Title
Receive and Accept the Treasurer’s Report of Investments for the quarter ending March 31, 2012.
Body
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Receive and Accept the Treasurer’s Report of Investments for the quarter ending March 31, 2012.
SUMMARY:
Government Code Section 53646 (b) requires the Treasurer submit a quarterly report of investments. The attached Exhibit A provides a narrative portfolio review of economic and market conditions that support the investment activity during the January - March period.
Exhibit B describes the investment portfolio position by investment type as of March 31, 2012. Exhibit C is a listing of historical Monterey County Treasury Pool yields versus benchmarks. Exhibit D describes the investment portfolio by maturity range, and Exhibit E is an overview of the short term funds that the Treasurer invests in overnight, liquid assets.
DISCUSSION:
During the January to March quarter Treasury bond yields were up slightly in the 0 - 5 year term. The increase was due to Greece completing the largest ever sovereign debt restructuring, as well as positive economic data in the U.S. The net effect was a move to investment in equity markets, causing bond yields to increase despite the Fed’s assurances that they will continue to keep the Fed Funds Rate at or below 0.25 percent.
On March 31, 2012 the Monterey County investment portfolio contained an amortized cost basis of $1,017,030,070 spread among 78 separate securities and funds. The par value of those funds was $1,015,118,603, with a market value of $1,017,633,053 or 100.06% of amortized book value. The portfolio’s net earned income yield for the period was 0.43%. The portfolio produced estimated income of $1,120,246 for the quarter which will be distributed proportionally to all agencies participating in the investment pool. The investment portfolio had a weighted average maturity of 307 days.
The investment portfolio was in compliance with all applicab...
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