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McAllen ISD reports $7 million in investment earnings for fiscal year; portfolio strategy reviewed
Summary
Financial advisors and the district reported about $7 million in interest earnings for fiscal year 2024-25 and discussed portfolio positioning amid federal rate moves; the board was briefed on yields and next steps for duration management.
McAllen ISD’s finance team and outside advisers presented the district’s annual investment report Sept. 23, reporting roughly $7 million in interest earnings for fiscal year 2024–25 and discussing portfolio positioning in light of Federal Reserve rate changes.
Philip Jones of METR Public Funds reviewed recent economic conditions, noting the Federal Reserve’s rate-cutting stance in 2025 and implications for the yield curve. He said the district’s portfolio had an average yield to maturity of about 4.25 percent and that the finance team had managed to lock in strong yields during the past year. Jones noted more than 60 percent of the portfolio was in very short-term (one-day) holdings and recommended discussions with the finance team about extending duration where appropriate to lock in current yields.
Deputy Superintendent Lorena Garcia and board members highlighted the $7 million in earned interest and the district’s improving fund balance projections; Garcia said final audited numbers will be available in November. The presentation reviewed quarterly and annual portfolio performance and the maturity distribution of holdings.
Why it matters: Investment earnings provide budgetary relief and strengthen the district’s fund balance. The board heard recommendations for duration management to maintain yield amid expected Fed easing.
