HomeMy WebLinkAboutInvestment Report - Oct. '07 � � City of Pa/m Desert ���
� � City and Redevelopment Agency Portfolios � �
COMPLiANCE ANALYSIS AND INVESTMENT REPORT
October 2007
Paul S. Gibson, C.C.M.T., Treasurer
Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer
Treasurer's Commentary
On October 31, the Federal Open Market Committee cut the Federal Funds Rate by 25 basis points to 4.50%. The FOMC is
caught between a collapsing housing market(recession risk), and rising commodity prices and a falling dollar(inflation risk).
Merrill Lynch forecasts a 2.00% Federal Funds Rate by June 2009, based upon projected U.S. economic growth of 1.4% in
2008, and 2.0% in 2009. This assumes that housing will contract in 2008, and consumer spending will be crippled by tight
credit, high oil prices, real estate deflation, and weakening employment. The FOMC will next meet on December 11.
Banking remains in turmoil. Freddie Mac reported a$2.2 billion loss for 3Q2007, and may have to cut its dividend, and raise
capital. Citigroup, which has a $55 billion exposure to subprime securities, is expected to report an $8-11 billion writedown
for 4Q2007. UBS is expected to report a $7 billion writedown for the same period. Deutsche Bank estimates global subprime
losses at$50 billion, and believes that they may rise to$400 billion. The CEOs of Citigroup and Merrill Lynch have resigned.
Bond insurers may face lower credit ratings since they have insured $100 billion of securities backed by risky mortgages. The
plummeting U.S. dollar is adding to the liquidity squeeze by prompting foreign investors to go elsewhere. Gold is currently
' selling for around $800 an ounce. The OPEC countries and China are discussing dropping the U.S. dollar as a currency peg.
Staff deemed it prudent to sell a Merrill Lynch bond prior to maturity, at a profit, due to the firm's declining credit ratings.
` ��s �� c.c.�r. r.
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
OCT-07 SEP-07 AUG-07 JUL-07 JUN-07 MAY-07
cirr
Month-End Book Value"` $ 244,113 $ 233,947 $ 245,850 $ 256,143 $ 243,098 $ 257,259
Month-End Market Value"' $ 244,790 $ 234,328 $ 245,945 $ 256,176 $ 242,909 $ 257,049
Paper Gain(Loss) $ 677 $ 381 $ 95 $ 33 $ (189) $ (210)
Prior Year Book Variance $ 86,710 $ 71,505 $ 76,483 $ 85,202 $ 69,826 $ 77,552
Interest Eamings $ 981 $ 957 $ 1,045 $ 1,066 $ 1,029 $ 1,067
Yield-To-Maturity 5.05% 5.01% 5.09% 5.11% 5.11% 5.11%
Weighted Maturity(Days) 444 426 415 308 324 355
Effective Duration 0.79 0.76 0.75 0.45 0.50 0.50
RDA
Month-End Book Value"' $ 250,763 $ 279,542 $ 289,864 $ 293,026 $ 302,709 $ 311,195
Month-End Market Value"' $ 251,297 $ 280,070 $ 290,104 $ 293,073 $ 302,676 $ 311,011
Paper Gain(Loss) $ 534 $ 528 $ 240 $ 47 $ (33) $ (184)
Prior Year Book Variance $ 134,543 $ 152,500 $ 148,263 $ 145,329 $ 158,249 $ 173,739
Interest Earnings $ 1,027 $ 1,167 $ 1,233 $ 1,270 $ 1,271 $ 1,191
Yield-To-Matu�ity 4.87% 5.02% 5.07% 5.10% 5.11% 5.10%
Weighted Maturity(Days) 282 305 314 279 274 267
Effective Duration 0.41 0.40 0.47 0.39 0.40 0.42
"' Omits SLGSs.
R. Consent Calendar
C. City's/Agency's Compliance Ar•alysis ar.d Investment Report
� f��r Septembc:r 2007 and October 2007 (.TOINT CONSIDERATION WITH THE PALNi
DESERT REDF.VEI,OPMENT AGENCY) .
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k�`� : � , �
� �;I 2. ,. . 2 f F�Ie, BY RDA
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�-►nel'+ �riginal on file with City Clerk's Office
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City of Palm Desert-- Portfolio Characteristics
October 31, 2007
(in thousands)
_. _._._ . _ _
As�einq Interval Market Value �,
< 1 M $ 34,697 i General Fund Ageing'
<2M _ �
<3M 1,992 100 - ---- -. __..:__-------_..._____.. ;
I
<6M 8.018 , „ 80
< 1 YR 18,883 I o 60 '
<2YR 21,447 � •o
<3YR 50,205 i � 40 35
24
<4YR 8,195 a 20 �3 15
<5YR - I � � 6 �� 6 0 0
I 0 I
>5YR - < 1 M <2M <3M <6M < < < < < >
Total: s 143,437 � 1YR 2YR 3YR 4YR 5YR 5YR �
\
Credit Quality
Ratins�s" Market Value qqq
AAA $ 188.445 78%
AA 3�,102 A
7%
A 16,111
Unrated" 867 AA Unrated"
Total: S 242,525 �5% 0%
Sector Market Value Asset Allocation
MMF $ 60,309 Agencies
Agencies 51,175 21°/a MTNs
MTNs 61,296 � 25%
CAMP 35,806
RDA Loan 32,785 MMF
UB Sweep 287 25%
LAIF 867 CAMP
CP _ 15%
RDA Loan
Total: $ 242,525 140�,
Month Citv Yield LAIF Yield Variance Performance
Nov06 5.01 5.13 -0.12
Dec 5.03 5.13 -0.09 5.4 ---- ---
Jan07 5.06 5.16 -0.10
Feb 5.08 5.18 -0.11
Mar 5.13 5.21 -0.08 �
Apr 5.13 5.22 -0.10 m 4'9
May 5.11 5.25 -0.13 }
Jun 5.11 5.25 -0.14
Jul 5.11 5.26 -0.15 4.4
Aug 5.09 5.25 -0.17 Nov06 Dec Jan07 Feb Mar Apr May Jun Jul Aug Sep Oct
Sep 5.01 5.23 -0.22
Oct 5.05 5.14 -0.09 � �� ' ' �
` Standard and Poors
" LAIF, and City Loan to RDA Page 2
City of Palm Desert
Portfolio Holdings
October 31, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P
Medlum-Term Notes
$ 3,023,000 AMERICAN HONDA FINANCE 4.25 3/11/08 $ 3,014,342 5.08 99.73 $ 3,014,871 A1 A+
$ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,950,218 5.01 100.68 $ 2,939,751 Aa2 AA-
$ 15,270,000 CITIGROUP 4.13 2122110 $ 15,012,495 4.91 98.33 $ 15,014,900 Aa1 AA
$ 2,035,000 CITIGROUP 4.13 2/22/10 $ 2,000,683 4.91 98.33 $ 2,001.003 Aa1 AA
$ 1,000,000 CITIGROUP 4.63 8/3/10 $ 985,696 5.19 99.41 $ 994,055 Aa1 AA
$ 4,000,000 CITIGROUP 4.63 8/3/10 $ 3,942,784 5.19 99.41 $ 3,976,220 Aa1 AA
$ 2,000,000 GENERAL ELECTR{C 3.60 10/15l08 $ 1,975,385 4.99 98.82 $ 1,976,424 Aaa AAA
$ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 1,994,802 5.63 100.08 $ 2,036,642 Aaa AAA
$ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,952,520 5.65 105.73 $ 1,999,411 Aaa AAA
$ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,026,344 5.67 103.56 $ 2,071,122 Aaa AAA
$ 2,000,000 IBM 3.80 2!1/OS $ 1,993,202 5.13 99.72 $ 1,994,436 A1 A+
$ 2,000,000 JP MORGAN CHASE 3.70 1/15/08 $ 1,993,827 5.25 99.74 $ 1,994,834 Aa3 A+
$ 2.000,000 MERRILL LYNCH 3.13 7/15/08 $ 1,961,426 5.49 98.47 $ 1,969,350 A1 A+
$ 3,080,000 WACHOVIA 3.63 2/17/09 $ 3,028,091 5.02 97.96 $ 3,017,017 Aa3 A+
$ 2,000,000 WACHOVIA 3.50 8/15/08 $ 1,974,801 5.18 98.83 $ 1,976,608 Aa3 A+
$ 2,000,000 WACHOVIA 7.80 8/18/10 $ 2,142,743 5.02 107.18 $ 2,143,540 Aa3 A+
$ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,062,713 4.93 103.58 $ 2,071,662 Aa2 AA
$ 4,000,000 WEL�S FARGO BANK 6.38 8!1/11 $ 4,164,920 5.13 104.02 $ 4,160,856 Aa1 AA-
$ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,976,642 5.09 99.03 $ 1,980,682 Aa1 AA-
$ 2,025,000 WELLS FARGO BANK 3.13 4/1/09 $ 1,975,774 4.76 97.47 $ 1,973,668 Aa1 AA-
$ 2,020,000 WELLS FARGO BANK 4.20 1/15/10 $ 1,988,035 4.92 98.48 $ 1,989,241 Aa1 AA-
S 61,299,000 Subtotal S 61,117,443 5.11 S 61,296,295
Federal Agencfes--Coupon
$ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,011,705 4.61 100.94 $ 3,028,125 Aaa AAA
$ 3,000,000 FED FARM CREDiT BANK 4.78 5/3/10 $ 3,011,705 4.61 100.94 $ 3,028,125 Aaa AAA
$ 2,015,000 FED FARM CREDIT BANK 3.38 7/15/08 $ 1,997,031 4.68 99.19 $ 1,998,628 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/OS $ 1,938,982 4.89 99.19 $ 1,983,750 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.38 9111/09 $ 2,974,832 5.59 100.03 $ 3,000,938 Aaa AAA
$ 1,980,000 FED HOME LOAN BANK 4.75 12/12/08 $ 1,977,240 4.87 100.31 $ 1,986,188 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 2,994,126 5.40 100.06 $ 3,001,875 Aaa AAA
$ 2,049,000 FED HOME IOAN BANK 4.00 12I15109 $ 1,988,109 4.87 99.34 $ 2,035,553 Aaa AAA
$ 3,030,000 FED HOME LOAN BANK 4.00 3/10/08 $ 3,019,471 5.02 99.75 $ 3,022,425 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,908,435 4.88 98.34 $ 1,966,875 Aaa AAA
$ 2,049,000 FED HOME LOAN BANK 4.00 12/15/09 $ 2,014,962 4.87 99.34 $ 2,035,553 Aaa AAA
$ 2,033,000 FED HOME IOAN MTG CORP 4.25 7l15l09 $ 2,013,423 4.87 99.81 $ 2,029,188 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,972,005 4.88 99.61 $ 1,992,202 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/3/08 $ 1,997,014 5.06 100.46 $ 2,009,176 Aaa AAA
$ 2,062,0�0 FED NOME LOAN MTG CORP 4.13 7112/10 $ 1,992,387 5.47 99.34 $ 2,048,468 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.00 7/23/08 $ 1,997,034 5.07 100.30 $ 2,005,978 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,990,733 4.88 100.56 $ 2,011,250 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,936,839 5.47 99.63 $ 1,992,500 Aaa AAA
"U"= Unrated Page 3
City of Palm Desert
Portfolio Holdings
October 31, 2007
Market Ratings
Par Value Issuer Coupon Matu�ity Cost YTM Price Value Moody's S8P
Federal Agencles-Coupon (continued)
$ 2,000,000 FED NATIONAL MTG ASSOC 3.88 11/17/08 $ 1,950,638 4.87 99.34 $ 1,986,875 Aaa AAA
S 43,218,000 Subtotal S 42,686,671 5.24 s 43,163,673
Federal Agencies-- Callable
$ 2,000,000 FED HOME LOAN BANK 4.20 7/18/08 $ 1,990,964 4.88 99.75 $ 1,995,000 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.05 8/22/08 $ 1,999,798 5.06 100.39 $ 2,007,786 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.30 8/13/09 $ 2,000,000 5.30 100.23 $ 2,004,568 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 5.38 2/1110 $ 2,000,000 5.37 100.22 $ 2,004,375 Aaa AAA
S 8,000,000 Subtotal ; 7,990,762 5.15 S 8,011,729
Local Government Investment Pool
$ 865,735 L.A.I.F. 0.00 11/1/07 $ 865,735 5.14 100.00 $ 865,735 U U
. S 865,735 Subtotal S 865,735 5.14 S 865,735
Local Government Investment Pool
$ 34,507,962 C.A.M.P. 0.00 11/1/07 $ 34,507,962 5.11 100.00 $ 34,507,962 U AAA
$ 1,298,278 CA.M.P. (HOUSING) 0.00 11/1/07 $ 1,298,278 5.11 100.00 $ 1,298,278 U AAA
S 35,806,240 Subtotal s 35,806,240 5.11 a 35,806,240
Money Market Fund
$ 60,309,467 WF AOVANTAGE GOVT MMF 0.00 11/1l07 $ 60,309,467 4.76 100.00 $ 60,309,467 Aaa AAA
S 60,309,467 Subtotai S 60,309,467 4.76 S 60,309,467
Money Market Fund
$ 286,640 REPO SWEEP 0.00 11/1/07 $ 286,640 4.10 100.00 $ 286,640 P1 A1
S 286,640 Subtotal S 286,640 4.10 S 286,640
City Loan to RDA
$ 32,785,480 CITY OF PALM DESERT 0.00 11/1l37 $ 32,785,480 5.14 100.00 $ 32,785,480 U U
5 32,785,480 Subtotal S 32,785,480 5.14 $ 32,785,480
Total Investments
S 242,570,562 S 241,848,438 5.05 s 242,525,258
Cash
$ 875,855 CITY MAIN CHKG 0.00 11/1/07 $ 875,855 0.00 100.00 $ 875,855 U U
$ 634,786 DESERT WILLOW CHKG 0.00 11/1l07 $ 634,766 0.00 100.00 $ 634,766 U U
$ 591,843 MONTEREY 170 CHKG 0.00 11/1/07 $ 591,843 0.00 100.00 $ 591,843 U U
$ 117,875 RECREATIONAL FAC CHKG 0.00 11/1/07 $ 117,875 0.00 100.00 $ 117,875 U U
$ 22,288 CITY/FALCON CREST HOA 0.00 11/1/07 $ 22,288 0.00 100.00 $ 22,288 U U
"U" = Unrated Page 4
City of Palm Desert
Portfolio Holdings
October 31, 2007
Market Ratings
Par Vaiue Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Cash (continued)
$ 22,250 ART, FOOD 8�WINE CHKG 0.00 11/1/07 $ 22,250 0.00 100.00 $ 22,250 U U
S 2,264,898 Subtotal $ 2,264,898 S 2,264,898
Total Investments and Cash
S 244,835,460 S 244,113,338 5 244,790,156
%of Portfolio
Cor orate Issuers (Market Value)
AMERICAN HONDA FINANCE 1.23%
BANK OF AMERICA 1.20%
CITIGROUP 8.98%
GENERAL ELECTRIC 3.30%
IBM 0.81%
JP MORGAN CHASE 0.81°/a
MERRILL LYNCH 0.80%
WACHOVIA 2.92%
WAL-MART 0.85%
WELLS FARGO BANK 4.13%
Recent Credit Downgrades: S8P Moody's Outlook
MERRILL LYNCH
9/30/07 AA Aa3
10/24/07 A+ A1 NE(3ATIVE
°/a of PortfoHo
Agency Issuers (Market Value)
FED FARM CREDIT BANK 4.10%
FED HOME LOAN BANK 7.78%
FED HOME LOAN MTG CORP 5.76%
FED NATIONAL MTG ASSOC 3.27%
"U"= Unrated Page 5
Palm Desert Redevelopment Agency -- Portfolio Characteristics
October 31, 2007
(in thousands)
Aqein� Interval Market Value �portfolio Ageing w10 SLGSs' �
< 1 M $ 5,059 � �
<2M - i
�3M ' �00 --- �----- ----------.. _ ;
<6M 9,967 80 i
< 1 YR 13,gg2 � 70 �
<2YR 31,060 0 50 4� `
<3YR 11,073 � 40 j
0 30 �g
<4YR 4,051 a 2p 13 15 ''
<5YR _ ; 10 � 0 0 5 0 0 ;
; p _ i
>5YR - < 1 M <2M <3M <6M < < < < < > '
Total: a 75,102 ` 1YR 2YR 3YR 4YR SYR 5YR �
i
uallt " Market Value Credit quality
AAA $ 218,757 �
AA 12,142 87%
A 9,001 Unrated"
Unrated '" 10,133 q°�, qq A
Total: S 250,033 5%qo�,
Sector Market Value Asset Allocation
MMF $ 166,452 MMF
Agencies 48,943 67%
LAIF 10,133
MTNs 21,143
CAMP 3,362
CP -
Treasuries _ M9 Ns �IF A 20 o�es
Total: S 250,033 4%
Month RDA Yield LAIF Yleld Variance Performance
Nov06 4.95 5.13 -0.18
Dec 4.95 5.13 -0.18 5.4 ----------- -------
Jan07 5.05 5.16 -0.11
Feb 5.06 5.18 -0.12
0 5.0
Mar 5.11 5.21 -0.11
Apr 5.09 5.22 -0.13 d
May 5.10 5.25 -0.15 } 4.6
Jun 5.11 5.25 -0.14
Jul 5.10 5.26 -0.16 4.2
Aug 5.07 5.25 -0.19 NovO6DecJan07Feb Mar Apr May Jun Jul Aug Sep Oct
Sep 5.02 5.23 -0.21
OCt 4.87 5.14 -0.27 ■LA1FYiefd •RDAY�e1d
' Standard and Poors
" LAIF Page 6
Palm Desert Redevelopment Agency
Portfolio Holdings
October 31, 2007
Market Ratings
Par Value issuer Coupon Maturity Cost YTM Prlce Value Moody's S8P
Medium-Term Notes
$ 4,000,000 CITIGROUP 6.20 3/15/09 $ 4,054,845 5.13 101.68 $ 4,067,364 Aa1 AA-
$ 4,070,000 JP MORGAN CHASE 3.50 3/15/09 $ 3,985,151 5.12 98.00 $ 3,988,522 Aa3 A+
$ 3,055,000 JP MORGAN CHASE 3.50 3/15/09 $ 2,991,311 5.12 98.00 $ 2,993,842 Aa3 A+
$ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,015,921 5.00 100.93 $ 2,018,602 Aa3 A+
$ 3,000,000 WAL-MART 6.88 8/10/09 $ 3,106,222 4.76 103.58 $ 3,107,493 Aa2 AA
$ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,985,910 4.96 99.10 $ 1,982,030 Aa1 AA-
$ 3,000,000 WELLS FARGO BANK 4.13 3/10/08 $ 2,989,068 5.18 99.49 $ 2,984,661 Aa1 AA-
S 21,125,000 Subtotal s 21,128,429 5.05 S 21,142,514
Federal Agencies-- Coupon
$ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,054,878 4.88 103.85 $ 2,077,084 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,996,153 4.87 100.72 $ 2,014,375 Aaa AAA
$ 4,900,000 FED FARM CREDIT BANK 4.90 9/22/10 $ 4,933,924 4.65 101.34 $ 4,965,844 Aaa AAA
� $ 3,970,000 FED HOME LOAN BANK 425 9/12/08 $ 3,950,445 4.79 99.75 $ 3,960,075 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 425 9l12lOS $ 3,950,445 4.79 99.75 $ 3,960,075 Aaa AAA
$ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,462,248 5.59 100.03 $ 4,501,406 Aaa AAA
$ 4,000,000 FED HOME LOAN BANK 4.63 9/12/OS $ 3,992,168 4.84 100.06 $ 4,002,500 Aaa AAA
$ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,972,970 4.89 99.09 $ 1,986,830 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,961,200 5.49 101.31 $ 2,026,250 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11111 $ 1,960,682 5.50 101.31 $ 2,026,250 Aaa AAA
$ 1,990,000 FED HOME LOAN BANK 4.00 3/10/OS $ 1,982,031 5.16 99.75 $ 1,985,025 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,067,512 5.54 106.50 $ 2,130,000 Aaa AAA
$ 3,734,000 FED HOME LOAN MTG CORP 6.86 9l15l10 $ 3,660,275 5.54 106.50 $ 3,976,710 Aaa AAA
$ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15/09 $ 4,277,169 4.89 104.06 $ 4,323,797 Aaa AAA
S 43,224,000 Subtotal S 43,422,100 5.07 S 43,936,221
Federal Agencies--Callable
$ 5,000,000 FEDERAL HOME LOAN BANK 5.25 2/1/2008 $ 5,000,000 5.25 100.13 $ 5,006,250 Aaa AAA
S 5,000,000 Subtotal ; 5,000,000 5.25 S 5,006,250
Local Government Investment Pool
$ 3,742,305 L.A.I.F. 0.00 11/1/07 $ 3,742,305 5.14 100.00 $ 3,742,305 U U
$ 1,070,969 L.A.I.F. (HOUSING AUTH) 0.00 11/1/07 $ 1,070,969 5.14 100.00 $ 1,070,969 U U
$ 5,320,156 L.A.I.F. BOND PROCEEDS 0.00 11/1/07 $ 5,320,156 5.14 100.00 $ 5,320,156 U U
5 10,133,430 Subtotal S 10,133,430 5.14 S 10,133,430
Local Government Investment Pool
$ 3,362,497 C.A.M.P. 0.00 11/1/07 $ 3,362,497 5.11 100.00 $ 3,362,497 U AAA
S 3,362,497 Subtotal S 3,362,497 5.11 s 3,362,497
"U"= Unrated Page 7
Palm Desert Redevelopment Agency
Portfolio Holdings
October 31, 2007
Market Ratings
Par Value Issuer Coupon Matu�ity Cost YTM Price Value Moody's SB�P
Local Government Investment Pool
$ 166,452,451 WF ADVANTAGE GOVT MMF 0.00 11/1/07 $ 166,452,451 4.76 100.00 $ 166,452,451 Aaa AAA
E 166,452,451 Subtotal S 166,452,451 4.76 S 166,452,451
Total Investments
S 249,297,379 S 249,498,908 4.87 5 250,033,363
Cash
$ 914,570 HOUSING AUTH CHKG 0.00 11/1/07 $ 914,570 0.00 100.00 $ 914,570 U U
$ 349,290 HOUSING AUTH TRUST 0.00 11l1/07 $ 349,290 0.00 100.00 $ 349,290 U U
S 1,263,860 Subtotal s 1,263,880 S 1,263,860
Total Investments and Cash
S 250,561,239 S 250,762,768 S 251,297,223
%of Portfolio
Corporate Issuers (Market Value)
CITIGROUP 1.62%
JP MORGAN CHASE 2.78%
FIRST UNION NAT BANK 0.80%
WAL-MART 1.24%
WELLS FARGO BANK 1.98%
%of Portfolio
Agency Issuers (Market Value)
FED FARM CREDIT BANK 3.60%
FED HOME LOAN BANK 11.72%
FED HOME LOAN MTG CORP 2.43%
FED NATIONAL MTG ASSOC 1.72%
"U"= Unrated Page 8
STATEMENT OF COMPLIANCE
The investment portfolios of the City of Palm Desert("City")and the Palm Desert Redevelopment Agency("RDA")are
governed by federal, state, and local law. The City Treasurer's"Statement of Investment Policy"is more restrictive than the
California Government Code. The Palm Desert Audit, Investment, and Finance Committee and the Palm Desert City
Council review the Statement of Investment Policy annually.
For the monlh ended October 31,2007,the City and the RDA investment po►tfofios were in compliance with all applicable
federai, state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment
strategies, based upon the stated objectives of safety, liquidity,and yield(in order of priority).
Barring unforeseen events, the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert
and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the Ciry or the RDA
portfolio could be liquidated in order to meet any significant,unexpected cash requirements.
Bloomberg L.P.and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the
market value of all securities in the City and the RDA investment portfolios. State and Local Govemment Series securities
are held in escrow accounts, and are therefore not included in this repo�t as assets. All balances are bank balances.
Respectfully submitted on November 27,2007,
�'accLS. .�'i��o�w, C.C.�f.T. ''
City Treasurer
SUMMARY OF AUTHORIZED INVESTMENTS
California Government Code City Investment Policy
CA Govt Maximum Maximum Quality Maximum Maximum Quality %of City %of RDA
Code Investment Category Maturity Limit SB�P/Mdys Maturiry Limit S&P/Mdys Portfolio Portfolio
53601 a Palm Desert Bonds 5 Years No Limit Not Authorized 1
53601 b U.S.Treasuries 5 Years No Limit 5 Years No Limit 0.0% 0.0%
53601(c) CA State Debt 5 Years No Limit Not Authorized
53601 d CA Local A enc Debt 5 Years No Limit Not Authorized
53601 e Federal A encies 5 Yea►s No Limit 5 Years 30% 6% 21.0% 19.4%
53601 Bankers's Acce tances 180 Da s 40% 180 Da s 40% A-1 &P-1 - -
53601( Commercial Pa er 270 Da s 25% A-1+or P-1 270 Da s 25% A-1+or P-1 0.0% 0.0%
53601 h Ne oliable CDs 5 Years 30% 5 Years 30% AA-or Aa3 - -
53601 i Repos 1 Year No Limit 30 Da s 20% AAA�Aaa - -
53601(i) Reverse Repos 92 Da s 20% Not Authorized
53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 25.3% 8.5%
53601 k) Mutual Funds 90 Da s 20% AAA 8 Aaa 90 Da s 20% (2) AAA 8�Aaa 25.1% 66.7%
53601(I) Trust Indenture Debt Not Authorized
53601(m Secured Bank De osits 5 Years No Limit Not Authorized
53601(k) Local Govemment AAA&Aaa AAA 8�Aaa
Investment Pools 90 Da s 20% or Advisor 90 Da s 20% (2) or Advisor 14.8% 1.4%
53601(n) Mo�tgage-Backed 5 Years 20% A(Issuer)8� Not Authorized
Securities AA Securit
LAIF No Limit No Limit 0.4% 4.1%
(1) The Ciry loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 86.5% 100.0%
2) Maximum limit for mutual funds and local govemment investment pools, excludin bond proceeds.
` Certi(ied Califomia Municipal Treasurer Page 9