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Agenda 04/25/2017 Item #16J104/25/2017 EXECUTIVE SUMMARY Report to the Board regarding the investment of County funds as of the quarter ended March 31, 2017. OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter ended March 31, 2017. 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 second quarter of FY-2017. The total managed portfolio at March 31, 2017 was $854,895,822, at par value. For March 2017, Collier’s short-term yield exceeded the benchmark by .36% 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 .77%, also exceeding the short-term benchmark for March. 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 .21% 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 portfolio will allow Collier to take advantage of recent market shifts and provide sufficient liquidity. Collier County’s long-term portfolio is comprised of both Treasuries and Agencies purchased over the last eighteen 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. Investment Exhibits QTR2 FY 2017 (PDF) 04/25/2017 COLLIER COUNTY Board of County Commissioners Item Number: 16.J.1 Doc ID: 3067 Item Summary: Report to the Board regarding the investment of County funds as of the quarter ended March 31, 2017. Meeting Date: 04/25/2017 Prepared by: Title: Senior Staff Assistant – Clerk of the Circuit Court Name: Jennifer Milum 04/17/2017 8:40 AM Submitted by: Title: Senior Staff Assistant – Clerk of the Circuit Court Name: Jennifer Milum 04/17/2017 8:40 AM Approved By: Review: Clerk of the Circuit Court Derek Johnssen Additional Reviewer Completed 04/17/2017 9:44 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 04/17/2017 11:04 AM Budget and Management Office Mark Isackson Additional Reviewer Completed 04/17/2017 11:20 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/17/2017 3:01 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 04/18/2017 10:19 AM Board of County Commissioners MaryJo Brock Meeting Pending 04/25/2017 9:00 AM CoMer County Investment Portfolio 313OA61B4 10/21/2015 1/21/2016 quarterly $ as Of 03/31/2017 A e C D E F G 0.01 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/Maturfty Rate Rate Yield Yield Yield FHLB 313OA61B4 10/21/2015 1/21/2016 quarterly $ 25,000,000.00 $ 24,984,575.00 $ 25,000,000.00 7/21/2017 0.01 0.01 0.70 0.03 0.70 0.03 FHLMC 3134G7U25 10/27/2015 1/27/2016 quarterly 25,000,000.00 24,974,050.00 25,000,000.00 10/27/2017 0.02 0.02 0.80 0.03 0.80 0.03 US Treasury Note 912828UA6 11/9/2015 none N/A 25,000,000.00 24,943,350.00 24,949,301.86 11/30/2017 0.03 0.03 0.63 0.02 0.93 0.03 FHLB 313OA6SW8 11/20/2015 none N/A 23,000,000.00 22,995,101.00 22,998,214.37 12/19/2017 0.02 0.02 1.00 0.03 1.02 0.04 FHLMC 3134G74Q1 11/24/2015 2/24/2016 quarterly 25,000,000.00 24,965,325.00 25,000,000.00 11/24/2017 0.02 0.02 0.85 0.03 0.85 0.03 US Treasury Note 912828M72 12/3/2015 none N/A 10,000,000.00 9,995,310.00 9,993,977.51 11/30/2017 0.01 0.01 0.88 0.01 0.94 0.01 FHL8 313381820 12/8/2015 none WA 20,000,000.00 19,952,680.00 19,962,561.97 32/8/2017 0.02 0.02 0.75 0.02 1.02 0.03 FHLB 3130A6V95 12/9/2015 none N/A 91000,000.00 8,998,029.00 91000,000.00 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 24,994,550.00 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 25,000,475.00 25,000,000.00 12/21/2018 0.06 0.06 1.38 0.05 1.38 0.05 FFCB 3233EFW52 4/1/2016 none N/A 40,000,000.00 39,748,480.00 39,979,761.89 7/1/2019 0.13 0.13 1.15 0.07 1.17 0.07 FHLB 313381820 6/22/2016 none N/A 4,000,000.00 3,990,536.00 4,000,000.00 12/8/2017 0.00 0.00 0.75 0.00 0.75 0.00 FHLB 313379DT3 6/22/2016 none N/A 25,000,000.00 25,028,325.00 25,11SA70.67 6/8/2018 0.04 0.04 1.25 0.05 0.86 0.03 FNMA 3235GOLSO 7/12/2016 1/12/2017 quarterly 25,000,000.00 24,733,425.00 25,000,000.00 7/12/2019 0.09 0.09 1.05 0.04 1.05 0.04 FNMA 3136G3XR3 7/27/2016 1/27/2017 quarterly 25,000,000.00 24,251,500.00 24,958,453.11 7/27/2020 0.12 0.12 1.13 0.04 1.18 0.04 FHLB 3130ABVQ3 8/23/2016 11/23/2016 quarterly 25,000,000.00 24,945,400.00 25,000,000.00 8/23/2018 0.05 0.05 1.13 0.04 1.13 0.04 FHLMC 3234GAFYS 8/31/2016 11/28/2016 quarterly 25,000,000.00 24,780,525.00 25,000,000.00 8/28/2019 0.09 0.09 1.30 0.05 1.30 0.05 FNMA 3235GOP49 9/2/2016 none N/A 15,000,000.00 14,835,060.00 14,981,108.26 8/28/2019 0.05 0.05 1.00 0.02 1.05 0.02 FHLMC 3134GAGFS 9/13/2016 12/13/2016 quarterly 25,000,000.00 24,942,875.00 25,000,000.00 9/13/2018 0.05 0.05 1.10 0.04 1.10 0.04 FHLB 313OA9JZ5 9/27/2016 12/27/2016 continuously 25,000,000.00 24,396,275.00 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 24,249,225.00 25,000,000.00 9/30/2021 0.17 0.17 1.60 0.06 1.60 0.06 US Treasury Note 912828759 10/27/2016 none N/A 25,000,000.00 24,747,075.00 24,989,958.45 10/15/2019 0.10 0.10 1.00 0.04 1.02 0.04 US Treasury Note 912828783 10/31/2016 none N/A 25,000,000.00 24,820,300.00 24,955,075.45 10/31/2018 0.06 0.06 0.75 0.03 0.87 0.03 FHLMC 3134GART3 11/1/2016 4/28/2017 quarterly 22,250,000.00 22,189,346.50 22,250,000.00 10/28/2019 0.09 0.00 0.85 0.03 0.85 0.03 FHLMC 3134G8198 11/23/2016 2/26/2017 quarterly 21,000,000.00 20,983,704.00 21,000,000.00 2/26/2018 0.03 0.03 1.05 0.03 1.05 0.03 FHLMC 3134GASQ6 12/6/2016 8/15/2017 once 20,000,000.00 19,930,420.00 19,972,708.73 8/15/2018 0.04 0.01 1.00 0.03 1.15 0.03 FNMA 3135GOL68 12/12/2016 7/27/2017 once 50,000,000.00 49,669,200.00 49,849,251.10 7/27/2018 0.10 0.02 0.75 0.06 1.11 0.08 FFCB 3133EGW94 12/19/2016 none N/A 1010001000.00 9,981,520.00 91996,558.90 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 24,059,307.35 24,050,000.00 12/27/2018 0.06 0.03 1.37 005 1.37 0.05 Total long term investments $ 668,300,W0.00 $ 664,065,943.85$ 668,002,402.27 1.71 1.43 im 1.06 Balance BOCC FFIS Concentration Account $ 40,769,244.49 0.77 BOCC FFIB O/N Investment Account $ 315,066.96 0.90 BoCC SBA Florida LGIP Account $ 145,511,510.23 1.04 Total Funds On Deposit $ 186,595,821.68 Total managed portfolio $ 854,895,821,6B A -Weighted Years to Maturity calculation is based on individual par value divided by total long term Investment per value multiplied by the remaining number of year(s) to full maturity. S-Welghted Years To First Cab/Maturity calculation is based on ind"ual par value dNldad by total long term investment per value multiplied by the remaining number of year(s) to hA maturity, or to the first all date if applicable. When an investment passes the first all date the calculation is adjusted based on date of final maturity. C -An Overnight Contractual Rate is provided for overnight investments (BoCC Concentration and BoOC 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 Wag 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 rete. E -Coupon Weighted Yield calculation is based on individual par value divided by total long term investment per 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 Per value divided by total long term investment per value multiplied by the Purchased Yield. Collier County Portfolio Composition as of March 31, 2017 (At Par Value) $854,895,821.68 Total Cash Based Interest $3,877,648 Fiscal Year to Date Agencies (FHLB,FNMA,FHLMC,FFCB) $583,300,000.00 68.2% �s BoCC Deposit Accounts $41,084,311.45 4.8% Sector Maximum Sector Allowed M Current N BoCC SBA Florida LGIP Bank Deposit Accounts 100% 4.8% $145,511,510.23 U.S. Treasury 100% 9.9% 17.1% Federal Agency/ GSE 80% 68.2% SBA Florida LGIP 50% 17.1% Total Cash Based Interest $3,877,648 Fiscal Year to Date Agencies (FHLB,FNMA,FHLMC,FFCB) $583,300,000.00 68.2% �s BoCC Deposit Accounts $41,084,311.45 4.8% Collier County Short Term Sector Yields Collier Short Term Portfolio Yield VS. S&P Rated GIP Government Index 1.25% 1.00% 0.75% 0.50% 0.25% 1.03% 0. 0.00% —! Apr. 2016 May. 2016 June. 2016 July. 2016 Aug. 2016 Sept. 2016 Oct. 2016 Nov. 2016 Dec. 2016 Jan. 2017 Feb. 2017 Mar. 2017 -$--Concentration Account (FFIB) Collier Short Term Portfolio Yield -k—S&P Rated GIP Government Index Combined Yield on FFIB O/N Investment & SBA Florida Prime LGIP Accounts 2.00% 1.50% 1.00% 0.50% 0.00% Collier County Long Term Sector Yields Collier Long Term Portfolio Yield VS. B of A 1-3 Yr. Treas. Note Benchmark 1.27% 1.0696 Apr. 2016 May. 2016 June. 2016 July. 2016 Aug. 2016 Sept. 2016 Oct. 2016 Nov. 2016 Dec. 2016 Jan. 2017 Feb. 2017 Mar. 2017 Collier Long Term Portfolio Yield t B ' 3 Yr Treasury Note Benchmark