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Audit Commission approves March 31 investment report after Chandler Asset Management briefing
Summary
On April 23, 2026, the Tustin City Audit Commission unanimously approved the city's March 31 quarterly investment report after a market and portfolio briefing from Chandler Asset Management. The presentation noted market volatility in March but positive rolling performance and policy compliance.
The Tustin City Audit Commission on April 23 unanimously approved the March 31, 2026 quarterly investment report after a presentation from Chandler Asset Management.
Carl of Chandler Asset Management reviewed recent market moves and their effect on the citys portfolio, saying the Federal Reserve had left its benchmark rate at 3.50 to 3.75 percent and that recent geopolitical developments had pushed headline inflation higher. "The total market value of all reported financial assets as of March 31 was 246,632,000," Carl said, and he noted the firms view that rate reductions were likely pushed beyond a six-month horizon absent resolution of those inflationary pressures.
Why it matters: the presentation framed the portfolios recent performance in a volatile month and confirmed compliance with legal and policy limits. Carl told commissioners the consolidated portfolio had a modified duration of 1.48, a purchase yield of 3.83 percent and that 46.1 percent of holdings mature within six months, providing ample liquidity for near-term disbursements.
Carl also highlighted Chandler-managed holdings specifically: a market value of $143,890,000, a purchase yield of 3.95 percent and a three-month rolling return of 0.29 percent (one-year annualized 4.22 percent). He said those figures reflected substantial March volatility but overall positive performance from a rolling perspective.
Commissioners asked about the potential market impact of a leadership change at the Fed; Carl said a new Fed chair would not automatically trigger a policy shift if inflationary forces persisted, and that the current data (including a stronger-than-expected March jobs report) gave the Fed room to remain on pause.
After questions, the commission voted 4-0 to accept the quarterly report. The vote recorded Chair Lillian Chandler, Commissioner Henson, Commissioner Wendy and the attending committee member as voting yes. The commission cited the portfolios liquidity profile, yields and continued compliance with the California Government Code and the citys investment policy statement.
The commission did not request additional reporting beyond the standard quarterly review. Chandler Asset Management remains the citys reporting manager for the Chandler-managed holdings, and staff will forward the approved report for routine recordkeeping.
