The County Treasury investment portfolio is summarized in Attachment A (Investment Summary), and includes the Treasurer's Investment Pool and the investment accounts managed by the Treasury that are not pooled together for investment returns. The pooled portfolio includes county funds, deposits from special districts, and school districts totaling $766.4 million as of March 31, 2021.
The portfolio consisted of 4.5% ($34.1 million) in cash at bank, 34.7% ($265.9 million) in short-term investments in government investment pools, such as the Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP), and 60.8% ($466.3 million) in an investment pool that is actively managed by professional investment advisor PFM Asset Management, LLC (PFM). These investments consist mostly of fixed income securities as authorized by Government Code, such as: U.S. Treasuries; securities issued by federal agencies, such as Fannie Mae, Freddie Mac, and Federal Home Loan Bank; corporate notes; commercial papers; and certificates of deposit.
The detail of investment in the pooled portfolio along with the investment performance are shown in Attachment B (PFM Performance Report) while the non-pooled holdings is shown in Attachment C (Non-pooled Holdings). The non-pooled portfolio of $94.6 million consists of specific investments for various entities and programs. These include $29.5 million in government medium-term funds (LAIF and CAMP) for various districts and the 2017 Lease Revenue Bonds, $23.9 million in investments managed by PFM for various county programs (Landfill Closure, Cache Creek, etc.), $40 million in section 115 trusts held by Public Agency Retirement Services (PARS) for County OPEB (Other Post Employment Benefits) and pension funding, and $1.1 million in cash in money market accounts.
In their quarterly investment review for the 1st quarter of calendar year 2022, PFM continues to maintain broad diversification in the portfolio with focus on issuers and industries benefiting most from the economic recovery. PFM will continue to evaluate all opportunities as they seek to safely add value to the County’s portfolio while maintaining a strong sense of safety and risk management.
Attachment D (Cash Balances) depicts the cash balances of the three major operation funds of the County, and their combined balance. On March 31, 2022 this unaudited balance was $58.6 million, which decreased by $2.3 million from the prior quarter due to other net operating activities.