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Treasurer and Atlantic Union report: county investment accounts earned 4.9% in 2024
Summary
Atlantic Union Bank presented Warren County’s investment performance for calendar year 2024. The bank reported a 4.9% total return on three managed accounts and described account types and liquidity differences between the wealth management portfolio and the county’s money‑market sweep.
Atlantic Union Bank presented Warren County’s investment performance and account structure to the Board of Supervisors on Feb. 4, reporting that the county’s three managed accounts earned a total return of 4.9% in calendar year 2024, net of fees.
Why it matters: The county’s cash and investments support daily operations, capital projects and reserves. Understanding yield, liquidity and portfolio composition helps supervisors judge whether county funds are being prudently managed and whether more cash could be placed to earn higher yields without harming cash flow.
Mitch York, Atlantic Union’s chief investment officer, and John Ackerman, senior portfolio manager, described account holdings and returns. Ackerman summarized performance: "The total, dollar value is just under $16,000,000 and in calendar year 2024, the 3 accounts earned 4.9 percent, net of fees." He said the return combined roughly 4% interest income and 0.9% of market appreciation on holdings.
Atlantic Union said the county’s portfolio holdings are consistent with the Virginia Investment of Public Funds Act and include U.S. Treasuries, U.S. agency bonds (FHLB, Fannie Mae, Freddie Mac), high‑grade commercial paper with short maturities and bank certificates of deposit. The firm said the managed portfolio is laddered with regular maturities to preserve liquidity and to reduce realized losses from selling bonds before maturity.
Treasurer staff and Atlantic Union explained the differences between the wealth‑management portfolio (three accounts, roughly $16 million) and the county’s working money‑market sweep (reported at about $24.2 million on a December snapshot). The money‑market sweep is used for day‑to‑day operations and is described as a daily‑liquid account; the wealth management portfolio is invested in short‑term debt instruments with an average maturity under five years.
Board members asked about realized losses in prior years, the rationale for buying bonds versus money‑market funds, methods for recording interest in the county general ledger and the potential to move additional cash into higher‑yielding accounts. Ackerman said there had been "no realized losses in any of the accounts" reported and that money‑market sweep yields (a Fidelity fund used for sweep) were in the mid‑4% range at the time of the presentation.
Several supervisors asked why prior internal accounting had not shown interest earned; county staff said interest had been recorded as adjustments in the general ledger and they are working to change that treatment so interest appears as routine revenue in regular reporting.
Ending: The bank recommended continuing a laddered bond strategy that preserves liquidity; treasurer staff said they plan to produce monthly statements for the board and coordinate with finance and the auditor to ensure audit‑ready reconciliations for prior fiscal years.
