Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Financial advisor: Danville portfolio posts gains as Fed eases; strategy favors longer holdings
Summary
Chantel Asset Management's Steve Huntley told the council the town's portfolio outperformed its benchmark over the past 12 months (5.48% total return vs. 5.09% benchmark) and gained about $1 million in market value over the quarter; he recommended a slightly longer duration posture as front-end yields fall following Fed cuts.
Steve Huntley of Chantel Asset Management presented the town's quarterly investment report on Jan. 13 and framed recent portfolio performance against current economic indicators. Huntley said the Federal Reserve's recent policy shift (including three 25-basis-point cuts and a return to some asset purchases) has pushed short-term yields down, creating a market environment where slightly longer holdings can provide value within the town's permitted investment range under California government code.
Huntley summarized key figures: the front end of the Treasury curve has declined, personal-consumption-expenditures inflation was around 2.7%, and the November unemployment rate was 4.6% (figures presented for context). For the town's portfolio he reported a 12-month total return of 5.48% versus a benchmark of 5.09%, and noted the portfolio had gained "just about $1,000,000 or so in value over those last 3 months." He described the portfolio as high-quality, AA-plus, and compliant with the statutory restriction to fixed-income instruments.
Council asked about gold and silver as indicators; Huntley said gold is commonly used as a hedge in uncertain times but is not an allowable town investment under government code; silver has industrial demand dynamics. Huntley reiterated the firm's focus on compliance and said the portfolio is positioned to capture value as rates move.
Council did not take formal action on investment policy at the meeting; they thanked Chantel Asset Management for the report and noted ongoing oversight.
