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Agenda• Highlights• Benchmarks • Portfolio & Fed Rates• Treasury Yield Curves • Economic Conditions• September Turmoil• Investment Committee• Committee Discussions• Recommendations• FY 2007 Portfolio Composition• FY 2008 Portfolio Composition• Current Portfolio Composition
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Highlights
(in millions) 2008 2007
Interest earned $46.9 $67.2
Effective rate of return 3.24% 5.07%
Average daily balance $1,444 $1,325
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BenchmarksBenchmark FY 2008 Variance FY 2007 Variance
Portfolio 3.24% 5.07%
3-Month Treasury 2.18% 1.06% 4.86% 0.21%
6-Month Treasury 2.40% 0.84% 4.96% 0.11%
Merrill Lynch 0-1 Treasury Index 2.50% 0.74% 4.93% 0.14%
1-Year Treasury 2.48% 0.76% 4.86% 0.21%
2-Year Treasury 2.57% 0.67% 4.67% 0.40%
Effective Federal Funds 2.93% 0.31% 5.21% -0.14%
Committee Benchmark 2.49% 0.75% 5.00% 0.07%
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Portfolio and Fed Rates
PORTFOLIO AND FEDERAL FUNDS RATE
0.25
1.25
2.25
3.25
4.25
5.25
6.25
7.25
Oct-04 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08
Fed Funds
Portfolio
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Treasury Yield Curves
AVERAGE U.S. TREASURY YIELD CURVES
1.00
2.00
3.00
4.00
5.00
6.00
3 Mo 6 Mo 1 Yr 2 Yr 5 Yr 10 Yr
2008
2007
2006
2005
2004
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Economic Conditions• Declining interest rates• Deteriorating housing market• Reduced lending• Higher energy costs• Rising unemployment• Crisis in September• Federal Reserve lowering interest rates• Congress passes $700 billion rescue package• Forecasts of negative GDP in 2009• Negative Treasury yields
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September Turmoil• 9/07 – U.S. government seizes control of Fannie
Mae and Freddie Mac• 9/15 – Lehman Brothers files for bankruptcy• 9/15 – Bank of America announces plans to
acquire Merrill Lynch• 9/16 – Reserve funds break buck• 9/16 – AIG rescued by Federal Government• 9/25 – Government seizes control of WaMu• 9/29 – FDIC brokers Citigroup acquisition of
Wachovia (Wachovia later agreed to be acquired by Wells Fargo)
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Investment CommitteeCommunity Volunteers
Ed ManningRetired Managing Partner of Ernst and Young, CPA
John Cheney, DBARetired Associate Professor of Finance, University of Central Florida
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Committee Discussions
•SBA crisis•Analysis of agency issuers•Review of the Florida QPD program•Evaluation of existing and potential money market mutual funds•Conservatorship of Fannie Mae and Freddie Mac•Impact of financial crisis
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Recommendations• Sold entire position in SBA
• Eliminated BAs and CP issued by financial companies
• Later suspended all CP
• Curtailed and later suspended agency investments
• Suspended all CD investments
• Minimized money market balances
• Maximized Treasury investments
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FY 2007 Portfolio Composition
FY 2007 AVERAGE PORTFOLIO COMPOSITION
Treasuries16.55%
CP10.63%
Instrumentalities28.92%
SBA29.93%
Money Markets5.28%
BAs5.05%
CDs3.64%
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FY 2008 Portfolio Composition
FY 2008 AVERAGE PORTFOLIO COMPOSITION
Treasuries68.75%
CP6.80%
Instrumentalities5.83%
SBA2.19%
Money Markets11.61%
BAs1.40%
CDs3.42%
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Current Portfolio Composition
FEBRUARY 2, 2009 PORTFOLIO COMPOSITION
Money Markets5.41%
Treasuries94.59%
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FY 2008 ANNUAL INVESTMENT REPORT
Interest earned $46.9 millionEffective rate of return 3.24%
The 2009 effective rate of return?