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President's Perspective
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I have been honored to serve as the President of CalTRUST since its original inception 15 years ago. Presiding over the program as it grew from infancy to over $2.8 Billion in assets and over 140 actively participating municipal agencies in the State is one of my proudest accomplishments. None of this would have been possible without the enthusiastic and unwavering support of our program administrator, the CSAC Finance Corporation, and our operational partners, past and present, for all they have done to promote the program.
As with all good things, my time as President is coming to an end. The time has come for me to pass the mantle of responsibility on to a new leadership team and serve as Past President. I do so with every confidence that CalTRUST will continue to grow and flourish. While I will be resigning as President next month, I will remain an active Trustee on the Board. I know I can rely on all of you to extend to the new leadership the same level of enthusiasm and support that you extended to me. Thank you to CalTRUST participants and my fellow Trustees for letting me serve in this lead role, and being such committed partners, over the years.
Liquidity, Diversification & Convenience of CalTRUST Funds Makes Them A Great Option For Property Tax Proceeds
The CalTRUST Funds give local agencies a safe and convenient means of maintaining liquidity while also diversifying their investments. The CalTRUST Government Money Market Fund (MMF) and CalTRUST Heritage MMF, each rated "AAAm" and "Aaa" by S&P and Moody's, respectively, provide same-day liquidity, while the CalTRUST Short-Term Fund, rated "AAf/S1+" by S&P, provides next-day liquidity, and the CalTRUST Medium-Term Fund, rated "A+/S1" by S&P, gives investors weekly liquidity.
Taken together, the CalTRUST Funds give investors a highly-efficient means of allocating funds across the 0-5 year maturity range; and a cost-free means of re-allocating among the funds as local circumstances change.
Given this, CalTRUST is an ideal option for local agencies when it comes to the investment of property tax proceeds. To take maximum advantage of the benefits of CalTRUST, local agencies should ensure their investment policies authorize the use of CalTRUST. We would be happy to assist any interested agency; just contact any of the persons listed below.
CalTRUST
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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Recent Bull Market Owes More To Global Economic Momentum Than "Trump Bump"
The S&P 500 is up about 14% since the 2016 election, and nearly 5% since the first of the year, leading many to credit the market rally to a "Trump Bump". It also has led many to worry that the markets will be in for a significant correction if Trump's many campaign promises are not delivered on in short order.
In his most recent
Economic & Market Perspective
, WellsCap Chief Investment Strategist Jim Paulsen, argues that, rather than "Trump Hope", the uptick in the markets has been "underpinned by one of the largest and most persistent economic improvements of the entire global economic recovery".
Jim points out that the Citigroup Global Economic Surprise Index is at a 7-year high, and the 52-week moving average of the index has risen to a six-year high. He notes that, when the Global Economic Surprise Index has been in the lowest quartile, the S&P 500 has appreciated only about 3.4% annually, but when the Index is in the top quartile, the gains have been almost 28.6% per year. Jim also notes that any reading above 18 in the Index is in the top quartile; and that the current reading is slightly above 47. Given this, even if positive economic surprises diminish somewhat, it is quite conceivable they would remain in the top quartile some time.
The bottom line, Jim notes, is that the current market rally is not as dependent on - or vulnerable to - Trump's "antics" or potential government policies as many investors hope or fear.
Jim's complete
blog post
can be accessed
here.
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CalTRUST Portfolio Snapshot (as of February 28, 2017)
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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 Government & Heritage Money Market Funds
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Treasury Yield Curve
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2017 Calendar
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
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January 1, 2018
New Year's Day Observed
Closed for Trading
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