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File #: 20-0572    Version: 1 Name: 5/18/20 First Quarter 2020 Investment Portfolio Report
Type: Report or Communication Status: Filed
File created: 5/18/2020 In control: City Council
On agenda: 5/18/2020 Final action: 5/18/2020
Enactment date: Enactment #:
Title: First Quarter 2020 Investment Portfolio Report
Attachments: 1. 03-31-2020 City of Ann Arbor.pdf

Title

First Quarter 2020 Investment Portfolio Report

Memorandum

Attached for your information is the City’s investment portfolio report for the First Quarter 2020. At March 31, the weighted average yield for the portfolio for the quarter was 1.89%, which outperformed our benchmark by 26 basis points. Our benchmark is the 12-month trailing rate of the 2-year Treasury Note, which earned 1.63% as of March 31. The weighted effective maturity at quarter end was 657 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                         $16,677,117.13                                                  NA                                                      1.45

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 $257,224,381.47. If investments were recorded using the fair value method, the value of the portfolio would be $263,898,424.10. Recording investments at fair market value, the portfolio experienced an unrealized gain of $6,674,042.63.

Staff

Prepared by:                     Michael J. Pettigrew, City Treasurer

Reviewed by:                     Matthew V. Horning, Interim Financial Services Area Administrator & CFO

Approved by:                      Tom Crawford, Interim City Administrator