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File #: 20-0079    Version: 1 Name: 2/18/20 Fourth Quarter 2019 Investment Portfolio Report
Type: Report or Communication Status: Filed
File created: 2/18/2020 In control: City Council
On agenda: 2/18/2020 Final action: 2/18/2020
Enactment date: Enactment #:
Title: Fourth Quarter 2019 Investment Portfolio Report
Attachments: 1. 12-31-2019 City of Ann Arbor.pdf

Title

Fourth Quarter 2019 Investment Portfolio Report

Memorandum

Attached for your information is the City’s investment portfolio report for the second quarter 2019. At December 31, the weighted average yield for the portfolio for the quarter was 1.88%. Our benchmark is the 12-month trailing rate of the 2-year Treasury Note, which earned 1.97 as of December 31. The weighted average effective maturity at quarter end was 683 days.

 

In addition to the securities disclosed in the attached portfolio report, as of March 31, the City owned Certificates of Deposit as described below:

 

Institution                                 Certificate Amount        Maturity Date                                          Yield   

Bank of Ann Arbor                             $254,649.10        April 3, 2020                                               1.10

Ann Arbor State Bank                         $259,556.79        May 19, 2021                                               2.10

Flagstar Bank                                                  $258,548.26     October 5, 2020                              2.43

 

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

 

Institution                                 Balance at Quarter End                        Maturity Date                      Yield   

Michigan Cooperative                        $3,342,735.27                             NA                                  1.82

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 $282,232,130.25. If investments were recorded using the fair value method, the value of the portfolio would be $283,330,249.40. Recording investments at fair market value, the portfolio experienced an unrealized gain of $1,098,119.15.

.Staff

Prepared by:                     Michael J. Pettigrew, City Treasurer

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

Approved by:                       Howard S. Lazarus, City Administrator