8F
Date: April 22, 2025
To: Honorable Mayor and Members of the City Council
From: Tim Goodrich, City Treasurer
By: Jasmine Allen, Deputy City Treasurer | [email protected] Subject: City Treasurer – Accept and File Investment Report for the Month of February 2025.
Expenditure: None.
RECOMMENDATION
Recommendation of the City Treasurer that City Council accept and file the Investment Report for the month of February 2025.
FUNDING
None required.
DISCUSSION
On May 21, 2024, your Honorable Body adopted Resolution No. 2024-24 establishing the City’s 2024 Statement of Investment Policy (Investment Policy). The City’s Investment Policy requires the City Treasurer to report a monthly statement of investment activity.
Monthly Investment Report Summary
The City's investment objectives, in order of priority, shall be: (1) Safety which is investing in the highest quality securities; (2) Liquidity which can be converted into cash and necessary to meet our cash flow disbursement requirements; and (3) Yield which is earning a higher yield than the market rate of return.
February 2025 Investment Report
City’s portfolio yielded 4.270% for February, a decrease of 0.2 basis points over the previous month. The fiscal year-to-date earnings were $9,083,199.
As of February 28, 2025, the ending balance of total funds was $347.5M, an increase of $5.9M from the previous month, which included investments of $337.2M and cash of $10.3M. The funds described in the investment report are distributed amongst our various major fund categories as follows:
1 City Council
April 22, 2025
Fund Category Grand Total
Capital Improvement Fund 21,950,566
Enterprise Funds 118,148,891
Fiduciary Funds 10,015,917
General Fund 61,428,065
Internal Svc - Fleet Services Fund 29,086,582
Internal Svc - OPEB Fund 6,515,175
Internal Svc - Self-Insurance Fund 23,689,882
Nonmajor Governmental Funds 75,837,610
Reconciling Adjustments: 801,211
Ending Total Bank Balances as of February 28, 2025 347,473,899 *Reconciling Adjustments include any outstanding checks, in-transit deposits, and any other outstanding transactions that would result in a variance between the ending cash balances of our bank statements and our financial ledgers.
For the month of February, California Asset Management Program (CAMP)’s balance was $79.5M, earning a yield of 4.51%. The Local Agency Investment Funds (LAIF)’s yield remains lower, at 4.333%. Staff continue to monitor these rates relative to the cash flow needs of City operations and invest the funds accordingly.
Four new purchases totaling $35M were made, and no investments matured.
The City is in compliance with California Government Code Section 53646 which requires the local agency to report on its ability to meet pooled expenditure requirements for the next six (6) months. Over the next 6 months, cash, cash equivalents (LAIF, CAMP, Sweep Money Market) and projected inflows exceed projected cash outflows by $73.3M.
Investment Committee Members
The Investment Committee members include the City Manager, City Attorney, Finance Director, City Treasurer, and Deputy City Treasurer, as created by your honorable body. The Committee has reviewed the attached investment report (Attachment 1).
ATTACHMENT
1. Monthly Investment Report for February 2025
2 Attachment 1
City of Torrance, California Monthly
Investment Portfolio Report
February, 2025
Table of Contents Page
I. Portfolio Report Summary
Table of Contents……………………………………………………………………………….. 1
Summary Notes………………………………………………………………………………….. 2-3
II. Pooled Funds
Portfolio Highlights………………………………………………………………………………
Portfolio Activity Summary…………………………………………………………………..
Portfolio Summary…………………………………………………………………………….…
Portfolio Monthly Activity Detail………………………………………………………….
Portfolio Performance………………………………………………………………………….
Portfolio Earnings Summary…………………………………………………………………
4 4
5 6
7 7
Portfolio Distribution
Maturity Distribution…………………………………………………………………………… 8
9Assigned Credit Ratings of Investments………………………………………………..
Federal Agencies Distribution………………………………………………………………
Portfolio Sectors…………………………………………………………………………………..
9 9
Value of Portfolio per GASB 31..………………………………………………………….. 10 Detailed Reports
Investment Portfolio……………………………………………………………………………. 11-14 IV. Appendix A
Notes to Investment Report ……………………………………………………………… 15-16 V. Appendix B
Glossary …………………………………………………………………………………………… 17-22
1 3
City of Torrance, California
InvestmentReportSummaryNotes
For the Month of: February 2025
Summary
The City's investment objectives, in order of priority, shall be safety, which is investing in the highest quality securities, liquidity, which can be converted into cash and necessary to meet our cash flow disbursement requirements, and yield, which is earning a higher yield than the market rate of return.
City’s portfolio yielded 4.270% for February, a decrease of 0.2 basis points over the previous month. The fiscal year-to-date earnings were $9,083,199.
As of February 28, 2025, the ending balance of total funds was $347.5M, an increase of $5.9M from the previous month, which included investments of $337.2M and cash of $10.3M.
Ending Balance of Total Funds as of January 31, 2025
Ending Balance of Total Funds as of February 28, 2025
Difference
$
$
$
341,571,012.14
347,473,899.40
5,902,887.26
For the month of February, California Asset Management Program (CAMP)’s balance was $79.5M, earning a yield of 4.51%. The Local Agency Investment Funds (LAIF)’s yield remains lower, at 4.333%. Staff continue to monitor these rates relative to the cash flow needs of City operations and invest the funds accordingly.
Four new purchases totaling $35M were made, and no investments matured.
Purchases:
Liquidity of the Portfolio
A yield curve is typically defined as the difference between the 3-month and 10-year treasury rate. However, the City uses the 1-year and 5-year yield curve, as the City is allowed to purchase investments for up to five years per the City's investment policy. As of February 28, 2025, the 1-year, 3-year and 5-year treasury yields were
4.08%, 3.99% and 4.03%, respectively.
The City is in compliance with California Government Code Section 53646 which requires the local agency to report on its ability to meet pooled expenditure requirements for the next six (6) months. Over the next 6 months, cash, cash equivalents (LAIF, CAMP, Sweep Money Market) and projected inflows exceed projected cash outflows by $73.3M.
Prepared by the Office of the Treasurer for the Investment Advisory Committee 2 4
City of Torrance, California
InvestmentReportSummaryNotes
For the Month of: February 2025
Cash Activity/Balances projected over the next 6 months (millions):
Cash Balance as of February 28, 2025
CAMP/LAIF Balance as of February 28, 2025
Money Market Account as of February 28, 2025
Cash Inflows
$
$
$
$
$
$
10.3 79.5
5.1 229.1
250.8
73.3 Cash Outflows
Projected Cash/Liquidity Balance
Investment Comparison to Benchmark
As stated above for the month of February, the City's portfolio yielded 4.270%. The 1-year and 2-year U.S. Constant Maturing Treasury (CMT) is at 4.08% and 3.99%, respectively.
The City's portfolio has a current average maturity of 735 days or 2.01 years.
Prepared by the Office of the Treasurer for the Investment Advisory Committee 3 5
Investment Report
February 2025
Portfolio Highlights
RETURN
City Portfolio YTM
Current Month
4.270%
Prior Month
4.272%
U.S. Treasury Constant Maturity (2 year)
LAIF Monthly Return
CAMP Monthly Return
Sweep Money Market Monthly Return
INCOME
Fiscal Year to Date
Current Month
3.990%
4.333%
4.510%
4.240%
4.220%
4.366%
4.550%
4.270%
Current Month
$9,083,198.84
$1,123,507.60
Current Month
735
Prior Month
$7,997,137.88
$1,155,962.66
Prior Month
604
MATURITY
Days to Maturity
Average Maturity (Years)
VOLUMES
Purchases/Deposits*
Maturities/Redemptions*
2.01 1.65
Total Volume ($)*
$59,475,880.45
$49,039,773.77
# of Transactions**
4 0
*Includes LAIF/CAMP and MMA activity
**Transaction count does not include LAIF/CAMP or MMA activity 4 6
7 Investment Report
February 2025
Portfolio Monthly Activity Detail
Purchase
Date
2/14/2025
2/15/2025
2/16/2025
2/17/2025
NRSRO
Rating
AA+
Maturity
Date
6/12/2029
Purchases Broker
OPN
Description
FFCB
Term (YR) YTM 365 (%) Par Value ($) Book Value ($)
11478
11479
11480
11481
4.3 4.6
4.7 4.9
4.380%
4.396%
4.385%
4.390%
4.388%
$10,000,000.00
$5,000,000.00
$10,000,000.00
$10,000,000.00
$9,273,811.17
$9,785,620.96
$4,919,458.58
$9,777,777.51
9/30/2029
10/31/2029
12/31/2029
MSB
FHN
MSB
USTN
USTN
USTN
Aaa
Aaa
Aaa
Average Rate / Totals $35,000,000.00 $33,756,668.22
Maturities/ Calls/Sales
None
Montly InterestUS Bank Beginning Balance Coupon ( % ) Yield (%) Deposits ($) Withdrawals ($) Ending Balance ($)Earned ($) Money Market $23,678,571.51 4.240% 4.240% $15,394,731.82 $34,039,773.77 $73,658.45 $5,107,188.01 Quarterly Interest
Earned ($)LAIF Beginning Balance Coupon (%) Yield (%) Deposits ($) Withdrawals ($) Ending Balance ($) General $11.34 4.333% 4.333% $0.00 $0.00 $0.13 $11.47
Monthly Interest
Earned ($)CAMP Beginning Balance Coupon (%) Yield (%) Deposits ($) Withdrawals ($) Ending Balance ($) CAMP Pool $84,282,063.95 4.510% 4.510% $10,000,000.00 $15,000,000.00 $263,350.18 $79,545,414.13 6 8
Investment Report
February 2025
Portfolio Performance
5.5%
5.2%
4.9%
4.6%
4.3%
4.0%
3.7%
3.4%
3.1%
2.8%
2.5%
2.2%
1.9%
1.6%
1.3%
1.0%
0.7%
0.4%
0.1%
Constant Maturity Treasury - 2 Year (Benchmark) LAIF Monthly City Yield Portfolio Earnings Summary
Notes :
*Accrued Interest: Interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security. At the time of sale, the buyer pays the seller the bond's price plus "accrued interest," calculated by multiplying the coupon rate by the fraction of the coupon period that has elapsed since the last payment. (If a bondholder receives $40 in coupon payments per bond semiannually and sells the bond one-quarter of the way into the coupon period, the buyer pays the seller $10 as the latter's proportion of interest earned.)
Adjusted by Premiums/Discounts represents the premium or discount cost involved to secure higher or lower yield securties. The cost of the premium or discount is amoritized down or up respectively to par over the life of the bond until reaching maturity.
By amortizing, the amount of taxable interest is reduced for each year the city owns the bond. This is because the amortized premium or discounts offsets the ordinary income of the coupon payment.
As long as a bond is held to maturity there will be no capital loss or gain to report. 7 9
Investment Report
February 2025
Maturity Distribution
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
27.28%
20.73%
19.85% 19.85%19.27% 18.59%18.58%
14.51% 13.91%
12.57%
0.98%0.00% 0.48% 0.00%
0.0%
January
6 Months to 1 Year
February
3 Years to 4 Years1 to 30 Days 31 Days to 6 Months 1 Year to 2 Years 2 Years to 3 Years 4 Years to 5 Years NOTE: SB 564 passed in 1995, effective February 1, 1996, requires that local agencies submit a quarterly report to the legislative body containing detailed information on all securities, investments, and monies of the local agency was eliminated by AB 2853 on September 29, 2004 .
CA GC §53646(b)(3) requires a statement of compliance of the portfolio with the statement of investment policy and a statement of the local agency’s ability to meet the expenditure requirements of the pool for the next six months. We are in compliance with the section. 8 10
Investment Report
February 2025
Portfolio Distribution
Assigned Credit Ratings of Investments (Total Portfolio) Federal Agencies Distribution AAA/Aaa/AA3 Federal Farm Credit Bank
Federal Home Loan BankAA+
AA-
FDIC
A-1 /A
31.48%
26.77%
9.32%
51.74% 68.52%
10.66% 1.51%
Portfolio Sectors (Book Value)
100,000,000.00 $90,500,207 $86,051,386$79,545,414
80,000,000.00
60,000,000.00
40,000,000.00
20,000,000.00
-
$70,513,142
$5,085,949 $5,107,188 $350,755
CAMP Negotiable CDs Federal Agency
Securities
Treasury Securities Medium-Term
Notes/Corps
Money Market Sweep Municipal Bonds
9 11
12 Deputy Treasurer Monthly Reports
Portfolio Management Page 1
Portfolio Details - Investments
February 28, 2025
Average
Balance
Purchase Stated
Rate
YTM Days to
Maturity
Maturity
DateCUSIP Investment # Issuer Par Value Market Value Book ValueDate S&P Local Agency Investment Funds
SYS10000 10000 Local Agency Invest Fund GEN'L
Subtotal and Average
07/01/2022 11.47 11.47 11.47 4.333 LAIF 4.333 1
11.47 11.47 11.47 11.47 4.333 1
Money Market Sweep Account
316175108 10001 US Bank 07/01/2022 5,107,188.01 5,107,188.01 5,107,188.01 4.240 A-1 4.240 1 Subtotal and Average 14,114,830.64 5,107,188.01 5,107,188.01 5,107,188.01 4.240 1 Federal Agency Issues - Coupon
3133ENL99
3133ENP95
3133ENP95
3133ENQ29
3133ENP95
3133EKQJ8
3130AMKK7
3130AMSY9
3130AMSY9
3130AMSY9
3130AQMQ3
3130AQPP2
3130AQSG9
3130ATHV2
3130ASH44
3130B1EF0
11381
11383
11384
11385
11386
11478
11363
11364
11365
11366
11372
11375
11377
11380
11414
11467
FEDERAL FARM CREDIT BANK 10/07/2022
10/07/2022
10/07/2022
10/07/2022
10/07/2022
02/14/2025
06/14/2021
06/29/2021
06/29/2021
06/29/2021
01/28/2022
02/18/2022
02/22/2022
10/07/2022
03/30/2023
05/24/2024
13,000,000.00
10,000,000.00
10,000,000.00
10,000,000.00
10,000,000.00
10,000,000.00
2,500,000.00
1,000,000.00
1,000,000.00
1,000,000.00
5,000,000.00
3,000,000.00
1,000,000.00
7,000,000.00
2,000,000.00
5,000,000.00
12,809,680.00
9,997,800.00
9,997,800.00
9,988,500.00
9,997,800.00
9,401,500.00
2,439,750.00
980,500.00
12,779,140.48
9,996,045.95
9,997,253.59
9,970,865.36
9,997,253.59
9,273,811.17
2,500,078.57
1,000,000.00
1,000,000.00
1,000,000.00
5,000,000.00
2,999,771.56
999,975.79
3.375
4.250
4.250
4.000
4.250
2.500
0.875
0.800
0.800
0.800
2.250
1.625
2.125
4.250
4.700
4.625
AA+
AA+
AA+
AA+
AA+
AA+
AA+
AA+
AA+
AA+
AA+
AA+
AA+
AA+
AA+
AA+
4.120
4.322
4.300
4.125
4.300
4.380
0.871
0.800
0.800
0.800
1.600
1.633
1.477
4.214
4.816
4.748
928 09/15/2027
213 09/30/2025
213 09/30/2025
942 09/29/2027
213 09/30/2025
1,564 06/12/2029
270 11/26/2025
212 09/29/2025
212 09/29/2025
212 09/29/2025
241 10/28/2025
262 11/18/2025
153 08/01/2025
559 09/11/2026
851 06/30/2027
832 06/11/2027
FEDERAL FARM CREDIT BANK
FEDERAL FARM CREDIT BANK
FEDERAL FARM CREDIT BANK
FEDERAL FARM CREDIT BANK
FEDERAL FARM CREDIT BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN BANK
980,500.00
980,500.00
4,947,150.00
2,945,460.00
990,880.00
7,016,240.00
1,998,380.00
5,067,350.00
7,003,512.38
1,995,580.17
4,986,918.87
Subtotal and Average 86,187,120.58 91,500,000.00 90,539,790.00 90,500,207.48 3.816 612 Treasury Securities - Coupon
91282CAT8
91282CAZ4
9128286F2
912828U24
91282CCF6
91282CCH2
91282CCV1
91282CKV2
91282CKX8
91282CLP4
91282CFL0
11361
11370
11388
11391
11472
11473
11474
11475
11476
11477
11479
U.S.TREASURY NOTE
U.S.TREASURY NOTE
U.S.TREASURY NOTE
U.S.TREASURY NOTE
U.S.TREASURY NOTE
U.S.TREASURY NOTE
U.S.TREASURY NOTE
U.S.TREASURY NOTE
U.S.TREASURY NOTE
U.S.TREASURY NOTE
U.S.TREASURY NOTE
05/28/2021
01/25/2022
12/16/2022
12/22/2022
12/19/2024
12/19/2024
12/19/2024
12/19/2024
12/19/2024
12/19/2024
02/14/2025
2,500,000.00
1,000,000.00
5,000,000.00
5,000,000.00
5,000,000.00
5,000,000.00
10,000,000.00
10,000,000.00
10,000,000.00
10,000,000.00
10,000,000.00
2,435,550.00
972,110.00
2,492,985.66
992,344.03
0.250
0.375
2.500
2.000
0.750
1.250
1.125
4.625
4.250
3.500
3.875
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
0.677
1.428
3.909
3.900
4.211
4.289
4.242
4.245
4.249
4.230
4.396
244 10/31/2025
274 11/30/2025
364 02/28/2026
624 11/15/2026
456 05/31/2026
1,217 06/30/2028
1,279 08/31/2028
836 06/15/2027
1,582 06/30/2029
578 09/30/2026
1,674 09/30/2029
4,920,050.00
4,834,750.00
4,800,000.00
4,576,950.00
9,073,100.00
10,140,600.00
10,094,100.00
9,919,100.00
9,941,400.00
4,934,557.29
4,850,778.38
4,792,187.50
4,534,308.95
9,000,041.64
10,081,856.42
10,000,000.00
9,889,468.62
9,785,620.96
Portfolio CITY
Data Updated: : 03/06/2025 20:01 AP
Run Date: 03/06/2025 - 20:01 11PM (PRF_PM2) 7.3.11
Report Ver. 7.3.11
13 Deputy Treasurer Monthly Reports
Portfolio Management Page 2
Portfolio Details - Investments
February 28, 2025
Average
Balance
Purchase Stated
Rate
YTM Days to
Maturity
Maturity
DateCUSIP Investment # Issuer Par Value Market Value Book ValueDate S&P Treasury Securities - Coupon
91282CFT3
91282CGB1
11480
11481
U.S.TREASURY NOTE
U.S.TREASURY NOTE
02/14/2025
02/14/2025
5,000,000.00
10,000,000.00
4,995,700.00
9,936,300.00
4,919,458.58
9,777,777.51
4.000
3.875
N/A 4.385
4.390
1,705 10/31/2029
1,766 12/31/2029N/A
Subtotal and Average 74,653,662.07 88,500,000.00 86,639,710.00 86,051,385.54 4.111 1,126 Medium Term Notes
06406RAH0
141784AM0
17325FBB3
17325FBB3
46625HRS1
58942HAC5
30303M8L9
62829D2E9
6944PL2Z1
6944PL2U2
6944PL3C1
74368CBV5
74368CBY9
11445
11471
11461
11463
11460
11464
11459
11468
11462
11465
11469
11466
11470
BANK OF NEW YORK
Cargill Inc
05/18/2023
10/29/2024
01/09/2024
02/12/2024
10/10/2023
02/12/2024
10/10/2023
10/28/2024
02/08/2024
03/28/2024
10/28/2024
03/28/2024
10/28/2024
3,000,000.00
8,000,000.00
5,709,000.00
2,000,000.00
3,600,000.00
3,390,000.00
3,000,000.00
10,000,000.00
4,200,000.00
1,900,000.00
10,000,000.00
5,000,000.00
5,000,000.00
2,965,560.00
8,435,440.00
5,946,094.77
2,083,060.00
3,549,096.00
3,361,015.50
3,032,700.00
9,992,500.00
4,254,558.00
1,957,817.00
9,989,500.00
5,146,550.00
5,094,600.00
2,953,568.24
8,481,246.03
5,859,524.17
2,064,129.57
3,500,277.99
3,346,048.08
2,954,983.54
9,991,619.47
4,198,419.49
1,930,179.24
10,011,430.52
5,095,792.96
5,126,826.89
3.850
7.410
5.803
5.803
3.200
4.302
4.600
4.750
4.900
5.500
4.500
5.467
5.215
A
N/A
A+
4.399
4.601
4.965
4.791
5.540
4.737
5.130
4.770
4.911
4.970
4.471
4.889
4.550
1,154 04/28/2028
839 06/18/2027
1,308 09/29/2028
1,308 09/29/2028
471 06/15/2026
1,218 07/01/2028
1,171 05/15/2028
1,689 10/15/2029
1,412 01/11/2029
1,235 07/18/2028
1,641 08/28/2029
1,378 12/08/2028
1,564 06/12/2029
Citigroup/Smith Barney
Citigroup/Smith Barney
JPMORGAN
A+
A1
Mercy Heathcare
META Platforms
A+
A1
Mutual of Omaha
Pacific Life Global
Pacific Life Global
Pacific Life Global
Prime Alliance Bank
Prime Alliance Bank
A+
AA-
AA-
AA-
AA-
AA-
Subtotal and Average 65,523,238.08
76,434,326.46
64,799,000.00 65,808,491.27 65,514,046.19 4.767 1,324
CAMP
SYS10002 10002 CAMP 07/11/2023 79,545,414.13 79,545,414.13 79,545,414.13 4.510 4.510 1 Subtotal and Average 79,545,414.13 79,545,414.13 79,545,414.13 4.510 1 Municipal Bonds
630362ES6
732098PH5
11423
11424
Napa Valley USD
Ponoma USD
04/21/2023
04/21/2023
105,000.00
270,000.00
98,060.55 97,668.87 1.342
1.516
N/A
N/A
4.554
4.387
883 08/01/2027
883 08/01/2027254,107.80 253,085.67
Subtotal and Average 350,324.57 375,000.00 352,168.35 350,754.54 4.434 883 Negotiable CD
01882MAC6
062119BU5
05600XQA1
05580AXF6
14042RVT5
12481GAW7
12547CBG2
20416TAX0
11396
11434
11426
11362
11440
11374
11438
11401
Alliant Credit Union
BANK FIVE NINE
BMO HARRIS C
12/30/2022
05/12/2023
05/09/2023
06/24/2021
05/17/2023
02/18/2022
05/16/2023
01/06/2023
245,000.00
245,000.00
243,000.00
200,000.00
243,000.00
245,000.00
243,000.00
245,000.00
249,730.95
245,798.70
243,162.81
195,736.00
244,195.56
241,685.15
243,182.25
245,931.00
245,000.00
245,000.00
243,000.00
199,949.14
243,000.00
245,000.00
243,000.00
245,000.00
5.000
4.400
4.800
0.500
4.500
1.450
4.800
4.700
FDIC
FDIC
FDIC
FDIC
FDIC
FDIC
FDIC
FDIC
5.003
4.404
4.799
0.546
4.504
1.449
4.807
4.704
1,034 12/30/2027
802 05/12/2027
69 05/09/2025
208 09/25/2025
807 05/17/2027
170 08/18/2025
76 05/16/2025
311 01/06/2026
BMW Bank of No America #35141
Capital One#4297
CBC Fed Credit Union
CIBC BK USA
CIT Bank
Portfolio CITY
Data Updated: : 03/06/2025 20:01 AP
Run Date: 03/06/2025 - 20:01 12PM (PRF_PM2) 7.3.11
14 Deputy Treasurer Monthly Reports
Portfolio Management Page 3
Portfolio Details - Investments
February 28, 2025
Average
Balance
Purchase Stated
Rate
YTM Days to
Maturity
Maturity
DateCUSIP Investment # Issuer Par Value Market Value Book ValueDate S&P Negotiable CD
597338AJ1
20368TDL1
227563CJ0
2546734T0
40219MAG9
58404DSD4
61690U5T3
843879EC7
843383CR9
84287PHR6
91527PBX4
065427AE6
920133AK1
11431
11448
11449
11430
11442
11452
11432
11427
11443
11453
11435
11429
11393
Comenity Capital Bank
COMMUNITY FI
05/10/2023
05/19/2023
05/19/2023
05/10/2023
05/17/2023
05/22/2023
05/10/2023
05/09/2023
05/17/2023
05/26/2023
05/12/2023
05/10/2023
12/23/2022
245,000.00
245,000.00
243,000.00
243,000.00
243,000.00
245,000.00
243,000.00
245,000.00
245,000.00
245,000.00
245,000.00
245,000.00
245,000.00
245,798.70
246,033.90
243,218.70
243,784.89
243,797.04
245,313.60
244,691.28
245,730.10
245,735.00
246,198.05
246,055.95
245,730.10
245,409.15
245,000.00
245,000.00
243,000.00
243,000.00
243,000.00
245,000.00
243,000.00
245,000.00
245,000.00
245,000.00
245,000.00
245,000.00
245,000.00
4.400
4.600
4.850
4.550
4.550
4.800
4.600
4.500
4.500
4.650
4.450
4.500
4.800
FDIC
FDIC
FDIC
FDIC
FDIC
FDIC
FDIC
FDIC
FDIC
FDIC
FDIC
FDIC
FDIC
4.404
4.605
4.857
4.555
4.555
4.800
4.604
4.505
4.505
4.655
4.454
4.395
4.803
800 05/10/2027
444 05/19/2026
79 05/19/2025
436 05/11/2026
442 05/17/2026
82 05/22/2025
800 05/10/2027
436 05/11/2026
440 05/15/2026
451 05/26/2026
802 05/12/2027
436 05/11/2026
114 06/23/2025
CROSS RIVER
Discover Bank #5649
GULF CAP BK
Medallion Bank Salt Lake City
Morgan Stanley Bank
SOUTHERN STS
SOUTHERN STS
SOUTHERN FIR
UNIVEST NATL BK
BANK UTAH OGDEN
Valley Strong
Subtotal and Average 5,085,945.84 5,086,000.00 5,096,918.88 5,085,949.14 4.313 442 Non-US Corporate Bond
63253QAE4 11457 Australia National Bank 07/19/2023 5,000,000.00 5,082,300.00 4,999,095.41 4.900 AA- 4.905 1,200 06/13/2028 Subtotal and Average
Total and Average
4,999,083.60 5,000,000.00 5,082,300.00 4,999,095.41 4.905 1,200 327,348,543.30 339,912,613.61 338,171,992.11 337,154,051.91 4.270 735 Portfolio CITY
Data Updated: : 03/06/2025 20:01 AP
Run Date: 03/06/2025 - 20:01 13PM (PRF_PM2) 7.3.11
15 Deputy Treasurer Monthly Reports
Portfolio Management
Portfolio Details - Cash
February 28, 2025
Average
Balance
Purchase Stated
Rate
YTM Days to
MaturityCUSIP Investment # Issuer Par Value Market Value Book ValueDate S&P Average Balance 0.00 Accrued Interest at Purchase
Subtotal
396,749.47
396,749.47
396,749.47
396,749.47
0 Total Cash and Investments 327,348,543.30 339,912,613.61 338,568,741.58 337,550,801.38 4.270 735 Portfolio CITY
Data Updated: : 03/06/2025 20:01 AP
Run Date: 03/06/2025 - 20:01 14PM (PRF_PM2) 7.3.11
16 Notes to Investment Report
1. REPORTING ENTITY
City of Torrance was established May 31, 1921 and adopted a city charter form of government on January 7, 1947.
Under City Charter section 630 CITY TREASURER. It shall be the duty of the City Treasurer to receive and safely keep all moneys which shall come into his/her hands as City Treasurer. He/She shall comply with all provisions of law governing the deposit and securing of public funds. He/She shall also comply with all the provisions of the general laws of the State governing the handling of such trust funds as may come into his/her possession. He/She shall pay out moneys only on warrants signed by persons designated by law, or ordinance, as the proper persons to sign warrants and as to trust funds which may come into his/her possession or control by virtue of some law, ordinance or resolution, by warrant or other order, in accordance with the provisions of such law, ordinance or resolution. He/She shall at regular intervals, at least once each month, submit to the Director of Finance a written report and accounting of all receipts, disbursements and fund balances, a copy of which report he/she shall file with the City Council.
The City Treasurer may appoint a deputy, or deputies, from an eligible list to be prepared in accordance with the proceedings prescribed in the civil service system of the City, such deputy or deputies to receive such compensation as may be provided by the City Council. (Ratified Gen. Mun. Elec. 4/10/56, Amend. No. 8; Approved by State Legislature Concurrent Res. No. 3 on 1/9/57).
2. BASIS FOR REPORTING
This Investment Report has been prepared in accordance with the State of California Government Code §53600 and City of Torrance Investment Policy as noted in the City Charter. The City of Torrance Investment Policy is approved and adopted annually by City Council. The Investment Policy is annually submitted by the City Treasurer to the Investment Advisory Committee for review before being forwarded to the City Council. The investment Advisory Committee is made up of City Treasurer, City Manager, City Attorney, Finance Director, and Deputy City Treasurer.
3. ASSUMPTIONS
The Investment Report represents a specific snapshot in time and is compared to other market performers during that same period which includes but is not limited to: Constant Maturing Treasury 2- year term rates, Local Agency Investment Fund (State of California), and prior year performance. All investment activity calculations are results from SymPro portfolio management software v7.3.6.
Adjusted by Premiums/Discounts represent the premium/discount cost involved to secure higher or lower yield securities. The cost of the premium or discount is amortized down or up to par over the life of the bond until reaching maturity. By amortizing, the amount of taxable interest is reduced for each year the city owns the bond. This is because the amortized premium or discount offsets the ordinary income of the coupon payment.
There is no capital loss or gain to report if bonds are kept to maturity. 15 17
Notes to Investment Report
4. COMPLIANCE
The Investment Report is required to be submitted to City Council on a monthly basis. State of California statutes requires quarterly reporting. GASB 31 section requires market changes be booked annually but reported monthly as part of this report.SB 564 requires quarterly reporting to the legislative body.
5. LAIF RISK
LAIF statute §16429.3 Deposits; prohibited transfers and loans; impoundment or seizure:
Moneys placed with the Treasurer for deposit in the Local Agency Investment Fund by cities, counties, special districts, nonprofit corporations, or qualified quasi-governmental agencies shall not be subject to either of the following:
a. Transfer or loan pursuant to Section 16310, 16312, or16313. b. Impoundment or seizure by any state official or state agency LAIF statute §16429.4 Right of withdrawal:
The right of a city, county, city and county, special district, nonprofit corporation, or qualified quasi- governmental agency to withdraw its deposited moneys from the Local Agency Investment Fund, upon demand, may not be altered, impaired, or denied, in any way, by any state official or state agency based upon the state’s failure to adopt a State Budget by July 1 of each new fiscal year.
Additional information about LAIF may be found on the California State Treasurer Website:
http://www.treasurer.ca.gov/pmia-laif/answer/laifstatutes.asp 16 18
Glossary
ACCRUED INTEREST. Interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security. At the time of sale, the buyer pays the seller the bond's price plus "accrued interest," calculated by multiplying the coupon rate by the fraction of the coupon period that has elapsed since the last payment. (If a bondholder receives $40 in coupon payments per bond semiannually and sells the bond one-quarter of the way into the coupon period, the buyer pays the seller $10 as the latter's proportion of interest earned.) AGENCIES. Also referred to as Federal Agencies or Fed Agencies and include such organizations or enterprises as the:
Federal Home Loan Bank (FHLB), Federal Home Loan Mortgage Corporation (FHLMC), Federal Farm Credit Banks (FFCB), and Government National Mortgage Association (GNMA). See FEDERAL AGENCIES or the specific organization/enterprise in this glossary for additional information.
AMORTIZATION. The spreading out of capital expenses for intangible assets over a specific period of time (usually over the asset's useful life) for accounting and tax purposes. Amortization is similar to depreciation, which is used for tangible assets, and to depletion, which is used with natural resources.
ASKED. The price at which securities are offered.
BANKER'S ACCEPTANCE ("BA"). A draft, bill, or exchange accepted by a bank or a trust company. Both the issuer and the accepting institution guarantee payment of the bill.
BASIS POINT. Common unit of measure used for expressing changes in interest rates; one basis point equates to 1/100th of 1%. (i.e. 0.1% equals 10 basis points.)
BID. The price offered by a buyer of securities (when one sells securities, one asks for a bid). See "Offer".
BOND. Bonds are commonly referred to as fixed-income securities and are one of the three main generic asset classes, along with stocks (equities) and cash equivalents. Many corporate and government bonds are publicly traded on exchanges, while others are traded only over-the-counter (OTC).
BROKER. A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. It is also the role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.
BULLET BOND. Bullet Bonds are non-callable bonds, which cannot be redeemed early by the issuer.
CALLABLE BOND. A bond that can be redeemed by the issuer earlier than the bond’s maturity date. Callable bonds with specific details as to when the bond may be called back are noted. Embedded options attached to callable bonds detail how the issuer may “call” back the security. Three forms of embedded options for callable bonds are:
American Option:
Bermudian Option:
European Option:
Bond may be called back by the issuer at any time after the lockout period expires. (continuously callable)
The issuer has the right to call the bond on the predetermined interest payment dates only.
Allows the holder to exercise the option (i.e. to buy) only on the option expiration date.
1X:
6M:
One time callable only
Callable only after predetermined 6 month lockout period.
CERTIFICATE OF DEPOSIT ("CD"). A time deposit with a specific maturity, as evidenced by a certificate. Large- 17 19
Glossary
denomination CDs are typically negotiable. A certificate of deposit (CD) is a savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years.
COLLATERAL. Securities, evidence of deposit, or other property which a borrower pledges to secure repayment of a loan.
Also refers to securities pledged by a bank to secure deposits of public monies.
COMPREHENSIVE ANNUAL FINANCIAL REPORT ("CAFR"). The official annual report for the City of Torrance. It includes combined statements for each individual fund and account group, which are prepared in conformity with GAAP. It also includes supporting schedules that are necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section.
CORPORATE BOND/NOTES. A debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations.
COUPON. The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. It can also be a certificate attached to a bond, which evidences interest due on a payment date. The annual interest rate paid on a bond, expressed as a percentage of the face value.
DEALER. A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
DEBENTURE. A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT. There are two methods of delivery of securities: (1) delivery versus payment (DVP); and (2) delivery versus receipt (DVR). DVP is delivery of securities with an exchange of money for the securities. DVR is delivery of securities with an exchanged of a signed receipt for the securities.
DERIVATIVES. (1) Financial instruments that are linked to, or derived from, the movement of one or more underlying indexes or securities, and may include a leveraging factor; or (2) financial contracts based upon a notional amount whose value is derived from an underlying index or security (e.g., interest rates, foreign exchange rates, equities, or commodities).
DISCOUNT. The difference between the acquisition cost of a security and its value at maturity, when quoted at lower than face value. A security that sells below original offering price shortly after sale is also considered to be at a discount. In finance, discount refers to the condition of the price of a bond that is lower than par, or face value. The discount equals the difference between the price paid for a security and the security's par value.
DISCOUNT SECURITIES. Non-interest bearing money market instruments that are issued a discount and that are redeemed at maturity for full face value (e.g., U.S. Treasury Bills).
DIVERSIFICATION. Dividing investment funds among a variety of securities that offer independent returns.
FEDERAL AGENCIES. Special government organizations set up for a specific purpose such as the management of resources, financial oversight of industries or national security issues. These organizations are typically created by legislative action, but may initially be set up by a Presidential Order as well. The directors of these agencies are typically selected by Presidential appointment. A number of these organizations issue securities such as stocks and bonds that have been historically popular with investors. Agencies of the Federal Government that were established to supply credit to various classes of institutions and individuals (e.g., S&Ls, small business firms, 18 20
Glossary
students, farmers, farm cooperative, and exporters).
FEDERAL DEPOSIT INSURANCE CORPORATION ("FDIC"). A federal agency that insures bank deposits, currently up to $ 250,000.00 per deposit.
FEDERAL FARM CREDIT BANK (“FFCB”). In the United States, a network of federally-chartered financial institutions designed to provide credit-related services to the agricultural and farming sectors of the economy. In total, this government-sponsored enterprise comprises approximately 100 financial institutions that serve all 50 states and Puerto Rico
FEDERAL FUNDS RATE. The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.
FEDERAL HOME LOAN BANKS ("FHLB"). Government-sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing-related assets of its member, who must purchase stock in their District Bank. FHLB - An organization created by the Federal Home Loan Bank Act of 1932 to increase the amount of funds available for lending institutions who provide mortgages and similar loan agreements to individuals. This system was created in response to the depressive economic conditions of the era, which had impaired the U.S. banking system.
FEDERAL HOME LOAN MORTGAGE CORP (“Freddie Mac or FHLMC”). FHLMC is a stockholder-owned, government- sponsored enterprise (GSE) chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing for middle income Americans. The FHLMC purchases, guarantees and securitizes mortgages to form mortgage-backed securities. The mortgage-backed securities that it issues tend to be very liquid and carry a credit rating close to that of U.S. Treasuries.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (`FNMA"). FNMA, like GNMA, was charted under the Federal National Mortgage Association Act of 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assures and guarantees that all security holders will receive timely payment of principal and interest. Fannie Mae is a publicly-traded company which operates under a congressional charter that directs Fannie Mae to channel its efforts into increasing the availability and affordability of homeownership for low-, moderate- and middle-income Americans.
FEDERAL OPEN MARKET COMMITTEE ("FOMC"). The FOMC consist of seven members of the Federal Reserve Board and five of the 12 Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of government securities in the open market as a means of influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM. Also known as “The Fed.” The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATIONS ("GNMA" or "Ginnie Mae"). Securities that influence the volume of bank credit that is guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan 19 21
Glossary
associations, and other institutions. The full faith and credit of the U.S. Government protect a security holder. Ginnie Mae securities are backed by the FHA, VA, or FMHM mortgages. The term "pass-through" is often used to describe Ginnie Maes.
GOVERNMENTAL ACCOUNTING STANDARDS BOARD (“GASB”). An organization whose main purpose is to improve and create accounting reporting standards or generally accepted accounting principles (GAAP). These standards make it easier for users to understand and use the financial records of both state and local governments. The Government Accounting Standards Board (GASB) is funded and monitored by the Financial Accounting Foundation (FAF).
IMPLIED RATING (“IMP”). Government Sponsored Enterprises ex: Federal Home Loan Bank, Federal Home Loan Mortgage Corp, Federal National Mortgage Association each carrier the rate of the US Treasury. There are GSE that are not officially rated by a credit rating agency but carry an implied rating because they are GSE. An example of this is Farmer Mac.
LIQUIDITY. A Liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow, and reasonable size can be done at those quotes.
LOCAL AGENCY INVESTMENT FUND ("LAIF"). Monies from local governmental units may be remitted to the California State Treasurer for deposit in this special fund for the purpose of investment.
LOCKOUT (BOND FEATURE). The period of time when a security may not be redeemed by the issuer.
MARKET VALUE. The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT. A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer (lender) to liquidate the underlying securities in the event of default by the seller (borrower).
MATURITY. The date upon which the principal or stated value of an investment becomes due and payable.
Medium Term Notes - A corporate note continuously offered by a company to investors through a dealer. Investors can choose from differing maturities, ranging from nine months to 30 years.
MONEY MARKET. The market in which short-term debt instruments (e.g., bills, commercial paper, and banker's acceptances) are issued and traded.
NOT RATED (“NR”). GSE (government sponsored enterprises) or any security that are not officially rated by a credit rating agency.
OFFER. The price asked by a seller of securities (when one buys securities, one asks for an offer). See '`Asked" and "Bid." OPEN MARKET OPERATIONS. Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC in order to influence the volume of money and credit in the economy.
Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect.
Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. 20 22
Glossary
PORTFOLIO. A collection of securities that an investor holds.
PREMIUM - A premium is the total cost of an option. The difference between the higher price paid for a fixed-income security and the security's face amount at issue.
PRIMARY DEALER. A group of government securities dealers that submit daily reports of market activity and positions, and monthly financial statements to the Federal Reserve Bank of New York, and are subject to its informal oversight.
Primary dealers include Securities and Exchange Commission (SEC) — registered securities broker-dealers, banks, and a few unregulated firms.
PRUDENT INVESTOR RULE. An investment standard. A fiduciary, such as a trustee, may invest in a security if it is one that would be bought by a prudent investor acting in like capacity, who is seeking reasonable income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES. A financial institution that: (1) does not claim exemption from the payment of any sales, compensating use, or ad valorem taxes under the laws of this State; (2) has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability; and (3) has been approved by the Public Deposit Protections Commission to hold public deposits.
RATE OF RETURN. The yield obtainable on a security based on its purchase price or it current market price.
REPURCHASE AGREEMENT ("RP" OR "REPO"). A holder of securities sells them to an investor with an agreement to repurchase the securities at a fixed price on a fixed date. The security "buyer” in effect, lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: when the Fed is said to be doing RP, it is lending money (increasing bank reserves).
SAFEKEEPING. A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection.
SECONDARY MARKET. A market made for the purchase and sale of outstanding issues following the initial distribution.
SECURITIES AND EXCHANGE COMMISSION. An agency created by Congress to administer securities legislation for the purpose of protecting investors in securities transactions.
SEC RULE 15c3-1. See "Uniform Net Capital Rule." SEC Rule 15c3-1 requires broker-dealers to maintain the following minimum net capital requirements in order to offer sufficient protection for the firm's customers:
$250,000 for broker-dealers who conduct general securities business and carry customer funds and securities $50,000 for broker-dealers who introduce accounts to another broker-dealer on a fully disclosed basis, receive but do not hold customer securities for delivery to the clearing broker-dealer and do not carry customer accounts
$25,000 for broker-dealers that only handle mutual fund transactions and do not hold customer funds or securities
$5,000 for broker-dealers who do not directly or indirectly receive securities from customers (known as introducing brokers)
21 23
Glossary
STEP-UP BOND. A bond that pays an initial coupon rate for the first period, and then a higher coupon rate for the following periods. A step-up bond is one in which subsequent future coupon payments are received at a higher, predetermined amount than previous or current periods. These bonds usually have a callable component.
STRUCTURED NOTES. Notes issued by instrumentalities (e.g., FHLB, FNMA, SLMA) and by corporations, that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) in their debt structure, The market performance of structured notes is affected by fluctuating interest rates; the volatility of imbedded options; and shifts in the yield curve.
TAX AND REVENUE ANTICIPATION NOTES (TRANs). Notes issued in anticipation of receiving future tax receipts and revenues at a future date.
TREASURY BILLS. A non-interest-bearing discount security that is issued by the U.S. Treasury to finance the national debt. Most T-bills are issued to mature in three months, six months, or one year.
TREASURY BONDS. Long-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S.
Government, and having initial maturities of more than 10 years.
TREASURY NOTES. Medium-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S.
Government, and having initial maturities of two to 10 years. U S Notes - A treasury note is a marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years. Treasury notes can be bought either directly from the U.S. government or through a bank.
UNIFORM NET CAPITAL RULE. SEC requirement that member firms, as well as non-member broker-dealers in securities, maintain a maximum ratio of indebtedness to liquid capital of 15 to one. Also called net capital rule and net capital ratio.
Indebtedness covers all money that is owed to a firm, including margin loans and commitments to purchase securities (one reason that new public issues are spread among members of underwriting syndicates). Liquid capital includes cash and assets easily converted to cash.
YIELD. The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD OR YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
YIELD TO MATURITY (YTM). The percentage rate of return paid on a bond or note if the investor buys and holds it to its maturity date. The calculation for YTM is based on the coupon rate, length of time to maturity, and market price. It assumes that coupon interest paid over the life of the bond will be reinvested at the same rate.
Sources:
www.investopedia.com
www.thefreedictionary.com
www.msrb.org/glossary/definition/note.aspx
CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION (CDIAC) California Public Fund Investment Primer, December 2009
22 24