MEMORANDUM
TO:
MDTA Board
FROM:
Director of Treasury and Debt Kevin Cullity Investment Strategy and Benchmarks
SUBJECT:
DATE:
February 26, 2026
PURPOSE OF MEMORANDUM To complete the required quarterly review of the MDTA’s investment strategy and associated benchmarks for the period ending December 31, 2025 and to request approval of a new dealer for fixed income trading and the deletion of a dealer that will no longer be active in trading. Investment returns and portfolio composition and the request to add and delete a dealer were discussed in greater detail during the recent Finance and Administration Committee meeting. The Committee Members support a continuation of the investment strategies for all accounts. Huntington Bancshares (HBAN) agreed to acquire the Institutional Fixed Income sales and trading operation of Janney Montgomery Scott. The Fixed Income business will operate under the name Huntington Securities Inc. MDTA is requesting the addition of Huntington Securities Inc. and the deletion of the no longer active Janney Montgomery Scott. KEY POINTS No changes in strategy or benchmarks are recommended. Investments conformed to Investment Policy limitations. Portfolio structuring by account adhered to board approved strategy. o Strategy should remain consistent, despite short-term return volatility associated with the interest rate environment. o Management does not attempt to time market rate changes; Duration Targeted reserves maintain consistent structures. Passive approach to duration, Active in relative-value security selection.
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