Title
First Quarter 2016 Investment Portfolio Report
Memorandum
Attached for your information is the City’s investment portfolio report for the first quarter 2016. At March 31, the portfolio annualized year-to-date gross return on investments was 1.16%. The weighted average yield for the portfolio for the quarter was 1.12%, which exceeded our benchmark by 38 basis points. Our benchmark is the 12-month trailing rate of the 2-year Treasury Note, which earned 0.74% as of March 31. The weighted average effective maturity at quarter end was 737 days.
In addition to the securities disclosed in the attached portfolio report, the City owns Certificates of Deposit as described below:
Institution Certificate Amount Maturity Date
Bank of Ann Arbor $250,000.00 April 12, 2016
Ann Arbor State Bank $250,000.00 May 19, 2018
The Governmental Accounting Standards Board requires under Statement 31 that all investments be recorded at fair value versus amortized cost. At quarter end, the amortized cost value of the portfolio was $224,261,286.59. If investments were recorded using the fair value method, the value of the portfolio would be $225,449,217.88. Recording investments at fair market value, the portfolio experienced an unrealized gain of $1,187,931.29.
Staff
Prepared and
Reviewed by: Matthew V. Horning, Treasurer and Interim Financial Services Administrator and CFO
Approved by: Tom Crawford, Interim City Administrator