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County of Ventura Board of Supervisors May 21, 2019 Page 2of3 The weighted average days to maturity rose to 145 days. The interest -rate sensitivity measure of effective duration rose to 0.376. Both of these numbers remain within an acceptable range, reflecting the pool's very low sensitivity to interest rate changes. The numbers also reflect the pool management's attention to lengthening maturity dates to manage cash flow needs farther in advance. The three largest sectors, by percentage, were: Commercial Paper (29.31 %), Yankee Certificates of Deposit (28.90%), and Supranationals (13.62%.) The three largest individual issuers, by percentage, were: Toronto Dominion (7.13%); Korea Development Bank (6.56%); and J.P. Morgan Securities LLC (6.04%). 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, re -affirmed on January 16, 2019. The rating reflects S&P's opinion that the pool is well-managed, credit -worthy, 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 in LAW and CalTrust. The pool has the ability to meet its participants' expenditure requirements for the next six months, pursuant to a daily study of projected cash flows. 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 each have less restrictive investment policies than ours. The portfolio has been managed on the assumption that interest rates within our investment policy horizon will not change significantly over the next few months. The portfolio is well-positioned to respond, whether rates rise, drop, or hold steady. We will continue to focus new investments on issues with maturity dates of 9 —15 months, for at least the next three 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 or require further information regarding this item. Sincerely, STEVEN HINTZ Treasurer -Tax Collector 800 South Victoria Avenue, Ventura, California 93009-1280 wwwmenlurepmpertytmoro (605)654.3734