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File #: 18-1203    Version: 1 Name: 8/9/2018 - Second Quarter 2018 Investment Portfolio Report
Type: Report or Communication Status: Filed
File created: 8/9/2018 In control: City Council
On agenda: 8/9/2018 Final action: 8/9/2018
Enactment date: Enactment #:
Title: Second Quarter 2018 Investment Portfolio Report
Attachments: 1. 2018 Q2 Portfolio Report.pdf

Title

Second Quarter 2018 Investment Portfolio Report

 

Memorandum

Attached for your information is the City’s investment portfolio report for the second quarter 2018. At June 30, the weighted average yield for the portfolio for the quarter was 1.48%, which underperformed our benchmark by 47 basis points. Our benchmark is the 12-month trailing rate of the 2-year Treasury Note, which earned 1.95% as of June 30. The weighted average effective maturity at quarter end was 551 days.

 

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

 

Institution                                                               Certificate Amount                                          Maturity Date___                     Yield                     

Bank of Ann Arbor                                          $253,036.00                                                               April 5, 2019                                          0.85

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

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                     $79,388.61                                                               NA                                                               2.11

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 $223,293,108.32. If investments were recorded using the fair value method, the value of the portfolio would be $219,911,656.00. Recording investments at fair market value, the portfolio experienced an unrealized loss of $3,381,452.32.

 

Staff

Prepared by:                       Matthew V. Horning, Treasurer

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

Approved by:                       Howard S. Lazarus, City Administrator