| Partners |
| (click on logo to link to website) |
| 
|
|
| |
President's Perspective
~~~~~~~~~~~~~~~~~~
CalTRUST Announces S&P Rating of "A+/S1" for CalTRUST Medium-Term Fund
In its ongoing efforts to provide maximum value and transparency for local agency investors, the CalTRUST Board of Trustees voted in April of this year to procure a fund credit quality rating for the CalTRUST Medium-Term Fund. The Board is pleased to announce that Standard & Poor's has assigned a rating of "A+f" to the CalTRUST Medium-Term Fund, based upon its analysis of the credit quality of the Fund's investments and the likelihood of counterparty defaults. The S&P review finds that "the Fund's holdings provide strong protection against losses from credit defaults". In addition, S&P has assigned a volatility rating of "S1" to the Medium-Term Fund, reflecting "the Fund's low sensitivity to changing market conditions".
For more than ten years, the CalTRUST funds have offered a safe and convenient means for local agencies to maintain a high degree of liquidity and diversification in their investments. The two CalTRUST money market fund options - the CalTRUST Government MMF and CalTRUST Heritage MMF - are each rated "AAAm" and "Aaa-mf" by S&P and Moody's, respectively, and offer same-day liquidity. Similarly, the CalTRUST Short-Term Fund, rated "AAf/S1+" by S&P, provides next-day liquidity. And the CalTRUST Medium-Term Fund, rated "A+/S1", provides weekly liquidity.
Taken together, the CalTRUST funds give local agencies a highly-efficient means of allocating funds across the 0-5 year fixed-income spectrum accessible to local agencies.
For
more information on the CalTRUST funds, please contact me by email at the address listed below, or contact:
Lyle Defenbaugh
Wells Fargo Asset Management |
(916) 440-4890 |
Laura Labanieh
CSAC Finance Corporation |
(916) 650-8186
|
Norman Coppinger
League of CA Cities |
(916) 658-8277 |
Neil McCormick
CA Special Districts Association |
(916) 442-7887 |
Chuck Lomeli is CalTRUST President
and Solano County Treasurer
|
Financial Markets Update
~~~~~~~~~~~~~~~~~~~~
November Truly A Cruel Month For Fixed-Income - Is The Bond Market Bloodbath Over??
In his most recent post to
Advantage Voice
, Wells Fargo Funds Management's Chief Fixed-Income Strategist, James Kochan, looks at the fixed-income markets in November, especially post-election. He notes that the -2.39% total return for the taxable investment grade market index in November was the worst since October of 2008, and that -- barring a rally in December -- total return for the fourth quarter will probably be the worst since 1994 Q1.
Looking beyond the numbers Jim sees four principal factors behind the late-year increase in yields.
These are,
expectations
of:
- Stronger economic growth;
Jim argues that fears of a continued rise in the near term are overblown, for a number of reasons. First, any fiscal stimulus will require Congressional approval, with funds not flowing until 2018 most likely. Second, inflation could continue to trend slowly upward, but a spike is unlikely, given the amount of international competition in today's market. Finally, Jim feels Federal Reserve policy is likely to be less of a threat than feared. Virtually every Fed pronouncement has emphasized that increases should be moderate and gradual.
In summary, Jim concludes that yields in most sectors of the fixed-income market have already increased enough to yield "fair value".
Jim's complete
blog post
can be accessed
here.
|
CalTRUST Portfolio Snapshot (as of November 30, 2016)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1. CalTRUST Short-Term and Medium-Term and LAIF yields are net of fees. Merrill 1-5 Year Indexes are unmanaged; and do not reflect any deduction for administrative fees or expenses.
2. CalTRUST and LAIF returns are net of all investment advisor, administrative and program fees.
3. Annualized.
4. The CalTRUST Short-Term and Medium-Term portfolios commenced operations on February 13, 2005.
|
CalTRUST Government & Heritage Money Market Funds
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
|
Treasury Yield Curve
~~~~~~~~~~~~~~~~
|
2016 Calendar
~~~~~~~~~~~
December 23, 2016
Christmas Observed
Early Closure - 10:00 am PST
December 26, 2016
Christmas Observed
Closed for Trading
December 30, 2016
New Year's Eve Observed
Early Closure - 10:00 am PST
2017 Calendar
January 2, 2017
New Year's Day Observed
Closed for Trading
January 16, 2017
Martin Luther King Jr. Day Observed
Closed for Trading
February 20, 2017
Presidents Day Observed
Closed for Trading
April 13, 2017
Good Friday Observed
Early Closure - 11:00 am PST
April 14, 2017
Good Friday Observed
Closed for Trading
May 26, 2017
Memorial Day Observed
Early Closure - 11:00 am PST
May 29, 2017
Memorial Day Observed
Closed for Trading
July 3, 2017
Independence Day Observed
Early Closure - 10:00 am PST
July 4, 2017
Independence Day Observed
Closed for Trading
September 4, 2017
Labor Day Observed
Closed for Trading
October 9, 2017
Columbus Day Observed
Bond Market Closed for Trading
November 23, 2017
Thanksgiving Day Observed
Closed for Trading
November 24, 2017
Thanksgiving Day Observed
Early Closure - 10:00 am PST
December 22, 2017
Christmas
Observed
Bond Market Early Closure - 11:00 am PST
December 25, 2017
Christmas Observed
Closed for Trading
December 29, 2017
New Year's Eve Observed
Bond Market Early Closure - 11:00 am PST
2018 Calendar
~~~~~~~~~~~
January 1, 2018
New Year's Day Observed
Closed for Trading
|
|
| |
|
