BCC Absentia Agenda 08/13/2019 Item #16J3 (09/10/2019 Item #16F1E for 08/13/2019 Absentia)08/13/2019
EXECUTIVE SUMMARY
Report to the Board regarding the investment of County funds as of the quarter ended
June 30, 2019.
OBJECTIVE: To provide the Board a report regarding the investment of County funds as of
the quarter ended June 30, 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 poli cy
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 third quarter of FY-2019. The total
managed portfolio at June 30, 2019 was $1.15B, at par value. For June 2019, Collier’s short and
long-term yields exceeded their respective benchmarks by .01% and .60%. 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 2.26% as of June 30, 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 .71%
lower than the benchmark due to the relative market volatility of the 1 to 3 year Treasury index’s
total return. Total return measures include the unrealized gains and losses related to changes in
the fair value of the investments. The current investment strategy is to focus on the short end of
the yield curve where the yields are currently the highest. Expected actions on the part of the
Federal Reserve may affect the yield curve and subsequently allow the extension of maturities to
where higher yields are available. There is no realized gain or loss of principal associated with
the performance to benchmark of the long or short-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 issues, and requires majority vote for approval. -JAK
16.J.3
Packet Pg. 174
08/13/2019
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 QTR3 FY 2019 (PDF)
16.J.3
Packet Pg. 175
08/13/2019
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.J.3
Doc ID: 9702
Item Summary: Report to the Board regarding the investment of County funds as of the quarter
ended June 30, 2019.
Meeting Date: 08/13/2019
Prepared by:
Title: – Clerk of the Circuit Court
Name: Erin Roxberry
07/30/2019 12:27 PM
Submitted by:
Title: Senior Staff Assistant – Clerk of the Circuit Court
Name: Jennifer Milum
07/30/2019 12:27 PM
Approved By:
Review:
Clerk of the Circuit Court Derek Johnssen Additional Reviewer Completed 07/30/2019 1:00 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 07/30/2019 4:43 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 07/31/2019 1:14 PM
Budget and Management Office Mark Isackson Additional Reviewer Completed 07/31/2019 2:23 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 08/12/2019 9:04 AM
Board of County Commissioners MaryJo Brock Meeting Pending 08/13/2019 9:00 AM
16.J.3
Packet Pg. 176
Collier County Investment Portfolio
as of 06/30/2019 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$ 39,992,800.00$ 39,999,975.38$ 7/1/2019 0.00 0.00 1.15 0.06 1.17 0.06
FNMA 3135G0L50 7/12/2016 1/12/2017 quarterly 25,000,000.00 24,985,225.00 25,000,000.00 7/12/2019 0.00 0.00 1.05 0.03 1.05 0.03
FNMA 3136G3XR1 7/27/2016 1/27/2017 quarterly 25,000,000.00 24,820,950.00 24,986,550.31 7/27/2020 0.03 0.03 1.13 0.03 1.18 0.03
FHLMC 3134GAFY5 8/31/2016 11/28/2016 quarterly 25,000,000.00 24,960,000.00 25,000,000.00 8/28/2019 0.00 0.00 1.30 0.03 1.30 0.03
FNMA 3135G0P49 9/2/2016 none N/A 15,000,000.00 14,968,365.00 14,998,733.39 8/28/2019 0.00 0.00 1.00 0.02 1.05 0.02
FHLB 3130A9JZ5 9/27/2016 12/27/2016 continuously 25,000,000.00 24,815,500.00 25,000,000.00 9/27/2021 0.06 0.06 1.60 0.04 1.60 0.04
FNMA 3136G4BS1 9/30/2016 3/30/2017 quarterly 25,000,000.00 24,907,925.00 25,000,000.00 9/30/2021 0.06 0.06 1.60 0.04 1.60 0.04
US Treasury Note 912828T59 10/27/2016 none N/A 25,000,000.00 24,912,100.00 24,998,842.19 10/15/2019 0.01 0.01 1.00 0.03 1.02 0.03
FHLB 3130ACVH4 11/28/2017 11/28/2018 quarterly 25,000,000.00 25,014,450.00 25,000,000.00 11/28/2022 0.09 0.09 2.30 0.06 2.30 0.06
FHLMC 3134GB5A6 12/7/2017 12/7/2018 quarterly 25,000,000.00 25,017,175.00 25,000,000.00 12/7/2022 0.09 0.09 2.36 0.06 2.36 0.06
FFCB 3133EJBX6 2/8/2018 8/8/2018 continuously 25,000,000.00 25,001,925.00 25,000,000.00 2/8/2021 0.04 0.04 2.40 0.06 2.40 0.06
FHLB 3130A8Y72 4/9/2018 none N/A 25,000,000.00 24,961,925.00 24,967,503.11 8/5/2019 0.00 0.00 0.88 0.02 2.22 0.06
US Treasury Bill 912796QR3-1 8/2/2018 none N/A 20,000,000.00 19,974,500.00 19,976,475.00 7/18/2019 0.00 0.00 2.43 0.05 2.43 0.05
US Treasury Bill 912796QR3-2 8/15/2018 none N/A 20,000,000.00 19,974,500.00 19,976,650.00 7/18/2019 0.00 0.00 2.41 0.05 2.41 0.05
US Treasury Bill 912796QV4 8/16/2018 none N/A 50,000,000.00 49,856,000.00 49,849,222.22 8/15/2019 0.01 0.01 2.44 0.13 2.44 0.13
FHLMC 3134GSYH2 10/4/2018 10/4/2019 quarterly 25,000,000.00 25,075,100.00 25,000,000.00 10/4/2021 0.06 0.01 3.02 0.08 3.02 0.08
US Treasury Note 9128285F3 10/15/2018 none N/A 25,000,000.00 25,641,600.00 24,935,740.46 10/15/2021 0.06 0.06 2.88 0.08 2.99 0.08
FHLMC 3134GSYW9 10/29/2018 10/29/2019 quarterly 25,000,000.00 25,098,125.00 25,000,000.00 10/29/2021 0.06 0.01 3.08 0.08 3.08 0.08
FHLMC 3130AF5L7 11/1/2018 11/1/2019 quarterly 25,000,000.00 25,106,000.00 25,000,000.00 2/1/2022 0.07 0.01 3.20 0.09 3.20 0.09
FHLB 3130AFEA1 11/26/2018 11/26/2019 quarterly 25,000,000.00 25,126,150.00 25,000,000.00 11/26/2021 0.06 0.01 3.25 0.09 3.25 0.09
FFCB 3133EJY60 12/3/2018 none N/A 9,548,000.00 9,942,972.12 9,556,509.23 3/3/2023 0.04 0.04 3.02 0.03 2.99 0.03
FHLB 3130AFH34 12/10/2018 12/10/2019 continuously 25,000,000.00 25,116,075.00 25,000,000.00 12/10/2021 0.07 0.01 3.15 0.08 3.15 0.08
FHLMC 3134GSG74 12/24/2018 12/24/2019 annually 25,000,000.00 25,141,925.00 25,000,000.00 12/24/2021 0.07 0.01 3.15 0.08 3.15 0.08
FHLB 3130AFKK2 12/27/2018 12/27/2019 quarterly 25,000,000.00 25,119,525.00 25,000,000.00 12/27/2023 0.12 0.01 3.30 0.09 3.30 0.09
FHLMC 3134GSL29 12/27/2018 12/27/2019 quarterly 25,000,000.00 25,120,125.00 25,000,000.00 12/27/2023 0.12 0.01 3.30 0.09 3.30 0.09
US Treasury Bill 912796RY7 2/25/2019 none N/A 85,000,000.00 84,014,935.00 83,759,543.05 1/30/2020 0.05 0.05 2.53 0.23 2.53 0.23
FHLMC 3134GS5U5 3/26/2019 9/26/2019 quarterly 25,000,000.00 25,039,075.00 25,000,000.00 3/26/2021 0.05 0.01 2.65 0.07 2.65 0.07
FHLB 3130AG6P5 4/2/2019 7/2/2019 quarterly 25,000,000.00 25,001,900.00 25,000,000.00 4/2/2020 0.02 0.00 2.51 0.07 2.51 0.07
FHLMC 3134GTBS1 4/15/2019 7/15/2019 quarterly 25,000,000.00 25,007,875.00 25,000,000.00 10/15/2020 0.03 0.00 2.50 0.07 2.50 0.07
FHLB 3130AGAL9 4/26/2019 7/26/2019 quarterly 25,000,000.00 25,011,750.00 25,000,000.00 10/26/2020 0.04 0.00 2.55 0.07 2.55 0.07
FHLMC 3134GTGR8 4/26/2019 7/26/2019 quarterly 25,000,000.00 25,011,925.00 25,000,000.00 10/26/2020 0.04 0.00 2.54 0.07 2.54 0.07
FHLB 3130AG5K7 4/30/2019 10/11/2019 quarterly 50,000,000.00 50,025,950.00 50,000,000.00 1/11/2021 0.08 0.02 2.55 0.14 2.55 0.14
FHLB 3130AGDA0 4/30/2019 7/30/2019 quarterly 50,000,000.00 50,026,100.00 50,000,000.00 4/30/2021 0.10 0.00 2.63 0.14 2.63 0.14
Total long term investments 939,548,000.00$ 939,790,447.12$ 938,005,744.34$ 1.53 0.65 2.36 2.40
Balance
BoCC FFIB Concentration Account 40,015,880.23$ 2.26
BoCC SBA Florida LGIP Account 167,124,666.18$ 2.55
Total Funds on Deposit 207,140,546.41$
Total managed portfolio 1,146,688,546.41$
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 Account) pursuant to a contract 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 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-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. 177 Attachment: Investment Exhibits QTR3 FY 2019 (9702 : Investment Report)
US Treasury Notes &
T-Bills
$225,000,000.00
19.6%
BoCC Deposit Account
$40,015,880.23
3.5%
Federal Agencies / GSE
(FHLB,FNMA,FHLMC,FFCB)
$714,548,000.00
62.3%
BoCC SBA Florida LGIP
$167,124,666.18
14.6%
Collier County Portfolio Composition
as of June 30, 2019 (At Par Value)
$1,146,688,546.41
Sector Allowed (%)Current (%)
Sector Maximum
Total Cash Based Interest
Fiscal Year to Date
$12,224,757
Bank Deposit Account 100% 3.5%
U.S. Treasury Notes & T-Bills 100% 19.6%
Federal Agency / GSE 80% 62.3%
SBA Florida LGIP 50% 14.6%
16.J.3.a
Packet Pg. 178 Attachment: Investment Exhibits QTR3 FY 2019 (9702 : Investment Report)
2.26%
2.47%
2.46%
1.50%
1.75%
2.00%
2.25%
2.50%
2.75%
July. 2018 Aug. 2018 Sept. 2018 Oct. 2018 Nov. 2018 Dec. 2018 Jan. 2019 Feb. 2019 Mar. 2019 Apr. 2019 May. 2019 June. 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 SBA Florida Prime
LGIP Account & Synovus Bank 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. 179 Attachment: Investment Exhibits QTR3 FY 2019 (9702 : Investment Report)
2.40%
1.80%
1.00%
1.25%
1.50%
1.75%
2.00%
2.25%
2.50%
2.75%
3.00%
July. 2018 Aug. 2018 Sept. 2018 Oct. 2018 Nov. 2018 Dec. 2018 Jan. 2019 Feb. 2019 Mar. 2019 Apr. 2019 May. 2019 June. 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. 180 Attachment: Investment Exhibits QTR3 FY 2019 (9702 : Investment Report)
3.96%
3.25%
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Jul. 2018 Aug. 2018 Sept. 2018 Oct. 2018 Nov. 2018 Dec. 2018 Jan. 2019 Feb. 2019 Mar. 2019 Apr. 2019 May. 2019 June. 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.
16.J.3.a
Packet Pg. 181 Attachment: Investment Exhibits QTR3 FY 2019 (9702 : Investment Report)