Agemda: 12.18.14
Item: 10a2
MEMO
TO:
Board of Directors
FROM:
Finance Manager
SUBJECT:
INVESTMENT REPORT
DATE:
December 11, 2014
RECOMMENDATION:
It is recommended that the Board of Directors review and file this report.
BACKGROUND:
At the February 20, 2014 Board of Directors Meeting your Board adopted Resolution No. 23
(13-14) which established an Investment Policy for the San Lorenzo Valley Water District.
The Investment Policy and California Government Code, Section 53646, states that the Board
of Directors shall receive investment reports at least quarterly.
Attached are the most recent account statements for the District's Local Agency Investment
Fund (LAIF) Account and the Morgan Stanley Investment Account.
Please note that I have chosen not to transfer any money to LAIF as it is only earning fractions
of a percent more than Wells Fargo, which given our cash flow needs, would be off-set by the
wire transfer fees we would incur. I am also holding off while I research investing with the
County.
I am in the process of looking into the requirements to invest our money with the County. I
have spoken to a couple people that are looking into it. At first glance, it does not appear very
many agencies “invest” their money there, most use the County to hold their money to pay
bills.
It is recommended that the Board of Directors review and file this report.
Stephanie Hill
Finance Manager
12/11/2014
LAIF Regular Monthly Statement
Agenda: 12.18.14
Item: 10a2
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209­0001
(916) 653­3001
www.treasurer.ca.gov/pmia­
laif/laif.asp
December 11,
2014
SAN LORENZO VALLEY WATER DISTRICT
PMIA Average Monthly Yields
DISTRICT MANAGER
13060 HIGHWAY 9
BOULDER CREEK, CA 95006
November 2014 Statement
Account Summary
Total Deposit:
0.00 Beginning Balance:
3,346.34
Total Withdrawal:
0.00
Ending Balance:
3,346.34
https://laifms.treasurer.ca.gov/RegularStatement.aspx
1/1
Agenda: 12.18.14
Item: 10a2
State of California
Pooled Money Investment Account
Market Valuation
10/31/2014
Description
Carrying Cost Plus
Accrued Interest Purch.
Fair Value
Accrued Interest
United States Treasury:
Bills
Notes
$
$
11,138,020,722.75
18,513,242,596.54
$
$
11,146,519,500.00
18,535,692,500.00
Federal Agency:
SBA
MBS-REMICs
Debentures
Debentures FR
Discount Notes
GNMA
$
$
$
$
$
$
561,088,301.66
107,647,621.64
2,059,410,921.24
1,099,463,750.00
-
$
$
$
$
$
$
556,484,910.43
115,348,260.67
2,058,696,450.00
1,099,916,000.00
-
$
512,473.75
512,618.92
2,952,711.40
NA
-
Supranational Debentures
$
399,927,859.19
$
400,281,000.00
$
385,602.50
CDs and YCDs FR
Bank Notes
CDs and YCDs
Commercial Paper
$
$
$
$
300,000,000.00
8,150,026,364.38
4,369,153,681.11
$
$
$
$
299,866,514.97
8,146,899,967.96
4,369,120,664.17
$
$
$
72,888.89
3,667,270.85
NA
Corporate:
Bonds FR
Bonds
$
$
-
$
$
-
$
$
-
Repurchase Agreements
Reverse Repurchase
$
$
-
$
$
-
$
$
-
Time Deposits
AB 55 & GF Loans
$
$
4,942,740,000.00
5,904,339,467.74
$
$
4,942,740,000.00
5,904,339,467.74
TOTAL
$
57,545,061,286.25
$
57,575,905,235.94
$
57,604,432,687.75
Fair Value Including Accrued Interest
Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and
Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
$
$
$
$
$
NA
20,423,885.50
NA
NA
$
28,527,451.81
Agenda: 12.18.14
Item: 10a2
BILL LOCKYER
TREASURER
STATE OF CALIFORNIA
PMIA Performance Report
Date
11/27/14
11/28/14
11/29/14
11/30/14
12/01/14
12/02/14
12/03/14
12/04/14
12/05/14
12/06/14
12/07/14
12/08/14
12/09/14
12/10/14
Daily
Quarter to
Yield*
Date Yield
0.26
0.26
0.26
0.26
0.26
0.26
0.26
0.26
0.27
0.26
0.27
0.26
0.27
0.26
0.27
0.26
0.27
0.26
0.27
0.26
0.27
0.26
0.27
0.26
0.27
0.26
0.27
0.26
LAIF Performance Report
Average
Maturity
(in days)
191
191
191
191
196
199
199
200
201
201
201
202
202
202
Quarter Ending 09/30/14
Apportionment Rate:
Earnings Ratio:
Fair Value Factor:
Daily:
Quarter To Date:
Average Life:
0.24%
.00000662348923179
1.000181284
0.25%
0.25%
232
PMIA Average Monthly Effective Yields
NOV 2014
OCT 2014
SEP 2014
0.261%
0.261%
0.246%
*Daily yield does not reflect capital gains or losses
Pooled Money Investment Account
Portfolio Composition
$59.8 Billion
11/30/14
Loans
15.97%
Commercial
Paper
8.22%
Treasuries
48.55%
Time Deposits
8.33%
CDs/BNs
12.12%
Agencies Mortgages
6.63%
0.18%
Agenda: 12.18.14
Item: 10a2
BILL LOCKYER
CALIFORNIA STATE TREASURER
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
(DOLLARS IN THOUSANDS)
Average Daily Portfolio ($)
Effective Yield (%)
Average Life
(Month End in Days)
March 2014
54,105,397
0.236
185
March 2013
56,529,971
0.285
213
Change
-2,424,574
-0.049
-28
April 2014
56,873,022
0.233
199
April 2013
63,018,875
0.264
240
Change
-6,145,853
-0.031
-41
May 2014
60,405,907
0.228
199
May 2013
69,445,667
0.245
249
Change
-9,039,760
-0.017
-50
June 2014
62,996,039
0.228
232
June 2013
65,386,769
0.244
278
Change
-2,390,730
-0.016
-46
July 2014
58,776,541
0.244
247
July 2013
53,785,096
0.267
265
Change
+4,991,445
-0.023
-18
August 2014
54,142,620
0.260
233
August 2013
51,415,613
0.271
270
Change
+2,727,007
-0.011
-37
September 2014
55,665,332
0.246
232
September 2013
53,684,560
0.257
239
Change
+1,980,772
-0.011
-7
October 2014
56,223,143
0.261
213
October 2013
52,873,255
0.266
220
Change
+3,349,888
-0.005
-7
Agenda: 12.18.14
Item: 10a2
CLIENT STATEMENT
For the Period November 1-30, 2014
STATEMENT FOR:
SAN LORENZO VALLEY WATER DIST
Morgan Stanley Smith Barney LLC. Member SIPC.
TOTAL VALUE OF YOUR ACCOUNT (as of 11/30/14)
$1,033,438.23
Includes Accrued Interest
Your Financial Advisor Team
BARGETTO/BREEDEN
831-440-5214
SAN LORENZO VALLEY WATER DIST
13060 HIGHWAY 9
BOULDER CREEK CA 95006-9119
00002596 01 AT 0.403 01 TR 00014 MSADD471 000000
#BWNJGWM
002596 MSADD471
Your Branch
6004 LA MADRONA DR
SANTA CRUZ, CA 95060-1040
Telephone: 831-440-5200 ; Alt. Phone: 800-488-3436 ; Fax: 831-440-5201
Access Your Account Online: www.morganstanley.com/online
136 - 022962 - 009 - 1 - 0
Agenda: 12.18.14
Item: 10a2
Page 2 of 8
For the Period November 1-30, 2014
CHANGE IN VALUE OF YOUR ACCOUNTS
(includes accrued interest)
This Period
(11/1/14-11/30/14)
TOTAL BEGINNING VALUE
Credits
Debits
Security Transfers
Net Credits/Debits/Transfers
Change in Value
TOTAL ENDING VALUE
SAN LORENZO VALLEY WATER DIST
13060 HIGHWAY 9
Basic Securities Account
136-022962-009
Account Summary
$1,032,775.36
This Year
(1/1/14-11/30/14)
CHANGE IN VALUE OVER TIME
The display of market value (total account value) and net invested capital (total amount invested minus
total withdrawn), demonstrates the impact of deposits and withdrawals.
10.00
$6,337,069.54
—
—
—
—
(5,414,957.12)
—
—
$(5,414,957.12)
662.87
111,325.81
$1,033,438.23
$1,033,438.23
($) Millions
CLIENT STATEMENT
0.00
(10.00)
DEC 2008
DEC 2009
DEC 2010
Total Market Value
DEC 2011
DEC 2012
Net Invested Capital
DEC 2013
NOV 2014
Since 12/31/08
This graph does not reflect corrections to Net Invested Capital or Market Value made subsequent to the
dates depicted. It may exclude transactions in Annuities or positions where we are not the custodian,
which could delay the reporting of Market Value or affect the Net Invested Capital.
Market Value
ALLOCATION OF HOLDINGS
Cash, BDP, MMFs*
Cash, BDP, MMFs
Certificates of Deposit^
TOTAL VALUE^
$8,567.05
1,024,871.18
$1,033,438.23
Percentage %
0.8
99.2
100.0%
Certificates of Deposit
This allocation represents holdings on a trade date basis, and projected settled Cash/ BDP and MMF balances. These classifications are not intended to serve as a suitability analysis.
* FDIC rules apply and Bank
Deposits are eligible for FDIC insurance but are not covered by SIPC. Cash and securities (including MMFs) are eligible for SIPC coverage. See Expanded Disclosures. ^Includes Estimated Accrued Interest.
Agenda: 12.18.14
Item: 10a2
CLIENT STATEMENT
Page 3 of 8
For the Period November 1-30, 2014
Basic Securities Account
136-022962-009
Account Summary
BALANCE SHEET
SAN LORENZO VALLEY WATER DIST
13060 HIGHWAY 9
CASH FLOW
(^ includes accrued interest)
Last Period
(as of 10/31/14)
Cash, BDP, MMFs
Certificates of Deposit ^
Total Assets
$5,287.06
1,027,488.30
$1,032,775.36
Total Liabilities (outstanding balance)
$8,567.05
1,024,871.18
$1,033,438.23
—
TOTAL VALUE
—
$1,032,775.36
This Period
(11/1/14-11/30/14)
This Period
(as of 11/30/14)
$1,033,438.23
OPENING CASH, BDP, MMFs
$5,287.06
$245,511.25
Sales and Redemptions
Income
Total Investment Related Activity
—
3,279.99
$3,279.99
5,098,429.17
79,583.75
$5,178,012.92
Electronic Transfers-Debits
Total Cash Related Activity
—
—
CLOSING CASH, BDP, MMFs
INCOME AND DISTRIBUTION SUMMARY
002596 MSADD471
This Year
(1/1/14-11/30/14)
$3,279.99
$3,279.99
Total Tax-Exempt Income
$79,583.75
$79,583.75
—
—
TOTAL INCOME AND DISTRIBUTIONS
$3,279.99
$79,583.75
Taxable and tax exempt income classifications are based on the characteristics of the underlying
securities and not the taxable status of the account.
ADDITIONAL ACCOUNT INFORMATION
This Period
(11/1/14-11/30/14)
Category
Accrued Interest Received
PERSONAL
ACCOUNTS
RETIREMENT
ACCOUNTS
This Year
(1/1/14-11/30/14)
—
EDUCATION
ACCOUNTS
$8,567.05
(5,414,957.12)
$(5,414,957.12)
$8,567.05
GAIN/(LOSS) SUMMARY
This Period
(11/1/14-11/30/14)
Interest
Total Taxable Income And Distributions
This Year
(1/1/14-11/30/14)
TRUST
ACCOUNTS
$14,251.56
BUSINESS
ACCOUNTS
Realized This Period
(11/1/14-11/30/14)
Long-Term Gain
Long-Term (Loss)
Total Long-Term
—
—
—
Realized This Year
(1/1/14-11/30/14)
Unrealized
Inception to Date
(as of 11/30/14)
—
(192,188.61)
$(192,188.61)
$14,028.85
—
$14,028.85
The Gain/(Loss) Summary, which may change due to basis adjustments, is provided for informational
purposes and should not be used for tax preparation. Refer to Gain/(Loss) in the Expanded Disclosures.
Agenda: 12.18.14
Item: 10a2
CLIENT STATEMENT
Page 4 of 8
For the Period November 1-30, 2014
Basic Securities Account
136-022962-009
Account Detail
SAN LORENZO VALLEY WATER DIST
13060 HIGHWAY 9
Investment Objectives† : Capital Appreciation, Income, Aggressive Income, Speculation
Brokerage Account
† Inform us if your investment objectives, as defined in the Expanded Disclosures, change.
HOLDINGS
This section reflects positions purchased/sold on a trade date basis, and includes positions purchased and omits positions sold in the current month. “Market Value” and “Unrealized Gain/(Loss)” are
representative values as of the last business day of the statement period and may not reflect the value that could be obtained in the market. Fixed Income securities are sorted by maturity or pre-refunding date,
and alphabetically within date. Estimated Annual Income (EAI) is calculated on a pre-tax basis and does not include any reduction for applicable non-US withholding taxes, if any. EAI for certain securities may
include return of principal or capital gains which could overstate such estimates. For securities that have a defined maturity date within the next 12 months, EAI is reflected only through maturity date. Actual
income or yield may be lower or higher than the estimates. Estimated yield reflects only the income generated by an investment, and does not reflect changes in its price. Structured products, identified in the
Security Description column, appear in various statement product categories. When displayed, accrued interest, annual income and yield for structured products with a contingent income feature (such as Range
Accrual Notes or Contingent Income Notes) are estimates and assume specified accrual conditions are met during the relevant period and payment in full of all contingent interest. For Floating Rate Securities, the
accrued interest, annual income and yield are estimates based on the current floating coupon rate and may not reflect historic rates within the accrual period. Treasury regulations require that we report on Form
1099-B, after the close of the tax year, your adjusted cost basis on the sale of covered securities acquired on or after January 1, 2011, and classify the gain or loss as either long-term or short-term. These
regulations also require that we make basis adjustments on covered securities due to wash sales, certain corporate actions and transfers by gift or inheritance, which will be reflected on your Form 1099-B. Cost
basis is reflected on statements for informational purposes and should not be used in the preparation of your income tax returns. Refer to the Expanded Disclosures for additional information.
CASH, BANK DEPOSIT PROGRAM AND MONEY MARKET FUNDS
Cash, Bank Deposit Program, and Money Market Funds are generally displayed on a settlement date basis. You have the right to instruct us to liquidate your bank deposit balance(s) or shares of any money market fund
balance(s) at any time and have the proceeds of such liquidation remitted to you. Estimated Annual Income, Accrued Interest, and APY% will only be displayed for fully settled positions.
Description
Value
CASH
Estimated Annual Income
7-Day Current Yield %
Annual Percentage Yield %
$273.29
MORGAN STANLEY BANK N.A. #
8,293.76
Percentage
of Assets %
Market Value
$8,567.05
—
0.020
Estimated
Annual Income
Accrued Interest
$2.00
$0.00
# Bank Deposits are held at either: (1) Morgan Stanley Bank, N.A., and/or Morgan Stanley Private Bank, National Association, affiliates of Morgan Stanley Smith Barney LLC, or (2) Citibank, N.A., each a national
bank and FDIC member.
CASH, BDP, AND MMFs
0.8%
2.00
Agenda: 12.18.14
Item: 10a2
CLIENT STATEMENT
Page 5 of 8
For the Period November 1-30, 2014
Basic Securities Account
136-022962-009
Account Detail
SAN LORENZO VALLEY WATER DIST
13060 HIGHWAY 9
CERTIFICATES OF DEPOSIT
002596 MSADD471
Security Description
Trade Date
Orig. Unit Cost
Face Value Adj. Unit Cost
Orig. Total Cost
Adj. Total Cost
Market Value
Unrealized
Gain/(Loss)
CITIBANK, NATIONAL ASSOCIATION LAS
11/24/09
100,000.000
$100.000
$100,000.00
VEGAS NV CD
$100,000.00
$100.000
$100,000.00
$0.00 LT
CUSIP 17312QPR4
Unit Price: $100.000; Coupon Rate 3.000%; Matures 12/02/2014; Int. Semi-Annually Jun/Dec 02; Yield to Maturity 3.000%; Issued 12/02/09; Maturity Value = $100,000.00
BMW BANK OF NORTH AMERICA SALT LAKE 1/19/10
95,000.000
100.000
95,000.00
CITY UT CD
95,329.65
100.000
95,000.00
329.65 LT
CUSIP 05568PUS4
Unit Price: $100.347; Coupon Rate 2.900%; Matures 01/22/2015; Int. Semi-Annually Jan/Jul 22; Yield to Maturity .502%; Issued 01/22/10; Maturity Value = $95,000.00
REPUBLIC BANK, INC. BOUNTIFUL UT CD 1/12/09
95,000.000
100.000
95,000.00
CUSIP 760310NG3
95,452.20
100.000
95,000.00
452.20 LT
Unit Price: $100.476; Coupon Rate 3.500%; Matures 01/29/2015; Interest Paid Monthly Mar 28; Yield to Maturity .594%; Issued 01/29/09; Maturity Value = $95,000.00
GE CAPITAL RETAIL BANK (FORMER LY GE 4/19/10
95,000.000
100.000
95,000.00
MONEY BK) DRAPER UT CD
95,817.95
100.000
95,000.00
817.95 LT
CUSIP 36159UNS1
Unit Price: $100.861; Coupon Rate 2.700%; Matures 04/23/2015; Int. Semi-Annually Apr/Oct 23; Yield to Maturity .531%; Issued 04/23/10; Maturity Value = $95,000.00
FIRST NATIONAL BANK OF AMERICA EAST 4/29/09
95,000.000
100.000
95,000.00
LANSING MI CD
96,307.20
100.000
95,000.00
1,307.20 LT
CUSIP 32110YDB8
Unit Price: $101.376; Coupon Rate 3.700%; Matures 05/07/2015; Interest Paid Monthly Jul 07; Yield to Maturity .547%; Issued 05/07/09; Maturity Value = $95,000.00
SCOTIABANK DE PUERTO RICO SAN JUAN 6/22/10
100,000.000
100.000
100,000.00
PR CD
101,365.00
100.000
100,000.00
1,365.00 LT
CUSIP 80928EHC7
Unit Price: $101.365; Coupon Rate 2.550%; Matures 07/02/2015; Int. Semi-Annually Jan/Jul 02; Issued 07/02/10; Maturity Value = $100,000.00
ALLY BANK ( FORMERLY GMAC BK)
7/2/10
100,000.000
100.000
100,000.00
MIDVALE UT CD
101,317.00
100.000
100,000.00
1,317.00 LT
CUSIP 02004MXU2
Unit Price: $101.317; Coupon Rate 2.450%; Matures 07/09/2015; Int. Semi-Annually Jan/Jul 09; Issued 07/09/10; Maturity Value = $100,000.00
ESSA BANK & TRUST STROUDSBURG PA CD 4/7/10
95,000.000
100.000
95,000.00
CUSIP 29667RCL5
97,022.55
100.000
95,000.00
2,022.55 LT
Unit Price: $102.129; Coupon Rate 2.750%; Matures 10/23/2015; Int. Semi-Annually Apr/Oct 23; Issued 04/23/10; Maturity Value = $95,000.00
GE CAPITAL FINANCIAL INC HOLLADAY UT 11/4/08
95,000.000
100.000
95,000.00
CD
99,073.60
100.000
95,000.00
4,073.60 LT
CUSIP 36160VFE6
Unit Price: $104.288; Coupon Rate 5.300%; Matures 11/06/2015; Int. Semi-Annually May/Nov 06; Yield to Maturity .694%; Issued 11/06/08; Maturity Value = $95,000.00
Estimated
Annual Income
Accrued Interest
Yield %
$1,500.00
$1,483.60
1.50
1,378.00
980.72
1.44
554.00
18.46
0.58
1,283.00
267.77
1.33
1,758.00
224.54
1.82
2,550.00
1,046.33
2.51
2,450.00
958.69
2.41
2,613.00
272.73
2.69
5,035.00
333.81
5.08
Agenda: 12.18.14
Item: 10a2
CLIENT STATEMENT
Page 6 of 8
For the Period November 1-30, 2014
Basic Securities Account
136-022962-009
Account Detail
CERTIFICATES OF DEPOSIT
SAN LORENZO VALLEY WATER DIST
13060 HIGHWAY 9
(CONTINUED)
Security Description
Trade Date
COLE TAYLOR BANK CHICAGO IL CD
CUSIP 193296XY1
1/6/11
Orig. Unit Cost
Face Value Adj. Unit Cost
Orig. Total Cost
Adj. Total Cost
Market Value
Unrealized
Gain/(Loss)
Estimated
Annual Income
Accrued Interest
35,000.000
100.000
35,000.00
35,560.70
100.000
35,000.00
560.70 LT
Unit Price: $101.602; Coupon Rate 2.150%; Matures 01/12/2016; Interest Paid Quarterly Apr 12; Yield to Maturity .708%; Issued 01/12/11; Maturity Value = $35,000.00
WORLD FINANCIAL NETWORK BANK
9/13/11
100,000.000
100.000
100,000.00
(JUMBO) WILMINGTON DE CD
101,783.00
100.000
100,000.00
1,783.00 LT
CUSIP 981999U11
Unit Price: $101.783; Coupon Rate 2.000%; Matures 09/21/2016; Interest Paid Monthly Oct 02; Yield to Maturity 1.002%; Issued 09/21/11; Maturity Value = $100,000.00
Face Value
Percentage
of Assets %
1,005,000.000
CERTIFICATES OF DEPOSIT
Orig. Total Cost
Adj. Total Cost
$1,005,000.00
$1,005,000.00
99.2%
TOTAL CERTIFICATES OF DEPOSIT
(incl.accr.int.)
TOTAL MARKET VALUE
Market Value
$1,019,028.85
Unrealized
Gain/(Loss)
2.11
2,000.00
155.49
1.96
Estimated
Annual Income
Accrued Interest
$21,874.00
$5,842.33
$14,028.85 LT
Yield %
753.00
100.19
Yield %
2.15%
$1,024,871.18
Percentage
of Assets %
Total Cost
Market Value
100.0%
$1,005,000.00
$1,027,595.90
Unrealized
Gain/(Loss)
Estimated
Annual Income
Accrued Interest
$14,028.85 LT
$21,876.00
$5,842.33
Yield %
2.12%
$1,033,438.23
TOTAL VALUE (includes accrued interest)
Unrealized Gain/(Loss) totals only reflect positions that have cost basis and/or market value information available. Cash, MMF, Deposits and positions stating 'Please Provide' are not included.
ACTIVITY
CASH FLOW ACTIVITY BY DATE
Transaction Settlement
Date
Date
Activity Type
11/2
11/6
11/7
11/28
11/2
11/6
11/7
11/28
Interest
Interest
Interest
Interest
11/30
11/30
Interest Income
NET CREDITS/(DEBITS)
Income
Income
Income
Income
Description
Comments
WORLD JUMBO CD 2000 16SP21
GE CAPITAL FINL 5300 15NV06
FIRST NATL BK CD 3700 15MY07
MORGAN STANLEY BANK N.A.
(Period 11/01-11/30)
REPUBLIC BANK CD 3500 15JA29
CUSIP: 981999U11
CUSIP: 36160VFE6
CUSIP: 32110YDB8
CUSIP: 760310NG3
Quantity
Price
Credits/(Debits)
$169.86
2,538.19
298.53
0.12
273.29
$3,279.99
Agenda: 12.18.14
Item: 10a2
CLIENT STATEMENT
Page 7 of 8
For the Period November 1-30, 2014
Basic Securities Account
136-022962-009
Account Detail
SAN LORENZO VALLEY WATER DIST
13060 HIGHWAY 9
MONEY MARKET FUND (MMF) AND BANK DEPOSIT PROGRAM ACTIVITY
Date
Activity Type
Description
11/3
11/4
11/7
11/10
11/28
Automatic
Automatic
Automatic
Automatic
Automatic
BANK
BANK
BANK
BANK
BANK
Investment
Investment
Investment
Investment
Investment
DEPOSIT
DEPOSIT
DEPOSIT
DEPOSIT
DEPOSIT
Credits/(Debits)
PROGRAM
PROGRAM
PROGRAM
PROGRAM
PROGRAM
$282.40
169.86
2,538.19
298.53
0.12
NET ACTIVITY FOR PERIOD
$3,289.10
REALIZED GAIN/(LOSS) DETAIL
LONG-TERM GAIN/(LOSS)
Security Description
002596 MSADD471
FNMA
3/4
FNMA
7/8
HSBC BK USA NA CD
WELLS FARGO BK CD
10-30-18
8-28-17
3.000 3-16-23
2 1/4 11-22-21
Long-Term This Period
Long-Term Year to Date
Net Realized Gain/(Loss) This Period
Net Realized Gain/(Loss) Year to Date
Date
Acquired
Date
Sold
10/31/12
07/27/12
03/10/11
11/09/11
10/23/14
10/23/14
10/23/14
10/23/14
Quantity
200,000.000
350,000.000
30,000.000
75,000.000
Sales
Proceeds
Orig / Adj
Total Cost
Realized
Gain/(Loss)
$197,701.50
347,990.96
29,850.00
73,319.25
$200,338.03
351,166.77
30,000.00
75,000.04
$(2,636.53)
(3,175.81)
(150.00)
(1,680.79)
$0.00
$0.00
$5,084,177.61
$5,276,366.22
$0.00
$0.00
$5,084,177.61
$5,276,366.22
Comments
$0.00
$(192,188.61)
$0.00
$(192,188.61)
Treasury regulations require that we report adjusted cost basis on the sale of covered securities acquired on or after January 1, 2011, and classify the gain or loss as either long-term or short-term. These
regulations require that we make basis adjustments on covered securities due to wash sales, certain corporate actions and transfers by gift or inheritance, which will be reflected on Form 1099-B. This section may
not reflect all of the basis adjustments we are required to make for tax reporting purposes, is provided for informational purposes, and should not be used for tax preparation. Refer to the Expanded Disclosures.
Agenda: 12.18.14
Item: 10a2
CLIENT STATEMENT
Page 8 of 8
For the Period November 1-30, 2014
Standard Disclosures
The following Disclosures are applicable to the enclosed statement(s).
Expanded Disclosures are attached to your most recent June and
December statement (or your first Statement if you have not received a
statement for those months). The Expanded Disclosures are also
available by selecting Account Documents when you log on to
www.morganstanley.com/online or, call 800-869-3326.
Questions?
Questions regarding your account may be directed to your Financial
Advisor or the Branch Manager for the branch office where you
maintain your account. If you require further assistance, call Client
Service Center at (800) 869-3326 or for account-related concerns call
our Client Advocate at (866) 227-2256.
Errors and Inquiries
It is your responsibility to review your statement promptly and to seek
immediate clarification about entries that you do not understand or
believe were made in error by contacting the Branch Manager of the
office where you maintain your account. Oral communications
regarding any inaccuracy or discrepancy in this statement should be
re-confirmed in writing to further protect your rights, including rights
under the Securities Investor Protection Act (SIPA). Your statement will
be deemed correct unless we receive a written inquiry of a suspected
error. See your account documentation for special rules regarding your
rights and responsibilities with respect to erroneous electronic fund
transfers, including a description of the transfers covered.
Availability of Free Credit Balances and Financial Statements
Under the customer protection rules of the SEC [17 CFR
§240.15c3-3], we may use funds comprising free credit balances
carried for customer accounts here, provided that these funds are
payable to customers on demand (i.e., are free of a lien or right of
set-off in our favor or on behalf of some third party to whom you have
given control). A financial statement of this organization is available for
your personal inspection at its offices, or a copy will be mailed to you
upon your written request.
Listed Options
Information with respect to commissions and other charges related to
the execution of options transactions has been included in
confirmations of such transactions previously furnished to you and such
information will be made available to you promptly at your request.
Promptly advise us of any material change in your investment
objectives or financial situation.
Important Information if you are a Margin Customer(not available for
certain retirement accounts)
If you have margin privileges, you may borrow money from us in
exchange for pledging assets in your accounts as collateral for any
outstanding margin loan. The amount you may borrow is based on the
value of the eligible securities in your margin accounts. If a security has
eligible shares, the number of shares pledged as collateral will be
indicated below the position.
Margin Interest Charges
We calculate interest charges on margin loans as follows: (1) multiply
the applicable margin interest rate by the daily close of business net
settled debit balance, and (2) divide by 360 (days). Margin interest
accrues daily throughout the month and is added to your debit balance
at month-end. The month-end interest charge is the sum of the daily
accrued interest calculations for the month. We add the accrued
interest to your debit balance and start a new calculation each time the
applicable interest rate changes and at the close of every statement
month. For current margin loan interest rates, go to
www.morganstanley.com/online/MIRates.
Information regarding Special Memorandum Account
If you have a Margin Account, this is a combined statement of your
Margin Account and Special Memorandum Account maintained for you
under Section 220.5 of Regulation T issued by the Board of Governors
of the Federal Reserve System. The permanent record of the Special
Memorandum Account as required by Regulation T is available for your
inspection at your request.
Important Information About Auction Rate Securities
Due to market conditions, certain Auction Rate Securities experience no
or limited liquidity. Therefore, the price(s) for any Auction Rate
Securities shown on this statement may not reflect the price(s) you
would receive upon a sale at auction or in a secondary market
transaction, and are not an indication of any offer to purchase at such
price.
Structured Products
Structured Products are complex products and may be subject to
special risks. Investors should consider the concentration risk of owning
the related security and their total exposure to any underlying asset.
Structured Products may not perform in a manner consistent with the
statement product category in which they appear and therefore may not
satisfy portfolio asset allocation needs for that category.
Security Measures
This statement features several embedded security elements to
safeguard its authenticity. One is a unique security mark--a blue
rectangle printed in heat-sensitive ink on the back of every page. When
exposed to warmth, the blue rectangle will disappear, and then
reappear.
SIPC Protection
We are a member of Securities Investor Protection Corporation (SIPC),
which protects securities of its customers up to $500,000 (including
$250,000 for claims for cash). An explanatory brochure is available
upon request or at www.sipc.org. Losses due to market fluctuation are
not protected by SIPC and assets not held with us may not be covered
by SIPC protection. To obtain information about SIPC, including an
explanatory SIPC brochure, contact SIPC at 1-202-371-8300 or visit
www.sipc.org.
Transaction Dates and Conditions
Upon written request, we will furnish the date and time of a transaction
and the name of the other party to a transaction. We and/or our
affiliates may accept benefits that constitute payment for order flow.
Details regarding these benefits and the source and amount of any
other remuneration received or to be received by us in connection with
any transaction will be furnished upon written request.
Equity Research Ratings Definitions and Consulting Group Investment
Advisory Statuses
Some equity securities may have research ratings from Morgan Stanley
& Co. LLC or Standard & Poor’s. Research ratings are the research
providers' opinions and not representations or guarantees of
performance. For more information about each research provider's
rating system, see the Research Ratings and CG IAR Status Definitions
on your most recent June or December statement (or your first
statement if you have not received a statement for those months), go to
www.morganstanley.com/online or refer to the research provider’s
research report. Research reports contain more complete information
concerning the analyst's views and you should read the entire research
report and not infer its contents from the rating alone. If your account
contains an advisory component or is an advisory account, CG IAR
statuses apply.
Credit Ratings from Moody's Investors Service and Standard & Poor's
The credit rating from Moody's Investors Service and Standard & Poor's
may be shown for certain securities. All credit ratings represent the
opinions of the provider and are not representations or guarantees of
performance. Your Financial Advisor will be pleased to provide you with
further information or assistance in interpreting these credit ratings.
Revised 08/2014