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PFM and Peaks present Q2 market update and county portfolio performance; commissioners press on WildStar losses
Summary
PFM Asset Management presented a Q2 2025 market update and the county's managed portfolio performance (about $51M total; Q2 return 1.42%, benchmark 1.28%). Commissioners pressed advisors about a prior $4M loss tied to WildStar investment pools and discussed liquidity, corporate note allocations and risk controls.
PFM Asset Management delivered the county's quarterly market update and a detailed review of the funds the firm manages for Natrona County, noting a general theme of uncertainty entering the second half of 2025.
Joan Evans, director with PFM Asset Management, told the board the county's managed portfolio totaled just over $51 million, including about $6 million in a liquid Wyoming Government Investment Fund. She reported Q2 2025 accrual return of 1.42% versus the portfolio benchmark return of 1.28% (outperforming by 14 basis points) and a since‑inception dollar return of about $2.9 million. "We are right on top of the benchmark right now," she said, explaining a conservative posture given narrow sector spreads and potential market volatility.
Peaks Investment Management's Troy Hunsaker discussed liquidity and portfolio composition across funds: the hospital funds, Wyoming Class (liquid daily fund currently paying about 4.1%), and longer‑term investments. He said the county’s longer‑term portfolio sits just under $55 million on the Peaks side, yielding about 4.4% and projecting about $2.435 million income for the year.
Commissioners pressed staff on a prior $4 million loss associated with state WildStar pools. Hunsaker and Evans explained the mechanics: funds bought longer‑term securities at very low rates coming out of the COVID period; when rates rose sharply, those holdings fell in market value and realized losses were distributed to participants when managers were forced to sell. "When bonds are issued...prices fluctuate and rule number one in bonds is price and yield move in opposite directions," Hunsaker said.
Advisors emphasized the county’s diversification and recent policy changes allowing up to 20% allocation to corporate notes (investment grade only) to seek additional yield; the county held about 10% in corporate notes at the end of Q2 and had selectively increased corporate exposure into Q3. Commissioners asked for additional clarifications on report pages and requested corrected packet items where page numbering or data appeared inconsistent.
The presentation concluded with commissioners commending the move to use a fiduciary adviser, and advisors offering to meet individually with commissioners for follow‑up questions.
