HomeMy WebLinkAboutItem 6 PPP 02-19-2020 Admin Committee - InvestmentsInvestment Performance Results
OCSD Reserves & Investments
Wally Ritchie, ControllerAdministration CommitteeFebruary 19, 2020
Seven Reserve Criteria
1)Next Year's Dry Period (Cash Flow Reserve) –50% of the Operating Budget
2)Operating Contingencies –10% of Operating Budget
3)Next Year's Dry Period Debt Service –100% of August COP Debt Service
4)Capital Improvement Reserve –50% of average CIP balance to 2030
5)Debt Service Reserve –10% of the Outstanding COPs
6)Operating & Capital Share of Catastrophe Funds
7)Replacement and Refurbishment –2% Per Year
Non-Discretionary Criteria
1)Next Year's Dry Period (Cash Flow Reserve) –50% of the
Operating Budget
3)Next Year's Dry Period Debt Service –100% of August COP
Debt Service
5)Debt Service Reserve –10% of the Outstanding COPs
Discretionary Reserve Criteria
2)Operating Contingencies –10% of Operating Budget
4)Capital Improvement Reserve –50% of average CIP balance to
2030
6)Operating & Capital Share of Catastrophe Funds
7)Replacement and Refurbishment –2% Per Year
OCSD Investments
Investment Objectives
First
•Provide safety of principal
Second
•Provide sufficient liquidity
Third
•Earn a commensurate rate of return consistent with the constraints imposed by the objectives listed above
OCSD has Two Major PortfoliosLong-Term and Short Term
The Orange County Sanitation District’s Investment Policy is consistent with California Government Code
Long-Term
•Compares to the ICE BAML 1-5 Year
Corporate Government Rated AAA –A Index
Short-Term
•Compares to the 3-month T-Bill rate
Operates with a maximum maturity of one year
Long-Term Portfolio –
Asset Allocation
•Approximately $580 million
Category Percent
US Treasury 35%
Agency 23%
US Corporate 21%
Asset Backed Sec 8%
Other 7%
Supranational 6%
Total 100%
Long-Term Portfolio –
Performance
Average Market Yield
December 31, 2019 2.74%
Benchmark 2.67%
September 30, 2019 2.82%
Short-Term Portfolio –Asset Allocation
•Approximately $176 million
Category Percent
US Treasury 78%
US Corporate 7%
Agency 6%
Commercial Paper 3%
Money Market 3%
Negotiable CDs 2%
Supranational 1%
Total 100%
Short-Term Portfolio –
Performance
Average Market Yield
December 31, 2019 1.68%
Benchmark 1.50%
September 30, 2019 2.01%
Questions?