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File #: 17-1807    Version: 1 Name: 12/4/17 - Third Quarter 2017 Investment Portfolio Report
Type: Report or Communication Status: Filed
File created: 12/4/2017 In control: City Council
On agenda: 12/4/2017 Final action: 12/4/2017
Enactment date: Enactment #:
Title: Third Quarter 2017 Investment Portfolio Report
Attachments: 1. City of Ann Arbor Investment Portfolio Report - September 30 2017.pdf

Title

Third Quarter 2017 Investment Portfolio Report

Memorandum

Attached for your information is the City’s investment portfolio report for the third quarter 2017. At September 30, the weighted average yield for the portfolio for the quarter was 1.27%, which exceeded our benchmark by 4 basis points. Our benchmark is the 12-month trailing rate of the 2-year Treasury Note, which earned 1.23% as of September 30. The weighted average effective maturity at quarter end was 613 days.

 

In addition to the securities disclosed in the attached portfolio report, as of September 30, the City owned Certificates of Deposit as described below:

 

Institution                                                               Certificate Amount                                          Maturity Date___                     Yield                     

Bank of Ann Arbor                                          $251,507.82                                                               October 6, 2017                     0.40

Ann Arbor State Bank                     $250,000.00                                                               May 19, 2018                     1.25

Flagstar Bank                                          $251,322.22                                                               October 6, 2017                     0.85

 

The City also invests in a short-term liquidity investment as described below:

 

Institution                                                               Balance at Quarter End                     Maturity Date___                     Yield                     

Michigan Cooperative                     $9,030,829.81                                          NA                                                               1.18

Liquid Assets Securities

System

 

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 $258,652,611.53. If investments were recorded using the fair value method, the value of the portfolio would be $257,442,424.70. Recording investments at fair market value, the portfolio experienced an unrealized loss of $1,210,186.83.

Staff

Prepared by:                       Matthew V. Horning, Treasurer

Reviewed by:                      Tom Crawford, Financial Services Area Administrator and CFO

Approved by:                       Howard S. Lazarus, City Administrator