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US Bank presents $75M investment review to Klamath County commissioners; urges periodic IPS review
Summary
US Bank portfolio manager Scott Graham briefed commissioners on the county’s approximately $75 million investment portfolio, recommended reviewing the investment policy statement and offered periodic in‑person updates; the portfolio was reported up about 8.3% year‑to‑date through June 30.
Scott Graham, portfolio manager for US Bank, gave a briefing on Klamath County’s investment portfolio during the Aug. 13 work session and recommended the board review its investment policy statement (IPS) and consider periodic in‑person updates from the bank.
Graham said the portfolio is roughly $75 million and that the county’s current strategic allocation—about 65% growth (global equities and real estate) and 35% fixed income and cash—aligns with the existing IPS last updated in 2020. He suggested the board periodically review the IPS (commonly every three to five years) to confirm whether the strategic allocation remains suitable for the county’s actuarial assumptions and risk tolerance.
On performance, Graham presented year‑to‑date returns through June 30 and said the portfolio was up “almost 8.3%” YTD. He cautioned commissioners that recentmarket gains are being driven by valuation and momentum in a small number of large technology names and emphasized inflation and Federal Reserve policy as the dominant market risks. He described the current outlook as a “bumpier” soft landing rather than a recession, and said private markets (private equity/private credit) are options the board might consider after weighing liquidity, fees and governance implications.
Graham offered to visit the county semiannually if the board desired additional in‑person briefings and proposed performing an asset‑allocation study using capital‑market assumptions to model whether the county could reach its actuarial return target with a different risk profile. Commissioners thanked Graham and indicated they and county staff would follow up on the IPS review and set a cadence for future briefings.
No action was taken at the meeting. Graham recommended against making tactical changes based solely on short‑term volatility and noted that any material change to the portfolio should be governance‑driven and aligned with actuarial assumptions and funding policy.
