|
Back to Calendar
Return
|
| |
Consent-General Government # 11.
|
| Board of Supervisors |
Financial Services |
|
|
|
| Subject |
| Receive and file the County Treasurer's Investment Report for the quarter ended September 30, 2018. (No general fund impact) (Newens) |
| Recommended Action |
| Receive and file the Yolo County Treasurer's Report on Investments for the quarter ended September 30, 2018. |
| Strategic Plan Goal(s) |
| Operational Excellence |
| Reason for Recommended Action/Background |
INVESTMENT PORTFOLIO
The county treasury investment portfolio is summarized in Attachment A (Investment Summary), and includes the Treasurer's Investment Pool and the investment accounts managed by the Treasury that are not pooled together for investment returns. The pooled portfolio includes county funds, deposits from special districts, and school districts totaling $359.9 million as of September 30, 2018. The portfolio consisted of 7.3% ($26.3 million) in cash at bank, 24.0% ($86.4 million) in short term investments in government investment pools such as the Local Agency Investment Find (LAIF) and the California Asset Management Program (CAMP), and 68.7% ($247.2 million) in an investment pool that is actively managed by professional investment advisor PFM Asset Management, LLP (PFM). These investments consist mostly of fixed income securities as authorized by government code, such as: U.S. Treasuries; securities issued by federal agencies such as Fannie Mae, Freddie Mac and Federal Home Loan Bank; corporate notes; commercial papers; and certificates of deposit. The detail of investments in the Pooled Portfolio is shown in Attachment B (PFM Performance Report).
The non-pooled portfolio of $78.9 million consist of specific investments for various entities and programs. These include $20.1 million in government medium-term funds (LAIF and CAMP) for various districts, $44.2 million in investments managed by PFM for various county programs (Landfill Closure, Lease Revenue Bonds, etc.), $13.6 million in section 115 trusts held by PARS for County OPEB and pension purposes, and $1 million in cash in bank. The Non-pooled investment holdings are shown in Attachment C (Non-pooled Holdings).
In their quarterly investment review for the 3rd quarter of calendar year 2018, PFM believes the current strength of the U.S. economy, coupled with a strong labor market and rising inflation, will cause the Fed to continue raising rates at a pace of about ¼ percent hike per quarter well into 2019. Therefore, they plan to maintain a defensive duration posture to mitigate a portion of interest rate risk relative to the benchmark.
CASH BALANCES
Attachment D (Case Balances) depicts the cash balances of the three major operation funds of the County, and their combined balance. On September 30, 2018, this unaudited balance was $38.67 million, which increased $1.4 million from the prior quarter due to normal operating revenues and expenditures. |
| Collaborations (including Board advisory groups and external partner agencies) |
| Other agencies having deposits in the pool include: school districts, special districts and cities. A copy of the report is posted and available on the Department of Financial Services' website. The Board of Supervisors Investment Committee reviews the investment activity and strategy monthly; the Financial Oversight Committee reviews investment performance quarterly. All reports from the County's investment advisor PFM Asset Management LLC are available in the County Treasurer's office. |
| Competitive Bid Process |
N/A
|
|
|
|
|
|