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President's Perspective
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In early September, CalTRUST Staff contacted program participants regarding updating their contact information and setting up Online Trading Access. We are pleased to announce that the new CalTRUST Program Registration Form and Participation Agreement has been finalized and can be accessed by clicking the link below. Please use this form to indicate any updates to your account information. If you have any question regarding the new form or updating your information, please contact Kyle Tanaka at (916) 650-8114 or
kyle@caltrust.org.
In conjunction with the new form, CalTRUST will be holding an Online Trading Webinar in January. This webinar will be free for Program Participants, and will provide you the necessary information to complete transactions in easy and efficient manner. We will send out registration and event details shortly!
CalTRUST Funds Offer Convenience, Diversification, Liquidity: A Great Option For Investment Of Property Tax Proceeds
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 (MMF) 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 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; and a cost-free ability to reallocate among those options as local circumstances change.
Given the breadth of the fixed-income spectrum covered by funds, CalTRUST is an ideal option for local agencies when it comes to the investment of property tax proceeds.
To take maximum advantage of all the benefits of the CalTRUST program, local agencies should ensure that their local investment policy authorizes the use of CalTRUST. We at CalTRUST have assisted numerous agencies with the investment policy update process; we'd be happy to assist any interested party.
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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Deflation Worries? That's So 2016 (And 2015)
For 2017 The Worry Is The Long-Awaited Return Of Inflation
In his most recent post to Advantage Voice, Wells Fargo Funds Management's Chief Portfolio Strategist, Brian Jacobsen, looks at the inflation outlook heading into 2017. Unlike 2015 and 2016, when wary investors were on the lookout for the return of deflation, 2017 will likely see headline inflation pushing higher, according to Brian.
Year-over-year changes in the personal consumption expenditure (PCE) index - the Fed's preferred inflation index - have jumped to 1.6% to 1.7%. While not very high, it is significantly higher that the 0.6% rate at the end of 2015, Brian notes.
For the past couple years, at least, Brian notes that there has been a divide between service price inflation and goods price deflation, especially durable goods. During 2016, however, goods price deflation has been slowly dissipating and turning towards inflation. In 2017, this likely will result in goods price inflation, helping to push the PCE index closer to or even above the Fed's 2% target. Adding to this will be this year's upward movement in energy prices.
Investors appear already to be anticipating this shift, which could be a contributing factor to the recent rise in intermediate and long-term Treasury yields. And, with revolving consumer credit increasing at a 7% pace, commercial/industrial lending expanding at 9.3%, it looks like inflation is more likely to rise than fall.
Absent a big shock, it looks like the low for yields is behind us.
Brian's complete
blog post
can be accessed
here.
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CalTRUST Portfolio Snapshot (as of October 31, 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 Government & Heritage Money Market Funds
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Treasury Yield Curve
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2016 Calendar
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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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