CITY OF HUNTINGTON BEACH
QUARTERLY INVESTMENT REPORT
CITY TREASURER, ALISA BACKSTROM, MBA, CCMT, CPFIM
QUARTER ENDED: DECEMBER 31, 2021
INVESTMENT PORTFOLIO – SUMMARY:
Investment Type
$ in 000's Market Value Book Value
Federal Agency Issues 122,464$ 122,693$
Local Agency Investment Fund (LAIF) 8,679$ 8,679$ Treasury Securities 36,872$ 36,976$
Medium Term Notes - IADB/IBRD 35,028$ 35,214$
Corporate Bonds 47,377$ 47,028$
OC Investment Pool 50,508$ 50,508$
TOTAL 300,928$ 301,098$
AS OF: December 31, 2021
INVESTMENT PORTFOLIO – INVESTMENTS BY TYPE:
41% 17% 16% 12% 11% 3%
Federal Agencies OC Investment Pool Corporate Bonds
Treasuries MTN-Supras LAIF
INVESTMENT PORTFOLIO – QUARTERLY ACTIVITY (OCT-DEC):
Purchases:
(In 000's)
Federal Agency Issues 28,650$
Corporate Bonds 5,000$
Treasury Securities 13,000$
TOTAL 46,650$
Maturities/Calls/Withdrawals in 000's:
Local Agency Investment Fund (LAIF) 4,000$
US Bank Sweep First AM Gov* 5,044$
OC Investment Pool 15,000$
TOTAL 24,044$
*Sweep account from Oct, no longer utilized.
Current Year - Month
Dec 2021: $260,935
vs. budget: $100,000
Current Fiscal Year-to-date Through 12/31: $1,559,409 vs. budget: $600,000
Effective Rate of Return
Dec 2021: 1.13%
Fiscal Year-to-date: 1.12%
Benchmark Dec 2021: 0.20%
12-month moving average 1.5-year Treasury
INVESTMENT PORTFOLIO – EARNINGS:
INTEREST RATES – US TREASURY RATES
DECEMBER 31, 2020 – DECEMBER 31, 2021
5-year US Treasury
1.23%
at 12/31
2-year US Treasury
0.68%
at 12/31
SELECTED INVESTMENT POLICY COMPLIANCE REQUIREMENTS:
INVESTMENT TYPE MAXIMUM
MATURITY
MAXIMUM SPECIFIED
% OF PORTFOLIO/
MAXIMUM PER
ISSUER
MINIMUM QUALITY
REQUIREMENTS
IN
COMPLIANCE?
U.S. Treasury
Obligations 5 years None None YES
U.S. Government
Agency Obligations 5 years None None YES
Supranationals 5 years 10% "AA" Rating YES
Corporate Notes 5 years 30%/10% "A" Rating YES
Local Agency
Investment Fund
(LAIF)
N/A Up to $75,000,000 None
YES
Orange County
Investment Pool
(OCIP)
N/A Up to $75,000,000 None
YES
Maximum Maturities No more than 50% of portfolio maturing over 4 years. YES (Requirements are at purchase)
SUMMARY:
Safety – No principal losses
Liquidity – Sufficient funds for operations
Market rate of return – 1.13% December, 1.12% Fiscal Year-to- date (upward trend)
Prudently managed – No compliance issues
Positive contributor to City – Earnings of $1,559,409 fiscal year- to-date to be utilized for operating and other expenses