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HomeMy WebLinkAboutInvstmnt Rprt - July 2010 ,....., Glty of Pa/m De�ert � � � Ci�ty and Redevetapment Agency Portfolics � Ct?MPLlANCE ANALYSIS AND {NYESTMENT REPORT Jufy 2014 Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer Treasurer's Commentary A sharply divided Federal Open Market Committee (FOMC) met on August 10, and reversed direction by initiating a new round of"quantitative easing"to address a weakening U.S. economy. The Federal Reserve will use$250 billion in cash to buy U.S. Treasuries in order to keep long-term interest rates low. The FOMC is concerned about a double-dip recession developing due to persistently high unemployment, weak economic indicators, and massive debt deleveraging by consumers and businesses. Inflation is currently running close to zero, and the trend in a�l of the major price indices is decelerating. With the end of the federai stimulus, sales of existing U.S. homes feli to a 15-year low in July. Initial unemployment claims rose to 500,000 in August, and U.S. auto sales fell to a 27-year low during the same time period. At least 829 U.S. banks (11%), mostly community banks, remain at risk of failure. Wells Fargo is forecasting U.S. economic growth averaging between 1% and 1.5%during the second half of 2010. U.S. Treasury yields fell sharply as investors sought safety in low-risk securities due to rising anxiety over the global economy. Federal Funds Futures are currently assigning a 53% probability to the F�MC's keeping the Federal Funds Rate unchanged at 0.25% through August 2011. According to the Wall Street Journal, retail investors are starting to buy riskier assets, such as junk bonds and leveraged mutual funds, and to engage in currency speculation, in order to boost yields. ��s ���o�, c.c.�r. City Treasurer PORTFOLIO STATISTICS Dollars in Thousands JUL-10 JUN-10 MAY-10 APR-10 MAR-10 FEB-10 CITY Month-End Book Value''"` $ 197,878 $ 201,932 $ 201,783 $ 198,943 $ 197,952 $ 200,124 Month-End Market Value'`'" $ 198,453 $ 202,476 $ 202,374 $ 199,620 $ 198,665 $ 201,136 Paper Gain(Loss) $ 575 $ 544 $ 591 $ 677 $ 713 $ 1,012 Prior Year Book Variance $ (28,582) $ (27,016) $ (22,506) $ (19,020) $ (18,722) $ (19,345) Interest Earnings 173 227 207 233 227 $ 227 Yield-To-Maturity 1.12% 1.16% 1.28% 1.45% 1.43% 1.41% Weighted Maturity(Days) 351 363 415 461 465 455 Effective Duration 0.21 0.23 0.23 0.28 0.35 0.35 RDA Month-End Book Value�"' $ 298,525 $ 302,563 $ 299,721 $ 285,335 $ 295,407 $ 304,221 Month-End Market Value""" $ 299,032 $ 303,003 $ 299,998 $ 285,685 $ 295,786 $ 304,733 Paper Gain(Loss) $ 507 $ 440 $ 277 $ 350 $ 379 $ 512 Prior Year Book Variance $ 14,305 $ 15,272 $ 6,001 $ 32,808 $ 27,030 $ 33,805 Interest Earnings 195 200 171 175 174 $ 168 Yield-TO-MBturity 0.76% 0.78% 0.69% 0.74% 0.70% 0.69% Weighted Maturity(Days) 339 344 226 237 229 223 Effective Duration 0.49 0.51 0.31 0.34 0.35 0.34 �"" Omits SLGSs. City of Palm Desert--Portfolio Characteristics July 31, 2010 Dollars in Thousands AQeinn Interval Market Value ��� --�- ----- " � '� < 1 M $ 78,450 General Fund Ageing <2M _ <3M 12,073 100 _�.__..�._..�_..__._._.._.�.__..__,__.._..__..__..._._...__._w.__.,.�.__., ; <6M 4,960 $p � < 1YR 14,214 ' � � 54 i <2YR 17,2g7 0 60 � <3YR 18,071 � 40 � 1 <4YR - ° � ' <5YR _ a 20 O 8 3 10 12 12 0 0 0 � >5YR - � Total: $ 145,055 ` ` ` ` ` ` ` ` ` ' J 1M 2M 3M 6M 1YR 2YR 3YR 4YR 5YR 5YR � � Ratinas" Market Value �Credit Quality � AAA $ 122,943 � AAA AA 21,290 Unrated"`* 63% A 6,972 22% Unrated"* 41,924 A � Total: $ 193,129 � 4% 11% � Sector Market Value Asset Allocation MTNs MMF $ 29�783 15% CAMP Agencies 44,353 Agencies n��w 15% MTNs 28,262 22% ��������' � CAMP 28,417 RDA Loan RDA Loan 22,655 120�0 MMF LAIF 39,659 15% LAIF Total: $ 193,129 21a�o � Month CitvYield LAIFYield Variance Performance Aug09 1.79 0.93 0.87 Sep1.74 0.76 0.98 2.1 __.____._.___�_____._r.._.____._.__..__..__.._..____�._.._.___._.� Oct 1.69 0.65 1.05 � Nov 1.93 0.61 1.32 1.4 i Dec 1.82 0.57 1.26 = � Jan10 1.31 0.56 0.76 �° Feb 1.41 0.58 0.83 � 0�7 � Mar 1.43 0.55 0.88 " � ; Apr 1.41 0.59 0.83 0.0 May 1.25 0.56 0.69 AugOSepOctNovDedan1�ebMarAprMayJun Jul Jun 1.16 0.53 0.63 � � � Jul 1.12 0.53 0.59 � � -_� __ � * Standard and Poors �"" LAIF, and City Loan to RDA Page 2 City of Palm Desert Portfolio Holdings July 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P Medium-Term Notes $ 3,795,000 BANK OF AMERICA 5.38 8/15/11 $ 3,843,276 4.05 104.24 $ 3,955,828 A2 A $ 3,000,000 BANK OF AMERICA 4.25 10/1/10 $ 3,004,996 3.20 100.55 $ 3,016,581 A2 A $ 2,035,000 GENERAL ELECTRIC 4.88 10l21/10 $ 2,031,995 5.63 100.91 $ 2,053,478 Aa2 AA+ $ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,896,848 5.65 101.70 $ 1,923,181 Aa2 AA+ $ 2,000,000 GENERAL ELECTRIC 6.13 2l22/11 $ 2,004,446 5.67 102.95 $ 2,058,928 Aa2 AA+ $ 3,965,000 GENERAL ELECTRIC 4.88 10/21/10 $ 3,978,773 3.23 100.91 $ 4,001,002 Aa2 AA+ $ 3,000,000 TOYOTA 4.35 12/15/10 $ 3,043,520 0.44 101.22 $ 3,036,735 Aa1 AA $ 2,000,000 WACHOVIA 7.80 8/18/10 $ 2,002,410 5.02 100.30 $ 2,005,946 A1 AA $ 4,000,000 WELLS FARGO BANK 6.38 8/1/11 $ 4,043,979 5.13 105.22 $ 4,208,984 A1 AA $ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,999,813 5.09 100.07 $ 2,001,348 A1 AA $ 27,686,000 Subtotal $ 27,850,055 4.09 $ 28,262,011 Agencies--Coupon $ 3,000,000 FED FARM CREDIT BANK 3.50 10/3/11 $ 3,087,992 0.97 103.56 $ 3,106,875 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.63 7/27/11 $ 3,023,382 1.18 101.25 $ 3,037,500 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 0.44 10/7/10 $ 3,000,655 0.32 100.06 $ 3,001,875 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.63 3l16/11 $ 3,021,180 0.41 100.84 $ 3,025,313 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.10 8/28/12 $ 2,999,387 1.11 100.78 $ 3,023,438 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 1.63 4/26/11 $ 3,021,622 0.60 100.97 $ 3,029,063 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 4.13 2/24/11 $ 3,060,750 0.52 102.09 $ 3,062,813 Aaa AAA $ 2,000,000 FED NAT MTG ASSOC 4.25 8/15/10 $ 1,999,119 5.47 100.16 $ 2,003,125 Aaa AAA $ 3,000,000 FED NAT MTG ASSOC 1.75 12/28/12 $ 2,996,333 1.91 100.47 $ 3,014,063 Aaa AAA $ 26,000,000 Subtotal $ 26,210,421 1.23 $ 26,304,063 Agencies--Callable $ 3,000,000 FED HOME LOAN BANK 1.00 10/28/11 $ 3,000,000 1.00 100.16 $ 3,004,688 Aaa AAA $ 2,980,000 FED HOME LOAN BANK 1.88 11/19/12 $ 2,985,266 1.61 100.44 $ 2,993,038 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.85 12/21/12 $ 3,000,762 1.82 100.41 $ 3,012,188 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 1.25 1/26/12 $ 3,000,000 1.25 100.37 $ 3,011,016 Aaa AAA $ 6,000,000 FED NAT MTG ASSOC 1.75 12/28/12 $ 5,992,966 1.90 100.47 $ 6,028,124 Aaa AAA $ 17,980,000 Subtotal $ 17,978,994 1.58 $ 18,049,053 Local Agency Investment Fund $ 39,658,990 L.A.I.F. 0.00 8/1/10 $ 39,658,990 0.53 100.00 $ 39,658,990 U U $ 39,658,990 Subtotal $ 39,658,990 0.53 $ 39,658,990 Local Agency Investment Fund $ 27,809,335 C.A.M.P. 0.00 8/1/10 $ 27,809,335 0.31 100.00 $ 27,809,335 U AAA $ 607,673 C.A.M.P. (DESERT WILLOW) 0.00 8/1/10 $ 607,673 0.31 100.00 $ 607,673 U AAA $ 28,417,008 Subtotal $ 28,417,008 0.31 $ 28,417,008 "U"=Unrated Page 3 City of Palm Desert Portfolio Holdings July 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8�P Money Market Fund $ 29,782,603 WF ADVANTAGE GOVT MMF 0.00 8/1/10 $ 29,782,603 0.00 100.00 $ 29,782,603 Aaa AAA $ 29,782,603 Subtotal $ 29,782,603 0.00 $ 29,782,603 City Loan to RDA $ 22,655,000 CITY OF PALM DESERT 0.00 8/1/40 $ 22,655,000 0.53 100.00 $ 22,655,000 U U $ 22,655,000 Subtotal $ 22,655,000 0.53 $ 22,655,000 Total Investments $ 192,179,601 $ 192,553,071 1.12 $ 193,128,728 Cash $ 4,970,994 CITY MAIN CHKG 0.00 8/1/10 $ 4,970,994 0.00 100.00 $ 4,970,994 U U $ 274,017 DESERT WILLOW CHKG 0.00 8/1/10 $ 274,017 0.00 100.00 $ 274,017 U U $ 79,504 RECREATIONAL FAC CHKG 0.00 8/1/10 $ 79,504 0.00 100.00 $ 79,504 U U $ 5,324,516 Subtotal $ 5,324,516 $ 5,324,516 Total investments and Cash $ 197,504,117 $ 197,877,587 $ 198,453,243 %of Portfolio Corporate issuers (Market Value) BANK OF AMERICA 3.51% GENERAL ELECTRIC 5.06% TOYOTA 1.53% WACHOVIA 1.01% WELLS FARGO BANK 3.13% "U"= Unrated Page 4 City of Palm Desert Portfolio Holdings July 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8�P %of Portfolio Agency Issuers (Market Value) FED FARM CREDIT BANK 1.57% FED HOME LOAN BANK 10.63% FED HOME LOAN MTG CORP 6.08% FED NAT MTG ASSOC 5.57% "U"= Unrated Page 5 Palm Desert Redevelopment Agency--Portfolio Characteristics July 31, 2010 Dollars in Thousands Aaeinq Intervat Market Value - -- - - _.._.. _... � < 1M $ 49,909 Portfolio Ageing w/o SLGSs �2N1 10,713 � <3M - ! 100 __.._.__...._.._.._.._.__.._.__.__�.._._..._._..___.._______�__._....__�__._._I � <6M 3,003 ( .. 80 s 1 < 1 YR 16,196 1 � � � ! 0 60 ' � <2YR 20,237 •- ' � � 40 34 2g � <3YR 41,958 � � <4YR - � a° 2� � 11 14 � j <5YR _ E � 2 0 0 2 � I >5YR 3,151 � � � Total: $ 145,167 � � � � � � � � � � � 1 M 2M 3M 6M 1 YR 2YR 3YR 4YR 5YR 5YR �_____ _____� ._�..�----._._______....---- - -._ - - ____ _ ualit " Market Value Credit Quality qq � $ 154,593 �% � 3,059 '�` A A 10,035 � 52% 3% Unrated"" 130,730 � Total: $ 298,417 Unrated" 44% Sector Market Value Asset Allocation Agencies MMF $ 70 239 ' 26% MTNs 4°/a Agencies 79,014 CAMP MTNS 13,094 MMF �% CAMP 2,189 24% LAIF LAI F 49,856 �7% EIP 3,151 EIP LAIF/Bond Proceeds 80,874 LAIF/Bond �o�a Total: g 298�417 Proceeds � 27% � __- _ __- Month RDA Yield LAIF Yield Variance Performance Aug09 1.19 0.93 0.26 Sep0.95 0.76 0.19 1.4 _ __�,.__..__..._______._._..._..__�__.._...�_______._.___...__..___._._.� Oct 0.96 0.65 0.32 j Nov 1.21 0.61 0.59 � Dec 1.21 0.57 0.64 � p� 1 �� Jan10 OJ2 0.56 0.16 d � � Feb 0.69 0.58 0.12 } � Mar 0.70 0.55 0.15 ; Apr 0.74 0.59 0.15 oA ' ` � May 0.69 0.56 0.13 AugOl�ep Oct Nov Dedanl�eb Mar Apr May Jun Jul i OIAIF Yield Jun OJ8 0.53 0.25 i �U� 0.76 0.53 �.23 ORDAYield " Standard and Poors '`* LAIF Page 6 Palm Desert Redevelopment Agency Portfolio Holdings July 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P Medium-Term Notes $ 3,000,000 ABBOTT LABS 3.75 3/15/11 $ 3,058,496 0.60 101.98 $ 3,059,313 A1 AA $ 3,450,000 BEAR STEARNS(JPM) 6.95 8/10/12 $ 3,797,847 1.83 110.34 $ 3,806,799 Aa3 A+ $ 3,000,000 JP MORGAN CHASE 3.13 1211/11 $ 3,088,445 0.69 103.44 $ 3,103,311 Aa3 A+ $ 3,000,000 JP MORGAN CHASE 5.60 6/1/11 $ 3,117,780 0.85 104.16 $ 3,124,668 Aa3 A+ $ 12,450,000 Subtotal $ 13,062,568 1.04 $ 13,094,091 Agencies--Coupon $ 4,900,000 FED FARM CREDIT BANK 4.90 9/22/10 $ 4,901,662 4.65 100.66 $ 4,932,156 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,992,945 5.49 102.78 $ 2,055,625 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,992,851 5.50 102.78 $ 2,055,625 Aaa AAA $ 2,890,000 FED HOME LOAN BANK 2.88 3/11/11 $ 2,931,875 0.49 101.53 $ 2,934,253 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 0.50 11/29/10 $ 3,002,050 0.36 100.09 $ 3,002,813 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.13 12/9/11 $ 3,007,832 0.96 100.91 $ 3,027,188 Aaa AAA - $ 2,000,000 FED HOME LOAN BANK 1.10 8/28/12 $ 1,999,591 1.11 100.78 $ 2,015,625 Aaa AAA $ 2,500,000 FED HOME LOAN BANK 1.10 8/28/12 $ 2,499,489 1.11 100.78 $ 2,519,531 Aaa AAA $ 2,500,000 FED HOME LOAN BANK 1.10 8/28/12 $ 2,499,497 1.11 100.78 $ 2,519,531 Aaa AAA $ 2,500,000 FED HOME LOAN BANK 1.38 10/29/12 $ 2,509,645 120 101.38 $ 2,534,375 Aaa AAA $ 4,900,000 FED HOME LOAN BANK 1.75 12/14/12 $ 4,946,069 1.40 102.16 $ 5,005,656 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.10 8/28/12 $ 2,999,396 1.11 100.78 $ 3,023,438 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,002,873 5.54 100.81 $ 2,016,250 Aaa AAA $ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,739,373 5.54 100.81 $ 3,764,339 Aaa AAA $ 2,940,000 FED NATIONAL MTG ASSOC 1.75 3/23/11 $ 2,963,698 0.43 100.91 $ 2,966,644 Aaa AAA $ 9,000,000 FED NATIONAL MTG ASSOC 1.00 11/23/11 $ 9,006,987 1.00 100.78 $ 9,070,313 Aaa AAA $ 2,500,000 FED NATIONAL MTG ASSOC 1.13 7/30/12 $ 2,502,558 1.08 100.91 $ 2,522,656 Aaa AAA $ 55,364,000 Subtotal $ 55,498,391 2.09 $ 55,966,017 Agencies--Callable $ 2,500,000 FED FARM CREDIT BANK 1.90 11/16/12 $ 2,511,692 0.78 100.34 $ 2,508,594 Aaa AAA $ 2,500,000 FED FARM CREDIT BANK 1.90 11/16/12 $ 2,511,692 0.78 100.34 $ 2,508,594 Aaa AAA $ 7,000,000 FED HOME LOAN BANK 0.50 9/24/12 $ 7,000,000 0.75 100.06 $ 7,004,375 Aaa AAA $ 2,500,000 FED HOME LOAN MTG CORP 1.20 6/15/12 $ 2,502,808 1.08 100.56 $ 2,513,960 Aaa AAA $ 6,000,000 FED HOME LOAN MTG CORP 0.50 9/7/12 $ 6,000,000 0.50 100.08 $ 6,004,860 Aaa AAA $ 2,500,000 FED NATIONAL MTG ASSOC 1.88 10/29/12 $ 2,513,778 0.41 100.28 $ 2,507,031 Aaa AAA $ 23,000,000 Subtotal $ 23,039,971 0.69 $ 23,047,414 Local Government Investment Pool $ 49,833,624 L.A.I.F. 0.00 8/1/10 $ 49,833,624 0.53 100.00 $ 49,833,624 U U $ 22,120 L.A.I.F. (HOUSING) 0.00 8/1/10 $ 22,120 0.53 100.00 $ 22,120 U U $ 49,855,745 Subtotal $ 49,855,745 0.53 $ 49,855,745 "U"= Unrated Page 7 Palm Desert Redevelopment Agency Portfolio Holdings July 31, 2010 Market Ratings Par Vatue Issuer Coupon Maturity Cost YTM Price Value Moody's S&P Local Government Investment Pool $ 17,493,590 L.A.I.F.!WELLS FARGO 0.00 8/1/10 $ 17,493,590 0.53 100.00 $ 17,493,590 U AA $ 4,811,088 L.A.I.F.!WELLS FARGO 0.00 8!1/10 $ 4,811,088 0.53 100.00 $ 4,811,088 U AA $ 25,188,793 L.A.I.F./WELLS FARGO 0.00 8/1/10 $ 25,188,793 0.53 100.00 $ 25,188,793 U AA $ 1,692,270 L.A.I.F./WELLS FARGO 0.00 8/1/10 $ 1,692,270 0.53 100.00 $ 1,692,270 U AA $ 15,154,481 L.A.I.F./WELLS FARGO 0.00 8/1/10 $ 15,154,481 0.53 100.00 $ 15,154,481 U AA $ 16,534,174 L.A.I.F./WELLS FARGO 0.00 8/1/10 $ 16,534,174 0.53 100.00 $ 16,534,174 U AA $ 80,874,397 Subtotal $ 80,874,397 0.53 $ 80,874,397 Local Government Investment Pool $ 75,349 C.A.M.P. 0.00 8/1/10 $ 75,349 0.31 100.00 $ 75,349 U AAA $ 2,113,385 C.A.M.P.(HOUSING) 0.00 8/1/10 $ 2,113,385 0.31 100.00 $ 2,113,385 U AAA $ 2,188,734 Subtotal $ 2,188,734 0.31 $ 2,188,734 Money Market Fund $ 70,239,705 WF ADVANTAGE GOVT MMF 0.00 8/1/10 $ 70,239,705 0.00 100.00 $ 70,239,705 Aaa AAA $ 70,239,705 Subtotal $ 70,239,705 0.00 $ 70,239,705 Municipal Bonds $ 3,151,000 CITY OF PALM DESERT 3.00 9/2/29 $ 3,151,000 3.00 100.00 $ 3,151,000 U AA $ 3,151,000 Subtotal $ 3,151,000 3.00 $ 3,151,000 Total investments $ 297,123,580 $ 297,910,511 0.76 $ 298,417,102 Cash $ 197,686 HOUSING AUTH CHKG 0.00 8/1/10 $ 197,686 0.00 100.00 $ 197,686 U U $ 403,492 HOUSING AUTH TRUST 0.00 8/1/10 $ 403,492 _ 0.00 100.00 $ 403,492 U U $ 601,178 Subtotal $ 601,178 $ 607,178 Total Investments and Cash $ 297,724,758 $ 298,511,689 $ 299,018,280 "U"= Unrated Page 8 Palm Desert Redevelopment Agency Portfolio Holdings July 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's SB�P %of Portfolio Corporate Issuers (Market Value) ABBOTT LABS 1.02% BEAR STEARNS(JPM) 1.27% JP MORGAN CHASE 2.08% %of Portfolio Agency issuers (Market Value) FED FARM CREDIT BANK 3.33% FED HOME LOAN BANK 2.37% FED HOME LOAN MTG CORP 4.78% FED NATIONAL MTG ASSOC 5.71% "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 July 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 shoufd 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 included in this report as assets. All balances are bank balances. Respectfully Submitted on August 24,2010, rg'accLS. �'�l'r�o�vr, C,C.�t,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 Cate o Maturit Limit S&P/Mdys Maturit Limit SB�P/Md s Portfolio Portfolio 53601 a Palm Desert Bonds 5 Years No Limit 0.0% 1.1% 53632 c Savin s Accounts No Limit No Limit No Limit No Limit 0.0% 0.0% 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% 23.0% 26.4% 53601 Bankers's Acceptances 180 Da s 40% 180 Da s 40% 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 14.5% 4.4% 53601 k Mutual Funds 9Q Days 20% AAA&Aaa 90 Da s 20%(2) AAA&Aaa 15.5% 23.6% 53601(I Trust Indenture Debt NofAuthorized 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 14.8% 0.7% 53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& NotAuthorized Securities AA(Securit 16429.1 b LAIF No Limit No Limit 20.6% 43.9% (1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 88.2% 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,excluding bond proceeds. � * Certified California Municipal Treasurer Page 10