Title
Receive and Accept the Treasurer's Report of Investments for the Quarter Ending September 30, 2021.
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, 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 July-September period, the investment portfolio position by investment type, and the investment portfolio by maturity range.
DISCUSSION:
COVID-19 continued to overshadow the entire economic and market landscape. The U.S. economy during the quarter was characterized by the following factors: continued recovery aided by supportive fiscal and monetary policy, potentially stagnating labor market growth, and heightened inflationary pressures.
The Federal Open Market Committee (FOMC) support continued during the quarter. The FOMC maintained its target rate at 0%-0.25%. The Federal Reserve also continued its large-scale asset purchases.
On September 30, 2021, the Monterey County investment portfolio contained an amortized book value of $2,141,468,541 spread among 228 separate securities and funds. The par value of those funds was $2,129,066,306 with a market value of $2,140,839,224 or 100% of amortized book value. The portfolio's net earned income yield for the period was 0.57%. The portfolio produced an estimated quarterly income of $2,945,448 that will be distributed proportionally to all agencies participating in the investment pool. The investment portfolio had a weighted average maturity of 571 days. The County Treasury continues to use shorter term debt to provide portfolio liquidity and enhanced investment opportunities.
The investment portfolio follows all applicable provisions of state law and the adopted Investment Policy and co...
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