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Sanoval County portfolio keeps short-duration stance; book yield 3.85%, advisors report
Summary
Governmental Advisors presented the county's year-end investment report showing a short-duration, high-quality portfolio, a book yield of 3.85%, and over half the portfolio in investments maturing within three months.
Frank McDonnell of Governmental Advisors presented the Sanoval County year-end investment report (as of Dec. 31, 2024), describing a short-duration, high-quality portfolio and noting modest year-over-year gains and tactical positioning for liquidity.
McDonnell said the county's total portfolio is compliant with its investment policy and that the strategy emphasizes liquidity and high credit quality. He reported sector allocation for the portfolio at year-end: about 42.5% invested in U.S. Treasury securities, roughly 10% in agency paper, approximately 5% in supranationals, and about 40% in bank deposits, money-market funds and pooled funds. He said more than 50% of the portfolio was in investments with maturities of three months or less.
Treasury staff also provided holdings detail: $3.2 million in the state Local Government Investment Pool (LGIP), about $70 million invested at Zions, and a $535,000 certificate of deposit at New Mexico Bank & Trust earning 4.25% and maturing April 14. Staff said $1 million of ARPA money was recently moved from a cash-matched fund back into the general fund and that all ARPA funds have been encumbered and spending has begun.
McDonnell noted a book yield of 3.85% for the total portfolio and said the investment team is targeting book yields above 4% as maturities roll and opportunities arise. He added that the portfolio's market value rose about $2 million from Dec. 2023 to Dec. 2024 and that performance is tracking near benchmarks.
