Nathan Erickson of CapTrust told the Sun City West Budget & Finance Committee on Sept. 16 that the association’s reserve portfolio produced positive returns year to date through June 30 and that the investment policy was updated in June to a 25% equity and 75% fixed‑income target. Carol Romney of CapTrust presented the portfolio detail and told the committee the combined portfolio and cash reserve meet that directive.

CapTrust noted international equities were the strongest-performing class in the first half of the year (developed international up roughly 20%, emerging markets near 16%) and that those gains, together with a weaker U.S. dollar and tactical rebalancing, contributed materially to performance. Nathan Erickson cautioned that interest-rate moves and policy uncertainty remain headwinds but said long-term equity exposure historically raises the probability of positive outcomes: "If you react to that in the moment, chances are you're gonna miss out on a good year," he said.

Carol Romney reviewed the June 30 portfolio report and said the account value ended year to date at about $28,200,000 with a net investment return of roughly $1,500,000. She said the board adopted a new asset-allocation directive in June (25% equity / 75% fixed income) and a revised benchmark will be used going forward. Romney said CapTrust and staff combined the cash reserve account with the main portfolio for reporting and confirmed the combined holdings are on target with the new allocation. She added the team introduced a floating-rate bond sleeve for short-term reserve cash and uses passive index funds; the portfolio expense ratio reported was 0.06%.

Romney described a tactical trade during the quarter that removed a small‑cap value holding and increased international exposure; committee members were shown the trading summary and the rebalancing schedule. CapTrust also reviewed interest-rate dynamics, corporate‑bond spreads, and the Fed outlook as background for the allocation change.

The CapTrust presentation and slides are attached to the committee agenda; committee members asked no substantive questions during the session.