7c supp
ITEM NO: _______7c_Supp_______ DATE OF MEETING: _____March 6, 2012___ Annual Treasury And Investment Portfolio Update for 2011 Commission Briefing Presented by Craig Kerr March 6, 2012 BACKGROUND Commission Resolution Approved Port Investment Policy 2.0 Target Duration Plus Or Minus 50 Basis Points Do Not Forecast Rates; Balance RETURN And RISK Over Cycles This Strategy Outperforms The Market When Rates Are Falling And Underperforms When Rates Are Rising Benchmark Bank of America Merrill Lynch Treasury/Agency 3 Year Index 2 PORTFOLIO COMPOSITION 12/31/2011 "HIGH GRADE" MORTGAGEBACKED SECURITIES 1% REPURCHASE AGREEMENTS 25% TREASURY NOTES 23% FEDERAL AGENCIES 51% 3 INTEREST RATE TRENDS For 2011, Short And Medium Term Rates Fell Throughout the Year. The Federal Reserve Left Short Term Rates at 2010 Levels Throughout 2011 [0.25%] Staff Monitors Market Conditions; but, Does Not Time the Market. Short and Medium Term Rates Are Expected to Stay Within a Narrow Trading Range for 2012. 4 Source: Bloomberg 5 Source: Bloomberg 6 2011 YIELD COMPARISON Benchmark Port's Pool Q1-2011 0.77% 1.62% Q2-2011 0.50% 2.56% Q3-2011 0.34% 1.32% Q4-2011 0.31% 1.20% ANNUAL 0.48% 1.67% 7 PORTFOLIO EARNINGS 2007 2011 2011 1.67% $15,069,955 2010 2.17% $19,376,723 Year 2009 2.76% $21,517,877 2008 4.04% $30,396,932 2007 4.78% $39,142,329 Interest Earnings - % Yield and $ 8 YIELD HISTORY Year Benchmark Port's Pool 2002 - 2006 3.13% 3.69% 2007 4.33% 4.78% 2008 2.01% 4.04% 2009 1.12% 2.76% 2010 0.72% 2.17% 2011 0.48% 1.67% Ten Years 2.43% 3.39% 9 YIELD HISTORY Benchmark Yield Port's Yield 5.4% 5.00% 4.78% 4.33% 4.4% 4.45% 4.07% 4.08% 4.04% 3.72% 3.57% 3.4% 2.50% 2.50% 2.76% 2.64% 2.4% 2.01% 2.17% 1.58% 1.67% 1.4% 1.12% 0.72% 0.48% 0.4% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 10 Port's Investment Portfolio Size Fluctuates Port's Investment Portfolio 12/31/2011 Was $879 Million Over The Past 5 Years, The Size Has Ranged From $639 Million to $976 Million Size Fluctuations Are Mostly Tied To Capital Spending: Capital Project Spending Reduces The Portfolio Size Bond Issues To Fund Projects Increase The Portfolio 11 Investment Pool Participating Funds Examples Minimum Operating Fund Balance: General & Airport Development = 9 months O&M expense Operating Funds Available for Capital: General, Airport, Tax Levy funds programmed to be spent over the next few years. Bond Funds: Capital projects Reserves & Security: Bond reserves, customer lease security Special Use (primarily for capital projects): Passenger & Customer Facility Charges, Transportation & Infrastructure
Limitations of Translatable Documents
PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.