- Exposure to SIV's, CDO's, etc...
- Operations Manual
NOTICE FROM TREASURER REGARDING ADMINISTRATIVE FEES
To: All participants of the State Pooled Investment Fund (SPIF) and
Local Government Investment Pool (LGIP)
From: David H. Lillard, Jr.
Re: Administrative Fees
Date: December 21, 2015
I am pleased to announce that effective January 1, 2016, the administrative fee for the SPIF / LGIP will be lowered from 5 basis points (0.05%) to 4 basis points (0.04%). The administrative fee is applied as a reduction to the gross interest rate earned monthly, resulting in the net interest that is credited to each account. Each year, the administrative fees are evaluated to determine if they are sufficient to cover the expenses associated with managing the fund. The balance of the entire fund has grown and likewise, the amount of administrative fees collected has also increased. Even though interest rates have started to increase slightly, the rate set at the December 16, 2015 Federal Reserve meeting is still only a range of 25 basis points to 50 basis points. The reduction in administrative fees is the latest effort in Treasury’s goal of providing the most cost-effective investment option that seeks to protect principal and provide the liquidity to meet the needs of all participants in the State Pooled Investment Fund and the Local Government Investment Pool.
CHECK FRAUD SCAM ALERT
LOCAL GOVERNMENT INVESTMENT POOL
Important Notice to Consumers, Banks and Others – The Tennessee Treasury Department has become aware of a recent work-from-home scam utilizing the Internet classified website, Craigslist.com, and possibly other Internet sites, e-mails and other solicitations. The scam uses fraudulent checks that appear to be written by the Treasury Department’s Local Government Investment Pool with a Nashville, Tennessee address. The Tennessee Treasury Department does not issue or honor these fraudulent checks for payment. You can find further information on how to protect yourself from these scams and to report suspicious activity at: http://www.ic3.gov/media/2010/WorkAtHome.pdf
The LGIP presents a great tool for the investing strategies of Tennessee's local governmental entities. Many governments in the state have chosen to round out their investment arsenals with LGIP accounts. We offer a competitive rate with competitive service and multiple other benefits such as several levels of checks and balances to every transaction.
We provide a method for agencies to invest funds with same or next-day access at a healthier rate of return than the entity might receive elsewhere. The LGIP also allows multiple accounts under the same participant (up to 99) with individualized, detailed reports. Many local governments who explore the LGIP option find better liquidity, easier separation of funds, and superior returns.
Money market funds, like the State Pooled Investment Fund (SPIF), were designed to be safe places to invest cash. The investment goals of the SPIF are safety, liquidity, and return, in that order. Money market funds are designed to have a stable Net Asset Value (NAV) of $1.00, therefore if you invest a dollar, you should receive a dollar plus some earnings in return. These funds were designed to have no tolerance for risk.
The State Treasurer operates the State Pooled Investment Fund of which the Local Government Investment Pool (LGIP) is a part. The legislation providing for the establishment of the LGIP (Tennessee Code Annotated, Title 9, Chapter 4, Part 7) authorizes investment in the LGIP for local governments and other political subdivisions.