Collier County
FL

Action Item
10726

Report to the Board regarding the investment of County funds as of the quarter ended September 30, 2019.

Information

Department:Clerk of the Circuit CourtSponsors:
Category:16.J Consent Agenda-Other Constitutionals

Attachments

  1. Printout
  2. Investment Exhibits QTR4 FY 2019

Executive Summary

EXECUTIVE SUMMARY

 

Report to the Board regarding the investment of County funds as of the quarter ended September 30, 2019.

 

 

OBJECTIVE:  To provide the Board a report regarding the investment of County funds as of the quarter ended September 30, 2019.

 

CONSIDERATIONS:  Florida Statute 28.33 provides for the investment of County surplus funds by the Clerk of Courts.  The Clerk manages the investment of Board funds in accordance with Florida Statute and the Board of County Commissioners’ lawful adopted investment policy using best practices and financial advice.  The Clerk will continue to provide a monthly summary of investments on the Clerk’s website for public access.  Additionally, the Clerk is providing this update as to the status of the Board’s investment portfolio on a quarterly basis at a publicly noticed Board of County Commissioners’ meeting.

 

Attached as exhibits are the investment portfolio inventory, portfolio composition pie chart, along with yield and return graphs as of the end of the fourth quarter of FY-2019.  The total managed portfolio at September 30, 2019 was $1.07B, at par value. For September 2019, Collier’s short and long-term yields exceeded their respective benchmarks by .12% and .63%.  Short-term yield exceeded the Standard and Poor’s benchmark primarily due to the performance of funds with the Florida Prime Local Government Investment Pool.  The Board’s Concentration (Operating) Account has also been included on the chart and bore interest of 1.88% as of September 30, 2019.  In order to maximize yield, only funds necessary to meet current obligations are kept in the Concentration Account.  Over the same period, the Collier portfolio’s long-term sector total return was .95% lower than the benchmark due to the relative market volatility of the Bank of America 1 to 3 year Treasury index’s total return.  Total return measures include the unrealized gains and losses related to changes in the fair value of the investments. The current investment strategy is to focus on the short end of the yield curve as expected actions on the part of the Federal Reserve may steepen the yield curve and subsequently allow the extension of maturities to where higher yields are available.  There is no realized gain or loss of principal associated with the performance to benchmark of the long or short-term portfolio.         

 

GROWTH MANAGEMENT IMPACT:  None.

 

FISCAL IMPACT:  None.

 

LEGAL CONSIDERATIONS:   This item has been reviewed by the County Attorney, raises no legal issues, and requires majority vote for acceptance of the report.  -JAK

 

 

 

RECOMMENDATION:  The investment report exhibits are provided to the Board as information only, no action is required.

 

Prepared by:              Derek M. Johnssen, Finance Director,

              Office of the Clerk of the Circuit Court

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