INVESTEMENT REPORT - Laserfiche WebLink

Browse Search

County of Ventura Board of Supervisors September 10, 2024 Page 3 of 4 Part 11: 2024 Fiscal Year Summary and Review of the Investment Program For the 2023-24 fiscal year ended June 30, 2024, the program focused on safety and liquidity within a backdrop of tight financial conditions designed to slow the economy down to tame 'Inflation. The County Pool was managed carefully and prudently as we navigated: Persistent though waning inflation impacting consumers at all levels. The Consumer Price Index year -over -year growth has been on a downward trajectory, though price growth has been steadily strong. The index began the fiscal year at 3.0% before peaking at 3.7%, ending at the same 3.0% level. Consumers have been struggling with higher costs associated with shelter, energy, food, and borrowing costs. Astrong labor market that is now waning. Job openings, as measured by the t. Bureau of Labor Statistics" Job Openings and Labor Turnover Survey (JOLTS), indicated job openings totaling as many as 9.125 million jobs available at the beginning of the fiscal year. That measure has moderated to 8.184 million at fiscal year-end. The unemployment rate increased from 3.6% to 4.1 % for the year. The beginning of the year was favorable for job seekers as businesses attempted to ramp up hiring to keep up with strong demand. Still, wage inflation and higher financing costs have caused employers to decrease hiring over the year. Heightened capital market volatility due to geopolitical uncertainty related to the Israel -Gaza conflict and the continuing war in Ukraine. The conflicts impacted oil prices as they continue to weigh on global fiscal budgets against a backdrop of slowing global growth. The Investment Work Group continues to track two significant statistics of note for the fiscal year: earnings growth and portfolio size, The earnings from the portfolio grew from $1 07 million in fiscal year 2023 to $183 million in fiscal year 2024, an increase of $76 million, or 71 %. The average daily portfolio balance grew from $4.5 billion in June 2023 to $43 billion in June 2024, achieving a high point of $52 billion in April. The pool's primary focus during the year was to continue to increase safety and liquiditybv: W Increasing diversification by limiting issuer concentrations. While the County's investment policy allows up to 10% on non-governmental 'issuers, the pool has been moving towards limiting exposure to any single- issuer. Currently, only governmental issuers such as U.S. Treasury securities, federal agency obligations, and AAA -rated supranational issuers comprise more than 5% of the portfolio. Smaller allocations to individual 'issuers allow the portfolio to add more names and spread the risk out over increased issuers in the portfolio. Continuing to maintain significant positions in governmental securities, particularly U.S.. Treasury obligations. Currently, the portfolio retains -17% 'in U.S. Treasuries.