The Leesburg Quarterly OPEB Finance Board Meeting held on August 27, 2025, focused on the management and performance of the town's investment portfolio, particularly in light of recent market uncertainties. The discussions highlighted the importance of maintaining a diversified portfolio while adopting a cautious approach to investment decisions, especially during volatile periods.

The investment team from PFM Asset Management reported that the portfolio had appreciated due to growth in equity markets, despite the challenges posed by unexpected events such as the COVID-19 pandemic and proposed new tariffs. In response to these uncertainties, the team made strategic adjustments, trimming back equity exposure by 2% in U.S. equities and 1% in non-U.S. equities, reallocating those funds into core fixed income investments. This measured approach aimed to mitigate risks while positioning the portfolio for future growth.

As the market stabilized, the team noted that the portfolio's equity exposure had returned to nearly its target allocation, reflecting a recovery in the equity markets. The board was informed that no further rebalancing was necessary for the remainder of the quarter, as the portfolio had naturally drifted back to its strategic weights.

The performance of the fixed income portfolio was also discussed, with the team noting that it had outperformed the aggregate benchmark. This success was attributed to strategic sector exposure, including a cautious approach to high-yield investments, which, while riskier, had yielded favorable returns.

Overall, the meeting underscored the importance of a long-term investment strategy that remains adaptable to changing market conditions. The board's decisions and the investment team's proactive management are expected to continue benefiting the community's financial health in the coming quarters. As the meeting concluded, members were encouraged to consider the implications of these investment strategies on the town's financial future, particularly in light of ongoing economic uncertainties.