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Campbell adopts annual investment-policy update after portfolio briefing from Chandler Asset Management
Summary
Council unanimously approved the FY25–26 update to the city's investment policy after hearing that the portfolio currently yields about 4.10% and has outperformed its benchmark by roughly 28 basis points; staff emphasized a one- to five-year strategy to lock in attractive rates ahead of expected Federal Reserve cuts.
The Campbell City Council unanimously adopted the city’s annual investment policy update on Sept. 16 after a staff briefing and a portfolio presentation by Chandler Asset Management.
Will Fontes introduced the item as a limited update to the investment policy. Aaron, portfolio manager with Chandler Asset Management, summarized performance and strategy: the portfolio has a purchase yield near 4.10% and has outperformed its benchmark by about 28 basis points since inception. "Our main objectives really remain the same: safety, liquidity and earning a competitive return," Aaron said, adding that the portfolio follows a one-to-five-year strategy to lock in attractive rates ahead of anticipated Federal Reserve easing.
Aaron also gave a brief economic outlook, citing sticky inflation (around 2.6–2.9 percent in his remarks), a slowing labor market and the expectation of two 25-basis-point Federal Reserve cuts by year-end. Council members thanked staff and consultants; the finance committee had already recommended approval. The council moved, seconded and approved a resolution adopting the annual update to the city's investment policy for fiscal year 2025–26.
