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 2015.

Total Investment Portfolio

The county’s total holdings at the end of November had a market value of $256.7-million. The Treasurer’s Office has invested $200.7-million (78.2%) across a variety of fixed income security types (excluding cash). The total portfolio (excluding cash) has a Yield-to-Maturity of 88.1 basis points (0.881%) with an average maturity of 1,128 days (3.1 years).

Market Value Up 13.7% in FY2015

At the end of Fiscal Year 2015, the market value of the county’s investment holdings increased $7.63-million when compared to its value in November 2014. This change represents a 13.68% improvement year-over-year in the market value of the investments.

Accrued Interest Up 17% in FY2015

The preliminary estimate on the amount of accrued interest earned in the portfolio is $1.2-million for Fiscal Year 2015. This figure represents a $206,392 increase over last year’s interest earnings, or a 16.96% improvement. Interest does not include simple interest earned in operating bank accounts.

Custodian

Cost + Accrued

Market Value

Accrued Interest

% Portfolio

ClearArc Capital

$ 20,495,938.48

$ 20,351,555.54

$ 78,529.47

9.21 %

William Blair

$ 75,572,042.77

$ 75,148,303.28

$ 347,309.00

31.98 %

New York Mellon

$ 10,178,397.50

$ 10,130,470.59

$ 27,045.30

4.55 %

Fifth Third Securities

$ 9,298,926.26

$ 9,138,273.30

$ 75,043.97

4.03 %

JP Morgan

$ 30,897,313.80

$ 30,091,454.00

$ 358,412.10

13.46 %

Private Bank

$ 1,554,342.50

$ 152,0122.5

$ 4,589.58

0.68 %

MB Financial

$ 524,517.08

$ 509,450.00

$ 2,114.58

0.23 %

Money Market (C)

$ 31,137,702.01

$ 31,137,702.01

14.2 %

UBS

$ 27,911,035.20

$ 27,347,152.13

$ 247,335.84

12.39 %

Wells Fargo

$ 3,430,747.05

$ 3,299,951.65

$ 57,425.64

1.47 %

WinTrust

$ 1,051,036.57

$ 1,011,603.76

$ 18,851.33

0.45 %

Money Market (T)

$ 16,152,807.15

$ 16,152,807.15

7.37 %

Total

$ 228,204,806.37

$ 225,838,845.91

$ 1,216,656.81

100 %

The portfolio ended the year with a 53.8 basis point yield, which beat the 1-year U.S. Treasury Note by 2.8 basis points, or about 5.5%.

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
  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.

Maturity Structure

Maturity is the period of time for which an investment remains outstanding. Upon maturity, the bond issuer will pay back the full amount, plus any applicable interest to the county. This is how our office makes money for the county through our investment activities (excluding cash and cash reserves).

The Treasurer’s Office looks at the maturity of an investment with great interest because it must match our cash flow needs in order to pay outstanding bills and obligations. We invest operating cash into instruments with maturities of less than one year. Any money not needed to pay obligations within 12 months will be invested in longer term investments up to 10 years. We hold investments with maturities greater than 10 years. However, we actively trade those positions to capture investment gains from the overall bond market.

The average maturity of our portfolio is 1,128 days (3.1 years) as of this report.

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