The Newburn Fund will be carefully invested in several different ways, investment manager Leanne Anderson told the North Platte city council Tuesday. The Newburn Fund is a bequest that is dedicated to the North Platte city parks. The $2.6 million in the fund is currently invested in certificate of deposits -- currently returning the lowest earnings in history.
Anderson, who works at First National Bank of North Platte, said that the money would be split among local banks and more diversified investments.
She said 20 percent of it remain in certificate of deposits at local banks. On the other end of the spectrum, 16 percent will go into high risk equities.
The rest will go into a healthy mix of modest investments.
The primary objective is the preservation of the principal and beyond that to earn 2% over a cycle of 5-7 years, she said.
At this time the expected average return is slightly higher, from 2-2.5%.
Anderson said the money will be managed by investment managers of varying styles and philosophies.
The council was in a work session and took no action on the plan, but expressed no opposition.
The new plan stems from a presentation in October by Eric Seacrest of the Mid-Nebraska Community Foundation, who talked to the council about how to re-invest the Newburn Fund for better earnings.