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THE CITY OF <br /> 11 r ' <br /> �� 1 1I <br /> iii 7 ..1.. 'I III <br /> pL E ASANTON. <br /> CITY OF PLEASANTON <br /> INVESTMENT ACTIVITY SUMMARY AND ANALYSIS <br /> AS OF DECEMBER 31, 2017 <br /> SUMMARY: <br /> The City of Pleasanton investment portfolio increased by $18,683,732.39 during the <br /> second quarter of FY 2017-18,from$187,394,841on September 30,2017 to $206,078,578 <br /> on December 31, 2017. For the quarter ending the yield to maturity on the portfolio was <br /> 1.21%, an increase from 1.19% reported for the quarter ended September 30, 2017. The <br /> average days to maturity (ADM) increased from 470 days on September 30, 2017 to 475 <br /> days on December 31, 2017. <br /> The City increased its investment in the Local Agency Investment Fund(LAIF) from $28 <br /> million to $36 million. LAIF is a short term investment option available to local agencies <br /> in California administered by the State Treasurer's Office. The quarterly LAIF interest <br /> rate was 1.18%and its ADM was 186 days. City staff increased the exposure by$8 million <br /> in LAIF during the quarter mainly due to the large inflow of property tax that comes in <br /> during the month of December and April every year. Interest rates have been trending <br /> higher as the federal reserve continues its policy of rate increases, LAIF is a great way to <br /> capture some of these returns while waiting to invest at the higher expected investment <br /> rates, LAIF furthermore offers great flexibility with a short notice for withdrawals, this <br /> suits some of the city's unpredictable cash outflows.During the quarter approximately$9.7 <br /> million in securities matured. Approximately $ 28.4 million of these maturities were <br /> reinvested into higher yielding investments as the yields definitively moved higher during <br /> the quarter with the Fed making it clear that it would be aggressively raising interest rates <br /> in the coming periods. The interest rate yield on the newly added investments ranged from <br /> 2.0% to 2.4%. As of December 31st 2017 approximately 76.72% of the total portfolio <br /> consisted of U.S Treasuries and agency securities. <br /> • Fair Market Value of total portfolio - $204,929,109.58 <br /> • Yield to maturity— 1.21% <br /> • Weighted average days to maturity—475 days <br /> • Fiscal year-to-date net interest earnings—$ 1,173,949.71 <br />