Title
Receive and Accept the Treasurer's Report of Investments for the quarter ending September 30, 2015.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Receive and Accept the Treasurer's Report of Investments for the quarter ending
September 30, 2015.
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 July - September 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.
DISCUSSION:
During the July - September quarter, yields on corporate securities rose while yields on comparable U.S. Treasury notes remained relatively flat. Treasuries experienced strong demand after the Federal Open Market Committee (FOMC) did not raise rates at their mid-September meeting and acknowledged that global developments are putting downward pressure on the U.S. economy and inflation.
The U.S. Gross Domestic Product (GDP) grew at an estimated 3.9% during the quarter ended September 30th, revised higher from the initial estimate of 2.3%. Growth was broad-based, driven by inventories, fixed investment, exports, consumer spending and construction.
On September 30, 2015, the Monterey County investment portfolio contained an amortized book value of $983,156,386 spread among 73 separate securities and funds. The par value of those funds was $980,586,770, with a market value of $983,495,594 or 100.34% of amortized book value. The portfolio's net earned income yield for the period was 0.69%. The portfolio produced an estimated income of $1,755,644 for the quarter which will be distributed proportionally to all agencies participating in the investment pool. The investment portfolio had a weighted average...
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