INVESTMENT REPORT NOVEMBER 2018 - Laserfiche WebLink

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County of Ventura Board of Supervisors January 8, 2019 Page 2 of 2 The three largest sectors, by percentage, were: Commercial Paper (27.97%), Yankee Certificates of Deposit (25.03%), and Government Agencies (18.03%.) The three largest individual issuers, by percentage, were: Federal Home Loan Bank (7.35%), Korea Development Bank (6.60%), and International Finance Corporation (6.32%). The portfolio has been managed with the stated objectives of safety, liquidity, and earning a competitive return, as outlined in the Statement of Investment Policy. In striving to maintain the primary objective, safety of principal, the County portfolio has for several years received a rating of AAAf/S1+ by Standard & Poor's, the highest rating given by that agency. On December 11, 2017, our rating of AAAf1S1+ was reaffirmed by S & P after an intensive 9 month review under the new, more conservative rating criteria. The portfolio is well diversified and has a low sensitivity to interest rate variations. Regarding the secondary objective of maintaining sufficient liquidity to meet cash flow needs, the portfolio maintains significant cash reserves in the County's bank, as well as significant holdings with ready access in LAIF and CalTrust. All of the pool's assets have a well-developed resale market, although of course it is our policy not to sell. Earning a competitive rate of return is reflected by our performance against our benchmarks, even though they all have less restrictive investment policies than ours. Accordingly, the portfolio will continue to be managed based on the assumption that interest rates within our horizon will rise gradually over the next several months. The Federal Open Market Committee seems committed to raising interest rates once more in 2018. Commentators suggest the reasonable likelihood of at least two increases in 2019. The Investment Work Group monitors the interest rate news daily. We will focus our investing on issues with maturity dates of one year or less for the next several months. This letter has been reviewed and approved as to form by the County Executive Office, the Auditor - Controller's Office, and County Counsel. Please contact me at 805-654-3726 if you have any questions regarding this item. Sincerely, STEVEN HINT 70� Treasurer -Tax Collector Exhibit 1 — Wells Fargo Market/Cost Value Comparison Keport — Month End 19/30/2018 Exhibit 2 — Monthly Transactions Report -- November 2018 Exhibit 3 — Portfolio Average Monthly Balance Graph — November 2016-2018 Exhibit 4 — Average Maturity Graph — November 2016-2018 Exhibit 5 — Yield Comparison Graph — November 2017-2018 Exhibit 6 — Rolling 2 -Year % Yield Graph — November 2016-2018 (Ventura) Exhibit 7 — Roiling 2 -Year $ Yield Graph — November 2016-2018 Exhibit 8 — Maturity Distribution Graph 2018 Exhibit 9 — Portfolio Holdings by Class Graph — November 2018 800 South Victoria Avenue, Ventura, California 93009-1290 —veM+ "Mperty -Org (805) 854.3794