Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Treasury Investments topic
No spam. Unsubscribe anytime.
Lake County accepts March pooled-investment report; treasurer warns returns may level off
Summary
The Board accepted the county's March 31 pooled investment report showing a portfolio yield near 4.09% and strong year-over-year returns. County treasurer and investment advisor said future returns could decline if Federal Reserve policy loosens and tariffs slow the economy.
The Lake County Board of Supervisors accepted the treasurer's pooled-investment report for the quarter ending March 31, 2025.
Patrick Sullivan, Lake County treasurer-tax collector, and Carlos Oblides of Chandler Asset Management presented the quarterly review. The report covered portfolio composition and performance: the county treasury pool totaled roughly $526 million as of March 31, with a portfolio yield near 4.09% and a market yield of about 4.17%. The largest holdings were U.S. Treasury securities (about 35%) and investment-grade corporate bonds (about 19%); the portfolio's weighted average duration is about 1.7 to 1.8 years.
Oblides said recent months produced strong returns driven by interest income and fair-value gains, but warned that anticipated Federal Reserve easing and policy uncertainty (including tariff-related economic disruption) could lower yields over the coming 12-24 months. Sullivan said staff is recommending a more liquid posture for some funds and use of local government investment pools (LGIPs) to maintain flexibility; he noted a plan to join a pooled LGIP with other counties to improve buying power and duration management.
The board voted to accept the report. Treasurer's staff indicated the county will continue to manage the portfolio for safety and liquidity first, consistent with California Government Code and the county's investment policy.
Key figures: portfolio size ~$526 million (3/31/2025); yield-to-maturity ~4.09% (March 31); year-over-year portfolio return around 6.6% through April when updated figures were discussed. Composition: ~35% U.S. Treasury, ~19% corporate bonds, remainder in cash, municipal and agency securities, and short-term liquidity pools.
