Title
a. Receive and Accept the Treasurer's Report of Investments for the quarter ending June 30, 2015;
b. Receive and Approve the Treasurer's Investment Policy for FY 2015-16; 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, 2015; and
b. Receive and Approve the Treasurer's Investment Policy for FY 2015-16; 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The Treasurer has also amended the Monterey County Investment Policy to provide additional clarification and revise outdated language and update investment categories as stated in Government Code ?53601(q). In addition, annual Board approval of the Investment Policy and delegation of investment authority are prescribed by Government Code sections 53646 and 53607.
DISCUSSION:
During the April to June quarter, interest rates moved slightly higher with Treasury yields remaining essentially flat up to one year maturities and increasing in the 2- to 5-year range. The annualized rate of increase remained essentially flat except for 2-year maturities. At the June Federal Open Market Committee (FOMC) meeting the median projection for the fed funds rate was stated to be between 0.50% and 0.75% by the end of 2015 with a sl...
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