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Presenter reports city portfolio averaged 4.11%, outpacing benchmark
Summary
Michelle reported the city's investment portfolio averaged 4.11% in the first quarter of FY2026, outpacing the six‑month Treasury benchmark by about 42 basis points and totaling $265,000,000 at the end of December; staff said pools make up the large share of holdings and noted plans to ladder maturities.
Michelle presented the 1st quarter FY2026 investment report and said, "our portfolio averaged 4.11%." She told the committee that this exceeded the six‑month Treasury benchmark by 42 basis points over the period and that the portfolio total was $265,000,000 at the end of December. Michelle said much of the portfolio remains in pooled funds and that agencies constitute about 7% of holdings.
Michelle outlined market context, citing three‑month Treasury yields around 3.68% and longer maturities higher on the curve. She said staff planned to rebuild the portfolio ladder after a run of maturities and calls to reduce reinvestment risk, noting, "We're looking at here, we said 2 cuts in 2026. That may be more not really sure..." The presenter also reported that the portfolio's outperformance translated to roughly $212,000–$213,000 in additional earnings versus the benchmark over the period and that unrealized market gain for the month was reported as $736. A separate monetary figure in the transcript appears garbled (the line references both about $22,500,000 and $2,480,000 in close succession); the committee record here relies on the clearer statements: the nearly $2.5 million earned through the first three months and the $265,000,000 portfolio total at Dec. 31.
