February 27, 2018 MEMO TO: INSURANCE FUND CHAIRMAN …

February 27, 2018

MEMO TO: INSURANCE FUND CHAIRMAN FERNANDEZ

FROM: PATRICK J. DEBLASIO, CPA, CMFO, CGFM, -FUND TREASURER

Please be advised that the following is an update of the status of the Public Entity

Joint Insurance Fund:

December January

2017 2018

Beginning Cash Balance Operating Account-Bank of America 44,880.04$ 123,916.93$

Claims Fiduciary Account-Bank of America 8,254.19 8,254.19

Claims-TD Bank 8,305.30 8,138.29

Custodial-Investments 814,805.49 117,739.77

Total Balance 876,245.02$ 258,049.18$

Receipts:

Operating Account-Bank of America 323,333.32$ 1,423,617.48$

D&H Claims Fiduciary Account-Bank of America 176,570.53 114,830.58

Claims-TD Bank 2,519.98 68,774.90

Custodial-Deposits and Interest Income 500,000.00

Total Receipts 502,423.83$ 2,107,222.96$

Disbursements:

Operating Account-Bank of America (244,296.43)$ (757,798.43)$

D&H Claims Fiduciary Account-Bank of America (176,570.53) (114,830.58)

Claims-TD Bank (2,686.99) (68,941.21)

Custodial-Investments (697,065.72) (390,622.29)

Total Disbursements (1,120,619.67)$ (1,332,192.51)$

Ending Cash Balance Operating Account-Bank of America 123,916.93$ 789,735.98$

Claims Fiduciary Account-Bank of America 8,254.19 8,254.19

Claims-TD Bank 8,138.29 7,971.98

Custodial-Investments 117,739.77 227,117.48

- -

Total Cash Account Balance 258,049.18$ 1,033,079.63$

Beginning Investment Balance 3,806,533.84$ 4,203,997.99$

Change in Accrued Income 1,224.40 1,006.44

Change in Unrealized gain (1,463.37) (2,994.12)

Income Received 637.40 4,365.02

Realized Gain/Loss 53.51

Transfer to/From Custodial Account 397,065.72 315,622.29

Total Investment Account 4,203,997.99$ 4,522,051.13$

Ending Cash and Investment Balance 4,462,047.17$ 5,555,130.76$

BANK RECONCILIATION

ACCT.NAME Bank of America

BANK/ACCT# Custody Investment Acct -XXXXXX

From To

DATE 01/01/18 01/31/18

BOOK BALANCE AS OF 01/01/18 $ 4,310,334.07

ADD DEPOSITS (PER BANK LEDGER) 817,046.70

SUBTRACT:DISBURSEMENTS(PER BANK LEDGER) 390,622.29

BOOK BALANCE AS OF 01/31/18 $ 4,736,758.48

___________________________________________________________________________________________________

BALANCE PER BANK STATEMENT 01/31/18 $4,736,758.48

ADD: DEPOSIT IN TRANSIT

DATE AMOUNT

TOTAL 0.00 0.00

SUBTRACT: CHECKS OUTSTANDING

DATE CHECK# AMOUNT

TOTAL 0.00 0.00

LIST ITEMS IN LEDGER NOT ON STATEMENT

DATE AMOUNT

TOTAL -$ 0.00

LIST ITEMS ON STATEMENT NOT IN LEDGER

DATE AMOUNT

TOTAL - 0.00

ADJUSTED BANK BALANCE(BOOK BAL)AS OF 01/31/18 4,736,758.48

Difference 0.00

PREPARED BY Patrick J. DeBlasio, CPA REVIEWED BY Mary Foulks

BANK RECONCILIATION


BANK/ACCT# D & H Claims Fiduciary Acct -XXXXXXX

From To

DATE 01/01/18 01/31/18

BOOK BALANCE AS OF 01/01/18 $ 8,254.19




___________________________________________________________________________________________________

BALANCE PER BANK STATEMENT 01/31/18 $67,838.37


DATE AMOUNT

TOTAL 0.00 0.00


DATE CHECK# AMOUNT

various list 59,584.18

TOTAL 59,584.18 (59,584.18)


DATE AMOUNT

TOTAL -$ 0.00


DATE AMOUNT

TOTAL - 0.00

ADJUSTED BANK BALANCE(BOOK BAL)AS OF 01/31/18 8,254.19

Difference 0.00


BANK RECONCILIATION


BANK/ACCT# Claims/Operating Account -XXXXXX

From To

DATE 01/01/18 01/31/18


ADD DEPOSITS (PER BANK LEDGER) 1,423,617.48



___________________________________________________________________________________________________



DATE AMOUNT

TOTAL 0.00 0.00


DATE CHECK# AMOUNT

01/15/18 471 256.80

01/15/18 472 1,078.00

01/15/18 476 1,000.00

01/15/18 478 500.00

01/15/18 481 600.00

TOTAL 3,434.80 (3,434.80)


DATE AMOUNT

TOTAL -$ 0.00


DATE AMOUNT

TOTAL - 0.00


Difference 0.00


BANK RECONCILIATION

ACCT.NAME TD Bank

BANK/ACCT# Claims Acct -XXXXXXX

From To

DATE 01/01/18 01/31/18





___________________________________________________________________________________________________



DATE AMOUNT

1/31/2018

TOTAL 0.00 0.00


DATE CHECK# AMOUNT

list 59,866.39

TOTAL 59,866.39 (59,866.39)


DATE AMOUNT

TOTAL -$ 0.00


DATE AMOUNT

TOTAL - 0.00


Difference (0.00)


RESOLUTION NO. 12-18

PUBLIC ENTITY JOINT INSURANCE FUND

(Hereinafter the “FUND”)

APPROVING CERTAIN DISBURSEMENTS

WHEREAS, the Bylaws of the FUND require that the Board of Commissioners approve all

disbursements by a majority vote, and

WHEREAS, the attached bill of items sets forth certain bills or demands for monies;

NOW, THEREFORE BE IT RESOLVED, by the FUND’s Board of Fund Commissioners that

the attached bill of items totaling $2,102,989.32 is approved for payment.

Adopted: this day by the Board of Fund Commissioners

February 27th, 2018

Chairman Date

February 27th, 2018

Secretary Date

Date: 02.01.18 Bills List #: 46

DESCRIPTION Check #/WT Invoice Amt.

inv#41492 Fund Attorney Svs. January 2018#484 635.50$

inv#7732 - Governmental Affairs February

2018#485 416.67$

Fund Treasurer February 2018 #486 500.00$

Quarterly Fees #487 1,250.00$

PEJIF Meeting Posting for January #489 15.50$

PEJIF Meeting Posting for January #490 5.22$

Investment Receivables - (4 transactions)

#491 160.00$

1st RM fee for City of Passaic $52,633.45 #492 52,633.45$

1st RM fee forTownship of Teaneck #493 31,664.82$

1st RM Fee for City of Plainfield #494 28,863.93$

Total in Checks 116,145.09$

WIRE TRANSFERS/ACH ACH

PEJIF Meeting Room for February $150 ACH 150.00$

Reimburse for Breakfast Catering ACH 450.92$

inv#259958 Installments 1 of 4 for 2018 - Loss

Control Fee $33,629; Claims Management

Fee $66,579; TPA Fee $113,150; Risk Control

Fee $62,500; Admin Fee $191,585

ACH 467,443.00$

Total Payments to NIP Management 468,043.92$

BGIA Payments

inv#259962 BGIA Underwriting Mgr. Fee 1 of

2ACH 66,580.00$

inv#259368 BGIA Disaster Management ACH 17,500.00$

inv#259959 BGIA Excess WC Installament #1 ACH 145,204.00$

inv#259961 & 259871 Travelers Boiler &

Machinery 1 of 2ACH 25,654.00$

inv#259870 Global Aereospace Non owned ACH 5,030.00$

inv#259872 Travelers Property Installment #1 ACH 272,024.00$

inv#259872 & 259956 Atlantic Specialty

Insurance ACH 17,064.00$

inv#259960 ACE American Pollution ACH 24,231.06$

inv#259958 Brit Excess Lia. Renewal

Installment 1 of 2ACH 925,000.00$

INV#259957 Travelers Public Officials Bond -

HallACH 788.00$

inv#259955 Travelers Performance Bond

Increase limitACH 125.00$

inv#259954 Travelers Public Officials Bond -

DeBlasioACH 1,296.00$

inv#259873 Fidelity & Deposit Crime Renewal ACH 18,304.25$

Total BGIA 1,518,800.31$

Total 2,102,989.32$

Dept. of the Treasusry Div. of

Admin. Fiscal & Resources

Fairview Insurance

D & H Alternative

Reliance Insurance Group

The NJ Times

Patrick DeBlasio

The Star Ledger

FEBRUARY 27 2018- PEJIF Commissioners Meeting Bills List

PAY TO

Princeton Public Affairs

Pringle Quinn Anzano

Bank of America/Merrill

Lynch

BGIA

BGIA

BGIA

BGIA

BGIA

BGIA

BGIA

BGIA

NIP Management

BGIA

BGIA

BGIA

NIP Management

BGIA

BGIA

NIP Management

RESOLUTION NO. 13-18

PUBLIC ENTITY JOINT INSURANCE FUND

(Hereinafter referred to as the “FUND”)

APPROVING CLAIMS PAYMENTS

BE IT RESOLVED by the Board of Fund Commissioners of the Public Entity Joint Insurance

Fund, that confirmation and authorization approval is made in issuance of the attached claims

payments totaling $686,530.70 against the fund.

ADOPTED: this day before the Board of Fund Commissioners:

February 27th, 2018__

Chairman Date

February 27th, 2018

Secretary Date

PEJIF MONTHLY PAYMENTS

YEAR 2018

MONTH January

D&H Amount

PASSAIC

WC 28,045.30$

LIABILITY, PROP & APD $ 9,271.20

D&H

PERTH AMBOY

WC 80,180.24$

LIABILITY & PROP 127,774.83$

CRC

PLAINFIELD

WC 23,367.68$


D&H

WNY

WC 16,783.26$


NIP & D&H

Roselle

WC 17,887.35$

Liability & Prop -$

NIP & CRC

East Orange

WC 67,044.96$

Liability &Prop 53,436.71$

D&H

Teaneck

WC 67,209.55$

Liability & Prop (965.32)$

NIP & CRC

Orange

WC 29,131.60$

Liability &Prop 3,728.10$

PEJIF Total for the month 686,530.70$

Monthly Investment Report

As of 1/31/2018

Treasury Yields and Federal Reserve

Public Entity Joint Insurance Fund | Prime Advisors, Inc. | Page 2 of 11

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

12/31/2016 12/31/2017 1/31/2018

Source: Federal Reserve

Treasury Yield Curves

Average Monthly Payroll Changes

10 Year Treasury Yields

Inflation

2 and 10 year yield difference: 58bps

1.25%

1.50%

1.75%

2.00%

2.25%

2.50%

2.75%Source: Federal Reserve

0.0

0.5

1.0

1.5

2.0

2.5

Core PCE Core CPI Eurozone Core CPI Fed Target

Source: Bureau of Labor Statistics, Eurostat

0

50

100

150

200

250

300

2010 2011 2012 2013 2014 2015 2016 2017 2018

YTD

Source: Bureau of Labor Statistics

Market Indicators


World Bond YieldsCentral Bank Balance Sheets (USD)

Corporate Bond Issuance Municipal Bond Issuance

12/31/2017 1/31/2018 Difference

US 2.41% 2.72% 0.31%

UK 1.19% 1.51% 0.32%

Germany 0.42% 0.70% 0.28%

France 0.78% 0.97% 0.19%

Italy 2.01% 2.03% 0.02%

Spain 1.56% 1.43% (0.13%)

Japan 0.04% 0.09% 0.04%

Source: Federal Reserve, Bloomberg

$0

$1

$2

$3

$4

$5

$6

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Fed ECB BOJ

Source: Bloomberg

Trill

ion

s

0

200

400

600

800

1,000

1,200

1,400

1,600

2011 2012 2013 2014 2015 2016 2017 2018

YTD

($B

illio

ns)

Source: Bloomberg

0

100

200

300

400

500

2011 2012 2013 2014 2015 2016 2017 2018

YTD

($B

illio

ns)

Source: Bloomberg

Maturity Schedule By Weighted Average Life


500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Cash & Cash Eq Corporate Government Mtge & Asset Backed Municipal Other

Effective Maturity Schedule


Year Book Value Tax Equiv. Book Yield % of Total Book Value

2018 2,185,197 1.03 48%

2019 2,342,619 1.64 52%

2020+ 0 0.00 0%

Subtotal 4,527,816 1.34 100%

(inc. ABS, Agcy, CMBS, Corp, Muni, UST)

MBS 0 0.00 0%

TOTAL 4,527,816 1.34 100%

Portfolio Changes

Note: The tax equivalent yield calculation has changed after 12/31/17 due to the passing of the Tax Cuts and Jobs Act in December 2017. Tax equivalent yield grosses up tax-exempt municipal yields so they are comparable to taxable bonds. The factor for 12/31/17 and prior was 1.46 [(1 - 5.25%) / (1 - 35%)]. The new factor is 1.20 [(1 - 5.25%) / (1 - 21%)].


Public Entity Joint Insurance Fund 03/31/2017 06/30/2017 09/30/2017 12/31/2017 01/31/2018

Treasury Yields

2 yr Treasury Yield 1.26% 1.38% 1.48% 1.89% 2.14%



Book Statistics

Tax-Equivalent Book Yield 0.76% 0.83% 0.91% 1.12% 1.28%

Book Value ($) 4,640,126 4,108,853 4,613,617 4,325,448 4,754,934

Projected Tax-Equivalent Income, next 12 months ($) 35,217 34,165 42,049 48,378 60,851

Unrealized Gains/(Losses) ($) (5,916) (7,863) (6,163) (15,132) (17,823)

YTD Realized Gains/(Losses) ($) 0 0 0 0 0

Portfolio Risk Statistics

Effective Duration 0.75 0.64 0.70 0.81 0.90

Convexity 0.01 0.01 0.01 0.01 0.02

Weighted Average Life 0.76 0.65 0.71 0.82 0.92

Average Rating AAA AAA AAA AAA AAA

Portfolio Sector Allocation

Treasury 95% 100% 91% 94% 95%

Agency 0% 0% 0% 0% 0%

Corporate 0% 0% 0% 0% 0%

Taxable Municipal 0% 0% 0% 0% 0%

Tax-exempt Municipal 0% 0% 0% 0% 0%

Mortgage Pass-Through 0% 0% 0% 0% 0%

CMOs 0% 0% 0% 0% 0%

ARMs 0% 0% 0% 0% 0%

Asset Backed 0% 0% 0% 0% 0%

CMBS 0% 0% 0% 0% 0%

Cash & Cash Equivalents 5% 0% 9% 6% 5%

Performance


Tax-Equivalent Total Return

as of 01/31/2018

Inception Date: 08/01/2014

Prime Benchmark Difference

Previous Month 0.04% 0.09% -0.05%

Quarter to Date 0.04% 0.09% -0.05%

Year to Date 0.04% 0.09% -0.05%

Since Inception 0.47% 0.52% -0.05%

Benchmark Composition:

100.0% PEJIF Duration Matched Treasury

Bond Purchases


Trade Date Description Security Type

S&P

Rating

Moody's

Rating Coupon Maturity Date Call Date Price Cost

Pre-Tax

Book Yield

Tax-Equivalent

Book Yield

01/19/2018 US TREASURY N/B Treasury AA+ Aaa 1.750 09/30/2019 N/A 99.54 174,187 2.03 2.03



Total 669,987 2.09 2.09

Bond Sales, Calls & Maturities


Trade Date

Trade

Type Description

Security

Type

S&P

Rating

Moody's

Rating Coupon

Effective

Maturity

Maturity

Date Price Book Value

Realized

Gain/(Loss)

Pre-Tax

Book

Yield

Tax-

Equivalent

Book Yield

01/31/2018 Maturity US TREASURY N/B Treasury AA+ Aaa 0.750 01/31/2018 01/31/2018 100.00 200,000 0 0.76 0.76

Total 200,000 0 0.76 0.76


Appendix Detailed Portfolio Report

Portfolio Holdings Report


Date

Acquired

S&P

Rating

Moody's

Rating Quantity Description Coupon

Effective

Maturity Maturity Original Cost Book Value Market Value

Unrealized

Gain/(Loss)

Book

Yield

Market

Yield

Effective

Duration

Avg

Life Convexity

Money Market

01/26/2018 227,117 BANK OF AMER/MERRILL LYNCH 0.00 227,117 227,117 227,117 0 0.00 0.00 0.00 0.00

227,117 227,117 227,117 227,117 0 0.00 0.00 0.00 0.00

Treasury

12/01/2017 AA+ Aaa 200,000 US TREASURY N/B 1.25 08/31/2019 08/31/2019 198,195 198,363 197,428 (935) 1.78 2.08 1.55 1.58 0.03







07/27/2017 AA+ Aaa 250,000 US TREASURY N/B 1.25 12/15/2018 12/15/2018 249,795 249,871 248,613 (1,259) 1.31 1.89 0.86 0.87 0.01















4,535,000 4,528,226 4,527,816 4,509,993 (17,823) 1.34 1.84 0.95 0.97 0.02

4,762,117 4,755,343 4,754,934 4,737,111 (17,823) 1.28 1.76 0.90 0.92 0.02

February 27, 2018 MEMO TO: INSURANCE FUND CHAIRMAN …

Documents

Transcript of February 27, 2018 MEMO TO: INSURANCE FUND CHAIRMAN …