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HomeMy WebLinkAbout2025 12 GEDCOGeorgetown Economic Development Corporation (GEDCO) QUARTERLY INVESTMENT REPORT For the Quarter Ended December 31, 2025 Prepared by Valley View Consulting, L.L.C. ________________________________________________________________________ Leigh Wallace Nathan Parras Chief Financial Officer Assistant Chief Financial Officer ________________________________________________________________________ Karrie Pursley Sarah Moody Treasurer Assistant Chief Financial Officer ________________________________________________________________________ Sabrina Poldrack Christi Rawls Assistant Treasurer Controller The investment portfolio of the Georgetown Economic Development Corporation (GEDCO) is in compliance with the Texas Public Funds Investment Act and the Investment Policy and Strategies. Disclaimer:These reports were compiled using information provided by the City. No procedures were performed to test the accuracy or completeness of this information. The market values included in these reports were obtained by Valley View Consulting, L.L.C. from sources believed to be accurate and represent proprietary valuation. Due to market fluctuations these levels are not necessarily reflective of current liquidation values. Yield calculations are not determined using standard performance formulas, are not representative of total return yields and do not account for investment advisor fees. Nathan Parras Karrie Pursley Sabrina Poldrack Sarah Moody Christi Rawls Leigh Wallace Quarter End Results by Investment Category: Asset Type Book Value Market Value Book Value Market Value Ave. Yield MMA 2,477,213$ 2,477,213$ 2,500,685$ 2,500,685$ 3.25% Pools 10,133,214 10,133,214 7,662,181 7,662,181 3.82% Locked MMA 3,046,475 3,046,475 4.44% CDs/Securities 3,013,257 3,013,257 2,015,173 2,015,173 3.70% 15,623,684$ 15,623,684$ 15,224,514$ 15,224,514$ 3.84% Quarter End Average Yield (1) Fiscal Year-to-Date Average Yield (2) Total Portfolio 3.84%Total Portfolio 3.84% Rolling Three Month Treasury 3.81%Rolling Three Month Treasury 3.81% Rolling Six Month Treasury 3.87%Rolling Six Month Treasury 3.87% TexPool 3.83%TexPool 3.83% Interest income provided in separate report. Summary September 30, 2025 (1) Quarter End Average Yield - based on adjusted book value, realized and unrealized gains/losses and investment advisory fees are not considered. The yield for the reporting month is used for bank, pool, and money market balances. (2) Fiscal Year-to-Date Average Yield - calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account for advisory fees. December 31, 2025 Georgetown Economic Development Corporation (GEDCO)Valley View Consulting, L.L.C.1 Economic Overview 12/31/2025 The Federal Open Market Committee (FOMC) cut the Fed Funds target again 12/10 to 3.50% - 3.75% (Effective Fed Funds trade +/-3.64%). Additional rate cuts during 2026 are uncertain, but could include one spring and one fall. December Non-Farm Payroll only added 50k (slightly below 60k expectation). 2025 averaged 49k per month. The S&P 500 Stock Index almost reached 7,000. The yield curve dips between 1 and 2 years rising thereafter. Crude Oil held steady below $60. Inflation continues above the FOMC 2% target (Core PCE +/-2.8% September). The Markets have had muted reactions to uncertain economic and political events. 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 S&P 500 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 US Treasury Historical Yields - Since Nov 2018 Six Month T-Bill Two Year T-Note Ten Year T-Note 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 Treasury Yield Curves December 31, 2024 September 30, 2025 December 31, 2025 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 US Treasury Historical Yields - Since 2006 Six Month T-Bill Two Year T-Note Ten Year T-Note All numbers estimated and subject to change.Valley View Consulting, L.L.C.2 Investment Holdings Coupon/Maturity Settlement Face Amount/Book Market Market Life Description Ratings Discount Date Date Par Value Value Price Value (Day)Yield Veritex Bank MMA 3.25%01/01/26 12/31/25 2,500,685$ 2,500,685$ 1.00 2,500,685$ 1 3.25% TexasDAILY AAAm 3.82%01/01/26 12/31/25 2,494,988 2,494,988 1.00 2,494,988 1 3.82% TexSTAR AAAm 3.83%01/01/26 12/31/25 5,167,192 5,167,192 1.00 5,167,192 1 3.83% East West Bank CD 3.63%07/17/26 10/17/25 2,015,173 2,015,173 100.00 2,015,173 198 3.70% Alliance Bank Locked-ICS 4.35%08/25/26 08/25/25 3,046,475 3,046,475 100.00 3,046,475 237 4.44% 15,224,514$ 15,224,514$ 15,224,514$ 74 3.84% (1)(2) December 31, 2025 (1) Weighted average life - For purposes of calculating weighted average life, bank accounts, pools and money market funds are assumed to have an one day maturity. (2) Weighted average yield to maturity - The weighted average yield to maturity is based on adjusted book value, realized and unrealized gains/losses and investment advisory fees are not considered. The yield for the reporting month is used for bank accounts, pools, and money market funds. Georgetown Economic Development Corporation (GEDCO)Valley View Consulting, L.L.C.3 MMA 17% Pools 50% CDs/Locked MMA/Securities 33% GEDCO PORTFOLIO COMPOSITION $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 03/31/25 06/30/25 09/30/25 12/31/25 GEDCO PORTFOLIO BALANCES CD/LockedMMA TexasDAILY TexSTAR Money Market Georgetown Economic Development Corporation (GEDCO)Valley View Consulting, L.L.C.4 GEDCO - Projected Cash Flows Month Face Amount Interest Total Jan-26 –$ 17,497$ 17,497$ Feb-26 – 15,802 15,802 Mar-26 – 17,497 17,497 Apr-26 – 16,932 16,932 May-26 – 17,497 17,497 Jun-26 – 16,932 16,932 Jul-26 2,015,173 14,484 2,029,658 Aug-26 3,046,475 8,726 3,055,200 Sep-26 – – – Oct-26 – – – Nov-26 – – – Dec-26 – – – TOTALS 5,061,648$ 125,368$ 5,187,016$ $– $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Face Amount Interest Georgetown Economic Development Corporation (GEDCO)Valley View Consulting, L.L.C.5 Book & Market Value Comparison Issuer/Description Yield Maturity Date Book Value 09/30/25 Increases Decreases Book Value 12/31/25 Market Value 09/30/25 Change in Market Value Veritex Bank MMA 3.25%01/01/26 2,477,213$ 23,472$ –$ 2,500,685$ 2,477,213$ 23,472$ TexasDAILY 3.82%01/01/26 2,470,131 24,857 – 2,494,988 2,470,131 24,857 TexSTAR 3.83%01/01/26 7,663,083 – (2,495,890) 5,167,192 7,663,083 (2,495,890) East West Bank CD 3.70%07/17/26 – 2,015,173 – 2,015,173 – 2,015,173 Alliance Bank Locked-ICS 4.44%08/25/26 3,013,257 33,218 – 3,046,475 3,013,257 33,218 TOTAL / AVERAGE 3.84%15,623,684$ 2,096,720$ (2,495,890)$ 15,224,514$ 15,623,684$ (399,170)$ Georgetown Economic Development Corporation (GEDCO)Valley View Consulting, L.L.C.6 Book & Market Value Comparison Issuer/Description Yield Maturity Date Book Value 09/30/25 Veritex Bank MMA 3.25%01/01/26 2,477,213$ TexasDAILY 3.82%01/01/26 2,470,131 TexSTAR 3.83%01/01/26 7,663,083 East West Bank CD 3.70%07/17/26 – Alliance Bank Locked-ICS 4.44%08/25/26 3,013,257 TOTAL / AVERAGE 3.84%15,623,684$ Market Value 12/31/25 2,500,685$ 2,494,988 5,167,192 2,015,173 3,046,475 15,224,514$ Georgetown Economic Development Corporation (GEDCO)Valley View Consulting, L.L.C.7