Investing for Florida Governmental Entities July 12, 2019 Purpose - - PowerPoint PPT Presentation

Investing for Florida Governmental Entities July 12, 2019

Purpose

FLCLASS is an intergovernmental investment pool authorized under Section 218.415, Florida Statutes and was created via an interlocal agreement by and among state public agencies as described in Section 163.01, Florida Statutes.

Structure

Liquidity Safety Yield

FLCLASS was created by and for Florida governmental entities! The purpose of FLCLASS is to provide Florida governmental entities with a convenient, short-term investment

• pportunity carefully selected to
• ptimize interest earnings while

maximizing safety and liquidity.

FLCLASS is supervised by a Board

• f

Trustees comprised of eligible Participants of the program. The Board acts as the liaison between the Participants, the Custodian, and the Program Administrator. The Board administers the affairs of FLCLASS entering into contracts and agreements on behalf of the program.

Ken Burke, Chairman Clerk of Court & Comptroller Pinellas County Sharon Bock Clerk of Court & Comptroller Palm Beach County Jim Cooke City Treasurer/Clerk City of Tallahassee Cindy Valentine Chief Financial Officer Orange County Tax Collector Phong “Tony” Vu Treasurer Miami-Dade School District

Counties Municipalities School Districts Special Districts Other

FLCLASS Participant Breakdown by Type*

Directed by Your Peers

Source: Public Trust Advisors. *Participant breakdown by entity type as of March 31, 2019.

27.78% 42.22% 7.78 % 8.89% 13.33%

Corporate Notes U.S. Agencies Cash Repurchase Agreements Commercial Paper A-1+/P-1 & A-1/P-1

Investments are made in accordance with Florida Statutes and the FLCLASS Investment Policy. The FLCLASS portfolio is marked-to-market daily and seeks to maintain a stable NAV

• f $1.00 per share.

Past performance is no guarantee of future results. Any financial and/or investment decision may incur losses. Source: Public Trust Advisors. *As of May 3, 2019.

Total Assets $2.88 billion*

Sample Portfolio Composition

Money Market Funds U.S. Treasuries Government Sponsored

5

Performance

Our primary goal is to safeguard the public’s funds through rigorous credit analysis and exposure management processes while

• ptimizing interest earnings within

the given investment parameters.

Source: Public Trust Advisors. *The benchmark, the S&P US AAA & AA Rated GIP All 30 Day Net Yield (LGIP30D) is a performance indicator of rated GIPs that maintain a stable net asset value of $1.00 per share and is an unmanaged market index representative of the LGIP universe. Calculation methodology for the LGIP30D is the monthly average of the each week’s seven day average rate as provided by Bloomberg. The S&P benchmark utilized in this comparison is a composite of all rated stable net asset value pools. GIPs in the index include only those rated based on S&P’s money market criteria. Pools rated ‘AAAm’ provide excellent safety and a superior capacity to maintain principal value while those rated ‘AAm’ offer very good safety and a strong capacity to maintain principal value (Source: S&P Global Ratings). A 'AAAm' rating by S&P Global Ratings is obtained after S&P evaluates a number of factors including credit quality, market price exposure, and management. Ratings are subject to change and do not remove credit risk. The comparison between this index and the portfolio may differ in holdings, duration, fees, and percentage composition of each holding. Such differences may account for variances in yield. Performance results for FLCLASS are shown net of all fees and expenses and reflect the reinvestment of dividends and other earnings. Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. Investment involves risk including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. Past performance is no guarantee of future results. Any financial and/or investment decision may incur losses. As of June 30. 2019. Data unaudited.

2018-2019 FLCLASS Average Monthly Yields Jun. 2019 2.55% Dec. 2018 2.51% May 2019 2.59% Nov. 2018 2.41% Apr. 2019 2.60% Oct. 2018 2.29% Mar. 2019 2.62% Sept. 2018 2.22% Feb. 2019 2.64% Aug. 2018 2.20% Jan. 2019 2.63% July 2018 2.18%

S&P LGIP30D Benchmark

‘AAAm’ Rated

By S&P Global Ratings

2.55%

FLCLASS Average Monthly Yield

2.36%

S&P AAA/AA GIP Index

* *

Preservation of Principal

6

Competitive Return

Source: Public Trust Advisors. Data unaudited. Month-end assets are as of December 31. Performance results are shown net of all fees and expenses and reflect the reinvestment of dividends and other earnings. Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial

• developments. Investment involves risk including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. Past

performance is no guarantee of future results. Any financial and/or investment decision may incur losses. Growth percentage is calculated by subtracting 2017 assets from 2018 assets, dividing the difference by 2017 assets, and then multiplying by 100.

** ** *

FLCLASS Growth

6/30/2019, 2.52% 0.80% 1.60% 2.40% 3.20% Jul-18 Nov-18 Mar-19 Jul-19

FLCLASS Daily Yield

$2.97b

$0 $1 $2 $3 $4 2015 2016 2017 2018

Billions

$1.66b $2.12b $190m

Return

40% Growth

Benefits of Becoming a Participant

• Convenience of a checking account
• Direct deposit of state payments

Convenience

FLCLASS has no affiliations

• r

revenue sharing arrangements to

• utside
• rganizations;

therefore, more investment income is returned back to

• ur

Participants.

Additional Features Deposits by wire or ACH Secure online access for transactions and account statements Audited annually by an independent audit firm* Dedicated Client Service representatives

*External audits may not catch all instances of accounting errors and do not provide an absolute guarantee of accuracy.

• Same-day liquidity (3:00 p.m. ET cut-off)
• Professionally managed portfolio

Liquidity

• Competitive daily yields
• Interest compounds daily

Return

Participant Sampling

Participant sampling as of March 31, 2019.

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Wondering how much money you could have earned on your investment? Take a look at our investment calculator and see the potential revenue your investments could have earned.

Data unaudited. Performance results are shown net of all fees and expenses and reflect the reinvestment of dividends and other earnings. Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. Investment involves risk including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. Past performance is no guarantee of future results. Any financial and/or investment decision may incur losses.

www.flclass.com

If you had invested any of the following amounts in FLCLASS here is what you could have earned on your investment: 2018 2019 To Date $1,000,000 = $20,768.28 $1,000,000 = $13,620.73 $5,000,000 = $103,841.39 $5,000,000 = $68,103.63 $10,000,000 = $207,682.79 $10,000,000 = $136,207.26 $15,000,000 = $311,524.18 $15,000,000 = $204,310.89

Investment Income 2017

$15.55m

Investment Income Earned

2018

$42.36m

Investment Income Earned

Data unaudited. Performance results are shown net of all fees and expenses and reflect the reinvestment of dividends and other earnings. Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. Investment involves risk including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. The income earned is by the entire FLCLASS portfolio. Past performance is no guarantee of future results. Any financial and/or investment decision may incur losses.

Contact Us

Matt Tight Tommy Jordan

Regional Director, Marketing Office: (407) 588-9667 Mobile: (203) 448-8532 tommy.jordan@flclass.com Office: (407) 588-9667 Mobile: (407) 408-5572 matt.tight@flclass.com Vice President, Investment Advisory Services 201 E. Pine Street, Suite 750 Orlando, FL 32801

Disclosure

Client Services

This presentation is for informational purposes only. All information is assumed to be correct, but the accuracy has not been confirmed and therefore is not guaranteed to be correct. Information is obtained from third party sources that may

• r may not be verified. The information presented should not be used in making any investment decisions and is not a

recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. All comments and discussion presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. All calculations and results presented are for discussion purposes only and should not be used for making calculations and/or decisions. The data in this presentation is unaudited. Performance results for FLCLASS are shown net of all fees and expenses and reflect the reinvestment of dividends and

• ther earnings. Many factors affect performance including changes in market conditions and interest rates and in

response to other economic, political, or financial developments. Investment involves risk including the possible loss of

• principal. No assurance can be given that the performance objectives of a given strategy will be achieved. Past

performance is not an indicator of future performance or results. Any financial and/or investment decision may incur losses. The investment advisor providing these services is Public Trust Advisors, LLC, an investment adviser registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940, as amended. Registration with the SEC does not imply a certain level of skill or training. Public Trust is required to maintain a written disclosure brochure of our background and business experience. If you would like to receive a copy of our current disclosure brochure, privacy policy, or code of ethics, please contact us. Benchmarks are provided for illustrative purposes only. Comparisons to benchmarks have limitations because benchmarks have volatility and other material characteristics that may differ from the portfolio. Performance results for benchmarks do not reflect payment of investment management/incentive fees and other fund expenses. Because of these differences, benchmarks should not be relied upon as an accurate measure of comparison.