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Report on the Department's 4th Quarter Investment Report relating to funds held under Bond Trust Indentures
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BACKGROUND
The Department's Investment Policy excludes funds invested under a bond trust indenture for the benefit of bond holders because the trustee for each trust indenture controls the authorized investments in accordance with the requirements of that indenture. Management of assets within an indenture is the responsibility of the Trustee. This internal management report is for informational purposes only and, while not required under the Public Funds Investment Act, it is consistent with the prescribed format and detail as required by the Public Funds Investment Act. It details the types of investments, maturity dates, carrying (face amount) values, and fair market values at the beginning and end of the quarter.
Overall, the portfolio carrying value increased by approximately $248.8 million (see page 3), resulting in an end of quarter balance of $3,710,377,180.
The portfolio consists of those investments described in the attached Bond Trust Indentures Supplemental Management Report.
Beginning Quarter
Ending Quarter
Mortgage Back Securities (MBS)
83%
82%
Guaranteed Investment Contracts / Investment Agreements
1%
1%
Repurchase Agreements (Cash Equivalents)
10%
12%
Account Control Agreements (Cash Equivalents)
0%
0%
Commercial Paper
1%
0%
Municipal Bonds
0%
0%
Treasury Backed Mutual / Funds
2%
2%
Treasury Notes / Bonds / SLGs
3%
3%
The decrease in percentage of MBS is due to the repayment of mortgage principal on MBS. The increase of Repurchase Agreements is due to the issuance of residential mortgage revenue bonds, and the temporary reinvestment of mortgage repayments until funds are utilized for bond debt service.
Portfolio activity for the quarter:
The MBS purchases this quarter were approximately $181.3 million, due to the issuance of RMRB and multifamily bonds and the investment of proceeds in MBS.
The maturities in MBS...
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