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Home My WebLink AboutSR - Investment Report - NOV 08CITY OF PALM DESERT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: NIAMH ORTEGA, RECORDING SECRETARY�V� DATE: JANUARY 2, 2009 SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS Please find attached the Compliance Analysis and Investment Reports for were presented and approved at the December meeting of the Audit, Investment and Finance Committee for the month of November 2008. Please include the report on the upcoming agenda for review and acceptance by City Council. Please feel free to contact me at Ext. 382 if you have any questions. Thank you. Iffluel Attachment (as noted) CITY COUNCILACTION APPROVED DENIED RECEIVED,e It /P OTHER t w 1 R .....' BY RDA ON VERIFIED BY4L� F� Original on file with City Clerk's Office GAFINANCE\NIAMH ORTEGA\INVESTMENT COMMITTEE\MEMOS\RKLASSENINVREPORT.WPD CITY OF PALM DESERT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: NIAMH ORTEGA, RECORDING SECRETARY�V�Z' DATE: JANUARY 2, 2009 SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS Please find attached the Compliance Analysis and Investment Reports for were presented and approved at the December meeting of the Audit, Investment and Finance Committee for the month of November 2008. Please include the report on the upcoming agenda for review and acceptance by City Council. Please feel free to contact me at Ext. 382 if you have any questions. Thank you. nmo Attachment (as noted) GARNANCE\NIAMH ORTEGAUNVESTMENT COMMITTEE\MEMOS\RKLASSENINVREPORT.WPD City of Palm Desert City and Redevelopment Agency Portfolios COMPLIANCE ANALYSIS AND INVESTMENT REPORT November 2008 Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer Treasurer's Commentary On December 16, the Federal Open Market Committee (FOMC) cut the Federal Funds Rate by 75 basis points to a "floating target range" of 0 -- 0.25%. The Fed/Treasury has dramatically increased the money supply in an effort to use inflation to lift the country out of recession. This policy is being undermined by consumers and banks who are hoarding cash. The FOMC is trying to stimulate consumer spending by cutting short-term interest rates to virtually zero. This is unlikely to work, however, and may undermine the profitability of money market funds. The economic news is not good. The U.S. economy lost 533,000 jobs in November -- the worst decline since 1974. November Retail Sales were the worst since 1969. The stock market has had its worst year since 1931. Four -week U.S. Treasury bills were recently sold with a zero vield. The National Bureau of Economic Research declared that the U.S. economy has been in recession since December 2007. The California housing market is not expected to recover until 2012. The U.S. Government rescued Citigroup from collapse. The U.S. Treasury created the Debt Guarantee Program so that financial institutions could issue unsecured debt with the "full faith and credit of the United States". Ultimately, Chrysler, General Motors, and Ford will probably file Chapter 11 bankruptcies, and reorganize with Federal financial assistance. The Big Three are burdened with uncompetitive union contracts, legacy healthcare and pension liabilities, and high debt loads. There is no likelihood of a recovery of domestic auto demand in the near term. Pis G6&jotv, C. C.". 7- City Treasurer PORTFOLIO STATISTICS Dollars in Thousands NOV-08 OCT-08 SEP-08 AUG-08 JUL-08 JUN-08 CITY Month -End Book Value*** $ 213,607 $ 217,630 $ 211,223 $ 220,438 $ 222,674 $ 231,179 Month -End Market Value*** $ 213,168 $ 216,626 $ 224,865 $ 221,338 $ 223,460 $ 232,273 Paper Gain (Loss) $ (439) $ (1,004) $ 13,642 $ 900 $ 786 $ 1,094 Prior Year Book Variance $ (27,138) $ (26,483) $ (23,021) $ (25,412) $ (33,469) $ (11,919) Interest Earnings $ 529 $ 575 $ 647 $ 665 $ 688 $ 689 Yield -To -Maturity 3.04% 3.27% 3.70% 3.65% 3.69% 3.75% Weighted Maturity (Days) 463 470 489 490 500 503 Effective Duration 0.53 0.55 0.58 0.63 0.65 0.68 RDA Month -End Book Value *** $ 244,674 $ 245,100 $ 257,385 $ 284,134 $ 288,987 $ 285,360 Month -End Market Value *** $ 245,564 $ 245,429 $ 257,654 $ 284,962 $ 289,777 $ 286,216 Paper Gain (Loss) $ 890 $ 329 $ 269 $ 828 $ 790 $ 856 Prior Year Book Variance $ (5,516) $ (5,663) $ (16,289) $ (5,730) $ (4,039) $ (17,349) Interest Earnings $ 304 $ 325 $ 718 $ 727 $ 748 $ 744 Yield -To -Maturity 1.51 % 1.60% 3.18% 3.05% 3.08% 3.09% Weighted Maturity (Days) 272 272 259 275 277 280 Effective Duration 0.26 0.28 0.29 0.28 0.30 0.32 *** Omits SLGSs. City of Palm Desert -- Portfolio Characteristics November 30, 2008 Dollars in Thousands Aaeina Interval Market Value < 1M $ 69,218 General Fund Ageing < 2M - < 3M 5,979 100 < 6M - < 1YR 16,387 80 0 < 2YR 52,792 2 60 45 < 3YR 9,820 40 _ 34 < 4YR - < 5YR - p0 20 0 4 0 116 0 0 0 > 5YR - 0 ^ r Total: $ 154,196 < 1M < 2M < 3M < 6M < 1YR < 2YR < 3YR < 4YR < 5YR > 5YR Ratings * Market Value Credit Quality AAA $ 147,243 AA 13,203 AAA " 71 % A 5,032 Unrated 21 % Unrated *' 42,769 A) Total: $ 208,247 2% 6 Sector Market Value 'MMF $ 35,623 Agencies 27,835 MTNs 59,125 CAMP 42,895 RDA Loan 22,655 G M RA 20,100 LAW 14 CP - Total: $ 208,247 Month Citv Yield LAIF Yield Variance Dec 4.87 4.80 0.07 Jan08 4.72 4.62 0.10 Feb 4.31 4.16 0.15 Mar 4.05 3.78 0.27 Apr 3.98 3.40 0.58 May 3.88 3.07 0.81 Jun 3.75 2.89 0.86 Jul 3.69 2.88 0.82 Aug 3.65 2.78 0.87 Sep 3.70 2.77 0.93 Oct 3.27 2.71 0.56 Nov 3.04 2.57 0.47 11 Asset Allocation MTNs 28% Agencies CAMP 13% 23% MMF 17% RDA Loan GMRA 11% 10% Performance 4.8 2.4 -� , Dec Jan08 Feb Mar Apr May Jun Jul Aug Sep Oct Nov / 1 I Standard and Poors * LAIF, and City Loan to RDA Page 2 City of Palm Desert Portfolio Holdings November 30, 2008 Market Par Value Issuer lCouponjMaturityl Cost JYTM Price I Value Medium -Term Notes $ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,924,819 5.01 100.03 $ 2,920,823 $ 3,795,000 BANK OF AMERICA 5.38 8/15/11 $ 3,920,723 4.05 98.97 $ 3,755,904 $ 3,000,000 BANK OF AMERICA 4.25 10/1/10 $ 3,054,957 3.20 98.63 $ 2,958,975 $ 15,270,000 CITIGROUP 4.13 2/22/10 $ 15,133,346 4.91 95.70 $ 14,612,900 $ 2,035,000 CITIGROUP 4.13 2/22/10 $ 2,016,788 4.91 95.70 $ 1,947,430 $ 1,000,000 CITIGROUP 4.63 8/3/10 $ 991,320 5.19 95.35 $ 953,550 $ 4,000,000 CITIGROUP 4.63 8/3/10 $ 3,965,278 5.19 95.35 $ 3,814,200 $ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 2,009,454 5.63 99.45 $ 2,023,889 $ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,930,589 5.65 102.73 $ 1,942,534 $ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,017,717 5.67 100.84 $ 2,016,862 $ 3,965,000 GENERAL ELECTRIC 4.88 10/21/10 $ 4,082,073 3.23 99.45 $ 3,943,351 $ 3,080,000 WACHOVIA 3.63 2/17/09 $ 3,071,534 5.02 99.29 $ 3,057,994 $ 2,000,000 WACHOVIA 7.80 8/18/10 $ 2,087,460 5.02 98.69 $ 1,973,772 $ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,024,438 4.93 102.84 $ 2,056,778 $ 3,000,000 WAL-MART 6.88 8/10/09 $ 3,080,172 2.90 102.84 $ 3,085,167 $ 4,000,000 WELLS FARGO BANK 6.38 8/1/11 $ 4,117,276 5.13 101.19 $ 4,047,576 $ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,985,770 5.09 100.18 $ 2,003,670 $ 2,020,000 WELLS FARGO BANK 4.20 1/15/10 $ 2,003,736 4.96 99.49 $ 2,009,678 $ 60,011,000 Subtotal $ 60,417,450 4.69 $ 59,125,052 Federal Agencies -- Coupon $ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,006,644 4.61 103.88 $ 3,116,250 $ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,006,644 4.61 103.88 $ 3,116,250 $ 3,000,000 FED HOME LOAN BANK 4.38 9/11/09 $ 2,989,482 5.59 102.09 $ 3,062,813 $ 1,980,000 FED HOME LOAN BANK 4.75 12/12/08 $ 1,979,924 4.87 100.13 $ 1,982,475 $ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,957,896 5.96 101.38 $ 2,027,500 $ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 2,025,858 4.87 101.75 $ 2,068,578 $ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,032,338 4.87 101.97 $ 2,089,340 $ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,986,819 4.88 101.92 $ 2,038,314 $ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 2,020,347 5.47 103.22 $ 2,128,371 $ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,019,192 5.50 101.97 $ 2,089,340 $ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,995,773 4.88 102.38 $ 2,047,500 $ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,961,374 5.47 103.44 $ 2,068,750 $ 27,173,000 Subtotal $ 26,982,290 5.11 $ 27,835,479 Local Government Investment Pool $ 14,155 L.A.I.F. 0.00 12/1/08 $ 14,155 2.57 100.00 $ 14,155 $ 14,155 Subtotal $ 14,155 2.57 $ 14,155 Ratings Moody'sl Ratings Aa2 Aa2 Aa2 Aa1 Aa1 Aa1 Aa1 Aaa Aaa Aaa Aaa Aa3 Aa3 Aa2 Aa2 Aa 1 Aa 1 Aa1 Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa U AA- AA- AA - AA AA AA AA AAA AAA AAA AAA A+ A+ AA AA AA- AA- AA- AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA U I "U" = Unrated Page 3 City of Palm Desert Portfolio Holdings November 30, 2008 Market Par Value Issuer lCouponj Maturity Cost YTM I Price Value Local Government Investment Pool $ 42,239,081 C.A.M.P. 0.00 12/1/08 $ 42,239,081 2.32 100.00 $ 42,239,081 $ 656,249 C.A.M.P. (DESERT WILLOW) 0.00 12/1/08 $ 656,249 2.32 100.00 $ 656,249 $ 42,895,330 Subtotal $ 42,895,330 2.32 $ 42,895,330 Money Market Fund $ 35,623,198 WF TREASURY PLUS 0.00 12/1/08 $ 35,623,198 0.17 100.00 $ 35,623,198 $ 35,623,198 Subtotal $ 35,623,198 0.17 $ 35,623,198 Government Manged Rate Account $ 20,099,598 UNION BANK 0.00 12/1/08 $ 20,099,598 2.43 100.00 $ 20,099,598 $ 20,099,598 Subtotal $ 20,099,598 2.43 $ 20,099,598 City of Palm Desert $ 22,655,000 CITY OF PALM DESERT 0.00 12/1/38 $ 22,655,000 2.57 100.00 $ 22,655,000 $ 22,655,000 Subtotal $ 22,655,000 2.57 $ 22,655,000 -Total Investments $ 208,471,282 $ 208,687,022 3.04 $ 208,247,813 Cash $ 3,831,513 CITY MAIN CHKG 0.00 12/1/08 $ $ 856,000 DESERT WILLOW CHKG 0.00 12/1/08 $ $ 232,280 RECREATIONAL FAC CHKG 0.00 12/1/08 $ $ - ART, FOOD & WINE CHKG 0.00 12/1/08 $ $ - MONTEREY 170 CHKG 0.00 12/1/08 $ $ 4,919,794 Subtotal $ Total Investments and Cash Ratings I Moody'sI Ratings U AAA U AAA I Aaa AAA + 7 U U U U I 3,831,513 0.00 100.00 $ 3,831,513 U U 856,000 0.00 100.00 $ 856,000 U U 232,280 0.00 100.00 $ 232,280 U U - 0.00 100.00 $ - U U - 0.00 100.00 $ - U U 4,919,794 $ 4,919,794 $ 213,391,075 $ 213,606,815 $ 213,167,606 "U" = Unrated Page 4 City of Palm Desert Portfolio Holdings November 30, 2008 IPar Value I Issuer lCouponj Maturity) Cost % of Portfolio Corporate Issuers (Market Value) BANK OF AMERICA 4.52% CITIGROUP 10.01% GENERAL ELECTRIC 4.66% WACHOVIA 2.36% WAL-MART 2.41 % WELLS FARGO BANK 3.78% % of Portfolio Agency Issuers (Market Value) FED FARM CREDIT BANK 2.92% FED HOME LOAN BANK 3.32% FED HOME LOAN MTG CORP 4.89% FED NATIONAL MTG ASSOC 1.93% Market Ratings �YTM I Price I Value Moody'sl Ratings "U" = Unrated Page 5 Palm Desert Redevelopment Agency -- Portfolio Characteristics November 30, 2008 Dollars in Thousands Acieinci Interval Market Value Portfolio Ageing w/o SLGSs < 1 M $ 21,101 < 2M 2,999 < 3M - 100 < 6M 11,074 90 80 < 1YR 18,149 0 70 < 2YR 27,905 0 50 50 < 3YR 4,208 33 40 25 21 0 < 4YR 30 a 20 n� I 0 n 13 r, 0 0 0 10 - < 5YR - I I n 0 > 5YR - < 1 M < 2M < 3M < 6M < 1 YR < 2YR < 3YR < 4YR < 5YR > 5YR Total: $ 85,436 Quality Market Value Credit Quality AAA $ 208,586 AAA AA 23,644 85% A 12,114 Unrated ** 32 A Total: $ 244,376 5% AA Sector MMF Agencies MTNs CAMP LAIF CP Treasuries Total: Month Dec Jan08 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Market Value $ 156,788 30,577 35,757 21,222 32 $ 244,376 Asset Allocation MMF 64% Agencies CAMP 12% 9% MTNs 15% RDA Yield LAIF Yield Variance i Performance 4.70 4.80 -0.10 4.45 4.62 -0.17 5.0 3.78 4.16 -0.38 3.36 3.78 -0.42 03.35 3.40 -0.05 03.14 :�o 3.07 0.06 m 3.09 2.89 0.20 >- 2.0 3.08 2.79 0.29 3.05 2.78 0.27 1.0 .111111111 3.18 2.77 0.41 Dec Jan08 Feb Mar Apr May Jun Jul Aug Sep Oct Nov 1.60 2.71 -1.11 1.51 2.57 -1.06 ®LAIF Yield ®RDA Yield N i Standard and Poors " LAIF Page 6 Palm Desert Redevelopment Agency Portfolio Holdings November 30, 2008 Market Ratings Par Value Issuer Coupons Maturity Cost YTM I Price I Value I Moody'sl S&P Medium -Term Notes $ 4,000,000 CITIGROUP 6.20 3/15/09 $ 4,011,546 5.13 98.98 $ 3,959,268 Aa1 AA- $ 4,070,000 JP MORGAN CHASE 3.50 3/15/09 $ 4,052,137 5.12 99.86 $ 4,064,103 Aa3 A+ $ 3,055,000 JP MORGAN CHASE 3.50 3/15/09 $ 3,041,592 5.12 99.86 $ 3,050,573 Aa3 A+ $ 3,000,000 JP MORGAN CHASE 6.00 1/15/09 $ 3,010,760 3.00 99.96 $ 2,998,872 Aa3 A+ $ 2,000,000 WACHOVIA 5.80 12/1/08 $ 2,000,000 5.00 100.00 $ 2,000,000 Aa3 A+ $ 3,000,000 WAL-MART 6.88 8/10/09 $ 3,041,392 4.76 102.84 $ 3,085,167 Aa2 AA $ 3,000,000 WAL-MART 4.13 7/1/10 $ 3,055,345 2.91 101.46 $ 3,043,698 Aa2 AA $ 13,625,000 WELLS FARGO BANK 4.20 1/15/10 $ 13,801,905 3.00 99.49 $ 13,555,376 Aa1 AA- $ 35,750,000 Subtotal $ 36,014,677 3.91 $ 35,757,057 Federal Agencies -- Coupon $ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,024,127 4.88 103.92 $ 2,078,392 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,998,527 4.87 102.22 $ 2,044,375 Aaa AAA $ 4,900,000 FED FARM CREDIT BANK 4.90 9/22/10 $ 4,921,215 4.65 104.53 $ 5,122,031 Aaa AAA $ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,484,223 5.59 102.09 $ 4,594,219 Aaa AAA $ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,993,021 4.89 101.53 $ 2,035,702 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,973,705 5.49 105.19 $ 2,103,750 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,973,355 5.50 105.19 $ 2,103,750 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,042,048 5.54 107.84 $ 2,156,875 Aaa AAA $ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,812,647 5.54 107.84 $ 4,026,886 Aaa AAA $ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15/09 $ 4,206,478 4.89 103.75 $ 4,310,813 Aaa AAA $ 29,294,000 Subtotal $ 29,429,346 5.16 $ 30,576,792 Local Government Investment Pool $ 21,653 L.A.I.F. 0.00 12/1/08 $ 21,653 2.57 100.00 $ 21,653 U U $ 9,893 L.A.I.F. (HOUSING) 0.00 12/1/08 $ 9,893 2.57 100.00 $ 9,893 U U $ 31,546 Subtotal $ 31,546 2.57 $ 31,546 Local Government Investment Pool $ 19,127,023 C.A.M.P. 0.00 12/1/08 $ 19,127,023 2.32 100.00 $ 19,127,023 U AAA $ 2,095,254 C.A.M.P. (HOUSING) 0.00 12/1/08 $ 2,095,254 2.32 100.00 $ 2,095,254 U AAA $ 21,222,277 Subtotal $ 21,222,277 2.32 $ 21,222,277 Money Market Fund $ 156,787,972 WF TREASURY PLUS $ 156,787,972 Subtotal Total Investments $ 243,085,795 "U" = Unrated 0.00 12/1/08 $ 156,787,972 0.17 100.00 $ 156,787,972 Aaa AAA $ 156,787,972 0.17 $ 156,787,972 1 $ 243,485,818 1.51 $ 244,375,644 Page 7 Par Value Palm Desert Redevelopment Agency Portfolio Holdings November 30, 2008 Market Ratings Issuer l Couponj Maturity l Cost YTM I Price I Value I Moody'sl S&P % of Portfolio Corporate Issuers (Market Value) CITIGROUP 1.61 % JP MORGAN CHASE 4.12% WACHOVIA 0.81 % WAL-MART 2.50% WELLS FARGO BANK 5.52% % of Portfolio Agency Issuers (Market Value) FED FARM CREDIT BANK 3.76% FED HOME LOAN BANK 4.41% FED HOME LOAN MTG CORP 2.52% FED NATIONAL MTG ASSOC 1.76% "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 month ended November 30, 2008, 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 December 23, 2008, Pis 6djo�, C. c.Al. r. 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 1 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% 12.9% 12.1% 53601(f) Bankers's Acceptances 180 Days 40% 180 Days 40% A-1 & P-1 - - 53601(g) 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 536010) Medium -Term Notes 5 Years 30% A 5 Years 30% A 29.0% 14.8% 53601(k) Mutual Funds 90 Days 20% AAA & Aaa 90 Days 120% (2) IAAA&Aaal 17.1 % 64.4% 53601(I) Trust Indenture Debt Not Authorized 53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized 53601(k) I Local Government I I AAA & Aaa AAA & AaaI Investment Pools 90 Days 20% or Advisor 90 Days I 20% (2) I or Advisor 1 20.6% 8.7% 53601(n) I Mortgage -Backed I 5 Years I 20% I A (Issuer) & Not Authorized Securities AA (Security LAIF No Limit I No Limit 0.0% 0.0% (1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. I 79.5% +� 100.0% (2) Maximum limit for mutual funds and local government investment pools, excluding bond proceeds Certified California Municipal Treasurer Page 9