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 November 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 November 30, 2011, Corporate Class C Fund had a total balance of $123.3-million. Of this total, we have invested 66.0% ($94.5-million). The total value of the Corporate Class C Fund decreased approximately $15.4-million, month-over-month.

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 November 30, 2011, Treasurer’s Class C had a total balance of $156.7-million, an increase of $9.5-million month-over-month. Of this total, we invested $140.3-million (95.9%) in fixed income classes.

Treasurer’s Class D Fund

The Treasurer’s Class D Fund holds all other county money not belonging in the Treasurer’s Class C Fund. Examples of holdings include our Sale in Error, Center Point Pass Through, and Special Trust Funds.

As of November 30, 2011, Treasurer’s Class D Fund had a total balance of $4.7-million. Of this total, we invested $2-million (41.8%) of Special Trust Fund money in municipal bonds.

Collector’s Class A Fund

The Collector’s Class A Fund holds all taxes and special assessments received by the County pending distribution to the various taxing districts in the county. The money in these funds is fiduciary holdings.

As of November 30, 2011, Collector’s Class A Fund had a total balance of $28.7-million. Of this total, we invested $2.5-million (8.6%) in commercial paper. The remainder is in money market funds for bi-weekly tax distribution.

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 December 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.

December 1, 2011 Collector’s Class A Corporate Class C
7-Day Net Simple 0.0200 % 0.3600 % (Exceed) 0.8646 % (Exceed)
90-Day Treasury Bill 0.0200 % 0.3600 % (Exceed) 0.8646 % (Exceed)
12-Month Treasury 0.1000 % 0.3600 % (Exceed) 0.8646 % (Exceed)
52-Week CDAR 0.2100 % 0.3600 % (Exceed) 0.8646 % (Exceed)
December 1, 2011 Treasurer’s Class C Treasurer’s Class D
7-Day Net Simple 0.0200 % 2.2613 % (Exceed) 0.0183 % (Below)
90-Day Treasury Bill 0.0200 % 2.2613 % (Exceed) 0.0183 % (Below)
12-Month Treasury 0.1000 % 2.2613 % (Exceed) 0.0183 % (Below)
52-Week CDAR 0.2100 % 2.2613 % (Exceed) 0.0183 % (Below)

Summary

As we discussed in last month’s report, the period of active investing has ended for the year. Our office is drawing on investments to cover the county’s operating expenses until next June.

Both the Treasurer’s Class C fund and Corporate Class C Fund are more heavily invested than at this time last year. The funds also are more diversified and in smaller money pools than last year. We expect our approach will provide a consistent income stream for the county while remaining invested in the market as long as possible.

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