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Redtree tells council city portfolio yields just over 4% as staff stress safety and liquidity
Summary
Redtree Investment Group gave the council an update on the city's investment strategy, saying the portfolios yield slightly above 4% with an average maturity under three years and that the firm manages public funds across the state; council discussed municipal bond tax‑exempt status and risk considerations.
At the April 15 meeting Redtree Investment Group presented an update on the City of New Albany’s public‑fund investments, describing portfolio composition, yield and the factors staff monitors when allocating municipal funds.
Ryan Nelson of Redtree told the council his firm works with public entities across Ohio and that New Albany’s investment portfolios are diversified across liquidity vehicles, treasuries, government agencies, municipal bonds and commercial paper. "We manage a little over $10,000,000,000 in public funds and work with about 350 public entities across the state," Nelson said. He reported the city’s investment yield is "a little over 4%" with a weighted average maturity in the main portfolio of about 2.67 years, and underscored priorities of safety of principal, risk management and liquidity.
Councilmembers asked about talk in the General Assembly to permit municipal investment in crypto and precious metals; Nelson said such proposals do not align with the city’s stated objectives for safety and liquidity. He also explained that the city uses the State Treasurer’s STAR Ohio pool and noted that municipal bonds remain a central investment vehicle for public funds.
Why it matters: Interest‑rate volatility and market movements affect city budget projections for investment income. Council asked staff to continue monitoring Fed policy and to keep training and compliance in place for staff who manage public funds.
What’s next: Staff will continue regular finance committee and council updates on portfolio performance and any proposed policy adjustments.
