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Home My WebLink About2008 09 17 Document Given By Dustin Heintz, FLCDate: September 17, 2008 THE FOLLOWING DOCUMENT WAS GIVEN TO THE BOARD MEMBERS BY DUSTIN HEINTZ FROM FLORIDA LEAGUE OF CITIES. Master Lease Program Financial Technical Assistance Program Florida League of Cities, Inc. Department of Financial Services ` Goz)ei-iiincit.t _Purchasing Alliance Deferred Compensation Plan Bond Program r r� r rs r r r r r r r r r rr r� r r FloridaLeague an Cities, Inc. Florida Municipal Investment Trust Department of Financial Services _ 'PUR, (FMIvT) • The Florida Municipal Investment Trust (FMIvT) was created in 1997 to allow local governments to pool surplus and pension funds and invest in a variety of portfolios, utilizing economies of scale. • Separate independent legal entity. • Administered by the Florida League of Cities through contract • Authorized Investment under Section 218.415 Florida Statutes • Governed by a Board of Trustees from Elected Officials from Participants Florida League ofCities, Inc. Department of Financial Services fl FMIv T Board of Trustees • Julio Robaina (Chair) - Mayor, City of Hialeah • John Marks (Vice Chair) - Mayor, City of Tallahassee • Larry Schultz - Mayor, City of Rockledge • Bill Arrowsmith - Vice Mayor, City of Apopka • Beverley Billiris - Mayor, City of Tarpon Springs • Robert Margolis - Vice Mayor, Village of Wellington • Susan Starkey - Councilwoman, Town of Davie rr rr r� r +r r� r� r� r� �r r■ r� r■� r �r rw � r �r f I"torida League of Cities, Inc. Department of Financial Services { In v La. S tMent Advisory Committee The Investment Advisory Committee meets regularly with the Administrator to assist and consult on issues regarding services offered by the Department. The success of these programs is greatly attributable to the expertise and knowledge of these individuals. M M M M� M M r M M M M a M M r M r M AdiFlorida League of Cities, Inc. Department of Financial Services Advisory Committee Members • G. Michael "Mickey" Miller (Chairman) - Chief Financial Officer, City of Jacksonville • Robert "Bob" B . Inz er - Clerk of the Circuit Court, Leon County • Joseph LoBello - Director of Finance, Town of Juno Beach • Francine Ramaglia - Director o Administration & Financial Services, Village of Wellington • Margaret Simmons - Financial Services Administrator, City of Clearwater • Jane Struder - Finance Director, Town of Palm Beach • Mervyn C. Timberlake, Jr. - Director of Financial Services, City of Boca Raton • William F. Underwood, H - City Manager, City of Belle Glade • Bonnie Wise - Director of Revenue and Finance, City of Tampa �r r� r� r� r.. r� r �r r � r■ �r r■r r r r ■ir r� r ' Florida League of Cities, Inc. Department of Financial Services / Professional Team • Investment management - Atlanta Capital Management - Alliance Bernstein - Columbia Management - Hotchkis & Wiley - INTECH/Janus - Oaktree Capital Management • Investment consultant - Asset Consulting Group • Rating agency - Fitch - Standard and Poor's • Compliance monitoring - Asset Consulting Group • Auditor - Shorstein & Shorstein • Full support staff - Florida League of Cities Providing Professional Management and Extensive Oversight r r� �r r� �r rw r� rr r� �r rr r� rr r� r� r rr �r r■i i i lorida League of Cities, Inc. Department of Financial Services r FMIvT Membership Benefits *Can accommodate investments of all sizes •Authorized Investment per FL Statutes *Frequent Liquidity •High Quality Investment Options *Professional Investment Management •Extensive Oversight •Low Fees •Instant Diversification •Saves staff time •Utilize FMIvT portfolios for a laddered approach •Personalized service from Florida League of Cities M M it M r M M M M M M M r M M M M M M jljh,FIorlda League of Cities. Inc. Depardnent of Financial Services FWvTMembers City of Apopka Town of Lady Lake City of Auburndale City of Lake City City of Boca Raton City of Lakeland City of Boynton Beach City of Lauderdale Lakes City of Bradenton Leon County BoCC City of Brooksville City of Lighthouse Point Town of Davie City of New Port Richey City of Daytona Beach City of North Miami Beach City of DeFuniak Springs City of Oldsmar Delta Farms Water Control District Town of Palm Beach City of Flagler Beach Florida Municipal Insurance Trust Fund City of Palmetto Florida Municipal Loan Council Town of Pembroke Park Florida Municipal Pension Trust Fund City of Pembroke Pines Florida Municipal OPEB Trust City of Pinellas Park Town of Fort Myers Beach City of Pompano Beach City of Fort Pierce Town of Ponce Inlet City of Greenacres City of Sanibel City of Gulf Breeze City of Sarasota City of Hialeah City of Seminole Housing Finance Authority of Lee County City of St. Cloud City of Indian Harbour Beach City of Stuart City of Indian Shores City of Tallahassee City of Inverness City of Tarpon Springs City of Jacksonville City of Temple Terrace City of Jacksonville Beach The Villages Town of Juno Beach Village of Wellington r rr rr rr� �r rs �r r r■� rr r■ rt M r dWr M r , M I Florida League of Cities. Inc. Department of Financial Services 1, Diverse Investment Options Cash & Reserve Fund Portfolio Options - High Quality Government Fund - 1-3 Year High Quality Bond Fund - Intermediate High Quality Bond Fund Pension/ OPEB Assets Portfolio Options - Broad Market High Quality Bond Fund - Expanded High Yield Bond Fund - Diversified Small Cap Equity Portfolio - High Quality Growth Portfolio - Large Cap Diversified Value Portfolio - Russell 1000 Enhanced Index - International Blend Portfolio � M M M� M r M M M M M M i M � � M� Florida League of Cities. Inc. .1_1Department of Financial Services Risk and Diversif"ication FMIvT provides diversification as required by Florida Statutes Chapter 218.415: (8) RISK AND DIVERSIFICATION. --The investment policy shall provide for appropriate diversification of the investment portfolio. Investments held should be diversified to the extent practicable to control the risk of loss resulting from overconcentration of assets in a specific maturity, issuer, instrument, dealer, or bank through which financial instruments are bought and sold. Diversification strategies within the established guidelines shall be reviewed and revised periodically, as deemed necessary by the appropriate management staff. �r rr rr �r �r r� �w rr �r rr r� r rr r� r� ar r► r� rr l Florida League of Cities, Inc. Department of Financial Services - a.fNo Single Strate Is Right For All Investors 6 gy ,,,,, , , , . , ,111111111111 e % FHQ MIvT FMIvT FMIvT FMIvT Gov't 1-3 Year Intermediate Broad Fund Market DIVERSIFICATION ME* Produces Higher Returns With Little Downside Risk Over Time rrr r r rr r� �r r r r rr r r r r I Florida League of Cities, Inc. Department of Financial Services r r M r x - Two Ways To Ladder A Portfolio 1) Some investors buy bonds to mature exactly when they plan to spend it. HARDEST FOR MOST INVESTORS 2) Most investors just want their investments to be diversified. They want a portion to be very liquid and a portion to earn higher returns. Maturities do not exactly match future spending BEST FOR MOST INVESTORS i Florida League of Cities, Inc.Advantagesof UsingFMIvTFunds Department of Financial Services To Create a Laddered Portfolio Increase Diversification In Multiple Ways •Across The Yield Curve *Across Multiple High Quality Bond Sectors Can Accommodate Investments of All Sizes Substantial Fund Oversight •All Funds AAA Rated by Fitch and S&P •Independent Investment Consultant, Investment Advisory Committee, Board of Trustees, Auditor and FLC Staff f Florida League of Cities, Inc. Department of Financial Services Quality Hi g hGovernment Fund • S&P Credit Rating: AAA • Liquidity: Twice Monthly • Avg. Wtd. Maturity: 0.36 • Duration: 0.26 • Benchmark: 90 Day US T-Bills • Expense Ratio: 18 basis points (.18%) • Assets: $118.7 million • Min. Contribution: $50,000 • Columbia Management (as of June 30, 2008) Sector Allocation Cash Treasuries 7.7.'0 Agende! 49.9°0 Asset Quality Moagages 25.6%' 40 Gov't 100.0% t FloridaLeagueCities. Inc. D1 _,3 Yr High ualit De arhnent of Finanan rvi cial Seces BondFund • Fitch Credit Rating: AAA • Liquidity: Twice Monthly • Avg. Wtd. Maturity: 1.53 • Duration: 1.44 • Benchmark: Merrill -Lynch 1-3 Year Government Index • Expense Ratio: 23 basis points (.23%) • Assets: $363.1 million • Min. Contribution: $50,000 • Atlanta Capital Management (as of June 30, 2008) SectorAllocation Cash Treasuries 0.4% 17 4%, Agencies 38.6% Corporat 0.0% Asset Backeds 15.5% Asset Quality AAA AA A0-5% 0.3% 15.4°r6 31---- Gov't 83.8% FioDeP �e aofFin,eaC; Serrvices. Intermediate Quality Hi g h t BondFund • Fitch Credit Rating: AAA • Liquidity: Monthly • Avg. Wtd. Maturity: 4.62 • Duration: 3.89 • Benchmark: Lehman Intermediate Government/ Credit (Ex Baa) + ABS + MBS • Expense Ratio: 23 basis points (.23%) • Assets: $221.9 million • Min. Contribution: $50,000 • Atlanta Capital Management (as of June 30, 2008) SectorAllocation Agencie� 25.3% Corporates 1.8% Asset Backed 8.4% Cash n rni Treasuries 1.9% Asset Quality Oortgages 52-1 AAA AA 0.5°� A 15-4% 0-3% Gov't 83.8% FloridaLeague ofCities, Broad Market High ualit Departmeet of Financial Servicess___ BondFund • Fitch Credit Rating: AA • Liquidity: Monthly • Avg. Wtd. Maturity: 5.46 • Duration: 4.48 • Benchmark: Lehman Brothers A+ Aggregate Index • Expense Ratio: 33 basis points (.33%) • Assets: $130.8 million • Min. Contribution: $50,000 • Atlanta Capital Management (as of June 30, 2008) SectorAllocation Cash Agencies 2.5% 21.2% Corporates 2.1 % Asset Backed! 9.5% Treasuries 25.8% tviviiydyes 38.9% Asset Quality AA A AAA 0-9% 0.3 /o 23.3% Gov't 75.5% 1 i Florida League of Cities, Inc. t1� Department of Financial Services% For more information... Dustin Heintz Investment Services Manager Florida League of Cities, Inc. (850)701-3614 dheintzgflcities.com Paul Shamoun Retirement Services Manager Florida League of Cities, Inc. (850)701-3648 ptshamoun c&flcities.com Or visit our website at www.fmivt.com