Milford committee reviews PFM AM quarterly investment report, proposes higher ABS allocation

Milford’s Finance & Audit Committee on Aug. 11 received a second-quarter investment report from PFM Asset Management and discussed proposed revisions to the city’s investment policy that would raise the allowable allocation to asset-backed securities from 10% to 20% and extend ABS maximum maturities from two to three years.

The report, presented by PFM advisor Jeffrey Fasino, described a high-quality, liquid portfolio and cited strong fixed-income returns year-to-date. Fasino said the committee’s benchmark — the U.S. Treasury 1–5 year index — produced unusually strong 12‑month returns and that the committee’s portfolio has delivered returns “really good, year to date and during the quarter.”

Why it matters: the committee supervises a public portfolio that staff and the advisor manage on residents’ behalf. Committee discussion focused on safety, liquidity and yield — the priorities named in the city’s investment policy — and on giving PFM AM authority to act quickly in markets to seek incremental yield without compromising credit quality.

PFM provided a snapshot…