This report examines the performance of the public funds currently invested by the Will County Treasurer’s Office. This narrative covers investment activity and performance in August 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 August 31, 2011, Corporate Class C Fund had a total balance of $132,916,738. Of this total, we have invested 65.9% ($87.5-million). The total value of the Corporate Class C Fund increased approximately $4-million, month-over-month.

The Treasurer’s Office had no investment activity in this Fund during August because there were no sizeable Real Estate Tax distributions. After the Second Tax Payment on September 1, we will make investments as needed. However, as it happens this time in the Tax Cycle, the county will use more distribution in cash flow, eventually drawing on maturing investments to cover operating expenses.

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, automation funds, and other revenue.

As of August 31, 2011, Treasurer’s Class C had a total balance of $157,952,771, unchanged month-over-month. Of this total, we invested $123.4-million (78.1%) in a variety of fixed income classes.

Yield in the Treasurer’s Class C Fund declined to 1.532% as higher-performing investments matured and we reinvested the money. Yield continues to exceed the 5-Year U.S. Treasury despite the new mix.

Benchmark Tests

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 August 1, 2011, both the Corporate Class C Fund and Treasurer’s Class C Fund exceed our policy benchmarks. The funds also exceed informal benchmarks against the 12-Month Treasury and 52-Week CDAR. For comparison to the broader market, both funds exceed the yield of the 5-Year Treasury.

September 1, 2011 Corporate Class C Treasurer’s Class C
7-Day Net Simple 0.0200 % 1.0013 % (Exceed) 1.5317 % (Exceed)
90-Day Treasury Bill 0.0100 % 1.0013 % (Exceed) 1.5317 % (Exceed)
12-Month Treasury 0.0900 % 1.0013 % (Exceed) 1.5317 % (Exceed)
52-Week CDAR 0.1300 % 1.0013 % (Exceed) 1.5317 % (Exceed)

Summary

August was a stable month for our investment portfolio. The Investment Team achieved its objective of building an investment ladder to keep cash flow predictable during the First and Second Quarter of 2012. In the coming weeks, we will address underperformance in other funds, such as Mobile Home Tax, Special Trust, and the Back Tax Fund. We also will begin to address bank fees and services, hoping to negotiate more cost-effective pricing models that will relieve budgetary pressure in the office.

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