Agenda 02/14/2017 Item #16J102/14/2017
EXECUTIVE SUMMARY
Report to the Board regarding the investment of County funds as of the quarter ended December
31, 2016.
______________________________________________________________________________
OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter
ended December 31, 2016.
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 and yield
graphs as of the end of the first quarter of FY-2017. The total managed portfolio at December 31, 2016
was $896,669,391.56, at par value. For December 2016, Collier’s short-term yield exceeded the
benchmark by .39% due to increases in Florida PRIME’s participant yield. The Board’s Concentration
(Operating) Account has also been included on the chart and bears interest at 95% of the daily Effective
Federal Funds Rate, or .57%, also exceeding the short-term benchmark for December. In order to
maximize short term yield, only funds necessary to meet current Board obligations are kept in the
Concentration Account. Over the same period, the Collier portfolio’s long-term sector performance was
.09% lower than the benchmark due to the relative market volatility of the 1 to 3 year Treasury yields
upon which the index is based. The short overall maturity of the long-term portfolio will allow Collier to
take advantage of recent market shifts. Collier County’s long-term portfolio is comprised of both
Treasuries and Agencies purchased over the last twenty-three months. There is no loss of principal
associated with the performance to benchmark of either the short or long-term portfolio.
GROWTH MANAGEMENT IMPACT: None.
FISCAL IMPACT: None.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal
issue, 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, Assistant Finance Director,
Office of the Clerk of the Circuit Court
ATTACHMENT(S)
1. 12.31.16 Investment Exhibits (PDF)
16.J.1
Packet Pg. 1047
02/14/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.J.1
Item Summary: Report to the Board regarding the investment of County funds as of the quarter
ended December 31, 2016.
Meeting Date: 02/14/2017
Prepared by:
Title: Fiscal Technician I – Clerk of the Circuit Court
Name: Jennifer Milum
02/07/2017 7:49 AM
Submitted by:
Title: Fiscal Technician I – Clerk of the Circuit Court
Name: Jennifer Milum
02/07/2017 7:49 AM
Approved By:
Review:
Clerk of the Circuit Court Crystal Kinzel Additional Reviewer Completed 02/07/2017 6:50 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 02/08/2017 8:12 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/08/2017 8:30 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 02/08/2017 9:09 AM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 02/08/2017 11:27 AM
Board of County Commissioners MaryJo Brock Meeting Pending 02/14/2017 9:00 AM
16.J.1
Packet Pg. 1048
Collier County Investment Portfolio
as of 12/31/2016 A B C D E F G
Weighted Weighted Cont. Rate/Cont. Rate/
FNBB Final Years Years O/N Coupon 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 3134G6CT8 2/13/2015 2/13/2017 once 25,000,000.00$ 24,994,375.00$ 25,000,000.00$ 2/13/2020 0.11 0.00 1.00 0.04 1.00 0.04
FHLB 3130A6JB4 10/21/2015 1/21/2016 quarterly 25,000,000.00 24,982,425.00 25,000,000.00 7/21/2017 0.02 0.02 0.70 0.03 0.70 0.03
FHLMC 3134G7U25 10/27/2015 1/27/2016 quarterly 25,000,000.00 24,962,900.00 25,000,000.00 10/27/2017 0.03 0.03 0.80 0.03 0.80 0.03
US Treasury Note 912828UA6 11/9/2015 none N/A 25,000,000.00 24,934,575.00 24,930,601.73 11/30/2017 0.03 0.03 0.63 0.02 0.93 0.03
FHLB 3130A6SW8 11/20/2015 none N/A 23,000,000.00 23,004,485.00 22,997,603.32 12/19/2017 0.03 0.03 1.00 0.03 1.02 0.03
FHLMC 3134G74Q1 11/24/2015 2/24/2016 quarterly 25,000,000.00 24,960,200.00 25,000,000.00 11/24/2017 0.03 0.03 0.85 0.03 0.85 0.03
US Treasury Note 912828M72 12/3/2015 none N/A 10,000,000.00 9,997,660.00 9,991,756.10 11/30/2017 0.01 0.01 0.88 0.01 0.94 0.01
FHLB 313381B20 12/8/2015 none N/A 20,000,000.00 19,953,560.00 19,949,191.24 12/8/2017 0.03 0.03 0.75 0.02 1.02 0.03
FHLB 3130A6V95 12/9/2015 none N/A 9,000,000.00 8,998,623.00 9,000,000.00 12/1/2017 0.01 0.01 1.02 0.01 1.02 0.01
FFCB 3133EFSG3 12/14/2015 none N/A 25,000,000.00 24,977,750.00 25,000,000.00 3/14/2018 0.04 0.04 1.10 0.04 1.10 0.04
FFCB 3133EFSW8 12/21/2015 12/21/2016 continuously 25,000,000.00 24,907,425.00 25,000,000.00 12/21/2018 0.07 0.07 1.38 0.05 1.38 0.05
FFCB 3133EFW52 4/1/2016 none N/A 40,000,000.00 39,657,760.00 39,977,546.04 7/1/2019 0.14 0.14 1.15 0.07 1.17 0.07
FHLB 313381B20 6/22/2016 none N/A 4,000,000.00 3,990,712.00 4,000,000.00 12/8/2017 0.01 0.01 0.75 0.00 0.75 0.00
FHLB 313379DT3 6/22/2016 none N/A 25,000,000.00 25,022,450.00 25,139,416.20 6/8/2018 0.05 0.05 1.25 0.05 0.86 0.03
FNMA 3135G0L50 7/12/2016 1/12/2017 quarterly 25,000,000.00 24,582,500.00 25,000,000.00 7/12/2019 0.09 0.00 1.05 0.04 1.05 0.04
FNMA 3136G3XR1 7/27/2016 1/27/2017 quarterly 25,000,000.00 24,135,325.00 24,992,663.04 7/27/2020 0.13 0.00 1.13 0.04 1.18 0.04
FHLB 3130A8VQ3 8/23/2016 11/23/2016 quarterly 25,000,000.00 24,896,650.00 25,000,000.00 8/23/2018 0.06 0.06 1.13 0.04 1.13 0.04
FHLMC 3134GAFY5 8/31/2016 11/28/2016 quarterly 25,000,000.00 24,831,625.00 25,000,000.00 8/28/2019 0.10 0.10 1.30 0.05 1.30 0.05
FNMA 3135G0P49 9/2/2016 none N/A 15,000,000.00 14,815,785.00 14,979,176.15 8/28/2019 0.06 0.06 1.00 0.02 1.05 0.02
FHLMC 3134GAGF5 9/13/2016 12/13/2016 quarterly 25,000,000.00 24,931,675.00 25,000,000.00 9/13/2018 0.06 0.06 1.10 0.04 1.10 0.04
FHLB 3130A9JZ5 9/27/2016 12/27/2016 continuously 25,000,000.00 24,327,575.00 25,000,000.00 9/27/2021 0.17 0.17 1.60 0.06 1.60 0.06
FNMA 3136G4BS1 9/30/2016 3/30/2017 quarterly 25,000,000.00 24,091,600.00 25,000,000.00 9/30/2021 0.17 0.01 1.60 0.06 1.60 0.06
US Treasury Note 912828T59 10/27/2016 none N/A 25,000,000.00 24,672,850.00 24,988,984.59 10/15/2019 0.10 0.10 1.00 0.04 1.02 0.04
US Treasury Note 912828T83 10/31/2016 none N/A 25,000,000.00 24,791,025.00 24,948,092.36 10/31/2018 0.07 0.07 0.75 0.03 0.87 0.03
FHLMC 3134GART3 11/1/2016 4/28/2017 quarterly 22,250,000.00 22,151,343.50 22,250,000.00 10/28/2019 0.09 0.01 0.85 0.03 0.85 0.03
FHLMC 3134G8L98 11/23/2016 2/26/2017 quarterly 21,000,000.00 20,992,398.00 21,000,000.00 2/26/2018 0.04 0.00 1.05 0.03 1.05 0.03
FHLMC 3134GABQ6 12/6/2016 8/15/2017 once 20,000,000.00 19,921,060.00 19,954,780.16 8/15/2018 0.05 0.02 1.00 0.03 1.15 0.03
FNMA 3135G0L68 12/12/2016 7/27/2017 once 50,000,000.00 49,636,700.00 49,734,273.13 7/27/2018 0.11 0.04 0.75 0.05 1.11 0.08
FFCB 3133EGW84 12/19/2016 none N/A 10,000,000.00 9,978,940.00 9,996,065.75 12/19/2018 0.03 0.03 1.20 0.02 1.22 0.02
FFCB 3133EGZ24 12/27/2016 12/27/2017 continuously 24,050,000.00 24,040,668.60 24,050,000.00 12/27/2018 0.07 0.03 1.37 0.05 1.37 0.05
Total long term investments 693,300,000.00$ 688,142,620.10$ 692,880,149.81$ 2.01 1.26 1.06 1.09
Balance
BoCC FFIB Concentration Account 37,933,254.08$ 0.57
BoCC FFIB O/N Investment Account 313,012.40$ 0.64
BoCC SBA Florida LGIP Account 165,123,125.08$ 0.92
Total Funds on Deposit 203,369,391.56$
Total managed portfolio 896,669,391.56$
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 and BoCC Investment Accounts) pursuant to contracts 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 Investment Account Rate is the current Fed Funds Rate, as published in the Wall Street Journal. The SBA Florida LGIP rate is the current Participant Yield as published on the SBA Florida Prime website.
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-Purchased Yield is taken from the respective investment trade tickets and is based upon yield to worst, or the minimum yield the investment will achieve.
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.1.a
Packet Pg. 1049 Attachment: 12.31.16 Investment Exhibits (2705 : Quarterly Investment Report)
US Treasury Notes
$85,000,000.00
9.5%
BoCC Deposit Accounts
$38,246,266.48
4.3%
Agencies
(FHLB,FNMA,FHLMC,FFCB)
$608,300,000.00
67.8%
BoCC SBA Florida LGIP
$165,123,125.08
18.4%
Collier County Portfolio Composition
as of December 31, 2016 (At Par Value)
$896,669,391.56
Sector Allowed (%)Current (%)
Bank Deposit Accounts 100% 4.3%
U.S. Treasury 100%9.5%
Federal Agency / GSE 80% 67.8%
Sector Maximum
Total Cash Based Interest
Fiscal Year to Date
$1,299,524
SBA Florida LGIP 50%18.4%
16.J.1.a
Packet Pg. 1050 Attachment: 12.31.16 Investment Exhibits (2705 : Quarterly Investment Report)
0.57%
0.90%
0.51%
0.00%
0.25%
0.50%
0.75%
1.00%
Jan. 2016 Feb. 2016 Mar. 2016 Apr. 2016 May. 2016 June. 2016 July. 2016 Aug. 2016 Sept. 2016 Oct. 2016 Nov. 2016 Dec. 2016
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 on FFIB O/N Investment
& SBA Florida Prime LGIP Accounts
16.J.1.a
Packet Pg. 1051 Attachment: 12.31.16 Investment Exhibits (2705 : Quarterly Investment Report)
1.09%
1.18%
0.00%
0.50%
1.00%
1.50%
Jan. 2016 Feb. 2016 Mar. 2016 Apr. 2016 May. 2016 June. 2016 July. 2016 Aug. 2016 Sept. 2016 Oct. 2016 Nov. 2016 Dec. 2016
Collier County Long Term Sector Yields
Collier Long Term Portfolio Yield
vs.
B of A 1-3 Yr. Treas. Note Benchmark
Collier Long Term Portfolio Yield B of A 1-3 Yr Treasury Note Benchmark
16.J.1.a
Packet Pg. 1052 Attachment: 12.31.16 Investment Exhibits (2705 : Quarterly Investment Report)