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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 September 2013.
Total Investment Portfolio
The county’s total holdings at the end of September had a market value of $254.0-million. The Treasurer’s Office has invested $190.1-million (74.8%) across a variety of fixed income security types (excluding cash). The total portfolio (including cash) has a Yield-to-Maturity of 84.2 basis points (0.842%) with an average maturity of 1,651 days (4.5 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 September 30, 2012, the market value of the Corporate Class C Fund was $123.2-million. Yield in the Corporate Class C Fund, including cash and money markets, was 60.2 basis points.
As we discussed in our last report, the Real Estate Property Tax Collection effectively ended last month. Our office started to reserve all property tax distributions until the end of the Fiscal Year, when our investments begin to mature. At that time, we expect to invest some of the excess cash in our Money Market Accounts in order to seek a higher rate of return as well as reduce concentration risk.
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 September 30, 2012, the market value of the Treasurer’s Class C Fund was $120.1-million. Yield in the Treasurer’s Class C Fund, including cash and money markets, was 1.12%.
Our office redeemed $15-million of fixed income investments in mid-September in order to increase our Money Market holdings. The decision was related to increased expenditures in the second half of the fiscal year. Since rebalancing the portfolio, county departments have eased up expenditures. We expect to keep this cash on hand in the near term.
The Will County Treasurer’s Investment Policy sets two benchmarks against which we compare the performance of our investments.
- The 90-Day Average of the 1-Year Jumbo Deposit National Rate as quoted by the FDIC
- 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.