Title
Third Quarter 2016 Investment Portfolio Report
Memorandum
Attached for your information is the City’s investment portfolio report for the third quarter 2016. At September 30, the weighted average yield for the portfolio for the quarter was 1.17%, which exceeded our benchmark by 38 basis points. Our benchmark is the 12-month trailing rate of the 2-year Treasury Note, which earned 0.79% as of September 30. The weighted average effective maturity at quarter end was 723 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 $250,750.00 January 9, 2017
Ann Arbor State Bank $250,000.00 May 19, 2018
Flagstar Bank $250,000.00 January 9, 2017
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 $247,927,440.30. If investments were recorded using the fair value method, the value of the portfolio would be $248,856,677.25. Recording investments at fair market value, the portfolio experienced an unrealized gain of $929,236.95.
Staff
Prepared by: Matthew V. Horning, Treasurer
Reviewed by: Tom Crawford, Financial Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator