Title
Receive and accept the Treasurer's Report of Investments for the Quarter Ending March 31, 2018.
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, 2018.
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, a listing of historical Monterey County Treasury Pool yields versus benchmarks, and the investment portfolio by maturity range.
DISCUSSION:
During the January - March quarter interest rates continued their ascent over the quarter and the FED remained true to its stated course, raising short term rates by 1/4 percent in March. Economic growth remained strong as the economy grew at an average of 2.6% on a quarterly basis (annualized), the fastest pace since 2014. Strong growth in consumer spending and business investment continues to fuel economic activity. Market volatility surged as investor's concerns focused on possible trade wars, tax cuts, an expansionary fiscal budget, and stretched valuations. The U.S. labor market growth eased in March but remains sound. The unemployment rate continued to hold steady at 4.1% for the sixth straight month, and the labor force participation rate increased slightly from 62.7% to 62.9%. The tight labor market is slowly pushing up worker pay and average hourly earnings - a key measure of wage growth - rose 2.7% over the past 12 months.
On March 31, 2018, the Monterey County investment portfolio contained an amortized book value of $1,514,749,012 spread among 119 separate securities and funds. The par value of those funds was $1,516,664,507 with a market value of $1,509,587,100 or 99.7% of amortized book value. The portfolio's...
Click here for full text