Investment manager: Fed pause, portfolio cash down to $12.2M as county readies for higher yields
June 30, 2026 | Portage County, Ohio
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Eileen, the county’s investment manager with Meter, told the Portage County Investment Advisory Committee on a June meeting that the Federal Reserve met June 17 and left the overnight rate unchanged. "The result of that meeting was no change in the overnight rate," she said, adding that market participants show "a very wide dispersion of expectations" on where rates will land later this year.
Why it matters: the county’s portfolio is positioned amid rising short-term yields and uncertain inflation dynamics driven in part by international disruptions, Eileen said. She pointed to geopolitical risks (including disruptions to the Strait of Hormuz) and mixed inflation signals as factors complicating forecasts for rates and investor behavior.
Committee members were told the county’s cash balance was about $12.2 million with securities of roughly $182 million, for a combined total near $194 million; cash therefore represented about 6% of the portfolio at month-end versus a 2025 average closer to 16%. "We have started to move some money out of the investments into the cash," Eileen said, noting this maintained liquidity through the county’s property-tax collection cycle.
Eileen described recent market activity that has pushed yields higher since early March and said the shift creates opportunities to reinvest maturing funds at improved rates. She noted roughly 39% of holdings mature beyond three years, and that about $10 million of securities were set to mature in the June–August quarter; $4 million of that was already redeemed into cash.
On projected income, the presentation showed the securities-only interest income for 2026 would approach $8 million under a no-reinvestment assumption; Eileen cautioned that projected 2027 income would likely be lower if invested balances continue to decline.
The committee also heard that recent purchases produced a weighted average yield near 3.85%, up modestly from the prior quarter’s 3.75%, and that individual portfolio holdings and full details are available for members to review.
No formal votes or policy changes were made during the investment update. The presentation closed with members asking no substantive questions.
The committee is expected to continue monitoring reinvestment timing, liquidity needs tied to tax receipts and evolving Fed guidance.
Why it matters: the county’s portfolio is positioned amid rising short-term yields and uncertain inflation dynamics driven in part by international disruptions, Eileen said. She pointed to geopolitical risks (including disruptions to the Strait of Hormuz) and mixed inflation signals as factors complicating forecasts for rates and investor behavior.
Committee members were told the county’s cash balance was about $12.2 million with securities of roughly $182 million, for a combined total near $194 million; cash therefore represented about 6% of the portfolio at month-end versus a 2025 average closer to 16%. "We have started to move some money out of the investments into the cash," Eileen said, noting this maintained liquidity through the county’s property-tax collection cycle.
Eileen described recent market activity that has pushed yields higher since early March and said the shift creates opportunities to reinvest maturing funds at improved rates. She noted roughly 39% of holdings mature beyond three years, and that about $10 million of securities were set to mature in the June–August quarter; $4 million of that was already redeemed into cash.
On projected income, the presentation showed the securities-only interest income for 2026 would approach $8 million under a no-reinvestment assumption; Eileen cautioned that projected 2027 income would likely be lower if invested balances continue to decline.
The committee also heard that recent purchases produced a weighted average yield near 3.85%, up modestly from the prior quarter’s 3.75%, and that individual portfolio holdings and full details are available for members to review.
No formal votes or policy changes were made during the investment update. The presentation closed with members asking no substantive questions.
The committee is expected to continue monitoring reinvestment timing, liquidity needs tied to tax receipts and evolving Fed guidance.
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