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 July 2012.

Total Investment Portfolio

The county’s total holdings at the end of July had a market value of $329.8-million, an increase of $5-million from June. The office invested $5-million of property tax levy distributions and reallocated $15-million from our Money Market holdings to Fixed Income Securities.

The Treasurer’s Office has invested $197.5-million (59.9%) across a variety of fixed income security types. The total portfolio has a Yield-to-Maturity of 1.26% with an average maturity of 1,223 days (3.4 years). The projected cash flow in May was $633,008.

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 July 31, 2012, the market value of the Corporate Class C Fund was $132.9-million, an increase of $3-million from June. Excluding cash, yield in the Corporate Class C Fund was 78.2 basis points.

As we have discussed in previous reports, our office has focused its investment on high-quality commercial and municipal bonds this year. The fixed income sector is a safe place to earn a respectable return when compared to Money Market Accounts.

In July, we reallocated $20-million to the fixed income market from our collateralized Money Market Accounts. Our goal was to capture higher returns by capturing the spread normally earned by banks on institutional deposits. The result of the investment was an increase of 78.4 basis points yield from 25 basis points in the Money Market Account to 1.03% in the fixed income market.

The investment also places our office ahead of schedule with respect to building the investment ladder we use to cover operating expenses during the first half of the year. We project that our total investment for Levy 2011 will be $93-million with maturities through August 2013, covering a period three months longer than our investment of Levy 2010.

Instrument Institution Amount Yield
March 11, 2013
Morgan Stanley 3/1/13 JPM $ 2,000,000 1.6900 %
Hewlett 3/1/13 UBS $ 2,000,000 0.7400 %
Baxter 3/15/13 UBS $ 1,000,000 0.2850 %
GECC 3/11/13 US Bank $ 1,000,000 0.2900 %
March 25, 2013
Anheuser Bush 3/26/13 UBS $ 2,000,000 0.3950 %
Bank of NY 4/1/13 UBS $ 2,000,000 0.3560 %
April 8, 2013
CitiGroup 4/11/13 UBS $ 3,000,000 1.5050 %
Goldman Sachs 4/1/13 FITB $ 2,000,000 0.8500 %
April 22, 2013
CitiGroup 4/11/13 JPM $ 1,000,000 1.3800 %
BAC 4/25/13 FITB $ 1,000,000 1.5000 %
Merrill Lynch 4/25/13 UBS $ 3,000,000 1.5510 %
Total $ 20,000,000 1.0343 %

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 July 31, 2012, the market value of the Treasurer’s Class C Fund was $196.9-million, an increase of $2.1-million. Excluding cash, yield in the Treasurer’s Class C Fund was 3.13%.

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, 2012, 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. The yields reported for Benchmark Tests include cash holdings.

August 1, 2012 Corporate Class C Treasurer’s Class C
7-Day Net Simple 0.0200 % 0.5300 % (Exceed) 1.7800 % (Exceed)
90-Day Treasury Bill 0.0900 % 0.5300 % (Exceed) 1.7800 % (Exceed)
12-Month Treasury 0.1500 % 0.5300 % (Exceed) 1.7800 % (Exceed)
52-Week CDAR 0.2400 % 0.5300 % (Exceed) 1.7800 % (Exceed)
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