MEMORANDUM
TO:
MDTA Board
FROM: Director of Treasury and Debt Kevin Cullity SUBJECT: Investment Strategy and Benchmarks DATE: August 27, 2026
PURPOSE OF MEMORANDUM Complete the required quarterly review of the MDTA’s investment strategy and associated benchmarks for the period ending June 30, 2026. Request approval of the investment strategy for the new Debt Service Reserve accounts associated with the recent financing. Investment returns and portfolio composition were discussed in greater detail during the recent Finance and Administration Committee meeting. The committee members support the new strategy for the debt service reserves, as well as the continuation of investment strategies for all legacy accounts. KEY POINTS No changes in strategy or benchmarks to legacy accounts are recommended. Strategy tailored to the new long term debt service reserves is 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. Chosen strategies and benchmark indices represent a reasonable and prudent compromise between long-term, multiyear return/income focus and tolerance for return volatility.
2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com
Made with FlippingBook - professional solution for displaying marketing and sales documents online