Quarterly investment report: portfolio liquidity strong, unrealized losses down from 2022 peak

City investment staff reported second-quarter investment results showing strong short-term liquidity, a lowered unrealized-loss position compared to 2022, and year-to-date income that is projected to exceed budget. Connor Thorne, the city’s investment presenter, told the committee that a $15 million maturity reinvested in June was allocated into a 5‑year U.S. Treasury and federal-agency securities per the policy strategy and that short-term liquidity currently sits at about $206 million or 61% of the total portfolio. He said one more maturity (about $20 million) is expected in August and a larger set of maturities (about $85 million) is anticipated to come due in 2026. The nut graf: unrealized losses in the portfolio have improved to about $3.2 million from a peak near $12.9 million in 2022, and year-to-date investment income of about $5.3 million is expected to exceed budget. Thorne said the portfolio’s maturity and duration positions lag slightly behind the benchmark due to forthcoming 2026 maturities, but coupon and yields have improved since last quarter. Committee members had no substantive questions and thanked staff for the report.