Harbor Trust tells Michigan City Water Works board portfolio returned about 11% in 2025; recommends steady asset mix

Harbor Trust representatives briefed the Michigan City Water Works Board on Jan. 27, reporting a strong 2025 performance for the utility's portfolio and explaining portfolio positioning heading into 2026.

"2025 was a pretty good year in the financial markets," said Miss DeMerrill of Harbor Trust, who reviewed global market conditions and the firm’s broad outlook. Ross Miller, senior portfolio manager, said the Water Works portfolio grew to more than $22 million, with roughly $2 million of that growth attributed to 2025 (about an 11% total portfolio return for the year). "We had a total portfolio return of 11%," Miller said during the presentation.

Miller described the portfolio's asset allocation as roughly 65% equities, just over 30% fixed income and about 3% cash. On the fixed‑income side he cited an average maturity near 4.2 years and a duration around 3.7, noting Harbor Trust favors high‑quality corporate bonds and intermediate maturities to avoid concentrated interest‑rate risk. On equities, the managers said overweight positions in U.S. large‑cap technology and communication services contributed to performance and that they may modestly trim those overweights and reallocate toward financials, healthcare and consumer staples over time to improve diversification.

The advisors also discussed practical considerations for the board: the firm monitors tariff policy, geopolitical risks, and technology sector concentration as potential sources of volatility but did not recommend a structural shift in the near term. Board members asked about commodities exposure and the managers said they are discussing tactical commodity allocations (including industrial metals such as copper and silver) but had not made any changes.

The presentation closed with an invitation for questions; no formal action was taken on investment policy at the meeting.