.85$ 1.57 1.57 0.80 0.81 Deposit / LGIP Accounts Balance BoCC FFB Concentration Account 36,902,870.39$ 4.83% BoCC FFB SBA Daily Indexed Account 549,242,124.67$ 5.33% BoCC SBA Florida LGIP Account 42,655,107.97$ 5.33% BoCC FLCLASS-Daily LGIP Account 21,257,342.60$ 5.22% BoCC FLCLASS-Enhanced LGIP Account 124,220,720.55$ 5.04% BoCC FL PALM LGIP Account - Liquidity Fund 150,988,290.91$ 5.22% Total Funds on Deposit 925,266,457.09$ Total managed portfolio 2,057,613,457.09$ 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) floor rate of .25%. First Foundation Bank also provides an account with overnight availability that is fully collateralized and pays interest indexed to the SBA rate. 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. 1240 Attachment: Investment Exhibits QTR3 FY 2023 (26526 : QTR 3 Investments FY 2023) US Treasuries Notes & T-Bills $240,000,000.00 11.7% Bank Deposits $586,144,995.06 28.5% Federal Agencies / GSE (FHLB,FNMA,FHLMC,FFCB) $891,400,000.00 42.5% Corporates $53,147,000.00 2.6% SBA Florida LGIP $42,655,107.97 2.1% FLCLASS LGIP $145,478,063.15 7.0% FL PALM LGIP, $150,988,290.91 7.3% Collier County Portfolio Composition as of June 30, 2023 (At Par Value) $2,057,613,457.09 Sector Allowed (%)Current (%) Sector Maximum Total Cash Based Interest & Gains Fiscal Year to Date $ 35,552,071 Bank Deposits 100% 28.5% U.S. Treasury Notes & T-Bills 100% 11.7% Federal Agency / GSE 80% 40.8% SBA Florida LGIP 50% 2.1% Corporates 25% 2.6% FLCLASS LGIP 25% 7.0% FL PALM LGIP 25% 7.3% 16.J.2.a Packet Pg. 1241 Attachment: Investment Exhibits QTR3 FY 2023 (26526 : QTR 3 Investments FY 2023) 4.83% 5.09% 5.12% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% July 2022 Aug 2022 Sept 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 June 2023 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.2.a Packet Pg. 1242 Attachment: Investment Exhibits QTR3 FY 2023 (26526 : QTR 3 Investments FY 2023) 0.81% 4.98% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% July 2022 Aug 2022 Sept 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 June 2023 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. 1243 Attachment: Investment Exhibits QTR3 FY 2023 (26526 : QTR 3 Investments FY 2023) 0.13% 0.55% -7.00% -6.00% -5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% July 2022 Aug 2022 Sept 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 June 2023 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. 1244 Attachment: Investment Exhibits QTR3 FY 2023 (26526 : QTR 3 Investments FY 2023)