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 2012.

You can view the complete financial report here.

Total Investment Portfolio

The county’s total holdings at the end of November had a market value of $331.5-million. The office made no investments in November, opting to hold the remaining property tax distributions as cash.

The Treasurer’s Office has invested $248.2-million (74.8%) across a variety of fixed income security types (excluding cash). The total portfolio has a Yield-to-Maturity of 66.2 basis points (0.662 %) with an average maturity of 1,248 days (3.3 years).

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 31, 2012, the market value of the Corporate Class C Fund was $141.5-million. Excluding cash, yield in the Corporate Class C Fund was 79.5 basis points.

Our office has invested $65.9-million of the county’s property tax distribution as of this report. These investments will mature beginning in December and provide a consistent revenue stream through the end of May 2013. The total levy investment has a yield of 86.8 basis points (0.868%), which is 23.8 basis points greater than our goal of beating the Six Month U.S. Treasury by ½-percent.

 

As we previously discussed, we asked our banking partners to propose a managed investment product for a maximum of $10-million in the Corporate Class C Fund. In October, we announced the selection of Great Lakes Advisors, a subsidiary of Wintust Financial of Rosemont, Illinois.

Under the agreement, Great Lakes will buy and sell investments on behalf of the county. This arrangement is similar to management agreements with Fifth Third Asset Management and William Blair and Company.

These funds bring to a total of $35-million of intermediate-term investments. Our goal for Fiscal Year 2013 is to realize an additional $15-million in reserve funds, bringing our actual investment reserve in line with the $50-million budgetary reserve maintained by the County’s Finance Department.

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 31, 2012, the market value of the Treasurer’s Class C Fund was $189.9-million. Excluding cash, yield in the Treasurer’s Class C Fund was 1.346%.

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 September 4, 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.

November 1, 2012 Corporate Class C Treasurer’s Class C
7-Day Net Simple 0.0200 % 0.5500 % (Exceed) 0.7500 % (Exceed)
90-Day Treasury Bill 0.0900 % 0.5500 % (Exceed) 0.7500 % (Exceed)
12-Month Treasury 0.1700 % 0.5500 % (Exceed) 0.7500 % (Exceed)
52-Week CDAR 0.2400 % 0.5500 % (Exceed) 0.7500 % (Exceed)
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