Research and Analysis

New Research Report Details the Role of State-Sponsored Local Government Investment Pools as the Foundation of a $900 Billion Industry

By Marty Margolis on July 24, 2024

A new research report by the Public Funds Investment Institute details the role of state treasurer-sponsored local government investment pools as a foundation of the $900 billion industry that provides money market-like investments to state and local governments. State treasurers in 32 states offer these funds and their assets total nearly $700 billion. Local-sponsored LGIPs with an estimated $200 billion […]

Cash and Short-Term Portfolios Had Strong Returns in the First Half of the Year

By Marty Margolis on July 9, 2024

The PFII Investment Dashboard has been updated through quarter-end and reflects a couple of interesting market dynamics. The 1-3-year model portfolio yield to maturity of 4.95% at the end of the quarter reflects this. The model portfolio also benefitted from holding corporate obligations. Thirty percent of the portfolio is invested in investment grade credit which […]

LGIPs Shun New Money Fund Liquidity Rule: What it Means for the Industry

By Marty Margolis on March 20, 2024

The big picture. A requirement that raises the liquidity threshold for money market funds under the Securities and Exchange Commission’s Rule 2a-7 is effective in early April. Local government investment pools are exempt from the rule and those that advertise they are “Rule 2a-7 like” have given no sign that they will follow this new […]

2024 Investment Environment: Treasuries on Top

By Marty Margolis on January 16, 2024

The year begins with a fresh look at the public funds investment universe. Since most public sector investment policies limit investments by maturity and quality we focus on the universe of high-quality investment grade securities with maturities of three years or less. Excluded are foreign-issued securities and corporate bonds rated less than A. The big […]

Cybersecurity: Board and Management Responsibilities in a Risky World

By Marty Margolis on October 19, 2023

October is cybersecurity awareness month. Public sector investment programs, no matter what their size, are a prime target for cybercrime. This research note focuses on the responsibilities of investment program managers (treasurers, chief investment officials and members of oversight boards) related to cybersecurity.

Public Sector investment Assets: Stability and Liquidity Prevail

By Marty Margolis on September 12, 2023

Investment assets of state and local governments have grown slowly in recent quarters despite a sharp rise in interest rates that adds income to portfolios at the highest rate in more than a decade. A Federal Reserve report, released last week, showed public sector investment assets at $3.7 trillion, almost unchanged from the level reported for March 31...

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Key metrics and trends in the public funds investment market.