Receive and file the Yolo County Treasurer's Report on Investments for the quarter ended June 30, 2021. (No general fund impact) (Rinde)

Receive and file the Yolo County Treasurer's Report on Investments for the quarter ended June 30, 2021.

In Support of All Goals (Internal Departments Only)

The County Treasury investment portfolio is summarized in Attachment A (Investment Summary), and includes the Treasurer's Investment Pool and the investment accounts managed by the Treasury that are not pooled together for investment returns. The pooled portfolio includes county funds, deposits from special districts, and school districts totaling $723.9 million as of June 30, 2021.
 
The portfolio consists of 3.4% ($24.7 million) in cash at bank, 56.4% ($408.5 million) in short-term investments in government investment pools, such as the Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP), and 40.2% ($290.7 million) in an investment pool that is actively managed by professional investment advisor PFM Asset Management, LLP (PFM). These investments consist mostly of fixed income securities as authorized by government code, such as: U.S. Treasuries; securities issued by federal agencies, such as Fannie Mae, Freddie Mac, and Federal Home Loan Bank; corporate notes; commercial papers; and certificates of deposit. A summary of PFM Asset Managment performance is provided as Attachment B. 

The detail of investments in the Pooled Portfolio and Non-Pooled Portfolio is shown in Attachment C (Portfolio Holdings) while investment performance is described in Attachment B (PFM Investment Report). The non-pooled portfolio of $98.4 million consists of specific investments for various entities and programs. These include $34.0 million in government medium-term funds (LAIF and CAMP) for various districts and the 2017 Lease Revenue Bonds, $25.6 million in investments managed by PFM for various county programs (Landfill Closure, Cache Creek, etc.), $37.8 million in section 115 trusts held by PARS for County OPEB (Other Post Employment Benefits) and pension funding, and $1.0 million in cash in money market accounts.

In their quarterly investment review for the 2^nd quarter of calendar year 2021, PFM continues to monitor the diversification and duration in the portfolio due to expectation of rates remaining stable and at a low range.  Allocations in the portfolio were made with careful consideration of inflationary pressures and uncertain Fed policy.   

CASH BALANCES
Attachment D (Cash Balances) depicts the cash balances of the three major operation funds of the County, and their combined balance. On June 30, 2021, this unaudited balance was $54.7 million, which increased by $16.7 million from the prior quarter due to receipt of property taxes, Intergovernmental Transfer funds, and net operating activities.

Other agencies having deposits in the pool include: school districts, special districts and cities. A copy of the report is posted and available on the Department of Financial Services' website. The Financial Oversight Committee reviews investment performance quarterly. All reports from the County's investment advisor PFM Asset Management LLC are available in the County Treasurer's office.