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CaloTrust adviser reviews fund performance and rate outlook to Monte Vista council
Summary
A CaloTrust representative briefed the council on fiscal year 2024 performance, the city's yields in the pool and the Federal Reserve rate outlook that could affect short-term returns.
Brett Parsons, a relationship manager for CaloTrust, told the Monte Vista City Council that CaloTrust is Colorado’s longest-running local government investment pool and summarized fiscal year 2024 earnings and a rate outlook for 2025.
“We're the oldest and largest LGIP in Colorado,” Parsons said, describing CaloTrust’s structure and the investment objectives of preservation of principal, liquidity and a market rate of return.
Parsons said CaloTrust operates three portfolio options; the two most-used by local governments are Prime (government-only securities) and Plus (which also allows highly rated commercial paper), and he reported daily yields at the time of the presentation of roughly 4.27% for Prime and 4.47% for Plus. He told council the city’s historic participation dates to December 1998 and that the city earned about $57,000 in interest from its CaloTrust accounts in fiscal 2024, with an average yield over the year of about 5.28% on combined accounts reported to the council.
Parsons also reviewed the Federal Reserve dot plot released in December 2024: he said the Fed’s median projection anticipates rate cuts in 2025 but that market-implied probabilities at the time pushed a first likely cut as late as September 2025. He cautioned council that longer-term expectations do not show a return to the near-zero rate environment seen in 2009–2017.
Why it matters: The city uses CaloTrust to pool short-term cash for liquidity and to earn investment income without maintaining a full in-house investment program. Parsons said CaloTrust marks securities to market daily, distributes dividends daily and maintains short average maturities to limit rate risk.
Council members did not record a formal vote on any action tied to the presentation; Parsons closed by offering to provide participant-specific reports and contact support for questions about subaccounts or transfers.
