Title
Receive and Accept the Treasurer's Report of Investments for the Quarter Ending March 31, 2021.
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, 2021.
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:
Economic conditions during the quarter ending March 31, 2021 were characterized by the following factors: improving economic data supported by an additional $1.9 trillion in relief funds from the American Rescue Plan Act, a dramatic decrease in COVID-19 caseload as vaccinations ramped up, expectations for increased inflation fueled by a combination of a stronger recovery and additional stimulus, and an increase in long-term Treasury yields to pre-pandemic levels.
Significant intervention from the Federal Reserve since the beginning of 2021 is expected to continue. The vaccine rollout, accommodative monetary policy, and the new $1.9 trillion of fiscal stimulus all point to continued improvement in U.S. economic fundamentals. The 2021 Gross Domestic Product (GDP) projections have been revised up several times and current forecasts point to growth of 6% or more this year. This optimism, however, has also translated into increased inflation expectations, particularly in the near term, which is likely to continue to put upward pressure on longer-term rates.
On March 31, 2021, the Monterey County investment portfolio contained an amortized book value of $2,119,066,936 spread among 220 separate securities and funds. The par value of those funds was $2,109,458,019 with a market value of $2,119,066,936 or 100% of ...
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