Title
Investment Portfolio Report - 4th Quarter 2020
Memorandum
Attached for your information is the City’s investment portfolio report for the fourth quarter 2020. At December 31, the weighted average yield for the portfolio for the quarter was 1.29 %. Our benchmark is the 12-month trailing rate of the 2-year Treasury Note, which earned 0.39 as of June 30. The weighted average effective maturity at quarter end was 565 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 $258,281.48 October 25, 2021 0.40
Ann Arbor State Bank $259,556.79 May 19, 2021 2.10
Flagstar Bank $268,164.82 April 5, 2022 0.35
The City also invests in a short-term liquidity investment as described below:
Institution Balance at Quarter End Maturity Date Yield
Michigan Cooperative $6,228,585.08 NA 0.0787%
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 $297,224,478.74. If investments were recorded using the fair value method, the value of the portfolio would be $302,013,427.95. Recording investments at fair market value, the portfolio experienced an unrealized gain of $4,788,949.21.
.Staff
Prepared by: Michael J. Pettigrew, City Treasurer
Reviewed by: Matthew V. Horning, Interim CFO & Financial Services Area Administrator
Approved by: Tom Crawford, City Administrator