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 February 2013.

Total Investment Portfolio

The county’s total holdings at the end of February had a market value of $297.3-million, a decrease of $9.4-million month-over-month. The office continues to draw on its investments to meet cash flow needs, a typical behavior when there is no property tax revenue. The office made no investments in February.

The Treasurer’s Office has invested $167.4-million (56.3%) across a variety of fixed income security types (excluding cash). The total portfolio (including cash) has a Yield-to-Maturity of 63.5 basis points (0.635%) with an average maturity of 1,348 days (3.6 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 February 28, 2012, the market value of the Corporate Class C Fund was $110.1-million. Yield in the Corporate Class C Fund was 50.8 basis points, including cash.

With property tax collection and the annual tax sale complete, the Treasurer’s Office began drawing on investments as they matured in order to cover operating expenses. This is part of our normal business cycle, and something we prepare for each year.

Our office does not anticipate making investment purchases until mid-May unless favorable opportunities arise, or we strategically re-balance our cash holdings.

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 February 28, 2012, the market value of the Treasurer’s Class C Fund was $187.3-million. Yield in the Treasurer’s Class C Fund was 71.3 basis points, including cash.

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 March 1, 2013, 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 Note and 12-Month Jumbo Certificate. Yields reported for Benchmark Tests include cash holdings.

March 1, 2013 Corporate Class C Treasurer’s Class C
7-Day Net Simple Yield 0.0200 % 0.5300 % (Exceed) 0.7180 % (Exceed)
90-Day T-Bill Avg. 0.0800 % 0.5300 % (Exceed) 0.7180 % (Exceed)
12-Month T-Note Avg. 0.1200 % 0.5300 % (Exceed) 0.7180 % (Exceed)
12-Month Jumbo CD Avg. 0.2400 % 0.5300 % (Exceed) 0.7180 % (Exceed)

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