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Agenda 08-08-2017 Item #16J308/08/2017 EXECUTIVE SUMMARY Report to the Board regarding the investment of County funds as of the quarter ended June 30, 2017. ______________________________________________________________________________ OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter ended June 30, 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 Cle rk 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 third quarter of FY-2017. The total managed portfolio at June 30, 2017 was $801,196,287, at par value. For June 2017, Collier’s short-term yield exceeded the benchmark by .27%, primarily due to Florida PRIME’s increased 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 .93%, also exceeding the short -term benchmark as of June 2017. 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 .34% 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 Treasuries and Agencies purchased over the last twenty-one (21) months. There is no loss of principal associated with the performance to benchmark of either the short or long-term portfolio. Approval of the following documents by the County Manager is subject to formal ratification by the Board of County Commissioners. If the decision by the County Manager is not ratified by that Board, the document(s) shall be enforceable against Collier County only to the extent authorized by law in the absence of such ratification by that Board. 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 16.J.3 Packet Pg. 119 08/08/2017 ATTACHMENT(S) 1. Investment Exhibits QTR3 FY 2017 (PDF) 16.J.3 Packet Pg. 120 08/08/2017 COLLIER COUNTY Board of County Commissioners Item Number: 16.J.3 Doc ID: 3558 Item Summary: Report to the Board regarding the investment of County funds as of the quarter ended June 30, 2017. Meeting Date: 08/08/2017 Prepared by: Title: Senior Staff Assistant – Clerk of the Circuit Court Name: Jennifer Milum 08/02/2017 1:22 PM Submitted by: Title: Senior Staff Assistant – Clerk of the Circuit Court Name: Jennifer Milum 08/02/2017 1:22 PM Approved By: Review: Clerk of the Circuit Court Derek Johnssen Additional Reviewer Completed 08/02/2017 1:58 PM Office of Management and Budget Laura Wells Level 3 OMB Gatekeeper Review Completed 08/02/2017 3:02 PM Office of Management and Budget Laura Wells Additional Reviewer Completed 08/02/2017 3:02 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/07/2017 3:41 PM Office of Management and Budget Susan Usher Additional Reviewer Completed 08/07/2017 4:16 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 08/08/2017 9:17 AM Board of County Commissioners MaryJo Brock Meeting Pending 08/08/2017 12:00 AM 16.J.3 Packet Pg. 121 Collier County Investment Portfolio as of 06/30/2017 FHLB FHLMC Instrument US Treasury Note FHLB FHLMC US Treasury Note FHLB FHLB FFCB FFCB FFCB FHLB FHLB FNMA FNMA FHLB FHLMC FNMA FHLMC FHLB FNMA US Treasury Note US Treasury Note FHLMC FHLMC FHLMC FNMA FFCB FFCB Tobi long term investments 8oCC FFIB Concentration Account BoCC FFIB 0/N Investment Account BoCC SBA florida LGIP Account Bo CCFCBCD Total Funds on Deposit Total managed portfolio CUSIP 3130A6JB4 3134G7U25 912828UA6 3130A65W8 3134G74Ql 912828M72 313381820 3130A6V95 3l33EFSG3 3133EF5W8 3133EFW52 313381820 3l3379DT3 3135GOLSO 3136G3XR1 3130A8VQ3 3134GAFY5 3135GOP49 3134GAGF5 3130A9JZS 3l36G4BS1 912828T59 9l2828T83 3134GART3 3134G8L98 3134GA8Q6 3l35GOL68 3133EGWB4 3133EGZ24 Settlement Date 10/21/2015 10/27/2015 11/9/2015 11/20/2015 11/24/2015 12/3/20 15 12/8/2015 12/9/2015 12/14/2015 12/21/2015 4/1/2016 6/22/2016 6/22/2016 7/12/2016 7/27/2016 8/23/2016 8/31/2016 9/2/2016 9/13/2016 9/27/2016 9/30/2016 10/27/2016 10/31/2016 11/1/2016 11/23/2016 12/6/2016 12/12/2016 12/19/2016 12/27/2016 Arst talf Date 1/21/2016 1/27/2016 none none 2/24/2016 none none none none 12/21/2016 none none none 1/12/2017 1/27/2017 ll/23/2016 11/28/2016 none 12/13/2016 12/27/2016 3/30/2017 none none 4/28/2017 2/26/2017 8/15/2017 7/27/2017 none 12/27/2017 can Freauencv Par Value FNBB Market Value Amortl•ed Cost quarterly 25,000,000.00 24,994,350.00 25,000,000.00 quarterly 25,000,000.00 24,979,975 .00 25,000,000.00 N/A 25,000,000.00 24,946,400.00 24,968,209.77 N/A 23,000,000.00 22,981,853 .00 22,998,832.21 quorterly 25,000,000.00 24,970,700.00 25 ,000,000.00 N/A 10,000,000.00 9,989,150.00 9,996,223 .60 N/A 20,000,000.00 19,960,660.00 19,976,081.26 N/A 9,000,000.00 8,995,563.00 9,000,000.00 N/A 25,000,000.00 24,981,000.00 25,000,000.00 continuously 25,000,000.00 25,000,525.00 25,000,000.00 N/A 40,000,000.00 39,771,720.00 39,982,002.36 N/A 4,000,000.00 3,992,132.00 4,000,000.00 N/A 25,000,000.00 24,998,600.oo 25,091,259.08 quarterly 25,000,000.00 24,740,850.00 25,000,000.00 quarterly 25,000,000.00 24,349,650.00 24,961,567.42 quarterly 25,000,000.00 24,954,925 .00 25,000,000.00 quarterly 25,000,000.00 24,908,150.00 25,000,000.00 N/A 15,000,000.00 14,859,780.00 14,983,061 .83 quarterly 25,000,000.00 24,914,975.00 25,000,000.00 continuously 25,000,000.00 24,751,100.00 25,000,000.00 quarterly 25,000,000.00 24,456,175.00 25,000,000.00 N/A 25,000,000.00 24,784,175.00 24 ,990,943 .13 N/A 25,000,000.00 24,813,475.00 24 ,962,136.13 quarterly 22,250,000.00 22,216,402.50 22,250,000.00 quarterly 21,000,000.00 20,963,544 .00 21 ,000,000.00 once 20,000,000.00 19,932,440.00 19,990,836.51 once 50,000,000.00 49,694,550.00 49,965,506.61 N/A 10,000,000.00 9,979,460.00 9,997,057 .53 con t inuously ---'2'-4"',0""5"'0'-'"ooo=.oo=---"2-'4'"-05"'1"',5"6""3"'.2""5 __ --=.24"0"'5"'0"',ooo=·.;.oo;;... 668,300,000.00 664,933,842.75 668,163,717.44 Balance 36,684,520. 73 315,888.06 85,895,877.90 10,000,000.00 132,896,286.69 801,196,286.69 A·Weighted Years to Maturity calculation is based on lndivtdua l par value divided by total long term investment par value multiplied by the remaining number of year(s) to full maturity. A 8 c Weighted Fina I Maturity Date Weighted Years to Maturity Years O/N to Fii'$! Cont. tall/Maturltv Rate 7 /21/2017 0.00 0.00 10/27 /2017 0.01 O.Ol ll/30/2017 0.02 0.02 12/19/2017 0.02 0.02 11/24/2017 0.02 0.02 11/30/2017 O.Dl O.Dl 12/8/2017 O.Dl 0.01 12/1/2017 0.01 0.01 3/14/2018 0.03 0.03 12/21/2018 0.06 0.06 7/l/2019 0.12 0.12 12/8/2017 0.00 0.00 6/8/2018 0.04 0.04 7/12/2019 0.08 0.08 7 /27 /2020 0.12 0.12 8/23/2018 0.04 0.04 8/28/2019 0.08 0.08 8/28/2019 0.05 0.05 9/13/2018 0.05 0.05 9/27 /2021 0.16 0.16 9/30/2021 0.16 0.16 10/15/2019 0.09 0.09 10/31/2018 0.05 0.05 10/28/2019 0.08 0.08 2/26/2018 0.02 0.02 8/15/2018 0.03 0.00 7/27/2018 0.08 O.Ol 12/19/2018 0.02 0.02 12/21/2018 ____ o_.0_5 _____ 0_.0_2_ 1.51 1.38 0.93 l.12 1.17 1.55 B-Weighted Years To First Call/Maturity cakulation 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. D Coupon Rate Cont. Rate/ Coupon Weighted Yield 0 .70 0,03 0.80 0.03 0.63 0.02 1.00 0.03 0 .85 0 .03 0 .88 0.01 0.75 0.02 1.02 0.01 l.lO 0.04 1.38 0.05 l.15 0.07 0.75 0.00 1.25 0.05 1.05 0 .04 l.13 0 .04 l.13 0.04 1.30 0.05 1.00 0.02 l.lO 0 .04 1.60 0 .06 1.60 0.06 l .00 0.04 0 .75 0 .03 0 .85 0.03 1.05 0.03 l .00 0.03 0.75 0.06 1.20 O.Q2 1.37 ----'o"'.0""5- 1.03 C-An Overni&ht Contractual Rate is provided for overnight investments (BoCC Concent ration 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 curre nt 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. A term rate is provided for the certifica te of depasit (CO) pu rsua nt to contract with Florlda Community Bank (FCB). The ra t e Is locked In for the term of the CO and the CO does not have an early withdrawal penalty . 0-Coupon Rate is taken from the respective invest ment trade tickets . Step coupons, If any, are shown at their current rate . £-Coupon Weighted Yield calculation is based on ind ividual par value divided by total long term investment par v1lue 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 ind ividual par value divided by total Ions term investment par value multiplied by the Purchased Yield . Purchased Yield G Cont. Rate/ Weighted Purchased Yield 0 .70 0.03 0.80 0.03 0.93 0.03 1.02 0.04 0 .85 0.03 0 .94 0.01 1.02 0.03 1.02 0.01 l.lO 0.04 1.38 0.05 l.17 0.07 0.75 0.00 0.86 0.03 1.05 0.04 l.18 0.04 l.13 0.04 1.30 0 .05 1.05 0.02 1.10 0.04 1.60 0.06 1.60 0.06 l .02 0.04 0 .87 0.03 0.85 0.03 1.05 0.03 l.15 0.03 l.ll 0.08 1.22 0.02 1.37 ----'o"'.0"'5- 1.06 16.J.3.a Packet Pg. 122 Attachment: Investment Exhibits QTR3 FY 2017 (3558 : Investments) Collier County Portfolio Composition as of June 30, 2017 (At Par Value) $801,196,286.69 Sector Maximum BoCC FCBCD $10,000,000.00 1.3% Bank Deposit Accounts U.S. Treasury Federal Agency I GSE SBA Florida LGIP FCB CO Total Cash Based Interest Fiscal Year to Date Allowed (%) Current(%) 100% 4 .6% 100% 10.6% 80% 72.8% 50% 10 .7% 30% 1.3% $5,751,273 Agenci es (FHLB,FNMA,F HLMC,FFCB) $583,300,000.00 72.8% BoCC Deposit Ac counts $37,000,408.79 4 .6% 16.J.3.a Packet Pg. 123 Attachment: Investment Exhibits QTR3 FY 2017 (3558 : 1.25% 0.75 % 0.50% 0.25% 0 .00% Collier County Short Term Sector Yields Collier Short Term Portfolio Yield vs. S&P Rated GIP Government Index July. 2016 Aug . 2016 Sept. 2016 Oct. 2016 Nov . 2016 Dec . 2016 Jan. 2017 Feb. 2017 --Concentration Account (FFIB) Collier Short Term Portfolio Yield Combined Yield on FF IB O/N Invest men t & SBA Florida Prim e LGIP Accounts 1.17% Mar. 2017 Apr. 2017 May. 2017 Jun e. 2017 _,,. ~'" ""~omm•"' '"'" __J 16.J.3.a Packet Pg. 124 Attachment: Investment Exhibits QTR3 FY 2017 (3558 : 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 1.06% July. 2016 Aug . 20 16 Sept. 2016 Oct. 2016 Nov. 2016 Dec . 2016 Jan . 2017 Feb . 2017 Mar. 2017 Apr. 2017 May. 2017 June . 2017 Collier Lon g Term Portfolio Yield -B of A 1-3 Yr Trea sury Note Benchmark _ _J 16.J.3.a Packet Pg. 125 Attachment: Investment Exhibits QTR3 FY 2017 (3558 :