Title
a. Receive and Accept the Treasurer's Report of Investments for the Quarter Ending June 30, 2017;
b. Receive and Approve the Treasurer's Investment Policy for FY 2017-18; and
c. Renew the Delegation of Investment Authority to the Treasurer-Tax Collector pursuant to California Government Code 53607.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive and Accept the Treasurer's Report of Investments for the Quarter Ending
June 30, 2017;
b. Receive and Approve the Treasurer's Investment Policy for FY 2017-18; and
c. Renew the Delegation of Investment Authority to the Treasurer-Tax Collector pursuant to California Government Code 53607.
SUMMARY:
Government Code Section 53646 (b) (1) states the Treasurer may submit a quarterly report of investments. The attached exhibits provide a narrative portfolio review of economic and market conditions that support the investment activity during the April - June period, the investment portfolio position by investment type, a listing of historical Monterey County Treasury Pool yields versus benchmarks, and the investment portfolio by maturity range.
The Treasurer also annually reviews the Monterey County Investment Policy and has recommended updates for Board approval. These updates will provide additional clarification, revise outdated language, and more clearly define investment guidelines and categories as stated in Government Code ?53601(q). In addition, annual Board delegation of investment authority to the Treasurer-Tax Collector is prescribed by Government Code sections 53646 and 53607.
DISCUSSION:
During the April - June quarter, Treasury yields were substantially higher compared to a year ago. Short term yields rose as the Federal Open Market Committee (FOMC) raised rates to normalize policy, while longer yields moved in tandem with higher inflation expectations following the elections. The yield curve has flattened over the quarter as some of these inflation expectations moderate...
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