Title
a. Receive and Accept the Treasurer's Report of Investments for the Quarter Ending June 30, 2022; and
b. Receive and Approve the Treasurer's Investment Policy for FY 2022-2023; and
c. Renew the Delegation of Investment Authority to the Treasurer-Tax Collector pursuant to California Government Code 53607.
Report
RECOMMENDATION:
a. Receive and Accept the Treasurer's Report of Investments for the Quarter Ending June 30, 2022; and
b. Receive and Approve the Treasurer's Investment Policy for FY 2022-2023; 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, and the investment portfolio by maturity range.
The Treasurer also reviews the Monterey County Investment Policy annually and has recommended updates for Board approval. Two updates this year consist of the addition of a new section defining socially responsible investment considerations and a revision of the Gift section to align it with the State Political Reform Act and the Treasurer's Conflict of Interest Code. Finally, annual Board delegation of investment authority to the Treasurer-Tax Collector is being requested as prescribed by Government Code sections 53607 and 53646.
DISCUSSION:
The U.S. economy during this period was characterized by the following factors: high inflation, a strong labor market, depressed consumer confidence, and growing potential for an economic recession.
The Federal Reserve continues to tighten monetary policy through aggressive interest rate increases to battle persistent inflation. Short-term federal funds rates are projected to reach 3.25% to 3.75% by year end. The Feder...
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