Rio Rancho advisory board keeps reserves, declines transfer to permanent fund after portfolio review

The City of Rio Rancho Investment Advisory Board met virtually in May to review the permanent fund portfolio and unanimously recommended against transferring any excess general-fund revenue into the permanent fund this year.

The recommendation followed a market and portfolio review presented by Mallory of PFM Asset Management and a detailed portfolio briefing by Diane (portfolio manager, GPA). Director Carol Jaramillo explained staff’s five-year general fund forecast and asked the board for a recommendation to the governing body. After discussion, Member McCray moved that the board not transfer any money into the permanent fund; the motion was seconded and passed on a roll-call vote (Chair Wainwright — yes; Member McCray — yes; Member Jablonski — yes; Member Billups — yes).

Board members heard that the permanent fund’s total market value was approximately $13.8 million as of March and that the fund is managed to a 60/40 asset allocation. Mallory said domestic equity weakened in the quarter because of heavy declines among the largest growth stocks — referred to in the presentation as the “magnificent seven” — while international equities were a bright spot. Diane summarized the portfolio posture, saying, “I am sleeping very well with our portfolios because it's all about having strategy and…