This report is designed to examine the performance of the public funds currently invested by the Will County Treasurer’s Office. This narrative covers investment activity and performance in March, 2011.

Corporate Class C Fund

The Corporate Class C Fund is the principal operating account for the county. The Treasurer’s Office uses this fund to pay employees, vendors, and other operating liabilities.

As of April 1, 2011, Corporate Class C had a total balance of $94,812,637. Of this total, 46.9% is invested in certificates ($44.5-million).

In March, the Treasurer’s Office converted maturing investments into cash to meet liquidity obligations. The investment pool drew down by 24.6% from $55-million to $44.5-million as a result. Yield on the remaining investments improved considerably from 46.8 basis points (bps) to 57.7 bps. Weighted Average Cash Flow, the amount of interest income we earn, improved 6.5% as a result.

Treasurer’s Class C Fund

The Treasurer’s Class C Fund is the county’s capital improvements fund. The Treasurer’s Office holds proceeds from the county and township motor fuel tax, statutory proceeds, automation funds, and other department revenue. Treasurer’s Class C is the asset pool where our office holds the funds for the county’s $100-million highway bond.

As of April 1, 2011, Treasurer’s Class C had a total balance of $161,446,674. Of this total, 63.2% is invested in certificates and commercial paper ($102-million).

In March, the Treasurer’s Office converted maturing investments into cash to meet liquidity obligations. The investment pool drew down by 2.8% from 104.9-million to $102-million as a result. Yield on the remaining investments fell from 51.7 bps to 42.5 bps because Fannie Mae called a $30-million bond earning 69.9 bps. We reinvested that money into a 4-week Commercial Paper obligation earning 25 bps as part of a restructuring plan within this fund and will reallocate this money in May.

Benchmark Test

The Will County Treasurer’s Investment Policy sets two benchmarks to which we will compare investment performance:

  1. The 3-month average of the 90-day Treasury Bill as quoted by Bloomberg LP
  2. The Money Funds Report of all taxable 7-day simple yield as reported on www.IMoneyNet.com

As of April 1, 2011, both the Corporate Class C Fund and Treasurer’s Class C Fund exceed our policy benchmarks. Both funds also exceed informal benchmarks against the 12-Month Treasury and the 52-week CDAR.

As of April 1, 2011 Corporate Class C Treasurer’s Class C
7-Day Net Simple 0.0300 % 0.5773 % (Pass) 0.4259 % (Pass)
90-Day Treasury Bill 0.1000 % 0.5773 % (Pass) 0.4259 % (Pass)
12-Month Treasury 0.2700 % 0.5773 % (Pass) 0.4259 % (Pass)
52-Week CDAR 0.4000 % 0.5773 % (Pass) 0.4259 % (Pass)

 

Summary

The Treasurer’s Office continues to meet the cash operating needs of the county and earn competitive market returns on its investments, despite the present “zero interest rate” environment.

The Investment Team remains focused on improving yield while keeping public funds safe. In the coming weeks, we are prepared to meet our statutory obligations as property tax payments being in June.

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