Title
Fourth Quarter 2017 Investment Portfolio Report
Memorandum
Attached for your information is the City’s investment portfolio report for the fourth quarter 2017. At December 31, the weighted average yield for the portfolio for the quarter was 1.35%, which underperformed our benchmark by 8 basis points. Our benchmark is the 12-month trailing rate of the 2-year Treasury Note, which earned 1.43% as of December 31. The weighted average effective maturity at quarter end was 621 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 $252,262.34 July 3, 2018 0.40
Ann Arbor State Bank $250,000.00 May 19, 2018 1.25
Flagstar Bank $252,924.40 April 8, 2019 1.45
The City also invests in a short-term liquidity investment as described below:
Institution Balance at Quarter End Maturity Date___ Yield
Michigan Cooperative $3,364,230.76 NA 1.34
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 $252,522,839.24. If investments were recorded using the fair value method, the value of the portfolio would be $250,246,672.75. Recording investments at fair market value, the portfolio experienced an unrealized loss of $2,276,166.49.
Staff
Prepared by: Matthew V. Horning, Treasurer
Reviewed by: Tom Crawford, Financial Services Area Administrator and CFO
Approved by: Howard S. Lazarus, City Administrator