CITY OF HUNTINGTON BEACH
QUARTERLY INVESTMENT REPORT
CITY TREASURER, ALISA BACKSTROM, MBA, CCMT, CPFIM
QUARTER ENDED: SEPTEMBER 30, 2022
INTEREST RATES – US TREASURY YIELD CURVE
JANUARY 1, 2022 – SEPTEMBER 30, 2022:
2-year US Treasury
4.22%
at 9/30
5-year US Treasury
4.06%
at 9/30
0 0.5
1 1.5
2 2.5
3 3.5
4 4.5
5 1/3/2022 2/3/2022 3/3/2022 4/3/2022 5/3/2022 6/3/2022 7/3/2022 8/3/2022 9/3/2022 10/3/2022 Daily Treasury Rates Jan-Sept 2022
2 Yr 5 Yr
US TREASURY YIELD CURVE AS OF OCTOBER 20, 2022
3.98%
4.45%
4.62% 4.57% 4.58%
4.50%
4.36%
4.27%
4.16% 4.17%
3.60%
3.80%
4.00%
4.20%
4.40%
4.60%
4.80%
3 month 6 month 1 year 2 year 3 year 4 year 5 year 7 year 10 year 20 year Treasury Yield Curve
Inverted Yield Curve
INVESTMENT PORTFOLIO – SUMMARY:
Investment Type
$ in 000's Market Value Book Value
Federal Agency Issues 129,097$ 139,238$
Local Agency Investment Fund (LAIF) 3,720$ 3,720$ CA Asset Management Program (CAMP) 19,000$ 19,000$ Treasury Securities 73,422$ 77,914$
Medium Term Notes - Supranationals 26,961$ 29,081$ Corporate Bonds 33,575$ 34,816$
Commercial Paper 5,000$ 5,000$
OC Investment Pool 7$ 7$
TOTAL 290,782$ 308,775$
AS OF: September 30, 2022
INVESTMENT PORTFOLIO – INVESTMENTS BY TYPE:
45% 25% 11% 9% 6% 2% 1% 1%
Federal Agencies Treasuries Corporate Bonds MTN-Supras
CAMP Commercial Paper LAIF OC Investment Pool
INVESTMENT PORTFOLIO – ACTIVITY:
Investment Type
$ in 000's
Purchases/
Deposits
Calls/Maturities/
Withdrawals
Federal Agency Issues 5,000$ 13,000$ LAIF* 16,030$ 38,000$
CAMP* 19,000$ -$
Supranationals -$ 6,000$
Corporate Bonds 11,000$ 3,000$
OC Investment Pool * 17$ 10,617$ TOTAL 51,047$ 70,617$
* Includes Interest Income
QUARTERLY ACTIVITY: July 1 to September 30, 2022
One rebalance made in August. Sold IADB bond, purchased IBM bond. $48K versus $119.3K interest, cash positive January 2023.
Current Year - Month
❑ September 2022: $362,965
❑ Up 54% from prior year
Current Fiscal Year-to-date ❑ Through 09/30/22: $951,576 ❑ Up 21% from prior year
Effective Rate of Return
❑ September 2022: 1.46%
❑ Fiscal Year-to-date: 1.22%
Benchmark ❑ September 2022: 1.85%
❑ 12-month moving average 1.5-year Treasury
INVESTMENT PORTFOLIO – EARNINGS:
SELECTED INVESTMENT POLICY COMPLIANCE REQUIREMENTS:
(Requirements are at purchase)
INVESTMENT TYPE MAXIMUM
MATURITY
MAXIMUM SPECIFIED
% OF PORTFOLIO/
MAXIMUM PER
ISSUER
MINIMUM QUALITY
REQUIREMENTS
IN
COMPLIANCE?
Commercial Paper 270 days 25%/10% A1, "A" Rating YES
State Obligations--
CA And Others 5 years None/10% "A" Rating YES
U.S. Treasury
Obligations 5 years None None YES
U.S. Government
Agency Obligations 5 years None None YES
IBRD, IFC, IADB 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
CA Asset Mgt
Program (CAMP) N/A Up to $20,000,000 None YES
Maximum Maturities No more than 50% of portfolio maturing over 4 years. YES SUMMARY:
◼Safety – No principal losses
◼Liquidity – Sufficient funds for operations
◼Market rate of return – 1.46% September, 1.22% Fiscal Year-to- date (upward trend)
◼Prudently managed – No compliance issues
◼Positive contributor to City – Earnings of $951,576 fiscal-year- to-date 2022-23 to be utilized for operating and other expenses