II. Investments Results - First Quarter 2013

Total DIF Portfolio Liquidity

• On March 31, 2013, the total liquidity (also total market value) of the DIF investment portfolio stood at $38.8 billion, higher than its December 31, 2012, balance of $38.2 billion.  Over the course of the quarter, receivership dividends, assessments, and other inflows were greater than outflows for funding initial resolution payments, operating expenses, and other payments related to receivership activities.

• On March 31, 2013, the DIF investment portfolio’s yield was 0.38 percent, up two basis points from its December 31, 2012, yield of 0.36 percent.  During the quarter, newly purchased Treasury securities generally had somewhat higher yields than maturing securities, and the overnight investment rate was higher on March 31, 2013, than at December 31, 2012, hence the modest increase in portfolio yield.

• In accordance with the approved first quarter 2013 DIF portfolio investment strategy, staff purchased a total of ten short-maturity conventional Treasury securities on three occasions.  The ten securities had a total par value of $3.8 billion, a weighted average yield of 0.24 percent, and a weighted average maturity (WAM) of 1.36 years.

DIF Investment Portfolio Total Yield (percentage)
Year-end	Percentage
2008	4.59%
2009	0.49%
2010	0.40%
2011	0.41%
2012	0.36%
Mar-2013	0.38%