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Day to Day Fund

The 30-day SEC yield rose two basis points to 0.51% as of the June month end. During the month, additions were made to the portfolio in an effort to increase the yield, while still adhering to the strict investment guidelines required by S&P in order to maintain the AAA rating. We continue to purchase high-quality banks and insurers (e.g., Berkshire Hathaway, Nordea Bank, and GE Capital Corp.), both fixed- and floating-rate securities.  We continue to search for value in commercial paper and corporate notes that enhance yield and adhere to the guidelines of the fund, with a focus on liquidity. We have increased liquidity in the Day to Day Fund by allowing maturities to roll into repurchase agreements and Treasury bills until general market volatility wanes.

During June, exposure to floating rate securities totaled 42%; use of these securities allows addition of yield without extending interest rate risk. The weighted-average maturity of the portfolio increased to 40 days. Repurchase agreements remain a significant holding, at 29% of the portfolio value at month end. Repo rates traded in a wider range, between 27 and 40 bps, and repo purchased for the portfolio during June averaged 29 bps.

The fund remains highly liquid with approximately 47% of the portfolio invested in overnight and short-term securities. Additionally, 52% of the portfolio is invested in government or government guaranteed securities. The portfolio posted approximately $14 million in net withdrawals during the month.