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Chandler Asset Management briefs Pitkin County on portfolio performance; county funds above 4% yield
Summary
Pitkin County finance staff and advisors from Chandler Asset Management reported to commissioners on Aug. 12 that the county’s managed short‑term investment portfolio was earning roughly a 4% yield, complied with the county’s investment policy and had a market value of about $79.5 million as of June 30.
Pitkin County commissioners received a market and portfolio briefing from Chandler Asset Management at the Aug. 12 work session. Chandler staff summarized national economic signals investors are watching and presented county portfolio performance and positioning.
Scott Prickett, co‑chief investment officer at Chandler, and senior strategist Julie Hughes led the discussion. They described an outlook that prioritizes monitoring inflation and labor market indicators in the months ahead and noted markets were pricing in two potential Federal Reserve cuts before the end of the year, contingent on upcoming data. "Our outlook is for at least 2 more Fed rate cuts before year end," Chandler analysts summarized.
Chandler presented the county’s short‑term core portfolio (the 1–3 year strategy) as of June 30 with an average modified duration of 1.77 years, an average purchase yield just over 4%, and a market value for the managed portfolio of about $79.5 million. Chandler reported that the portfolio complies with the county’s investment policy and Colorado statutory limits; average credit quality stood at AA+ after a downgrade of U.S. government credit rating agencies earlier in the year. On a consolidated basis the county’s investments equaled approximately $213.8 million (that figure includes other liquidity pools and operating cash held in local government investment pools).
Chandler also explained that higher market rates in 2022–23 raised yields across short and intermediate maturities, improving the county’s income profile; however, rising rates also created mark‑to‑market volatility that the firm manages through a buy‑and‑hold allocation and strict policy compliance. The managers said the portfolio’s moderate duration is aligned with the county’s preference to earn enhanced yield while limiting market risk.
What commissioners asked: Commissioners asked about liquidity, use of local government investment pools and how portfolio yield changes might affect operating budgets. Chandler noted the county’s large LGIP balances reflected recent property‑tax collection timing and reminded the board the cash balance declines over the fiscal year as distributions to taxing entities are made.
Next steps: Chandler will continue to report quarterly. County finance staff said they had recently reorganized department responsibilities and that treasury, investment and procurement oversight were now aligned under the county finance director.
Why this matters: With cash yields above 4% and careful duration management, the county is generating meaningful interest income on reserves while retaining liquidity to meet operating needs and support capital plans. Commissioners said they appreciated the quarterly update and asked staff to return with any material changes in market assumptions or portfolio policy.
