Executive Summary

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 December 2014.

Total Investment Portfolio

The county’s total holdings at the end of December had a market value of $233.8-million. The Treasurer’s Office has invested $176.1-million (78.3%) across a variety of fixed income security types (excluding cash). The total portfolio (including cash) has a Yield-to-Maturity of 88 basis points with an average maturity of 1,430 days (3.9 years).

There has been little change in the portfolio since our last report. The total portfolio balance will decrease over the next few months as a result of our office taking proceeds of maturing investments. This process is a normal activity during the non-levy collection months between December and May.

Annual Report of Interest Received

The Treasurer’s Office filed its annual report of interest received on January 14, 2015 with the Will County Clerk. This report details, under oath, all interest received, the name of each bank where the money is deposited, and any interest earned through investment activities.

In summary, the Will County Treasurer’s Office reported a $595,496 increase in interest income in 2014. This increase represents a 20.3% improvement in interest income when compared to our 2013 report.

FY 2013

FY 2014

Bank Interest

$ 137,573.70

$ 137,374.17

Investment Interest

$ 2,791,784.21

$ 3,387,480.32

Total Interest

$ 2,929,357.91

$ 3,524,854.49

Increase/(Decrease)

$ 595,496.58

Percentage Change

20.33 %

Benchmark Performance

For the past 24 months, 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
  1. 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.

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 December 31, 2014, the market value of the Corporate Class C Fund was $116-million. Yield in the Corporate Class C Fund, was 74.2 basis points.

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 December 31, 2014, the market value of the Treasurer’s Class C Fund was $101.4-million. Yield in the Treasurer’s Class C Fund, including cash and money markets, was 1.02%. Performance was stable during the period as the Treasurer’s office took no distribution or made no investment in the fund.

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