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Agenda 08/27/2024 Item #16J 1 (Report to the Board regarding the investment of County funds as of the quarter ended June 30, 2024)08/27/2024 EXECUTIVE SUMMARY Report to the Board regarding the investment of County funds as of the quarter ended June 30, 2024. OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter ended June 30, 2024. 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 holdings, portfolio composition pie chart, and yield and return graphs as of the end of the third quarter of FY-2024. The total managed portfolio, as of June 30, 2024, was $2.25B, at par value. As of June 2024, Collier’s 12-month short-term yield was less than the benchmark by .01%, or substantially the same, 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 5.06% as of June 30, 2024. Over the same period, the Collier portfolio’s long-term sector 12-month total return was higher by .68% than the benchmark Bank of America 1 to 3 -year Treasury index’s total return. The current investment strategy focuses on ensuring sufficient short-term liquidity, particularly given continued availability of attractive short-term yields, while posturing for potential Federal Reserve rate decreases by monitoring longer term investment options and making 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 reviewed by the County Attorney, raises no legal issues and requires majority vote for acceptance of 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 QTR3 FY 2024 (PDF) 16.J.1 Packet Pg. 1663 08/27/2024 COLLIER COUNTY Board of County Commissioners Item Number: 16.J.1 Doc ID: 29569 Item Summary: Report to the Board regarding the investment of County funds as of the quarter ended June 30, 2024. Meeting Date: 08/27/2024 Prepared by: Title: Accountant I – Clerk of the Circuit Court Name: Gabriel Ruiz 08/05/2024 3:36 PM Submitted by: Title: Assistant Finance Director – Clerk of the Circuit Court Name: Derek Johnssen 08/05/2024 3:36 PM Approved By: Review: Clerk of the Circuit Court Leslie Miller Other Reviewer Completed 08/05/2024 7:16 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/06/2024 8:33 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 08/06/2024 9:13 AM Office of Management and Budget Agnieszka Chudy OMB Reviewer Completed 08/12/2024 7:46 AM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 08/20/2024 11:55 AM Board of County Commissioners Geoffrey Willig Meeting Pending 08/27/2024 9:00 AM 16.J.1 Packet Pg. 1664 Collier County Investment Portfolio A B C D E as of 06/30/2024 Weighted Weighted Bond Cont. Rate/ FNBB Final Years Years Yield Equiv. /Weighted Market Amortized Settlement First Call Maturity to to First to Coupon Purchased Instrument CUSIP Par Value Value Cost Date Call Date Frequency Date Maturity Call/Maturity Worst Rate Yield Agency Holdings FEDERAL FARM CREDIT BANK 3133EMYN6 25,000,000.00 24,052,527.00 25,000,000.00 5/6/2021 5/6/2022 continuously 5/6/2025 0.02 0.02 5.33%0.71%0.01 FEDERAL FARM CREDIT BANK 3133EM3T7 25,000,000.00 22,974,855.00 24,989,142.94 9/1/2021 9/1/2022 continuously 9/1/2026 0.05 0.05 4.85%0.87%0.02 FEDERAL FARM CREDIT BANK 3133EPA70 10,000,000.00 9,993,089.90 10,000,000.00 11/10/2023 none N/A 11/1/2024 0.00 0.00 5.54%5.38%0.01 FEDERAL FARM CREDIT BANK 3133ENUH1 15,000,000.00 14,464,353.30 14,620,883.03 12/15/2023 4/12/2023 continuously 4/12/2027 0.04 0.04 4.71%3.33%0.06 FEDERAL FARM CREDIT BANK 3133EPN68 8,330,000.00 8,330,328.45 8,330,000.00 12/18/2023 3/18/2024 continuously 12/18/2028 0.03 0.03 5.62%5.73%0.04 TOTAL =83,330,000.00$ 79,815,153.65$ 82,940,025.97$ FEDERAL HOME LOAN BANK (Step)3130ALKB9 25,000,000.00 23,666,686.25 25,000,000.00 3/17/2021 6/17/2021 quarterly 3/17/2026 0.04 0.04 4.00%0.88%0.02 FEDERAL HOME LOAN BANK (Step)3130AM6U1 25,000,000.00 23,450,767.75 25,000,000.00 4/28/2021 7/28/2021 quarterly 4/28/2026 0.04 0.04 4.83%1.25%0.12 FEDERAL HOME LOAN BANK 3130ALY65 23,250,000.00 22,660,069.38 23,250,000.00 4/29/2021 7/29/2021 quarterly 1/29/2025 0.01 0.01 5.24%0.75%0.01 FEDERAL HOME LOAN BANK 3130AMBY7 25,000,000.00 24,476,095.75 25,000,000.00 5/26/2021 11/26/2021 quarterly 11/26/2024 0.01 0.01 5.84%0.55%0.02 FEDERAL HOME LOAN BANK (Step)3130AMR46 25,000,000.00 23,419,984.50 25,000,000.00 6/16/2021 9/16/2021 quarterly 6/16/2026 0.04 0.04 4.14%1.00%0.03 FEDERAL HOME LOAN BANK (Step)3130AMS45 25,000,000.00 23,396,362.50 25,000,000.00 6/24/2021 9/24/2021 quarterly 6/24/2026 0.04 0.04 4.15%1.00%0.02 FEDERAL HOME LOAN BANK 3130AMXF4 25,000,000.00 24,397,294.00 25,000,000.00 6/30/2021 9/30/2021 quarterly 12/30/2024 0.01 0.01 5.56%0.60%0.01 FEDERAL HOME LOAN BANK (Step)3130AMXW7 25,000,000.00 23,512,834.00 25,000,000.00 6/30/2021 9/30/2021 quarterly 6/30/2026 0.04 0.04 3.92%0.88%0.02 FEDERAL HOME LOAN BANK 3130ANP61 25,000,000.00 24,235,373.00 25,000,000.00 8/26/2021 11/26/2021 quarterly 2/26/2025 0.01 0.01 5.49%0.68%0.02 FEDERAL HOME LOAN BANK 3130ANQC7 25,000,000.00 23,827,234.50 25,000,000.00 8/27/2021 9/27/2021 monthly 8/27/2025 0.02 0.02 5.07%0.85%0.01 FEDERAL HOME LOAN BANK 3130ANV31 15,000,000.00 13,794,981.75 14,996,681.27 9/16/2021 9/16/2022 quarterly 9/16/2026 0.03 0.03 4.82%0.95%0.01 FEDERAL HOME LOAN BANK (Step)3130AP5V3 24,000,000.00 22,960,552.08 24,000,000.00 9/30/2021 12/30/2021 quarterly 9/30/2025 0.03 0.03 4.60%1.00%0.02 FEDERAL HOME LOAN BANK 3130AP6V2 25,000,000.00 23,005,478.00 25,000,000.00 9/30/2021 12/30/2021 quarterly 9/30/2026 0.05 0.05 4.83%1.05%0.02 FEDERAL HOME LOAN BANK 3130APBX2 25,000,000.00 22,995,908.25 25,000,000.00 10/14/2021 1/14/2022 quarterly 10/14/2026 0.05 0.05 4.87%1.13%0.02 FEDERAL HOME LOAN BANK 3130APAY1 25,000,000.00 22,968,523.25 25,000,000.00 10/21/2021 1/21/2022 quarterly 10/21/2026 0.05 0.05 4.86%1.10%0.02 FEDERAL HOME LOAN BANK 3130APBF1 25,000,000.00 22,993,481.25 25,000,000.00 10/22/2021 11/22/2021 monthly 10/22/2026 0.05 0.05 4.86%1.15%0.02 FEDERAL HOME LOAN BANK 3130APPK5 100,000,000.00 98,186,489.00 100,000,000.00 11/15/2021 2/15/2022 quarterly 11/15/2024 0.03 0.03 5.85%0.91%0.08 FEDERAL HOME LOAN BANK 3130AXHF8 25,000,000.00 24,979,128.00 25,000,000.00 10/26/2023 4/26/2024 quarterly 10/26/2028 0.09 0.09 6.07%6.05%0.12 FEDERAL HOME LOAN BANK 3130A8ZQ9 4,900,000.00 4,725,542.51 4,740,893.36 12/19/2023 none N/A 9/12/2025 0.00 0.00 4.79%1.75%0.00 FEDERAL HOME LOAN BANK 3130AY5R3 15,000,000.00 14,985,182.25 15,000,000.00 12/22/2023 3/22/2024 quarterly 6/22/2027 0.04 0.04 5.71%5.67%0.01 TOTAL =532,150,000.00$ 508,637,967.97$ 531,987,574.63$ FREDDIE MAC 3134GXDM3 25,000,000.00 23,511,854.75 25,000,000.00 12/1/2020 12/1/2021 quarterly 12/1/2025 0.03 0.03 5.02%0.62%0.01 FREDDIE MAC 3134GXFV1 25,000,000.00 23,469,571.25 25,000,000.00 12/17/2020 12/17/2021 quarterly 12/17/2025 0.03 0.03 5.01%0.63%0.01 FREDDIE MAC 3134GYXF4 10,000,000.00 10,015,064.40 10,000,000.00 7/27/2023 10/27/2023 monthly 7/27/2028 0.03 0.03 3.89%6.00%0.04 FREDDIE MAC 3134H1KL6 10,000,000.00 9,982,617.70 10,000,000.00 11/13/2023 11/23/2024 quarterly 11/13/2026 0.02 0.00 5.58%5.50%0.05 FREDDIE MAC 3134H1JP9 15,000,000.00 15,000,926.40 15,000,000.00 11/27/2023 11/27/2024 quarterly 11/27/2028 0.06 0.01 5.88%5.93%0.07 FREDDIE MAC 3134H1LM3 20,000,000.00 19,752,890.20 19,874,942.53 12/18/2023 6/18/2024 annual 12/18/2028 0.08 0.08 5.06%4.75%0.08 FREDDIE MAC 3134H1MD2 10,000,000.00 9,992,506.60 10,000,000.00 12/18/2023 3/18/2024 monthly 6/17/2027 0.03 0.03 5.65%5.63%0.04 FREDDIE MAC 3134H1MM2 15,000,000.00 14,784,645.45 14,970,927.27 12/20/2023 9/20/2024 annual 9/20/2027 0.04 0.00 5.04%4.55%0.00 FREDDIE MAC 3134H1MP5 10,000,000.00 9,922,911.90 10,000,000.00 12/20/2023 12/18/2024 annual 12/18/2026 0.02 0.00 5.34%5.00%0.00 FREDDIE MAC 3134H1MN0 10,000,000.00 9,845,732.60 9,946,535.93 12/28/2023 3/28/2024 quarterly 8/28/2026 0.02 0.02 5.01%4.25%0.05 FREDDIE MAC 3134H1PB3 20,000,000.00 19,926,000.00 20,000,000.00 1/11/2024 10/9/2024 one time 1/9/2026 0.03 0.00 5.25%5.00%0.09 FREDDIE MAC 3134H1RF2 10,000,000.00 9,827,797.90 10,000,000.00 2/6/2024 2/6/2026 one time 2/6/2029 0.04 0.01 4.95%4.53%0.04 FREDDIE MAC 3134H1YS6 10,000,000.00 9,526,151.50 9,704,109.59 3/27/2024 3/27/2025 monthly 3/27/2029 0.04 0.01 4.62%3.50%0.04 FREDDIE MAC (Step)3134GXVW1 2,000,000.00 1,963,651.48 1,961,840.89 4/10/2024 6/23/2024 quarterly 6/23/2027 0.01 0.01 3.90%3.50%0.01 FREDDIE MAC 3134GW5R3 15,000,000.00 14,131,898.25 14,738,113.37 4/17/2024 7/27/2024 quarterly 10/27/2025 0.02 0.00 5.23%0.65%0.07 FREDDIE MAC 3134H1H89 10,000,000.00 9,999,586.20 10,000,000.00 4/18/2024 4/17/2025 one time 10/17/2025 0.01 0.01 5.21%5.22%0.04 FREDDIE MAC 3134H1H63 10,000,000.00 9,978,402.20 10,000,000.00 4/26/2024 7/26/2024 monthly 4/26/2029 0.04 0.00 6.07%6.02%0.05 FREDDIE MAC 3134H1E82 10,000,000.00 9,996,074.10 10,000,000.00 4/30/2024 7/17/2024 quarterly 4/17/2029 0.04 0.00 6.02%6.01%0.05 FREDDIE MAC 3134H1L92 25,000,000.00 24,709,196.25 24,727,380.14 5/1/2024 5/1/2025 quarterly 5/1/2026 0.04 0.02 5.04%4.38%0.11 TOTAL =262,000,000.00$ 256,337,479.13$ 260,923,849.72$ FARMER MAC 31424WBY7 10,000,000.00 10,007,726.70 10,000,000.00 11/14/2023 none N/A 11/14/2025 0.01 0.01 4.94%5.00%0.05 TOTAL =10,000,000.00$ 10,007,726.70$ 10,000,000.00$ 16.J.1.a Packet Pg. 1665 Attachment: Investment Exhibits QTR3 FY 2024 (29569 : Quaterly Investment Report) Collier County Investment Portfolio A B C D E as of 06/30/2024 Weighted Weighted Bond Cont. Rate/ FNBB Final Years Years Yield Equiv. /Weighted Market Amortized Settlement First Call Maturity to to First to Coupon Purchased Instrument CUSIP Par Value Value Cost Date Call Date Frequency Date Maturity Call/Maturity Worst Rate Yield FANNIE MAE 3135G06J7 25,000,000.00 23,497,580.25 25,000,000.00 12/10/2020 6/10/2021 quarterly 12/10/2025 0.03 0.03 5.01%0.65%0.01 FANNIE MAE 3135G06M0 25,000,000.00 24,419,891.25 25,000,000.00 12/16/2020 6/16/2021 quarterly 12/16/2024 0.01 0.01 5.66%0.50%0.11 FANNIE MAE 3135GAMY4 15,000,000.00 14,636,956.65 14,882,786.89 2/5/2024 2/5/2025 quarterly 8/5/2027 0.04 0.01 4.85%4.00%0.06 FANNIE MAE 3135GAR60 10,000,000.00 9,521,054.40 9,665,808.22 4/11/2024 4/11/2025 monthly 4/11/2029 0.04 0.01 4.63%3.50%0.04 TOTAL =75,000,000.00$ 72,075,482.55$ 74,548,595.11$ 962,480,000.00$ 926,873,810.00$ 960,400,045.43$ Corporate Notes APPLE INC CORP NOTE 037833EB2 10,000,000.00 9,330,708.90 9,442,828.64 12/19/2023 none N/A 2/8/2026 0.01 0.01 5.09%7.00%0.04 10,000,000.00$ 9,330,708.90$ 9,442,828.64$ U.S. Treasuries TREASURY BILL 912797GL5 5,000,000.00 4,947,750.00 4,952,960.42 11/10/2023 none N/A 9/5/2024 0.00 0.00 5.85%0.00%0.00 US TREASURY NOTE 91282CCL3 25,000,000.00 24,932,305.75 24,999,470.21 7/15/2021 none N/A 7/15/2024 0.00 0.00 6.88%0.38%0.02 US TREASURY NOTE 91282CCT6 50,000,000.00 49,656,250.00 49,995,159.18 8/16/2021 none N/A 8/15/2024 0.01 0.01 5.91%0.38%0.03 US TREASURY NOTE 9128286Z8 5,000,000.00 5,000,000.00 5,000,000.00 11/10/2023 none N/A 6/30/2024 0.00 0.00 1.73%5.38%0.03 US TREASURY NOTE 91282CFQ9 20,000,000.00 19,927,148.40 19,940,865.38 11/15/2023 none N/A 10/31/2024 0.01 0.01 5.45%4.38%0.08 US TREASURY NOTE 91282CJV4-1 20,000,000.00 19,812,500.00 19,947,427.49 2/7/2024 none N/A 1/31/2026 0.03 0.03 4.87%4.25%0.07 US TREASURY NOTE 91282CJV4-2 20,000,000.00 19,812,500.00 19,894,460.43 2/14/2024 none N/A 1/31/2026 0.03 0.03 4.87%4.25%0.08 US TREASURY NOTE 91282CKB6 10,000,000.00 9,967,187.50 9,978,814.59 4/10/2024 none N/A 2/28/2026 0.01 0.01 4.83%4.63%0.04 US TREASURY NOTE 91282CHN4 15,000,000.00 14,952,539.10 14,943,871.49 4/24/2024 none N/A 7/31/2025 0.01 0.01 5.05%4.75%0.06 US TREASURY NOTE 91282CEU1 15,000,000.00 14,684,033.25 14,689,186.15 4/24/2024 none N/A 6/15/2025 0.01 0.01 5.15%2.88%0.07 US TREASURY NOTE 91282CHM6 25,000,000.00 24,904,297.00 24,893,008.97 6/27/2024 none N/A 7/15/2026 0.04 0.04 4.70%4.50%0.10 210,000,000.00$ 208,596,511.00$ 209,235,224.31$ 1,182,480,000.00$ 1,144,801,029.90$ 1,179,078,098.38$ 1.74 1.34 2.48 Balance Overnight Rate (F) 52,780,121.77$ 5.06% 553,278,289.67$ 5.49% 45,088,135.01$ 5.49% 22,444,741.22$ 5.38% 131,087,292.58$ 5.26% 159,458,747.07$ 5.41% BoCC US Treasury SLGSafe Demand Account 100,044,676.28$ 4.16% 1,064,182,003.60$ 2,246,662,003.60$ F-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 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 Florida PRIME rate. The Florida PRIME, FLCLASS, and FL PALM LGIP rates are the current 7-Day Participant Yield as published on the respective LGIP websites. The SLGSafe Demand Account pays interest based on an adjustment of the average yield for the 13-week Treasury Bills at the most recent Treasury Bill auction. 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-Yield to Worst is a forward looking measure of the lowest possible yield that can be received on a security. This value takes into account the yield to call, yield to maturity, face value, market value, coupon rate, and payment frequency. D-Coupon Rate is taken from the respective investment trade tickets. Step coupons, if any, are shown at their current rate. TOTAL LONG TERM INVESTMENTS TOTAL U.S. Treasuries TOTAL Corporate Notes TOTAL Agency Holdings E-Weighted Purchased Yield calculation is based on individual par value divided by total long term investment par value multiplied by the Purchased Yield. Deposit / LGIP Accounts TOTAL FUNDS ON DEPOSIT TOTAL MANAGED PORTFOLIO BoCC FL PALM LGIP Account BoCC FLCLASS-Enhanced LGIP Account BoCC FLCLASS-Daily LGIP Account BoCC Florida PRIME LGIP Account BoCC FFB SBA Daily Indexed Account BoCC FFB Concentration Account 16.J.1.a Packet Pg. 1666 Attachment: Investment Exhibits QTR3 FY 2024 (29569 : Quaterly Investment Report) US Treasuries Notes & T-Bills $210,000,000.00 9.4% Bank Deposits $606,058,411.44 27.0%Federal Agencies / GSE (FHLB,FNMA,FHLMC,FFCB) $962,480,000.00 42.8% Corporates $10,000,000.00 0.4% SBA Prime $45,088,135.01 2.0% FLCLASS $153,532,033.80 6.8% FL PALM, $159,458,747.07 7.1% SLGSafe Demand Account $100,044,676.28 4.5% Collier County Portfolio Composition as of June 30, 2024 (At Par Value) $2,246,662,003.60 Sector Allowed (%) Current (%) Sector Maximum Total Cash Based Interest & Gains Fiscal Year to Date $ 57,058,267 Bank Deposits 100% 27.0% U.S. Treasury Notes & T-Bills 100% 9.4% Federal Agency / GSE 80% 42.8% SBA Prime 50% 2.0% Corporates 25% 0.4% FLCLASS 25% 6.8% FL PALM 25% 7.1% SLGSafe Demand Account 100% 4.5% 16.J.1.a Packet Pg. 1667 Attachment: Investment Exhibits QTR3 FY 2024 (29569 : Quaterly Investment Report) 5.06% 5.38% 5.39% 4.75% 5.00% 5.25% 5.50% 5.75% July 2023 Aug 2023 Sept 2023 Oct 2023 Nov 2023 Dec 2023 Jan 2024 Feb 2024 Mar 2024 Apr 2024 May 2024 June 2024 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 LGIP Accounts (Florida Prime, FLCLASS, & FL PALM) & FFB Indexed Account 16.J.1.a Packet Pg. 1668 Attachment: Investment Exhibits QTR3 FY 2024 (29569 : Quaterly Investment Report) 4.53% 5.21% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% July 2023 Aug 2023 Sept 2023 Oct 2023 Nov 2023 Dec 2023 Jan 2024 Feb 2024 Mar 2024 Apr 2024 May 2024 June 2024 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. 1669 Attachment: Investment Exhibits QTR3 FY 2024 (29569 : Quaterly Investment Report)