OPEN SESSION AUGUST 28, 2025 PAGE 3 OF 4
Mr. Garman explained that for the trailing twelve-month period ended June 30, 2025, investments conformed to Investment Policy limitations. Portfolio structuring by account adhered to Board approved strategy and should remain consistent, despite short-term return volatility associated with the interest rate environment. Management does not attempt to time market rate changes and duration targeted reserves maintain consistent structures. Chosen strategies and benchmark indices represent a reasonable and prudent compromise between long-term, multiyear return/income focus and tolerance for return volatility. The longer duration strategies employed in certain reserves generate higher return volatility with expected higher average annual returns over multiyear periods. No changes in performance strategy or benchmarks are recommended. Upon motion by Member William H. Cox, Jr. and seconded by Member John F. von Paris, continuation of the current investment strategies and benchmarks for all accounts was unanimously approved.
APPROVAL – INVESTMENT POLICY
Mr. Allen Garman requested MDTA Board approval of the MDTA Investment Policy.
Mr. Garman explained that following a recent review by the Investment Committee, immaterial/modest changes to the Investment Policy are currently recommended. The proposed changes remove outdated references and align the language in the Supranational section to the State Treasurer’s Office Investment Policy. Proposed changes include: 1. Delete inactive Federal Agency issuers listed in Section V - Deletion of agencies no longer active in the market. 2. Delete Banker’s Acceptances in Section V - Diminished issuance/market activity since the peak in the 1980s. 3. Delete reference to the Operating Reserve in Section VI (Maturity Restrictions) - This account was consolidated with the General Account in 2020 for operational efficiencies. The account no longer exists, though total reserves were unchanged at the time of consolidation and have since grown. 4. Amend Section V, Allowable Investments, Supranationals to language similar to the State Treasurer’s Office Investment Policy. Permitted investments are primarily driven by the definition of Investment Obligations contained in the Trust Agreement, with some additional consideration of subsection (h) “any other obligations that constitute legal investments…for State agencies such as the Authority.”
Upon motion by Member Samuel D. Snead and seconded by Member Mario J. Gangemi the immaterial/modest changes to the MDTA Investment Policy was unanimously approved.
UPDATE - EXECUTIVE DIRECTOR’S REPORT
Mr. Bruce Gartner welcomed and congratulated Chair Samantha J. Biddle on her new role as MDOT Acting Secretary.
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