GPA adviser details fixed‑income strategy; city shifted $50 million into investments to anchor yield

Diane Woodring of Government Portfolio Advisors reviewed Rio Rancho’s operating (core and liquidity) portfolios on May 29, saying fixed‑income market volatility presents opportunities to raise portfolio earnings while retaining liquidity for city needs.

Woodring said treasury and short‑term rates have been unusually volatile and that GPA recently shifted $50,000,000 from the city’s bank liquidity component into the investment component to "anchor down and shore up" yield. She reported the combined investment and bank holdings currently yield about 4.39% in market terms and that the portfolio earned roughly $3,800,000 in the first three months, implying a run rate near $12,000,000 annually.

WHY IT MATTERS: The move affects how the city balances near‑term liquidity needs against higher yields available in longer maturities. Woodring emphasized the team is matching debt‑service cash flows (out to two years) and maintaining policy limits on maturity to comply with state statute and the city’s investment policy.

Woodring described GPA’s compliance monitoring and the portfolio structure: about 41% treasuries, 10% money market, 6% agencies and small ETF positions, with an average maturity around one year. She said the core fund is aligned to the benchmark and the team will begin running total‑return performance relative to that benchmark at quarter end.

Board members asked about sales, reinvestment strategy and the joint powers agreement with the State Investment Council for the permanent fund; staff said the city has a joint powers agreement and will provide the contracts on request. Woodring and her team offered to return with more detail in future quarters as the portfolio rebalances.