Northwest Bank presents low‑volatility investment option as Erie authority weighs moving funds

A representative from Northwest Bank presented investment options for the Erie Redevelopment Authority’s longer‑term funds at the April meeting, and the board deferred action to consider risk and liquidity implications.

Tim Moreland, identified in the meeting as a financial advisor, described a low‑volatility portfolio aimed at outperforming money‑market returns without equity exposure and said the strategy allocates about 36% to arbitrage funds. "This is a low volatility portfolio ... aiming to get you a 5% type of return," he said, and described last year’s net‑of‑fees performance at roughly 6.1% for a comparable allocation.

Moreland explained liquidity would typically be two business days using ETFs and mutual funds and said his firm can offer nonprofit discounts on management fees (about 0.60–0.65% annually for the amounts discussed). Board members asked about downside risk and whether moving funds could affect accounting or principal protection; some preferred strictly secure instruments (CDs) or a blend of products.

Aaron summarized staff outreach to the authority’s current bank — four attempts without response — and noted Northwest offered better engagement. Board members said they would like more time to consider the tradeoffs between slightly higher expected returns and the potential for principal fluctuations, and asked staff to return with a formal proposal if the board desires.

No resolution or vote to transfer funds was taken at the meeting; staff said a recommendation memo exists and will be brought back for further consideration.