Title
Receive and Accept the Treasurer's Report of Investments for the Quarter Ending March 31, 2020.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Receive and Accept the Treasurer's Report of Investments for the Quarter Ending March 31, 2020.
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 January - March period, the investment portfolio position by investment type and the investment portfolio by maturity range.
DISCUSSION:
The U.S. economy entered the year on a strong footing, however, that deteriorated quickly as the COVID-19 pandemic took hold across the Globe, including the U.S. With a virtual economic shutdown, and a global health crisis at hand, the Federal Reserve responded aggressively by cutting rates at two emergency meetings to the new target range of 0% to 0.25%. Treasury yields plunged in response to the Fed's new zero interest rate policy, with longer-term Treasury yields reaching new historic lows. The immediate impact of the pandemic on global economies made typical economic indicators, most of which are backward-looking, essentially irrelevant.
On March 31,2020, the Monterey County investment portfolio contained an amortized book value of $1,814,628,516.77 spread among 187 separate securities and funds. The par value of those funds was $1,817,425,030.14 with a market value of $1,814,484,769.93 or 100.0% of amortized book value. The portfolio's net earned income yield for the period was 2.25%. The portfolio produced an estimated quarterly income of $10,116,975.49 that will be distributed proportionally to all agencies participating in the investment pool. The investment portfolio had a weighted average maturity of 278 days. The County Treasury continues to use shorter term debt to provide portfolio liquidity. ...
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