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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 February 2015.
Total Investment Portfolio
The county’s total holdings at the end of February had a market value of $214.3-million. The Treasurer’s Office has invested $173-million (80.7%) across a variety of fixed income security types (excluding cash). The total portfolio (excluding cash) has a Yield-to-Maturity of 1.01% with an average maturity of 1,379 days (3.6 years).
For the past 24 months, 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.
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, including cash, is 1,719 days (4.7 years) as of this report.