Title
a. Receive and Accept the Treasurer's Report of Investments for the quarter ending June 30, 2016;
b. Receive and Approve the Treasurer's Investment Policy for FY 2016-17; 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, 2016; and
b. Receive and Approve the Treasurer's Investment Policy for FY 2016-17; 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, revise language and update investment guidelines and 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 - June quarter yields on U.S. Treasuries continued to fall due to concern over slowing economic growth and the release of the May employment data which revealed the lowest level of jobs gain since 2010. Market participants correctly predicted this would discourage the Federal Reserve from raising rates at the June committee meeting. While the labor market rebounded in June, adding a net 287,000 jobs which largely exceeded the market expectation ...
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