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County of Ventura <br />Board of Supervisors <br />October 5, 2021 <br />Page 2 of 3 <br />The total not earnings for July were $831,000, a decrease from June that reflects the declining <br />portfolio size. Exhibit 7 shows the repetitive seasonal pattern that has existed for several years, <br />although this decline has been stee er, deeper, and longer -lasting bee -s� market �rates fell faster <br />p ..au. e <br />and stayed low. <br />The well"ghted average days to maturity rose to 346 days.. The interest -rate sensitivity measure, <br />of <br />effective duration fell to 0.526. Both numbers are comfortably within expectations for LGIP <br />programs like ours. <br />x <br />The three largest sectors, by percentage,, were: Commercial Paper (2874%), Yankee Certificates <br />suers., by <br />of Deposit (21-99%),, and Government Agencies (18.83%). The three largest i -S <br />percentage, were+- Fed : eral Home Loan Bank.National Bank of Kuwait NY (7.93%), and <br />Oversea. -Chinese Banking Corporation Ltd New York (6.85%). The -three highest-yleldtng <br />I <br />tere- Municipal Bonds (0,545%), Corporate Med <br />se-c-ors, by an, nual zed percentage yieldw <br />T arm <br />e: Notes and SupranAli <br />tionals <br />The portfolio has been managed with the stated objectives of safety, [iquidity, and earning a <br />competitive return, as outlined'in the Statement of Investment Policy. In striving toMaintain the <br />pr I imary object. ive, saTety of pHincipal, the County Of Ventura �has continuously maintained a <br />rating of AAAflSl+.by Standard & Poor's, the highest rating given by that agency, and re -affirm <br />in ce <br />ed <br />X citDean 2020. The rating reflects S&Ps opiniton that the portfolio is well-managed, red - <br />worthy, well-diversifflea, and has a low sensitivity to "Interest rate variations. Regarding the <br />W &WOW 0 <br />secon:dary objective of mat'nta'ining s=tcient 1, 1 1 # quiWity to meet cash flow needs, the portfolio <br />nt <br />+ <br />.ings in LAIF <br />maintains stignifican t cash reserves in the County's bank, as well as signiTicahod*" 1 <br />and Caffrust. The portfolio has the ability to meet its participants' expenditure requirements for the <br />next six months, pursuant to a daily study of projected cash flows -All of the poViioio's assets have <br />a <br />outy not well-developed r esale marke t, alth.ar r poli <br />�h, of u s <br />o.e it is to silK Earning a <br />compefiffive rate of return 'is reflected by our performance against ourbenchmarks, even though <br />-1 <br />they each have less, restrictive investment policies than ours, and they either her have no S&P rating <br />such as LAIF,. or a lower S&P rating such as CalTru. SAL . <br />The portfolio has been managed for several months on the assume ire that monthly yields will <br />decline. The Investment Work. Group has switched its focus to the challenges of 'investing 'in a <br />steady market without approaching the boundaries imposed by our Statement of Investment Policy <br />and <br />h I by t: e Standard and Poor's. rafing team. <br />800 South Vitictod'a Avenue, Ventura, Califomia 93009:-1290 <br />W*W1VentUW0Peftyta.X,0rq (805) 654-3734- <br />