Agenda 05/14/2019 Item #16J 3 (Investment Report for Quarter Ending 3/31/19)05/14/2019
EXECUTIVE SUMMARY
Report to the Board regarding the investment of County funds as of the quarter ended
March 31, 2019.
OBJECTIVE: To provide the Board a report regarding the investment of County funds as of
the quarter ended March 31, 2019.
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 po licy
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,
along with yield and return graphs as of the end of the second quarter of FY-2019. The total
managed portfolio at March 31, 2019 was $1.039B, at par value. For March 2019, Collier’s short
and long-term yields exceeded their respective benchmarks by .13% and .03%. Short-term yield
exceeded the benchmark primarily due to the performance of investments 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 2.32% as of March 31, 2019. 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 total
return was .02% lower than the benchmark due to the relative market volatility of the 1 to 3 year
Treasury index’s total return. Given the inversion in rates of the U.S. Treasury curve, the current
investment strategy is to focus on the short end of the yield curve where the yields are currently
highest and the shorter maturities offer increased flexibility should longer term yields increase.
There is no realized gain or 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 approval. -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
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05/14/2019
ATTACHMENT(S)
1. Investment Exhibits QTR2 FY 2019 (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.J.3
Doc ID: 8864
Item Summary: Report to the Board regarding the investment of County funds as of the quarter
ended March 31, 2019.
Meeting Date: 05/14/2019
Prepared by:
Title: Senior Staff Assistant – Clerk of the Circuit Court
Name: Jennifer Milum
05/03/2019 12:28 PM
Submitted by:
Title: Senior Staff Assistant – Clerk of the Circuit Court
Name: Jennifer Milum
05/03/2019 12:28 PM
Approved By:
Review:
Clerk of the Circuit Court Derek Johnssen Additional Reviewer Completed 05/03/2019 12:29 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 05/03/2019 1:14 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/03/2019 4:33 PM
Budget and Management Office Mark Isackson Additional Reviewer Completed 05/06/2019 10:44 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 05/08/2019 11:19 AM
Board of County Commissioners MaryJo Brock Meeting Pending 05/14/2019 9:00 AM
16.J.3
Packet Pg. 1751
Collier County Investment Portfolio
as of 03/31/2019 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 3133EFW52 4/1/2016 none N/A 40,000,000.00$ 39,871,080.00$ 39,997,734.91$ 7/1/2019 0.01 0.01 1.15 0.07 1.17 0.07
FNMA 3135G0L50 7/12/2016 1/12/2017 quarterly 25,000,000.00 24,894,625.00 25,000,000.00 7/12/2019 0.01 0.01 1.05 0.03 1.05 0.03
FNMA 3136G3XR1 7/27/2016 1/27/2017 quarterly 25,000,000.00 24,606,075.00 24,983,436.00 7/27/2020 0.04 0.04 1.13 0.03 1.18 0.04
FHLMC 3134GAFY5 8/31/2016 11/28/2016 quarterly 25,000,000.00 24,873,725.00 25,000,000.00 8/28/2019 0.01 0.01 1.30 0.04 1.30 0.04
FNMA 3135G0P49 9/2/2016 none N/A 15,000,000.00 14,904,600.00 14,996,779.82 8/28/2019 0.01 0.01 1.00 0.02 1.05 0.02
FHLB 3130A9JZ5 9/27/2016 12/27/2016 continuously 25,000,000.00 24,559,900.00 25,000,000.00 9/27/2021 0.08 0.08 1.60 0.05 1.60 0.05
FNMA 3136G4BS1 9/30/2016 3/30/2017 quarterly 25,000,000.00 24,586,950.00 25,000,000.00 9/30/2021 0.08 0.08 1.60 0.05 1.60 0.05
US Treasury Note 912828T59 10/27/2016 none N/A 25,000,000.00 24,796,875.00 24,997,857.51 10/15/2019 0.02 0.02 1.00 0.03 1.02 0.03
FHLB 3130ACVH4 11/28/2017 11/28/2018 quarterly 25,000,000.00 24,871,825.00 25,000,000.00 11/28/2022 0.11 0.11 2.30 0.07 2.30 0.07
FHLMC 3134GB5A6 12/7/2017 12/7/2018 quarterly 25,000,000.00 24,867,600.00 25,000,000.00 12/7/2022 0.11 0.11 2.36 0.07 2.36 0.07
FFCB 3133EJBX6 2/8/2018 8/8/2018 continuously 25,000,000.00 25,000,475.00 25,000,000.00 2/8/2021 0.06 0.06 2.40 0.07 2.40 0.07
FFCB 3133EJEJ4 3/1/2018 6/1/2018 monthly 10,000,000.00 10,000,410.00 10,000,000.00 9/1/2021 0.03 0.03 2.75 0.03 2.75 0.03
FHLB 3130ADXE7 4/4/2018 none N/A 10,000,000.00 9,999,350.00 9,999,963.84 4/4/2019 0.00 0.00 2.13 0.03 2.16 0.03
FHLB 3130A8Y72 4/9/2018 none N/A 25,000,000.00 24,855,250.00 24,885,358.18 8/5/2019 0.01 0.01 0.88 0.03 2.22 0.07
US Treasury Bill 912796QC6 5/2/2018 none N/A 50,000,000.00 49,900,300.00 49,924,479.16 4/25/2019 0.00 0.00 2.24 0.14 2.24 0.14
US Treasury Bill 912796QR3-1 8/2/2018 none N/A 20,000,000.00 19,847,840.00 19,857,543.05 7/18/2019 0.01 0.01 2.43 0.06 2.43 0.06
US Treasury Bill 912796QR3-2 8/15/2018 none N/A 20,000,000.00 19,847,840.00 19,858,602.78 7/18/2019 0.01 0.01 2.41 0.06 2.41 0.06
US Treasury Bill 912796QV4 8/16/2018 none N/A 50,000,000.00 49,526,150.00 49,550,944.44 8/15/2019 0.02 0.02 2.44 0.15 2.44 0.15
FHLMC 3134GSYH2 10/4/2018 10/4/2019 quarterly 25,000,000.00 25,082,500.00 25,000,000.00 10/4/2021 0.08 0.02 3.02 0.09 3.02 0.09
US Treasury Note 9128285F3 10/15/2018 none N/A 25,000,000.00 25,397,450.00 24,928,762.40 10/15/2021 0.08 0.08 2.88 0.09 2.99 0.09
FHLMC 3134GSYW9 10/29/2018 10/29/2019 quarterly 25,000,000.00 25,099,525.00 25,000,000.00 10/29/2021 0.08 0.02 3.08 0.10 3.08 0.10
FHLMC 3130AF5L7 11/1/2018 11/1/2019 quarterly 25,000,000.00 25,115,100.00 25,000,000.00 2/1/2022 0.09 0.02 3.20 0.10 3.20 0.10
FHLB 3130AFEA1 11/26/2018 11/26/2019 quarterly 25,000,000.00 25,125,850.00 25,000,000.00 11/26/2021 0.08 0.02 3.25 0.10 3.25 0.10
FFCB 3133EJY60 12/3/2018 none N/A 9,548,000.00 9,800,487.31 9,557,086.24 3/3/2023 0.05 0.05 3.02 0.04 2.99 0.04
FHLB 3130AFH34 12/10/2018 12/10/2019 continuously 25,000,000.00 25,100,675.00 25,000,000.00 12/10/2021 0.08 0.02 3.15 0.10 3.15 0.10
FHLMC 3134GSG74 12/24/2018 12/24/2019 annually 25,000,000.00 25,117,100.00 25,000,000.00 12/24/2021 0.08 0.02 3.15 0.10 3.15 0.10
FHLB 3130AFKK2 12/27/2018 12/27/2019 quarterly 25,000,000.00 25,098,775.00 25,000,000.00 12/27/2023 0.15 0.02 3.30 0.10 3.30 0.10
FHLMC 3134GSL29 12/27/2018 12/27/2019 quarterly 25,000,000.00 25,092,875.00 25,000,000.00 12/27/2023 0.15 0.02 3.30 0.10 3.30 0.10
US Treasury Bill 912796RY7 2/25/2019 none N/A 85,000,000.00 83,271,525.00 83,232,059.02 1/30/2020 0.09 0.09 2.53 0.27 2.53 0.27
FHLMC 3134GS5U5 3/26/2019 9/26/2019 quarterly 25,000,000.00 25,020,550.00 25,000,000.00 3/26/2021 0.06 0.02 2.65 0.08 2.65 0.08
Total long term investments 809,548,000.00$ 806,133,282.31$ 806,770,607.35$ 1.69 1.02 2.30 2.35
Balance
BoCC FFIB Concentration Account 45,526,347.44$ 2.32
BoCC FFIB O/N Investment Account 401,175.66$ 2.55
BoCC SBA Florida LGIP Account 131,188,460.40$ 2.71
BoCC FCB CD 51,888,881.47$ 2.30
Total Funds on Deposit 229,004,864.97$
Total managed portfolio 1,038,552,864.97$
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 and Investment Account Rates are indexed at 95% of the daily Effective Federal Funds Rate
with a floor (minimum) rate of .25%. 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.3.a
Packet Pg. 1752 Attachment: Investment Exhibits QTR2 FY 2019 (8864 : Investment Report)
US Treasury Notes &
T-Bills
$275,000,000.00
26.5%
BoCC Deposit Accounts
$45,927,523.10
4.4%
Federal Agencies / GSE
(FHLB,FNMA,FHLMC,FFCB)
$534,548,000.00
51.5%
BoCC Bank CD
$51,888,881.47
5.0%
BoCC SBA Florida LGIP
$131,188,460.40
12.6%
Collier County Portfolio Composition
as of March 31, 2019 (At Par Value)
$1,038,552,864.97
Sector Allowed (%)Current (%)
Sector Maximum
Total Cash Based Interest
Fiscal Year to Date
$6,285,793
Bank Deposit Accounts 100% 4.4%
U.S. Treasury Notes & T-Bills 100% 26.5%
Federal Agency / GSE 80% 51.5%
SBA Florida LGIP 50% 12.6%
Bank CD 30% 5.0%
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Packet Pg. 1753 Attachment: Investment Exhibits QTR2 FY 2019 (8864 : Investment Report)
2.32%
2.59%
2.46%
1.00%
1.25%
1.50%
1.75%
2.00%
2.25%
2.50%
2.75%
Apr. 2018 May. 2018 June. 2018 July. 2018 Aug. 2018 Sept. 2018 Oct. 2018 Nov. 2018 Dec. 2018 Jan. 2019 Feb. 2019 Mar. 2019
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: September 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.
16.J.3.a
Packet Pg. 1754 Attachment: Investment Exhibits QTR2 FY 2019 (8864 : Investment Report)
2.35%
2.32%
1.00%
1.25%
1.50%
1.75%
2.00%
2.25%
2.50%
2.75%
3.00%
Apr. 2018 May. 2018 June. 2018 July. 2018 Aug. 2018 Sept. 2018 Oct. 2018 Nov. 2018 Dec. 2018 Jan. 2019 Feb. 2019 Mar. 2019
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 Bank of America 1-3 Yr Treasury Note Benchmark
16.J.3.a
Packet Pg. 1755 Attachment: Investment Exhibits QTR2 FY 2019 (8864 : Investment Report)
2.72
2.70
-0.40
0.10
0.60
1.10
1.60
2.10
2.60
3.10
Apr. 2018 May. 2018 Jun. 2018 Jul. 2018 Aug. 2018 Sept. 2018 Oct. 2018 Nov. 2018 Dec. 2018 Jan. 2019 Feb. 2019 Mar. 2019
Collier County Long Term Sector
12 Month Total Return
vs.
B of A 1-3 US T Index 12 Month Total Return Index
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.
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Packet Pg. 1756 Attachment: Investment Exhibits QTR2 FY 2019 (8864 : Investment Report)