Laserfiche WebLink
6.1. B. - Page 66 <br /> NOTE 2— CASH AND INVESTMENTS �CONTINUED) <br /> D. External lnvestment Pools <br /> The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by <br /> California Government Code Section 16429 under the oversight of the Treasurer of the State of <br /> California. The City reports its investment in LAIF at the fair value amount provided by LAIF. The balance <br /> available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on <br /> an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligation, <br /> mortgage-bacl<ed securities, other asset-bacl<ed securities, loans to certain state funds, and floating rate <br /> securities issued by federal agencies, government-sponsored enterprises, and corporations. These <br /> investments may include the following: <br /> Structured Notes - are debt securities (other than asset-bacl<ed securities) whose cash flow characteristics <br /> (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have <br /> embedded forwards or options. <br /> Asset-Backed Securities - the bulk of which are mortgage-backed securities, entitle their purchasers to <br /> receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool <br /> of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. <br /> As of June 30, 2011, the City had $54,613,638 (estimated fair value) invested in LAIF. LAIF had invested <br /> 5.01% of the pool investment funds in Structured Notes and Asset-Bacl<ed Securities. LAIF determines <br /> fair value on its investment portfolio based on market quotations for those securities where market <br /> quotations are readily available and based on amortized cost or best estimate for those securities where <br /> market value is not readily available. The City valued its investments in LAIF as of June 30, 2011, by <br /> multiplying its account balance with LAIF times a fair value factor determined by LAIF. The fair value <br /> factor was determined by dividing all LAIF participants' total aggregate fair value by total aggregate <br /> amortized costs by total aggregate fair value. <br /> Accordingly, as of June 30, 2011, the City's investment in LAIF at fair value amounted to $54,613,638 <br /> using a LAIF fair value factor of 1.00157647. The fair value of the City's position in the pool is materially <br /> equivalent to the value of the pool shares. <br /> The City is also a voluntary participant in the San Mateo County Investment Fund that is regulated by <br /> California Government Code Section 16429 under oversight of the Treasurer of the County of San <br /> Mateo. The City reports its investment in the San Mateo County Investment Fund at the fair value <br /> amount provided by County of San Mateo. Included in the San Mateo County Investment Fund <br /> investment portfolio are US Treasury Notes, Obligations issued by agencies of the United States <br /> Government, LAIF, Corporate Notes, Commercial Paper, collateralized mortgage obligations, mortgage- <br /> bacl<ed securities, other asset-bacl<ed securities, and floating rate securities issued by federal agencies, <br /> government-sponsored enterprises, and corporations. <br /> 40 <br />