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Lake County accepts quarterly pooled investment reports; portfolio reported at $483.1 million with a 4.19% yield
Summary
The Board of Supervisors voted unanimously to accept March 31 and Dec. 31 pooled investment reports; external manager Chandler Asset Management briefed the board on portfolio composition, yield and economic pressures tied to inflation and global oil prices.
The Lake County Board of Supervisors voted 5-0 on May 19 to accept the county’s pooled investment reports for the quarter ended March 31 and for Dec. 31, 2025.
Carlos Aplides of Chandler Asset Management told the board that the county’s investment program is "in good shape," noting portfolio strategy, yield and economic drivers affecting results. Aplides cited moderating job growth, an uptick in inflation (a March monthly rise of 0.9% and 3.3% year-over-year) and geopolitical pressure on oil markets as factors that pushed yields higher. "When rates in the markets go up ... the value of what you already hold goes down," Aplides said, but added that higher yields are positive for new investments.
Key figures presented: total program size reported at $483,100,000; a program-wide yield around 4.19%; portfolio duration targeted primarily between one and three years (with reported effective duration around 1.7–1.8). The portfolio’s largest allocations were U.S. Treasury securities (over one-quarter), high-credit-quality corporate issuers (~19%), and federal agency securities (~12%). Chandler highlighted that the portfolio remains diversified, liquid, and compliant with the county’s investment policy and California Government Code limits.
Treasury and city staff noted cash sweep arrangements with custodial banks (Wells Fargo and BMO) to minimize cash drag and that apportionments reflect cash received rather than accrued interest. After the presentation Treasurer-Tax Collector recommended acceptance of the reports; the board voted unanimously to accept them.
Action taken: The board accepted both reports 5-0. No substantive changes to investment policy were proposed at the meeting. Chandler and county staff said they will continue to monitor geopolitical and inflation-related pressures affecting rates and reinvestment opportunities.
Why it matters: The pooled investment portfolio finances county operations and apportionments to districts; reported yields and composition affect expected interest income and near-term budget planning.
