Santa Clara County Investment Fund is an investment option for local governments in Santa Clara County, California. It pools funds from cities, school districts and other agencies to invest in fixed income and equity securities. With billions of dollars in assets under management, this fund plays an important role for public finance in the region. This article will review the Santa clara investment fund’s investment strategies, performance history, and pros and cons for investors. Multiple occurrences of Santa clara investment fund will be included to optimize for the key phrase.
Portfolio investing in stocks and bonds to generate steady returns
The Santa clara investment fund invests in a diversified portfolio of stocks, bonds and other securities to generate returns. Equities include domestic and international stocks across market caps and sectors. The fixed income portion includes US Treasuries, municipal bonds and corporate credit. This multi-asset approach aims to provide reliable income and appreciation over time.
Outperforming its policy benchmark over 3, 5, and 10 year periods
According to annual reports, the Santa clara investment fund has outperformed its policy benchmark over the past decade. For example, it returned 9.5%, 7.5% and 6.5% over the 3, 5 and 10 year periods ending June 2022. This exceeded the benchmark returns of 9.1%, 7.1% and 6.1% over the same periods. The fund’s professional asset management and strategic allocations have added value compared to simply passive investing.
Maintaining an Investment Grade credit rating since inception
The Santa clara investment fund has maintained an Investment Grade credit rating from S&P since its inception in 1986. This reflects the overall high credit quality and low volatility of the portfolio. Many individual cities and school districts would likely have lower, non-Investment Grade ratings on their own. Pooling funds enhances the fund’s credit profile.
Provides daily liquidity but discourages short-term trading
The Santa clara investment fund offers daily liquidity to participants. Funds can be deposited or withdrawn at any time. However, the investment objectives focus on long-term returns. Frequent trading in and out of the portfolio could hurt performance. The fund therefore discourages short-term speculative trading by investors.
Oversight by board of directors and external consultants
The Santa clara investment fund is overseen by a board of directors representing participant agencies. An investment advisor provides portfolio management guidance. An outside investment consultant also reviews the fund on a quarterly basis. This oversight structure aims to align the fund’s management with the long-term interests of stakeholders.
In summary, the Santa clara investment fund provides a pooled vehicle for public agencies to invest according to an Investment Grade fixed income and diversified equity strategy. Its professional management and oversight have contributed to steady returns that have exceeded passive benchmarks over time. While offering daily liquidity, the fund discourages short-term trading that could hurt long-term performance.