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INVEST Program for Governments and Nonprofits

Created by the Pennsylvania Treasury, INVEST is a family of highly rated investment pools designed specifically for local government and nonprofit groups. INVEST is similar in concept to money market funds, offering two rated pools with short-term maturity as well as periodic custom investment opportunities for longer-term investment needs.


The program’s portfolios are managed by the Pennsylvania Treasury’s investment staff, which also oversees the investment and custody of nearly more than $100 billion in public funds.


In addition to daily monitoring by Treasury, INVEST is monitored by and has earned the highest rating from the financial world’s premier rating company: Standard & Poor’s Ratings.The Invest Daily Pool and Invest Community Pool are both rated AAAm.



General Information

Treasury’s investment staff monitor the investment markets and INVEST pools daily with three objectives:


  • Conserve Principle: Treasury works to conserve principle by investing only in high quality instruments. INVEST pools are monitored by and have earned the highest rating available from the financial world’s premier rating company: Standard & Poor’s.

  • Provide Flexible Liquidity: INVEST pools, similar in concept to money market funds, are developed to meet your cash flow needs. The Daily and Community Pools offer daily liquidity without penalty. In addition, Treasury's investment team develops custom pools to meet participants' longer-term investment needs with a potential for larger returns to mature when participants' future bills will come due. Because INVEST offers several different pools with varying liquidity, you can structure your investments to meet your needs and goals.

  • Contain Costs: Treasury can negotiate better rates by buying larger quantities of investment instruments at one time. While INVEST funds are never commingled with state funds, Treasury can leverage its purchase power by purchasing investment instruments for INVEST as well as its investment pool for state agencies. In addition, Treasury doesn’t seek a profit from INVEST, further helping to minimize costs to shareholders.

Investment Pools

Service Daily Pool Custom Pool Community Pool
Administration Fee 11 Basis Points 6 Basis Points 11 Basis Points
Transaction Fee None None None
Transactions Unlimited At Maturity Unlimited
Balance Requirement None As Per Specific Investment None
Term Same Day Same Day or Designated Day Same Day
Accounts Unlimited Unlimited Unlimited
Deposits No Maximum No Minimum $100,000 Minimum No Maximum No Minimum
Interest Calculated Daily Paid Monthly Paid At Maturity Calculated Daily Paid Monthly
Transaction Confirmation Next Business Day Next Business Day Next Business Day
Statements Monthly Initial Deposit and Maturity Monthly

Policies

Authorized investments are limited to the following investment instruments:


  • Federal Obligations
    Treasury may invest in Federal Obligations (obligations of the United States or any of its agencies or instrumentalities) which have a maturity of up to and including 397 days from the date of settlement. This asset class includes United States Treasury bills, notes, bonds, strips, and “short-term” United States agency obligations. S&P Ratings consider all short-term Federal Obligations a Level One rated investment.

  • Repurchase Agreements
    Treasury may enter into Repurchase Agreements with bank or non-bank financial institutions, which shall be secured by United States Government Obligations and Government National Mortgage Association Obligations delivered to Treasury’s account at the Concentration Bank, (Deliverable Repurchase Agreement) or to Treasury’s account with an independent (money center bank or nationally recognized non-bank financial institution) third party subcustodian (Triparty Agreements). No repurchase agreements shall be effective until a fully executed agreement for repurchase, together with a federal wire transfer agreement, are received by the Treasury Department. For purposes of this Policy, a Repurchase Agreement is defined as an agreement by Treasury to buy Federal Obligations on a certain date from a bank or non-bank financial institution. In turn, Treasury shall sell the same United States Government Obligations and Government National Mortgage Association Obligations back to that particular institution on a specific date in the future at the same price plus an additional amount as agreed to by the parties.

  • Other Debt Instruments
    The Treasury may only invest in other debt instruments of banks, financial institutions and non-financial institutions that are authorized for the shareholder by Commonwealth of Pennsylvania statute. In addition to strict statutory authority, the INVEST Pool investments in other debt instruments shall be made, as restricted and limited by those investment criteria established by the rating agency, S&P Ratings, so long as those investment criteria are as restrictive as the provisions of Pennsylvania statutory authority. According to these investment criteria, other debt instruments may include certificates of deposit and money market funds.

Application Process

Local Governments

If you are submitting an application for INVEST participation for a county, city, township, school district, intermediate unit, council of government, municipal authority or other form of "local government":


  1. Call 1-866-300-4603 for the Local Government Investment Pool Application Form.
  2. Complete the Local Government Investment Pool Application Form.
  3. Complete and include the Intergovernmental Cooperation Agreement - the contract for INVEST participation. If someone other than the Board is authorized to enter into agreements on its behalf, the INVEST applicant must so note in writing and attach a copy of the section of the bylaws wherein that authorization is set forth.
  4. Mail the original copies of your completed application and Intergovernmental Cooperation Agreement to:

    • The Pennsylvania Treasury
      INVEST Program
      Room 120 Finance Building
      Harrisburg PA 17120PA

Nonprofits

If you are submitting an application for INVEST participation for a nonprofit organization [tax status is a 501(c)(3), 501(c)(4), 501(c)(6)]:


  1. Call 1-866-300-4603 for the Community Investment Pool Application Packet.
  2. Complete the Community Investment Pool Application Form, attaching all pertinent additional documents as requested including bylaws and/or formally approved investment policy or guidelines.
  3. Mail your completed application, Agreement for Investment Management Services and any additional documents as applicable for your organization (such as by-laws, investment policy or investment guidelines) to INVEST:

    • The Pennsylvania Treasury
      INVEST Program
      Room 120 Finance Building
      Harrisburg PA 17120PA

If you have any questions regarding the preparation of your application packet, please call 1-866-300-4603.

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