City hears PFM annual investment review; portfolio outperformed benchmark in 2024

PFM Asset Management presented the City of Plantation’s annual investment report during the April 9 meeting, reporting that the city’s long‑term portfolio returned 4.6% for the calendar year ending December 31, 2024, beating the ICE 1–3 year Treasury benchmark by roughly 0.5 percentage points.

PFM’s representative described three market phases for the period under review: a recalibration as inflation fell from elevated levels, post‑election uncertainty that influenced risk sentiment, and the early 2025 environment of dependence on fiscal and economic developments. The firm highlighted that Plantation’s portfolio emphasis on high‑quality government securities and short average duration (about 1.7 years) aligned with the city’s investment objectives—safety first, liquidity second, and yield last—consistent with state law.

PFM noted roughly $9.6 million in accrued earnings for the long‑term portfolio during the year and said the city’s average credit quality is about AA on the S&P scale (just below U.S. Treasuries). The firm recommended adjustments to policy line items to reflect market availability and a July 2023 change in state law that requires investment decisions to focus on pecuniary (financial) factors rather than ideological criteria.

Council discussed risks, and PFM explained the portfolio’s primary exposures are interest‑rate risk (managed by short duration) and credit risk (managed by high credit quality). Council approved the resolution accepting the annual report and the policy updates.

Why it matters: Plantation’s investments performed strongly in 2024 relative to short‑term Treasury benchmarks; the report and policy update document how the city manages safety, liquidity and yield while complying with recent statutory changes.

Next steps: The council adopted the recommended policy adjustments; PFM will continue quarterly reporting and monitoring.