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President's Perspective
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It's Not Too Late: Register Now For The CalTRUST Mid-Year Economic Outlook Webinar
CalTRUST is pleased to announce its Mid-year Economic Outlook webinar, on Wednesday, July 13th from 3:00 to 4:00 pm. All CalTRUST investors and interested agencies are encouraged to
register
for the webinar, where Gary Schlossberg, Senior Economist with Wells Capital Management, will discuss:
- The US economic growth outlook into 2017;
- How California fits into the overall US outlook;
- Will the Federal Reserve resume interest-rate hikes this year;
- Which way for longer-term yields; and
- The election outlook and its likely effect on Federal tax, spending and regulatory policy.
CalTRUST Updates
The CalTRUST Board of Trustees will hold their Fall Meeting in Santa Barbara County on September 14, 2016. If you have any items you would like the Board to consider or if you would like to attend the meeting please contact Laura Labanieh at (916) 650-8186 or [email protected].
CalTRUST extends a warm welcome to our newest investors: Ironhouse Sanitary District, South Placer Municipal Utility District, Twentynine Palms Water District, Cutler Public Utility District, Elk Grove Water District, the Housing Authority of the City of Santa Barbara, and Valley Sanitary District.
As a reminder, in April the CalTRUST Board of Trustees added a Government Money Market Fund as response to upcoming Money Market Fund reforms which will take effect October 14, 2016. The CalTRUST Government MMF gives local agency investors:
- A stable $1.00 NAV, with no redemption gates or fees;
- Same-day liquidity for purchases and redemptions until 1 pm PST; "AAAm" and "Aaa-m" ratings from S&P and Moody's, respectively;
- Highly competitive money market rates;
- Best available expense ration in Select Class shares; and
- Full compliance with all provisions of Rule 2a-(7) governing SEC-registered money market funds.
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
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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
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Financial Markets Update
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Brexit Turbulence Likely Takes Rate Increase 'Off-The-Table'
In his
Market Comment
for the first week of July, WellsCap Senior Economist Gary Schlossberg, looks at the implications of the UK's Brexit vote on rates and the equity markets in the second half of 2016.
To demonstrate the impact of Brexit -- at least in the short-term -- Gary notes that, in the days immediately following the vote, the Fed funds futures market assigned less than a 35% probability of a rate hike through September
2017. Incredibly, the futures market reflected a higher probability of a rate-cut than a rate-hike into early next year.
As the late-June collapse in rates began to re-trace some of their declines in early July, and the equity market sell-off completely reversed, it confirmed two things:
- Brexit is viewed by investors as less of a systemic threat to the Euro and the EU than is the recurring Greek debt crises; and
As Gary sees it, one of the central questions for the remainder of 2016 will be the equity markets' ability to extend recent gains. Whereas the typical late-cycle growth pattern exhibits headwinds from rising rates, this eighth year of economic growth is accompanied by historically low rates, low oil prices, subdued inflation and strong demand for US 'safe-haven' assets. In his view, this likely will be enough to overcome deteriorating earnings fundamentals -- for now.
Gary's complete Market Comment can be accessed here.
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CalTRUST Portfolio Snapshot (as of June 30, 2016)
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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.
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CalTRUST Heritage Money Market Fund
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Treasury Yield Curve
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2016 Calendar
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July 13 CalTRUST Economic Update Webinar REGISTER HERE September 5 Labor Day Closed for Trading October 10 Columbus Day Closed for Trading November 11 Veterans Day Closed for Trading November 24 Thanksgiving Closed for Trading November 25 Thanksgiving Holiday Early Closure - 10:00 am PST December 23 Observed Christmas Eve Early Closure - 10:00 am PST December 26 Christmas Observed Closed for Trading December 30 New Year's Eve Observed Early Closure - 10:00 am PST January 2, 2016 New Year's Day Observed Closed for Trading |
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