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Tustin City investment subcommittee approves February report after Chandler presentation
Summary
An advisor from Chandler reviewed the city’s February 2026 investment performance, reporting $252.5 million in reportable assets, sufficient liquidity and short-term returns; the subcommittee unanimously approved the February investment report and the minutes from Feb. 19, 2026.
The Tustin City Investment Subcommittee met March 26, 2026, and unanimously approved the February 2026 investment report after a presentation by an advisor from Chandler that summarized market volatility, portfolio holdings and compliance status.
In the presentation, the Chandler advisor said the consolidated market value of reportable financial assets was $252,505,375 as of Feb. 28, 2026, with an aggregate modified duration of 1.33, a purchase yield to maturity of 3.88% and 51.4% of holdings maturing within six months. "We're in full compliance with the city of Tustin's investment policy and the law and California Government Code that's set forth," the presenter said, and added the city maintains liquidity to cover at least six months of expected disbursements.
The advisor framed the report against recent market turmoil and geopolitical risk, noting the March FOMC decision left the federal funds target at 3.50–3.75% and that recent weeks had produced unusually large moves in Treasury yields. "In the last two and a half weeks or so, the 2 year has spiked 60 basis points," the presenter said, and cautioned that the February report does not reflect more recent market shocks tied to Middle East developments.
On performance, the advisor reported that the Chandler‑managed portion of the portfolio had a market value of $134,884,213, a three‑month total rate of return of 1.2% and an annualized one‑year return of 5.5% as of the end of February.
Committee members asked questions about the potential near‑term effects of the conflict in the Middle East on energy prices and on municipal costs. The advisor said diesel and other energy inputs have risen materially and could feed into inflation, but that oil futures trading in backwardation suggested market participants expect a relatively short disruption. The chair and a committee member discussed the removal and possible reimposition of sanctions as a market signal; the presenter said such policy shifts add uncertainty.
Before the vote, the chair confirmed that there had been no public input and that no staff comments were presented. The subcommittee approved the minutes from Feb. 19, 2026, and then voted to approve the February 2026 investment report; votes were announced as unanimous by the chair.
The investment subcommittee's next scheduled meeting is May 28, 2026, at 5 p.m.
