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Home My WebLink AboutInvestment Report - October 2006_X C. City of Palm Desert City and Redevelopment Agency Portfolios COMPLIANCE ANALYSIS AND INVESTMENT REPORT October 2006 .40 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) met on 24-25 October, and left short-term interest rates unchanged. This was the third consecutive time since June 2006. Falling energy and commodity prices, and a slowing economy provided a backdrop for the meeting. The FOMC's press release focused primarily on the risks of inflation. The next FOMC meeting will be on 12 December 2006. Merrill Lynch is forecasting that the FOMC will make a 25 basis -point rate cut at its May 2007 meeting. Wells Fargo is forecasting that the FOMC will make rate cuts in the second half of 2007. Many economists believe that globalization, through increased cross country competition, is reducing the volatility of business cycles, and containing inflation across the globe. That is why there has been a global flattening or inversion of the yield curve. This has, however, also weakened the FOMC's ability to influence long-term interest rates by manipulating short-term interest rates. China is viewed as the key to containing global inflation since its manufacturing capacity hughly exceeds the size of its domestic consumer market, and it must export the difference. China depends upon global consumption, an undervalued exchange rate, and relatively low labor costs to maintain its 10% annual economic growth rate. Investors are currently grappling with a significant amount of change: (1) the Democratic Party has control of the national legislative agenda for the first time in 12 years; (2) there is a new FOMC chairman for the first time in 19 years; and (3) this is the broadest global monetary tightening cycle in 17 years. jPai,d,s 67diom c.C..A1 r. Treasurer PORTFOLIO STATISTICS Dollars in Thousands OCT-06 SEP-06 AUG-06 JUL-06 JUN-06 MAY-06 CITY Month -End Book Value'*' $ 157,403 $ 162,442 $ 169,367 $ 170,941 $ 173,272 $ 179,707 Month -End Market Value"' $ 157,328 $ 162,291 $ 169,096 $ 170,368 $ 172,365 $ 178,862 Paper Gain (Loss) $ (75) $ (151) $ (271) $ (573) $ (907) $ (845) Prior Year Book Variance $ 8,748 $ 13,361 $ 15,822 $ 19,765 $ 23,199 $ 7,292 Interest Earnings $ 657 $ 662 $ 678 $ 666 $ 596 $ 531 Yield -To -Maturity 4.99% 4.96% 4.92% 4.86% 4.72% 4.62% Weighted Maturity (Days) 517 449 443 444 354 418 Effective Duration 0.83 0.70 0.72 0.73 0.54 0.67 RDA Month -End Book Value "' $ 116,220 $ 127,042 $ 141,601 $ 147,694 $ 144,460 $ 137,456 Month -End Market Value "' $ 116,302 $ 127,023 $ 141,444 $ 147,222 $ 143,611 $ 136,700 Paper Gain (Loss) $ 82 $ (19) $ (157) $ (472) $ (849) $ (756) Prior Year Book Variance $ (7,023) $ 1,024 $ 2,120 $ 3,726 $ (1,973) $ 13,083 Interest Earnings $ 489 $ 530 $ 570 $ 587 $ 552 $ 537 Yield -To -Maturity 4.95% 4.94% 4.85% 4.82% 4.69% 4.62% Weighted Maturity (Days) 638 585 544 522 424 445 Effective Duration 1.14 1.09 0.99 0.99 0.78 0.86 "' Omits SLGSs. Dollars in Thousands Aaeina Interval < 1 M < 2M < 3M < 6M < 1YR < 2YR < 3YR < 4YR < 5YR > 5YR Total: Ratinas AAA A.A. A Unrated " B Total: City of Palm Desert -- Portfolio Characteristics 31 October 2006 Market Value $ 41,137 5,833 14,365 14,875 18,950 9,923 4,087 $ 109,170 Market Value $ 87,326 5,063 12,000 39,463 10,114 $ 153,966 ` General Fund Ageing 100 I .. 80 _0 60 0 38 40 I (L 20 13 14 17 9 0 0 n n n f"-1 o <1M <2M <3M <6M < < < < < > j 1YR 2YR 3YR 4YR 5YR 5YR Credit Qualityl 1 AAA 56% B 7% Unrate� 26% AA A 3% 8% Sector Market Value Asset Allocation) RDA Loan 1 MMFs $ 37,782 21% LAIF 6,677 LAIF MTNs RDA Loan 32,785 4% 24% MTNs 37,173 0 0 Agencies 39,549 MMFs CP - 25% Agencies Total: $ 153,966 26% Month Citv Yield LAIF Yield Variance Nov05 3.81 3.64 0.17 Dec 3.95 3.81 0.14 Jan06 4.06 3.96 0.10 Feb 4.31 4.04 0.27 Mar 4.38 4.14 0.23 Apr 4.47 4.30 0.17 May 4.62 4.56 0.05 Jun 4.72 4.70 0.02 Jul 4.86 4.85 0.01 Aug 4.92 4.95 -0.02 Sep 4.96 5.02 -0.07 Oct 4.99 5.10 -0.11 Performance) 4.8 4.2 ? 3.6 3.0 Nov05 Dec Jan06 Feb Mar Apr May Jun Jul Aug Sep Oct ■ LAIF Yieid ■ City Y;eld Standard and Poors `* LAIF, and City Loan to RDA Page 2 of 8 City of Palm Desert Portfolio Holdings 31 October 2006 Market Ratings Par Value Issuer Coupons Maturity Cost YTM I Price Value Moody'sI S&P Medium -Term Notes $ 3,023,000 AMERICAN HONDA FINANCE 4.25 3/11/08 $ 2,990,366 5.08 98.68 $ 2,983,241 Al A+ $ 3,000,000 BANK ONE 4.13 9/1/07 $ 3,011,435 3.64 98.76 $ 2,962,839 Aa3 A+ $ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,973,663 5.01 101.73 $ 2,970,417 Aa2 AA- $ 3,000,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 3,023,788 5.75 100.02 $ 3,000,468 61 B $ 2,500,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 2,519,823 5.75 100.02 $ 2,500,390 B1 B $ 4,612,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 4,667,972 5.10 100.02 $ 4,612,719 B1 B $ 2,000,000 GENERAL ELECTRIC 3.13 11/9/06 $ 1,999,658 3.92 99.96 $ 1,999,222 Aaa AAA $ 2,000,000 GENERAL ELECTRIC 3.60 10/15/08 $ 1,949,624 4.99 97.15 $ 1,943,016 Aaa AAA $ 2,035,000 GENERAL ELECTRIC 4.88 10/21 /10 $ 1,981,277 5.63 99.24 $ 2,019,632 Aaa AAA $ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,972,765 5.65 106.47 $ 2,013,355 Aaa AAA $ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,034,307 5.67 103.81 $ 2,076,180 Aaa AAA $ 3,000,000 GOLDMAN SACHS 7.20 311/07 $ 3,035,352 3.50 100.65 $ 3,019,629 Aa3 A+ $ 3,080,000 WACHOVIA 3.63 2/17/09 $ 2,987,990 5.02 96.71 $ 2,978,717 Aa3 A+ $ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,098,045 4.93 104.64 $ 2,092,794 Aa2 AA $ 37,061,000 Subtotal $ 37,246,064 4.94 $ 37,172,619 Federal Agencies -- Coupon $ 3,000,000 FED HOME LOAN BANK 3.70 8/15/07 $ 2,997,916 3.79 98.84 $ 2,965,313 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 4.38 9/11/09 $ 2,961,309 5.59 98.72 $ 2,961,563 Aaa AAA $ 1,980,000 FED HOME LOAN BANK 4.75 12/12/08 $ 1,974,762 4.87 99.75 $ 1,975,050 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 2,987,327 5.40 99.50 $ 2,985,000 Aaa AAA $ 2,049,000 FED HOME LOAN BANK 4.00 12/15/09 $ 1,998,923 4.87 97.53 $ 1,998,415 Aaa AAA $ 3,030,000 FED HOME LOAN BANK 4.00 3/10/08 $ 2,990,087 5.02 98.72 $ 2,991,178 Aaa AAA $ 2,035,000 FED HOME LOAN MTG CORP 2.50 12/4/06 $ 2,032,589 3.84 99.72 $ 2,029,277 Aaa AAA $ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 2,001,945 4.87 98.47 $ 2,001,870 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,958,330 4.88 97.94 $ 1,958,784 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/3/08 $ 1,994,044 5.06 99.70 $ 1,993,998 Aaa AAA $ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 1,966,578 5.47 97.53 $ 2,011,094 Aaa AAA $ 2,786,000 FED NATIONAL MTG ASSOC 7.13 3/15/07 $ 2,821,562 3.55 100.63 $ 2,803,413 Aaa AAA $ 3,000,000 FED NATIONAL MTG ASSOC 3.00 8/15/07 $ 2,986,097 3.63 98.31 $ 2,949,375 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,986,079 4.88 99.31 $ 1,986,250 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,914,192 5.47 97.84 $ 1,956,875 Aaa AAA $ 35,975,000 Subtotal $ 35,571,741 4.70 $ 35,567,454 Federal Agencies -- Callable $ 2,000,000 FED HOME LOAN BANK 4.20 7/18108 $ 1,978,307 4.88 98.84 $ 1,976,875 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 5.05 8/22/08 $ 1,999,548 5.06 100.22 $ 2,004,466 Aaa AAA $ 4,000,000 Subtotal $ 3,977,855 4.97 $ 3,981,341 Local Government Investment Pool $ 6,677,499 L.A.I.F. 0.00 11/1/06 $ 6,677,499 5.10 0.00 $ 6,677,499 U U $ 6,677,499 Subtotal $ 6,677,499 5.10 $ 6,677,499 "U" = Unrated Page 3 of 8 City of Palm Desert Portfolio Holdings 31 October 2006 Market Ratings Par Value Issuer Coupon I Maturity Cost YTM I Price Value I Moody'sI S&P Local Government Investment Pool $ 29,197,952 C.A.M.P. 0.00 11/1/06 $ 29,197,952 5.20 100.00 $ 29,197,952 U $ 537,674 C.A.M.P. (HOUSING) 0.00 11/1/06 $ 537,674 5.20 100.00 $ 537,674 U $ 29,735,627 Subtotal $ 29,735,627 5.20 $ 29,735,627 Money Market Fund $ 8,046,182 WF ADVANTAGE GOVT MMF 0.00 11/1/06 $ 8,046,182 5.14 100.00 $ 8,046,182 Aaa $ 8,046,182 Subtotal $ 8,046,182 5.14 $ 8,046,182 City Loan to RDA $ 32,785,480 CITY OF PALM DESERT 0.00 11/1/36 $ 32,785,480 5.10 100.00 $ 32,785,480 U $ 32,785,480 Subtotal $ 32,785,480 5.10 $ 32,785,480 Total Investments $ 154,280,787 $ 154,040,447 4.99 $ 153,966,201 Cash $ 2,109,960 CITY MAIN CHKG 0.00 11/1/06 $ 2,109,960 0.00 100.00 $ 2,109,960 U $ 460,424 DESERT WILLOW CHKG 0.00 11/1106 $ 460,424 0.00 100.00 $ 460,424 U $ 627,116 MONTEREY 170 CHKG 0.00 11/1/06 $ 627,116 0.00 100.00 $ 627,116 U $ 164,579 RECREATIONAL FAC CHKG 0.00 11/1/06 $ 164,579 0.00 100.00 $ 164,579 U $ 3,362,078 Subtotal $ 3,362,078 $ 3,362,078 Total Investments and Cash $ 157,642,865 $ 157,402,525 $ 157,328,279 % of Portfolio Corporate Issuers (Market Value) AMERICAN HONDA FINANCE 8.03% BANK ONE 7.97% BANK OF AMERICA 7.99% FORD MOTOR CREDIT CORP 27.21 % GENERAL ELECTRIC CAPITAL CORP 27.04% GOLDMAN SACHS 8.12% WACHOVIA 8.01 % WAL-MART 5.63% AAA AAA AAA I U U U U U "U" = Unrated Page 4 of 8 Dollars in Thousands Aaeina Interval < 1M < 2M < 3M < 6M < 1YR < 2YR < 3YR < 4YR < 5YR > 5YR Total: ualit " AAA AA A Unrated " B Total: Sector LAIF MMFs Agencies MTNs CP Treasuries Total: Month Nov05 Dec Jan06 Feb Mar Apr May Jun Jul Aug Sep Oct Palm Desert Redevelopment Agency -- Portfolio Characteristics 31 October 2006 Market Value $ 26,599 2,998 5,945 5,885 17,704 18,782 10,044 3,988 $ 91,945 Market Value $ 89,086 1,960 2,027 19,525 2,997 $ 115,595 Market Value $ 19,525 30,625 58,461 6,984 $ 115,595 Portfolio Ageing w/o SLGSs� 100 90 80 e 70 o 60 j 50 40 29 a 30 20 19 20 11 1 f1 0 6 � 6 4 0 0 rl r-1 <1M <2M <3M <6M < < < < < > 1YR 2YR 3YR 4YR 5YR 5YR Credit Qualityl AAA Asset Allocation RDA Yield LAIF Yield Variance Performance 3.68 3.64 0.04 3.82 3.81 0.01 3 99 3 96 0 03 76% B 3% Unrated " 17% MMFs 2E LAIF 17% MT 6% �A H 2% Agencies 51% 4.8 4.26 4.04 0.22 4.38 4.14 0.24 4 2 4.50 4.30 0.20 m 111 4.60 4.56 0.04 } 3.6 4.69 4.70 -0.01 4.82 4.85 -0.03 3.0 4.85 4.95 -0.10 Nov05 Dec Jan06 Feb Mar Apr May Jun Jul Aug Sep Oct 4.94 5.02 -0.09 4.95 5.10 -0.15 ■LAIF Yield •RDA Yield ` Standard and Poors LAIF Page 5 of 8 Palm Desert Redevelopment Agency Portfolio Holdings 31 October 2006 Market Ratings Par Value Issuer I Coupon I Maturityl Cost I YTM Price I Value Moody'sl S&P Medium -Term Notes $ 3,000,000 FORD MOTOR CREDIT CORP 6.50 1/25/07 $ 3,010,852 4.85 99.90 $ 2,997,039 B1 B $ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,030,617 5.00 101.37 $ 2,027,448 Aaa A+ $ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,968,049 4.96 97.99 $ 1,959,820 Aa1 AA- $ 7,000,000 Subtotal $ 7,009,519 4.93 $ 6,984,307 Federal Agency -- Coupon $ 3,000,000 FED FARM CREDIT BANK 2,63 9117107 $ 2,979,632 3.43 97.88 $ 2,936,250 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,083,263 4.88 104.30 $ 2,085,952 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,953,657 4.89 97.59 $ 1,951,875 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,993,961 4.87 99.88 $ 1,997,500 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 3.38 9/14/07 $ 2,997,603 3.82 98.53 $ 2,955,938 Aaa AAA $ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,927,809 4.79 98.84 $ 3,924,097 Aaa AAA $ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,927,809 4.79 98.84 $ 3,924,097 Aaa AAA $ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,441,964 5.59 98.72 $ 4,442,344 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,924,912 4.88 96.16 $ 1,923,125 Aaa AAA $ 4,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 3,983,103 4.84 99.50 $ 3,980,000 Aaa AAA $ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,954,462 4.89 97.41 $ 1,952,995 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,949,656 5.49 100.00 $ 2,000,000 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,948,984 5.50 100.00 $ 2,000,000 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 4.88 3/15/07 $ 3,015,947 3.38 99.81 $ 2,994,375 Aaa AAA $ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 1,998,751 4.87 97.53 $ 1,998,415 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 5.00 7/23108 $ 1,997,804 5.07 99.86 $ 1,997,244 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,091,017 5.54 107.00 $ 2,140,000 Aaa AAA $ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,904,239 5.54 107.00 $ 3,995,380 Aaa AAA $ 2,973,000 FED NATIONAL MTG ASSOC 3.63 3/15/07 $ 2,973,774 3.95 99.38 $ 2,954,419 Aaa AAA $ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15/09 $ 4,342,423 4.89 104.66 $ 4,348,467 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 3.88 11/17/08 $ 1,962,279 4.87 97.91 $ 1,958,125 Aaa AAA $ 58,356,000 Subtotal $ 58,353,046 4.78 $ 58,460,598 Local Government Investment Pool $ 978,850 L.A.I.F. 0.00 11/1/06 $ 978,850 5.10 100.00 $ 978,850 U U $ 5,596,553 L.A.I.F. 0.00 11/1/06 $ 5,596,553 5.10 100.00 $ 5,596,553 U U $ 12,950,013 L.A.I.F. BOND PROCEEDS 0.00 11/1106 $ 12,950,013 5.10 100.00 $ 12,950,013 U U $ 19,525,416 Subtotal $ 19,525,416 5.10 $ 19,525,416 Local Government Investment Pool $ 25,063,799 C.A.M.P. 0.00 11/1/06 $ 25,063,799 5.20 100.00 $ 25,063,799 U AAA $ 25,063,799 Subtotal $ 25,063,799 5.20 $ 25,063,799 "U" = Unrated Page 6 of 8 Palm Desert Redevelopment Agency Portfolio Holdings 31 October 2006 Par Value I Issuer Money Market Fund $ 5,561,207 WF ADVANTAGE GOVT MMF $ 5,561,207 Subtotal Total Investments $ 115,506,422 Cash $ 384,412 HOUSING AUTH CHKG $ 322,189 HOUSING AUTH TRUST $ 706,601 Subtotal Total Investments and Cash $ 116,213,023 Corporate Issuers FORD MOTOR CREDIT CORP FIRST UNION NAT BANK WELLS FARGO BANK Market Ratings Coupon I Maturity) Cost I YTM I Price I Value Moody'sI S&P 0.00 11/1/06 $ 5,561,207 5.14 100.00 $ 5,561,207 Aaa AAA $ 5,561,207 5.14 $ 5,561,207 $ 115,512,987 4.95 $ 115,595,327 0.00 11/1/06 $ 384,412 0.00 100.00 $ 384,412 U U 0.00 11/1/06 $ 322,189 0.00 100.00 $ 322,189 U U $ 706,601 $ 706,601 --ITY COUNCIL ACTION: APPROVED 1 DENIED RECEIVED E EUP OTHER MEETING DATE JrL -lq7( p $ 116,219,588 % of Portfolio (Market Value) 42.91 % 29.03% 28.06% ,AYES • r s ABSENT: �)Of r ABSTAIN f`lW , VERIFIED BY: I kirrk Original on :File withOCity Clerk's Offire $ 116,301,928 kl°W E jej BY RDA ON VERIFIED BY iX,06r6�- Original on file with City Clerk's Office "U" = Unrated Page 7 of 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 Investment Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended 31 October 2006, 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. 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 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 28 November 2006, Pa 4S. rid:fom C. C. A1. T. City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS I California Government Code I City Investment Policy CA Govt Maximum Maximum Quality Maximum Maximum Quality % of City % of RDA Code Investment Category Maturity Limit S&P/Mdys Maturity 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 I f 0.0% 0.0% 53601(c) CA State Debt 5 Years No Limit Not Authorized 53601(d) CA Local Agency Debt 5 Years No Limit Not Authorized 53601(e) Federal Agencies 5 Years No Limit 5 Years 30% 6% 25.7% 50.5% 53601(f) Bankers's Acceptances 180 Days 40% 180 Days 40% A-1 & P-1 - - 53601(q) Commercial Paper 270 Days 25% A-1+ or P-1 270 Days 25% A-1+ or P-1 0.0% 0.0% 53601(h) Negotiable CDs 5 Years 30% 5 Years 30% AA- or Aa3 - - 53601(i) Repos 1 Year No Limit 30 Days 20% AAA & Aaa - - 53601(i) Reverse Repos 92 Days 20% Not Authorized 53601(j) Medium -Term Notes 5 Years 30% A 5 Year I 300% � A I 24. 2% � 6.1% 53601(k) Mutual Funds 90 Days 20 /o AAA & Aaa 90 Days 20% 2 AAA & Aaa 5.2 /0 4.8 /o 53601(I) Trust Indenture Debt Not Authorized 53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized 53601(k) Local Government AAA & Aaa I I AAA & Aaa l I Investment Pools 90 Days 20% or Advisor 90 Day s 20% 2) ( or Advisor 19.3% 21.7% 53601(n) Mortgage -Backed 5 Years 20% A (Issuer) & Not Authorized Securities AA (Security LAIF No Limit I No Limit 4.3% 16.9% (1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. 78.7% 100.0% (2) Maximum limit for mutual funds and local government investment pools, excluding bond proceeds. Certified California Municipal Treasurer Page 8 of 8