Agenda 11/13/2018 Item #16J 211/13/2018
EXECUTIVE SUMMARY
Report to the Board regarding the investment of County funds as of the quarter ended September
30, 2018.
OBJECTIVE: To provide the Board a report regarding the investment of County funds as of the quarter
ended September 30, 2018.
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 fourth quarter of FY-2018. The total managed portfolio at September 30, 2018
was $750,848,091, at par value. For September 2018, Collier’s short -term yield exceeded the benchmark
by .46%, primarily due to investment in a certificate of deposit at Florida Community Bank and balances
with the Florida Prime Local Government Investment Pool. The Board’s Concentration (Operating)
Account has also been included on the chart and bore interest of 1.86% as of September 2018. In order to
maximize 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 1.01% lower
than the benchmark due to the relative market volatility of the 1 to 3 year Treasury index yield.
Continued shortening of the overall maturity of the long-term investments sector, new cash inflows and
$84M in impending maturities, will allow Collier to take advantage of recent increases in yield and
provide sufficient liquidity for operations. There is no loss of principal associated with the performance
to benchmark of the long or short-term portfolio.
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 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
ATTACHMENT(S)
1. Investment Exhibits QTR4 FY 2018 (PDF)
16.J.2
Packet Pg. 2053
11/13/2018
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.J.2
Doc ID: 7244
Item Summary: Report to the Board regarding the investment of County funds as of the quarter
ended September 30, 2018.
Meeting Date: 11/13/2018
Prepared by:
Title: – Clerk of the Circuit Court
Name: Lisa Doyle
11/02/2018 11:57 AM
Submitted by:
Title: Senior Staff Assistant – Clerk of the Circuit Court
Name: Jennifer Milum
11/02/2018 11:57 AM
Approved By:
Review:
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/02/2018 1:19 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 11/02/2018 1:32 PM
County Attorney's Office Emily Pepin CAO Preview Completed 11/02/2018 4:10 PM
Budget and Management Office Mark Isackson Additional Reviewer Completed 11/05/2018 9:39 AM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 11/05/2018 11:04 AM
Board of County Commissioners MaryJo Brock Meeting Pending 11/13/2018 9:00 AM
16.J.2
Packet Pg. 2054
Collier County Investment Portfolio
as of 09/30/2018 A B C D E F G
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
FFCB 3133EFSW8 12/21/2015 12/21/2016 continuously 25,000,000.00$ 24,945,700.00$ 25,000,000.00$ 12/21/2018 0.01 0.01 1.38 0.05 1.38 0.06
FFCB 3133EFW52 4/1/2016 none N/A 40,000,000.00 39,570,160.00 39,993,253.96 7/1/2019 0.05 0.05 1.15 0.07 1.17 0.07
FNMA 3135G0L50 7/12/2016 1/12/2017 quarterly 25,000,000.00 24,709,675.00 25,000,000.00 7/12/2019 0.03 0.03 1.05 0.04 1.05 0.04
FNMA 3136G3XR1 7/27/2016 1/27/2017 quarterly 25,000,000.00 24,268,625.00 24,977,207.39 7/27/2020 0.07 0.07 1.13 0.04 1.18 0.05
FHLMC 3134GAFY5 8/31/2016 11/28/2016 quarterly 25,000,000.00 24,702,875.00 25,000,000.00 8/28/2019 0.04 0.04 1.30 0.05 1.30 0.05
FNMA 3135G0P49 9/2/2016 none N/A 15,000,000.00 14,783,805.00 14,992,872.66 8/28/2019 0.02 0.02 1.00 0.02 1.05 0.03
FHLB 3130A9JZ5 9/27/2016 12/27/2016 continuously 25,000,000.00 24,077,725.00 25,000,000.00 9/27/2021 0.12 0.12 1.60 0.06 1.60 0.06
FNMA 3136G4BS1 9/30/2016 3/30/2017 quarterly 25,000,000.00 23,792,600.00 25,000,000.00 9/30/2021 0.12 0.12 1.60 0.06 1.60 0.06
US Treasury Note 912828T59 10/27/2016 none N/A 25,000,000.00 24,573,250.00 24,995,888.16 10/15/2019 0.04 0.04 1.00 0.04 1.02 0.04
US Treasury Note 912828T83 10/31/2016 none N/A 25,000,000.00 24,973,425.00 24,997,594.71 10/31/2018 0.00 0.00 0.75 0.03 0.87 0.03
FFCB 3133EGW84 12/19/2016 none N/A 10,000,000.00 9,977,360.00 9,999,561.64 12/19/2018 0.00 0.00 1.20 0.02 1.22 0.02
FFCB 3133EGZ24 12/27/2016 12/27/2017 continuously 24,050,000.00 23,985,185.25 24,050,000.00 12/27/2018 0.01 0.01 1.37 0.05 1.37 0.05
FHLB 3130ACVH4 11/28/2017 11/28/2018 quarterly 25,000,000.00 24,186,025.00 25,000,000.00 11/28/2022 0.17 0.01 2.30 0.09 2.30 0.09
FHLMC 3134GB5A6 12/7/2017 12/7/2018 quarterly 25,000,000.00 24,170,550.00 25,000,000.00 12/7/2022 0.17 0.01 2.36 0.09 2.36 0.09
FFCB 3133EJBX6 2/8/2018 8/8/2018 continuously 25,000,000.00 24,708,275.00 25,000,000.00 2/8/2021 0.09 0.09 2.40 0.10 2.40 0.10
FFCB 3133EJEJ4 3/1/2018 6/1/2018 monthly 10,000,000.00 9,919,180.00 10,000,000.00 9/1/2021 0.05 0.05 2.75 0.04 2.75 0.04
US Treasury Bill 912796PT0-1 3/2/2018 none N/A 25,000,000.00 24,762,500.00 24,791,326.39 2/28/2019 0.02 0.02 2.05 0.08 2.05 0.08
US Treasury Bill 912796PT0-2 3/7/2018 none N/A 25,000,000.00 24,762,500.00 24,791,064.24 2/28/2019 0.02 0.02 2.05 0.08 2.05 0.08
FHLMC 3134GSEK7 3/8/2018 6/8/2018 quarterly 11,960,000.00 11,811,612.28 11,960,000.00 3/8/2023 0.08 0.08 3.00 0.06 3.00 0.06
FHLB 3130ADXE7 4/4/2018 none N/A 10,000,000.00 9,986,130.00 9,998,318.36 4/4/2019 0.01 0.01 2.13 0.03 2.16 0.03
FHLB 3130AAXX1 4/5/2018 none N/A 15,000,000.00 14,931,645.00 14,948,204.18 3/18/2019 0.01 0.01 1.38 0.03 2.13 0.05
FHLB 3130A8Y72 4/9/2018 none N/A 25,000,000.00 24,640,550.00 24,721,068.32 8/5/2019 0.03 0.03 0.88 0.03 2.22 0.09
US Treasury Bill 912796QC6 5/2/2018 none N/A 50,000,000.00 49,329,800.00 49,374,687.40 4/25/2019 0.05 0.05 2.24 0.18 2.24 0.18
US Treasury Bill 912796QR3-1 8/2/2018 none N/A 20,000,000.00 19,605,680.00 19,619,679.16 7/18/2019 0.03 0.03 2.43 0.08 2.43 0.08
US Treasury Bill 912796QR3-2 8/15/2018 none N/A 20,000,000.00 19,605,680.00 19,622,508.33 7/18/2019 0.03 0.03 2.41 0.08 2.41 0.08
US Treasury Bill 912796QV4 8/16/2018 none N/A 50,000,000.00 48,903,000.00 48,954,388.89 8/15/2019 0.07 0.07 2.44 0.19 2.44 0.19
Total long term investments 626,010,000.00$ 615,683,512.53$ 622,787,623.79$ 1.34 1.02 1.69 1.80
Balance
BoCC FFIB Concentration Account 33,563,777.83$ 1.86
BoCC FFIB O/N Investment Account 322,185.41$ 2.01
BoCC SBA Florida LGIP Account 39,625,578.48$ 2.97
BoCC FCB CD 51,326,549.55$ 2.05
Total Funds on Deposit 124,838,091.27$
Total managed portfolio 750,848,091.27$
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. A term rate is provided
for the certificate of deposit (CD) pursuant to a contract with Florida Community Bank (FCB). The rate is based on a term of 18 months, but the CD doesn't have an early withdrawal penalty.
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. 2055 Attachment: Investment Exhibits QTR4 FY 2018 (7244 : Investment Reports)
US Treasury Notes &
T-Bills
$265,000,000.00
35.3%
BoCC Deposit Accounts
$33,885,963.24
4.5%
Federal Agencies / GSE
(FHLB,FNMA,FHLMC,FFCB)
$361,010,000.00
48.1%
BoCC Bank CD
$51,326,549.55
6.8%BoCC SBA Florida LGIP
$39,625,578.48
5.3%
Collier County Portfolio Composition
as of September 30, 2018 (At Par Value)
$750,848,091.27
Sector Allowed (%)Current (%)
Sector Maximum
Total Cash Based Interest
Fiscal Year to Date
$10,673,530
Bank Deposit Accounts 100% 4.5%
U.S. Treasury Notes & T-Bills 100% 35.3%
Federal Agency / GSE 80% 48.1%
SBA Florida LGIP 50% 5.3%
Bank CDs 30% 6.8%
16.J.2.a
Packet Pg. 2056 Attachment: Investment Exhibits QTR4 FY 2018 (7244 : Investment Reports)
1.86%
2.50%
2.04%
1.00%
1.25%
1.50%
1.75%
2.00%
2.25%
2.50%
2.75%
Oct. 2017 Nov. 2017 Dec. 2017 Jan. 2018 Feb. 2018 Mar. 2018 Apr. 2018 May. 2018 June. 2018 July. 2018 Aug. 2018 Sept. 2018
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 Account, & FCB CD
Note: Combined Short Term Yield increase is the result of a LIBOR litigation settlement. SBA Prime pool participants benefited from an additional $5.9mm allocated to interest earnings at month-end September.
16.J.2.a
Packet Pg. 2057 Attachment: Investment Exhibits QTR4 FY 2018 (7244 : Investment Reports)
1.80%
2.81%
1.00%
1.25%
1.50%
1.75%
2.00%
2.25%
2.50%
2.75%
3.00%
Oct. 2017 Nov. 2017 Dec. 2017 Jan. 2018 Feb. 2018 Mar. 2018 Apr. 2018 May. 2018 June. 2018 July. 2018 Aug. 2018 Sept. 2018
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
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Packet Pg. 2058 Attachment: Investment Exhibits QTR4 FY 2018 (7244 : Investment Reports)