PFII Says LGIPs Seek New Markets
The Public Funds Investment Institute's Marty Margolis writes that, "LGIPs Seek New Markets. He tells us, "Local Government Investment Pools were originally designed to help local governments -- you know, cities, counties, school districts, etc. -- invest their funds. But times change and enterprising funds seek opportunities to expand their offerings. An interesting example is a new program that the Illinois Treasurer is poised to open for Illinois-based non-profits. The new portfolio will be an addition to the $20 billion Illinois Funds pool managed by the Treasurer. It relies on recently enacted legislation for standing; The offering will build on the notion that these entities that provide services akin to those provided by governments should get assistance; While the main focus of the LGIP industry is governments, narrowly defined, Massachusetts and Pennsylvania, have LGIP programs that are designed specifically to manage funds for non-profits; Some LGIPs also have accommodated organizations that might not seem to be governments but perform activities that are expected of governments. These LGIPs accept investments from entities that offer health services, education, library services, etc.; Some LGIPs also have accepted investments from non-profits that operate as direct extensions of governments with their boards controlled entirely by a government entity." The brief states, "Illinois Treasurer Michael Frerichs worked with the Illinois legislature for several years to gain authority to create the new pool. The result, Senate Bill 2968, authorizes creation of the Non-Profit Investment Pool to accept investments from Illinois-based non-profits that provide healthcare, education, affordable housing, food assistance, environmental protection, cultural arts, job training, services to seniors and similar services." The PFII adds, "Massachusetts and Pennsylvania are two states that have LGIPs that reach beyond the narrow definition of 'government.' The Massachusetts STAR Fund, offered by the Massachusetts Development Finance Agency since the 1990s, accepts investment from non-profits that are borrowers through the Agency's borrowing programs.... The program is managed by PFM Asset Management/U.S. Bancorp Asset Management. It is separate from the Massachusetts Municipal Depository Trust, one of the nation's early LGIPs. The Pennsylvania Treasurer has offered a Community Pool as part of its state LGIP program (InvestPA) for a number of years.... It is separate from the Invest PA Daily Pool that is offered to local governments. Both are managed by Federated Hermes."
