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HomeMy WebLinkAbout2026 03 GEDCOGeorgetown Economic Development Corporation (GEDCO) QUARTERLY INVESTMENT REPORT For the Quarter Ended March 31, 2026 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. Leigh Wallace Karrie Pursley Sabrina Poldrack Nathan Parras Sarah Moody Christi Rawls Quarter End Results by Investment Category: Asset Type Book Value Market Value Book Value Market Value Ave. Yield MMA 2,500,685$ 2,500,685$ –$ –$ 0.00% Pools 7,662,181 7,662,181 8,376,520 8,376,520 3.66% Locked MMA 3,046,475 3,046,475 3,079,325 3,079,325 4.44% CDs/Securities 2,015,173 2,015,173 2,033,290 2,033,290 3.70% 15,224,514$ 15,224,514$ 13,489,135$ 13,489,135$ 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 3.69%Rolling Three Month Treasury 3.75% Rolling Six Month Treasury 3.69%Rolling Six Month Treasury 3.78% TexPool 3.67%TexPool 3.75% Interest income provided in separate report. Summary December 31, 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. March 31, 2026 Georgetown Economic Development Corporation (GEDCO)Valley View Consulting, L.L.C.1 Economic Overview 3/31/2026 The Federal Open Market Committee (FOMC) maintained the Fed Funds target 3.50% - 3.75% (Effective Fed Funds trade +/-3.64%) at their Jan meeting. Additional rate cuts during 2026 are uncertain, but could include one late fall. March Non-Farm Payroll added 178k (exceeding the +60k expectation) raising the three month average to +68k. The S&P 500 Stock Index retrenched +/- 8% since touching 7,000. The yield curve is almost fully positive. With the Middle East conflict, Crude Oil continues $100+. Inflation continues above the FOMC 2% target (Core CPI 2.5% and Core PCE +/-3.1%). The uncertain world events still influence volatility. 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 S&P 500 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 US Treasury Historical Yields - Since Nov 2018 Six Month T-Bill Two Year T-Note Ten Year T-Note 3.00 3.20 3.40 3.60 3.80 4.00 4.20 4.40 4.60 Treasury Yield Curves March 31, 2025 December 31, 2025 March 31, 2026 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 US Treasury Historical Yields - Since 2006 Six Month T-Bill Two Year T-Note Ten Year T-Note All numbers estimated and subject to change.Valley View Consulting, L.L.C.2 Investment Holdings Coupon/Maturity Settlement Face Amount/Book Market Market Life Description Ratings Discount Date Date Par Value Value Price Value (Day)Yield TexasDAILY AAAm 3.68%04/01/26 03/31/26 2,517,790$ 2,517,790$ 1.00 2,517,790$ 1 3.68% TexSTAR AAAm 3.65%04/01/26 03/31/26 5,858,730 5,858,730 1.00 5,858,730 1 3.65% East West Bank CD 3.63%07/17/26 10/17/25 2,033,290 2,033,290 100.00 2,033,290 108 3.70% Alliance Bank Locked-ICS 4.35%08/25/26 08/25/25 3,079,325 3,079,325 100.00 3,079,325 147 4.44% 13,489,135$ 13,489,135$ 13,489,135$ 50 3.84% (1)(2) March 31, 2026 (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 Pools 62%Locked MMA 23% CDs/Securities 15% 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 $18,000,000 06/30/25 09/30/25 12/31/25 03/31/26 GEDCO PORTFOLIO BALANCES CD TexasDAILY TexSTAR MMA /Locked MMA Georgetown Economic Development Corporation (GEDCO)Valley View Consulting, L.L.C.4 GEDCO - Maturity Cash Flow Next 12 Months Month Face Amount Interest Total Apr-26 –$ 17,104$ 17,104$ May-26 – 17,675 17,675 Jun-26 – 17,104 17,104 Jul-26 2,033,290 14,635 2,047,925 Aug-26 3,079,325 8,820 3,088,144 Sep-26 – – – Oct-26 – – – Nov-26 – – – Dec-26 – – – Jan-27 – – – Feb-27 – – – Mar-27 – – – TOTALS 5,112,615$ 75,337$ 5,187,953$ $– $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Face Amount Interest Georgetown Economic Development Corporation (GEDCO)Valley View Consulting, L.L.C.5 Book & Market Value Comparison Issuer/Description Yield Maturity Date Book Value 12/31/25 Increases Decreases Book Value 03/31/26 Market Value 12/31/25 Change in Market Value Veritex Bank MMA 3.25%04/01/26 2,500,685$ –$ (2,500,685)$ –$ 2,500,685$ (2,500,685)$ TexasDAILY 3.68%04/01/26 2,494,988 22,802 – 2,517,790 2,494,988 22,802 TexSTAR 3.65%04/01/26 5,167,192 691,538 – 5,858,730 5,167,192 691,538 East West Bank CD 3.70%07/17/26 2,015,173 18,117 – 2,033,290 2,015,173 18,117 Alliance Bank Locked-ICS 4.44%08/25/26 3,046,475 32,850 – 3,079,325 3,046,475 32,850 TOTAL / AVERAGE 3.84%15,224,514$ 765,307$ (2,500,685)$ 13,489,135$ 15,224,514$ (1,735,378)$ Georgetown Economic Development Corporation (GEDCO)Valley View Consulting, L.L.C.6 Book & Market Value Comparison Issuer/Description Yield Maturity Date Book Value 12/31/25 Veritex Bank MMA 3.25%04/01/26 2,500,685$ TexasDAILY 3.68%04/01/26 2,494,988 TexSTAR 3.65%04/01/26 5,167,192 East West Bank CD 3.70%07/17/26 2,015,173 Alliance Bank Locked-ICS 4.44%08/25/26 3,046,475 TOTAL / AVERAGE 3.84%15,224,514$ Market Value 03/31/26 –$ 2,517,790 5,858,730 2,033,290 3,079,325 13,489,135$ Georgetown Economic Development Corporation (GEDCO)Valley View Consulting, L.L.C.7