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 2013.

Total Investment Portfolio

The county’s total holdings at the end of August had a market value of $243.6-million. The Treasurer’s Office has invested $188.2-million (77.2%) across a variety of fixed income security types (excluding cash). The total portfolio (including cash) has a Yield-to-Maturity of 82.4 basis points (0.824%) with an average maturity of 1,712 days (4.7 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 August 30, 2012, the market value of the Corporate Class C Fund was $114.7-million. Yield in the Corporate Class C Fund, including cash and money markets, was 55.4 basis points.

The Treasurer’s Office invested $10.4-million of the county’s levy during August, taking our total levy investment to $67.7-million. As we have discussed previously, these investments will mature beginning in December so our office can meet the operational obligations of the county through next May.

Our objective has been to beat the Six Month U.S. Treasury Bill by 50 basis points, or ½-percent. As of this report, we have an investment yield of 75.9 basis points, which is 20.9 basis points above our goal.

From this point, the office will reserve all property tax distributions in our Money Market Accounts.

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 30, 2012, the market value of the Treasurer’s Class C Fund was $119.1-million. Yield in the Treasurer’s Class C Fund, including cash and money markets, was 1.12%.

We previously discussed our intention to redeem up to $15-million of fixed income investments by mid-September in order to increase our Money Market holdings. The decision to rebalance the Treasurer’s Class C Fund is due, in part, to increased expenditures by the Highway Department over the past six months. These expenditures appear to be part of road construction and repair costs related to the county’s road and bridge bonds.

Benchmark Performance

The Will County Treasurer’s Investment Policy sets two benchmarks against which we compare the performance of our investments.

  1. The 90-Day Average of the 1-Year Jumbo Deposit National Rate as quoted by the FDIC
  2. The 90-Day Average of the 3-Year Treasury Note as quoted by the U.S. Treasury Department

We use these two benchmarks because they closely relate to the length of time we hold an investment.

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