reconvene regular meeting: 7:00 pm - Irvine Unified School District

The County Pool is rated by Moody’s, which has assigned the County Pool a rating of
[“Aaa/MR-1”], the highest rating for safety, liquidity and market volatility.
Pursuant to the Investment Policy, transactions with respect to structured notes (e.g. inverse
floaters, leveraged floaters, structured certificates of deposit, equity-linked securities, event-linked
securities, structured investment vehicles) are prohibited. The Investment Policy’s prohibition includes all
floating-rate, adjustable-rate or variable-rate securities in which a change in interest rates or other variables
that can reasonably be foreseen to occur during their term would result in their market value not returning
to par at the time of each interest rate adjustment. More information regarding the notes attributable to
Serpentine and the Investment Policy is presented in the Treasurer’s Monthly Management Report in the
section “Changes in Eligible Credits,” a copy of which may be viewed on the Office of the County
Treasurer’s website but such information is not incorporated herein by reference.
Composition of the Educational Pool
[To be updated prior to Posting]
As of March 31, 2010, the market value of the Educational Pool (combined Educational Money
Market Fund and the schools’ share of the Extended Fund) was $ 2,725,444,300. The diversification of the
Educational Pool’s assets at market value, as of such date, was U.S. Government Agencies (56.59%),
commercial paper (11.61%), certificates of deposit (5.32%), asset-backed securities (0.61%), repurchase
agreements (3.26%), U.S. Treasuries (3.13%), municipal debt (6.57%), medium-term notes (10.24%), and
money market funds (2.67%). As of March 31, 2010, the market value of the school moneys invested in
the Educational Money Market Fund was $1,378,158,717. In addition, as of March 31, 2010, the market
value of the educational share invested in the Extended Fund was $1,330,796,187. The market value of the
Educational Pool’s share of OC Extended Fund B is $ 16,489,396. The weighted average maturity of all
school investment pool moneys was 337 days. The current yield of the school investments in the
Educational Pool at March 31, 2010, was 0.98%. In total, on a cost basis on such date, the Chief Financial
Officer had $6,362,639,263 under investment in the Pools and various other separately managed
investments. Moody’s has assigned the ratings of [“Aaa/MR-1”] to the Educational Pool.
The Participants have not made an independent investigation of the investments in the Pools and
have made no assessment of the current County Investment Policy. The value of the various investments in
the Pools will fluctuate on a daily basis as a result of a multitude of factors, including generally prevailing
interest rates and other economic conditions. Additionally, the Chief Financial Officer, with the consent of
the Treasury Oversight Committee and the Board of Supervisors, may change the Investment Policy at any
time. Therefore, there can be no assurance that the values of the various investments in the Pools will not
vary significantly from the values described herein.
Amendments to the County Investment Policy
There are proposed from time to time in the State Legislature other bills which could modify the
currently authorized investments and place restrictions on the ability of public agencies, including the
County, to invest in various securities. Therefore, there can be no assurances that the investments in the
Pools will not vary significantly from the investments described herein or as authorized by Section 53601
of the California Government Code. There can be no assurance that State law and/or and the
Investment Policy Statement will not be amended in the future to allow for investments which are
currently not permitted under such State law or the Investment Policy, or that the objectives of the
County with respect to investments will not change.
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