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HomeMy WebLinkAboutInvstmnt Rprt - Mar 2010 � ,,...,,,,,� � City af Paim D�sert ,,._„ � qU\ � City and R�development A�ency Partfolios �. � CQMPLIANCE ANALY�IS ANU INVESTMENT REP�RT Maech 201p Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer Treasurer's Commentary The Federal Open Market Committee (FOMC)will meet next on April 27-28. No action on interest rates is expected. The FOMC acknowledges that a recovery is underway, but is wary of raising interest rates too soon, and triggering a double-dip recession. If anything, the low rate of inflation appears to be slowing further. Producer pricing power remains weak due to high levels of unemployment and weak wage growth. U.S. stock and bond markets approached milestones in April with the Dow Jones Industrial Average closing above 11000, and yields on 10-year U.S.Treasury notes trading above 4.00%. This was prompted by optimism over corporate profits, a recovering economy, and debt relief for Greece. Small investors, however, remained on the sidelines. Retail sales surged 1.6% in March, helped by federal tax refunds. The housing sector continues to be weak, however, and commercial real estate remains troubled. At this point, the recovery has been one of output, not jobs. The SEC filed a civil action for fraud against Goldman Sachs alleging that the firm had misled clients who had purchased derivative securities that quickly lost value. This action is part of a widening international probe of Goldman's operations. 'The SEC's lawsuit could cost Goldman as much as$700 million in civil fines and investor payments. The City of Palm Desert has no Goldman Sachs holdings since Goldman Sachs is not on the City's approved issuer list. ��s G�� c.c.M r City Treasurer PORTFOLIO STATISTICS Dollars in Thousands MAR-10 FEB-10 JAN-10 DEC-09 NOV-09 OCT-09 CITY Month-End Book Value""" $ 197,952 $ 200,124 $ 218,094 $ 202,229 $ 201,381 $ 239,207 Month-End Market Value"" $ 198,665 $ 201,136 $ 219,068 $ 203,250 $ 202,521 $ 240,435 PaperGain(Loss) $ 713 $ 1,012 $ 974 $ 1,021 $ 1,140 $ 1,228 Prior Year Book Variance $ (18,722) $ (19,345) $ 5,356 $ 3,176 $ (12,226) $ 21,577 Interest Earnings 227 $ 227 $ 221 $ 314 $ 315 $ 326 Yield-To-Maturity 1.43% 1.41% 1.31% 1.82% 1.93% 1.69% Weighted Maturity(Days) 465 455 419 230 255 246 Effective Duration 0.35 0.35 0.35 0.15 0.17 0.17 RDA Month-End Book Value""`" $ 295,407 $ 304,221 $ 287,243 $ 256,271 $ 261,734 $ 226,007 Month-End Market Value"*" $ 295,786 $ 304,733 $ 287,788 $ 256,897 $ 262,477 $ 226,811 Paper Gain(Loss) $ 379 $ 512 $ 545 $ 626 $ 743 $ 804 Prior Year Book Variance $ 27,030 $ 33,805 $ 5,970 $ 4,419 $ 17,060 $ (19,093) Interest Earnings 174 $ 168 $ 183 $ 262 $ 257 $ 186 Yield-To-Matut'ity 0.70% 0.69% 0.72% 1.21% 1.21% 0.96% Weighted Maturity(Days) 229 223 236 188 185 214 , Effective Duration 0.35 0.34 0.38 0.16 0.17 0.21 �"" Omits SLGSs. City of Palm Desert-- Portfolio Characteristics March 31, 2010 Dollars in Thousands Aqeins� Interval Market Value < 1 M $ 48,221 General Fund Ageing <2M 6,049 <3M - 100 --_____..�_._.___.._...____�.____._..__._..__.__--..__.._._._..__._..., a <6M 8,230 $� � < 1 YR 25,542 0 ` <2YR 23,482 0 60 ; <3YR 33,034 w 40 33 i <4YR - a �g �6 23 I <5YR - 20 4 � 6 0 0 0 j >5YR - � Total: $ 144,558 <1 M<2M<3M<6M < < < < < > 1YR 2YR 3YR 4YR 5YR 5YR Ratinas'` Market Value Credit Quality qqq AAA $ 102,654 52% AA 21,565 A 7,043 Unrated*" AA 0 0 Unrated*" 64,200 � A 11/o , Total: $ 195,462 4% • Sector Market Value Asset Allocation MTNs MMF $ 30,132 15°/a Agencies 70,382 Agencies , � ''` RDA Loan MTNs 28,608 36% � s`' 12% CAMP 2,140 MMF 23MP RDA Loan 22,655 �5% LAIF LAI F 41,545 210�0 Total: $ 195,462 Month Citv Yield LAIF Yield Variance Performance Apr09 2.09 1.61 0.49 May 2.04 1.53 0.51 2.4 -----.--_____._.��_._�__...______._____.__._..__.______..� Jun 2.03 1.38 0.65 ! Jul 1.90 1.04 0.86 O 1.6 Aug 1.79 0.93 0.87 ,D Sep 1.74 0.76 0.98 � �$ Oct 1.69 0.65 1.05 Nov 1.93 0.61 1.32 0.0 Dec 1.82 0.57 1.26 Jan10 1.31 0.56 0.76 AprO�layJun Jul AugSepOctNovDedan1�ebMar Feb 1.41 0.58 0.83 � o Mar 1.43 0.55 0.88 • * Standard and Poors *" LAIF,and City Loan to RDA Page 2 City of Palm Desert Portfolio Holdings March 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8�P Medium-Term Notes $ 3,795,000 BANK OF AMERICA 5.38 8/15/11 $ 3,858,765 4.05 105.11 $ 3,988,890 A2 A $ 3,000,000 BANK OF AMERICA 4,25 10/1/10 $ 3,014,988 3.20 101.81 $ 3,054,195 A2 A $ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 2,027,486 5.63 102.12 $ 2,078,120 Aa2 AA+ $ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,903,596 5.65 103.76 $ 1,962,194 Aa2 AA+ $ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,007,100 5.67 104.58 $ 2,091,642 Aa2 AA+ $ 3,965,000 GENERAL ELECTRIC 4.88 10/21/10 $ 3,999,433 3.23 102.12 $ 4,049,014 Aa2 AA+ $ 3,000,000 TOYOTA 4.35 12/15/10 $ 3,082,493 0.44 102.38 $ 3,071,367 Aa1 AA $ 2,000,000 WACHOVIA 7.80 8/18/10 $ 2,019,420 5.02 102.58 $ 2,051,546 A1 AA $ 4,000,000 WELLS FARGO BANK 6.38 8!1/11 $ 4,058,638 5.13 105.79 $ 4,231,728 A1 AA $ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,997,004 5.09 101.46 $ 2,029,284 A1 AA $ 27,686,000 Subtotal $ 27,968,924 4.08 $ 28,607,981 Agencies--Coupon $ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,000,415 4.61 100.41 $ 3,012,188 Aaa AAA $ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,000,415 4.61 100.41 $ 3,012,188 Aaa AAA . $ 3,000,000 FED FARM CREDIT BANK 3.50 10/3/11 $ 3,113,014 0.97 103.91 $ 3,117,188 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.63 7/27/11 $ 3,031,264 1.18 101.09 $ 3,032,813 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 0.44 10/7/10 $ 3,001,846 0.32 100.03 $ 3,000,938 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.63 3/16/11 $ 3,032,477 0.41 101.00 $ 3,030,000 Aaa AAA $ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 2,067,664 5.47 101.09 $ 2,084,553 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 1.63 4/26/11 $ 3,031,413 0.60 101.09 $ 3,032,813 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 4.13 2/24/11 $ 3,096,662 0.52 103.09 $ 3,092,813 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,991,570 5.47 101.50 $ 2,030,000 Aaa AAA $ 3,000,000 FED NATIONAL MTG ASSOC 1.75 12/28/12 $ 2,995,826 1.91 99.84 $ 2,995,313 Aaa AAA $ 31,062,000 Subtotal $ 31,362,565 2.16 $ 31,440,803 Agencies--Callable . $ 3,000,000 FED HOME LOAN BANK 1.00 10/28/11 $ 3,000,000 1.00 100.03 $ 3,000,938 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.38 6/11/12 $ 2,994,533 1.46 99.88 $ 2,996,250 Aaa AAA $ 15,000,000 FED HOME LOAN BANK 1.38 6/28/12 $ 14,972,613 1.82 99.81 $ 14,971,875 Aaa AAA $ 2,980,000 FED HOME LOAN BANK 1.88 11/19/12 $ 2,986,029 1.61 100.53 $ 2,995,831 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.85 12/21/12 $ 3,000,868 1.82 99.63 $ 2,988,750 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 1.25 1/26J12 $ 3,000,000 1.25 99.90 $ 2,997,090 Aaa AAA $ 6,000,000 FED NATIONAL MTG ASSOC 1.75 12/28/12 $ 5,991,993 1.90 99.84 $ 5,990,625 Aaa AAA $ 35,980,000 Subtotal $ 35,946,036 1.67 $ 35,941,359 Agencies--Discount $ 3,000,000 FED HOME LOAN BANK 0.00 4/13J10 $ 2,999,440 0.07 100.00 $ 3,000,000 Aaa AAA $ 3,000,000 Subtotal $ 2,999,440 0.07 $ 3,000,000 � "U"= Unrated Page 3 City of Palm Desert Portfolio Holdings March 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8�P Local Agency Investment Fund $ 41,545,341 L.A.I.F. 0.00 4!1/10 $ 41,545,341 0.55 100.00 $ 41,545,341 U U $ 41,545,341 Subtotal $ 41,545,341 0.55 $ 41,545,341 Local Agency Investment Fund $ 2,132,257 C.A.M.P. 0.00 4/1/10 $ 2,132,257 0.17 100.00 $ 2,132,257 U AAA $ 7,329 C.A.M.P.(DESERT WILLOW) 0.00 4/1/10 $ 7,329 0.17 100.00 $ 7,329 U AAA $ 2,139,586 Subtotal $ 2,139,586 0.17 $ 2,139,586 Money Market Fund $ 30,131,571 WF ADVANTAGE GOVT MMF 0.00 4/1/10 $ 30,131,571 0.00 100.00 $ 30,131,571 Aaa AAA $ 30,131,571 Subtotal $ 30,131,571 0.00 $ 30,131,571 _ City Loan to RDA $ 22,655,000 CITY OF PALM DESERT 0.00 4/1/40 $ 22,655,000 0.58 100.00 $ 22,655,000 U U $ 22,655,000 Subtotal $ 22,655,000 0.58 $ 22,655,000 Total Investments $ 194,199,498 $ 194,748,464 1.43 $ 195,461,641 Cash $ 1,544,491 CITY MAIN CHKG 0.00 4/1/10 $ 1,544,491 0.00 100.00 $ 1,544,491 U U $ 1,399,377 DESERT WILLOW CHKG 0.00 4/1/10 $ 1,399,377 0.00 100.00 $ 1,399,377 U U $ 259,674 RECREATIONAL FAC CHKG 0.00 4/1/10 $ 259,674 0.00 100.00 $ 259,674 U U $ 3,203,542 $ 3,203,542 $ 3,203,542 Total Investments and Cash $ 197,403,040 $ 197,952,006 $ 198,665,1$3 � "U"=Unrated Page 4 City of Palm Desert Portfolio Holdings March 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P %of Portfolio Corporate Issuers (Market Value) BANK OF AMERICA 3.55% GENERAL ELECTRIC 5.12% TOYOTA 1.55% WACHOVIA 1.03% WELLS FARGO BANK 3.15% %of Portfolio Agency Issuers (Market Value) FED FARM CREDIT BANK 4.60% FED HOME LOAN BANK 4.61% FED HOME LOAN MTG CORP 4.13% FED NATIONAL MTG ASSOC 2.53% � "U"=Unrated Page 5 Paim Desert Redevelopment Agency--Portfolio Characteristics March 31, 2010 Dollars in Thousands As�einq Interval Market Value < 1 M $ 80,686 Portfolio Ageing w/o SLGSs <2M - <3M 100 _,._.______._.._...____.____._._�._.._�__.._.._.._.__._---.___..___.____.__.____r <6M 13,999 gp j < 1YR 16,212 = 59 � <2YR 18,342 0 60 � ° 40 � <3YR 3,842 0 1 <4YR - a 20 10 �2 13 ! <5YR _ � � 3 0 0 � j 0 >5YR 3,151 <1M<2M<3M<6M < < < < < > Total: $ 136,232 1YR 2YR 3YR 4YR 5YR 5YR Credit Quality � ualit * Market Value 2% AAA $ 139,797 A � 6,099 0 A 10,092 47��° � Unrated""` 139,056 Total: $ 295,044 Unrated*' 47% \ - Sector Market Value Asset Allocation MTNs MMF $ g7,g2� Agencies 6% CAMP Agencies 36,018 12% 11% MTNs 16,191 LAIF CAMP 32,807 MMF 17% 23/o LAIF 49,731 EIP EIP 3,151 �% LAIF/Bond Proceeds 89,325 LAIF/Bond Proceeds Total: $ 295,044 30% Month RDA Yield LAIF Yield Variance Performance Apr09 1.05 1.61 -0.56 May1.06 1.53 -0.47 2.1 ___._.__._m_.____.___...___..�_____.___.____----..___.__-------__�._.._.....__., Jun 1.30 1.38 -0.08 � Jul 1.31 1.04 0.27 O 1.4 , Aug 1.19 0.93 0.26 � � Sep 0.95 0.76 0.19 d i Oct 0.96 0.65 0.32 } 0.7 � Nov 1.21 0.61 0.59 } Dec 1.21 0.57 0.64 0.0 Jan10 0.72 0.56 0.16 Apr09dlay Jun Jul Aug Sep Oct Nov DecJan1�eb Mar Feb 0.69 0.58 0.12 ■LAIF Yield nRDA Yield Mar 0.70 0.55 0.15 __ __ __ -- ____ . '' Standard and Poors '''" LAIF Page 6 Palm Desert Redevelopment Agency Portfolio Holdings March 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8�P Medium-Term Notes $ 3,000,000 ABBOTT LABS 3.75 3/15/11 $ 3,089,833 0.60 102.59 $ 3,077,766 A1 AA $ 3,450,000 BEAR STEARNS(JPM) 6.95 8/10/12 $ 3,855,106 1.83 110.78 $ 3,822,045 Aa3 A+ $ 3,000,000 JP MORGAN CHASE 3.13 12/1/11 $ 3,110,556 0.69 0.00 $ 3,110,556 Aa3 A+ $ 3,000,000 JP MORGAN CHASE 5.60 6/1/11 $ 3,164,892 0.85 105.31 $ 3,159,321 Aa3 A+ $ 3,000,000 WAL-MART 4.13 7/1/10 $ 3,008,739 2.91 100.72 $ 3,021,567 Aa2 AA $ 15,450,000 Subtotal $ 16,229,126 1.39 $ 16,191,255 Agencies--Coupon $ 4,900,000 FED FARM CREDIT BANK 4.90 9/22/10 $ 4,905,573 4.65 102.19 $ 5,007,188 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,989,097 5.49 104.03 $ 2,080,625 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3l11/11 $ 1,988,952 5.50 104.03 $ 2,080,625 Aaa AAA $ 2,890,000 FED HOME LOAN BANK 2.88 3/11/11 $ 2,954,715 0.49 102.13 $ 2,951,413 Aaa AAA . $ 3,000,000 FED HOME LOAN BANK 0.50 11/29/10 $ 3,004,135 0.36 99.94 $ 2,998,125 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.13 12/9/11 $ 3,009,758 0.96 100.25 $ 3,007,500 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,010,708 5.54 103.09 $ 2,061,875 Aaa AAA � $ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,754,028 5.54 103.09 $ 3,849,521 Aaa AAA $ 2,940,000 FED NATIONAL MTG ASSOC 1.75 3/23/11 $ 2,975,956 0.43 101.13 $ 2,973,075 Aaa AAA $ 9,000,000 FED NATIONAL MTG ASSOC 1.00 11/23/11 $ 9,008,764 1.00 100.09 $ 9,008,438 Aaa AAA $ 35,464,000 Subtotal $ 35,607,686 2.59 $ 36,018,383 Local Government Investment Pool $ 49,708,598 L.A.I.F. 0.00 4/1l10 $ 49,708,598 0.55 100.00 $ 49,708,598 U U $ 22,059 L.A.I.F.(HOUSING) 0.00 4/1/10 $ 22,059 0.55 100.00 $ 22,059 U U $ 49,730,658 Subtotal $ 49,730,658 0.55 $ 49,730,658 Local Government Investment Pool $ 17,445,313 L.A.I.F./WELLS FARGO 0.00 4/1/10 $ 17,445,313 0.55 100.00 $ 17,445,313 U AA $ 4,797,836 L.A.I.F./WELLS FARGO 0.00 4/1/10 $ 4,797,836 0.55 100.00 $ 4,797,836 U AA $ 25,119,364 �.A.I.F./WELLS FARGO 0.00 4/1/10 $ 25,119,364 0.55 100.00 $ 25,119,364 U AA $ 10,361,506 L.A.I.F./WELLS FARGO 0.00 4/1/10 $ 10,361,506 0.55 100.00 $ 10,361,506 U AA $ 15,112,739 L.A.I.F./WELLS FARGO 0.00 4/1/10 $ 15,112,739 0.55 100.00 $ 15,112,739 U AA $ 16,488,631 L.A.I.F./WELLS FARGO 0.00 4/1/10 $ 16,488,631 0.55 100.00 $ 16,488,631 U AA $ 89,325,389 Subtotal $ 89,325,389 0.55 $ 89,325,389 Local Government Investment Pool $ 30,694,929 C.A.M.P. 0.00 4/1/10 $ 30,694,929 0.17 100.00 $ 30,694,929 U AAA $ 2,111,755 C.A.M.P.(HOUSING) 0.00 4l1/10 $ 2,111,755 0.17 100.00 $ 2,111,755 U AAA $ 32,806,684 Subtotal $ 32,806,684 0.17 $ 32,806,684 "U"= Unrated Page 7 Palm Desert Redevelopment Agency Portfolio Holdings March 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P Money Market Fund $ 67,820,800 WF ADVANTAGE GOVT MMF 0.00 4/1/10 $ 67,820,800 0.00 100.00 $ 67,820,800 Aaa AAA $ 67,820,800 Subtotal $ 67,820,800 0.00 $ 67,820,800 Municipal Bonds $ 3,151,000 CITY OF PALM DESERT 3.00 9/2/29 $ 3,151,000 3.00 0.00 $ 3,151,000 U AA $ 3,151,000 Subtotal $ 3,151,000 3.00 $ 3,151,000 Total Investments $ 293,748,530 $ 294,665,342 0.70 $ 295,044,168 Cash , $ 331,404 HOUSING AUTH CHKG 0.00 4!1/10 $ 331,404 0.00 100.00 $ 331,404 U U $ 410,110 HOUSING AUTH TRUST 0.00 4/1/10 $ 410,110 0.00 100.00 $ 410,110 U U $ 741,515 Subtotal $ 741,515 $ 741,515 Total Investments and Cash $ 294,490,045 $ 295,406,857 $ 295,785,683 "U"= Unrated Page 8 Palm Desert Redevelopment Agency Portfolio Holdings March 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P %of Portfolio Corporate Issuers (Market Value) ABBOTT LABS 1.04% BEAR STEARNS(JPM) 1.29% , JP MORGAN CHASE 2.12% WAL-MART 1.02% %of Portfolio Agency Issuers (Market Value) FED FARM CREDIT BANK 1.69% FED HOME LOAN BANK 4.44% FED HOME LOAN MTG CORP 2.00% FED NATIONAL MTG ASSOC 4.05% "U"=Unrated Page 9 " 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 month ended March 31,2010,the City and the RDA investment portFolios were in compliance with all applicable federal, 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 City or the RDA portfolio could be liquidated in order to meet any significant, unexpected cash requirements. Interactive Data Corporation provided the data that was used to calculate the market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities are held in escrow accounts, and are therefore not inciuded in this report as assets. Ali balances are bank balances. Respectfully Submitted on April 27,2010, ��s ���o�, c.c.�r � 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 Catego Maturit Limit S&P/Md Maturit Limit S&P/Md Portfolio Portfolio 53601 a Palm Desert Bonds 5 Years No Limit 0.0°/a 1.1% 53632 c Savin s Accounts No Limit No Limit No Limit No Limit 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 Years No Limit 5 Years 30% 6% 36.1% 12.1% 53601 Bankers's Acceptances 180 Da s 40% 180 Da s 40°/a A-1 8�P-1 - - 53601 Commercial Paper 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 otiable CDs 5 Years 30% 5 Years 30% AA-or Aa3 - - 53601 i Re os 1 Year No Limit 30 Da s 20% AAA&Aaa - - 53601 i Reverse Repos 92 Days 20% Not Authorized 53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 14.4% 5.5% 53601 k Mutual Funds 90 Da s 20% AAA&Aaa 90 Da s 20%(2) AAA&Aaa 15.5% 23.0% 53601 I Trust Indenture Debt Not Authorized 53601 m Secured Bank Deposits 5 Years No Limit Not Authorized 53601(k) Local Government AAA&Aaa AAA&Aaa Investment Pools 90 Da s 20% or Advisor 90 Da s 20%(2) or Advisor 1.1% 11.1% 53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& NotAuthorized Securities AA(Security 16429.1 b LAIF No Limit No Limit 21.3% 47.2% . (1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 88.4% 100.0% (2) The City Energy Independence Program has been approved by the Palm Desert City Council. 3) Maximum limit for mutual funds and local overnment investment pools,excludin bond proceeds. " Certified California Municipal Treasurer Page 10