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File #: 19-0806    Version: 1 Name: 5/6/19 First Quarter 2019 Investment Portfolio Report
Type: Report or Communication Status: Filed
File created: 5/6/2019 In control: City Council
On agenda: 5/6/2019 Final action: 5/6/2019
Enactment date: Enactment #:
Title: First Quarter 2019 Investment Portfolio Report
Attachments: 1. First Quarter 2019 Investment Portfolio Report.pdf


First Quarter 2019 Investment Portfolio Report


Attached for your information is the City’s investment portfolio report for the first quarter 2019. At March 31, the weighted average yield for the portfolio for the quarter was 1.93%, which underperformed our benchmark by 68 basis points. Our benchmark is the 12-month trailing rate of the 2-year Treasury Note, which earned 2.61% as of March 31. The weighted average effective maturity at quarter end was 497 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                                          $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                     $11,122,870.69                                          NA                                                               2.55

Liquid Assets Securities



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 $250,187,595.07. If investments were recorded using the fair value method, the value of the portfolio would be $249,204,969.75. Recording investments at fair market value, the portfolio experienced an unrealized loss of $982,625.32.


Prepared by:                       Matthew V. Horning, Treasurer

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

Approved by:                       Howard S. Lazarus, City Administrator