INVEST

• Specifically developed for local government entities. (counties, cities, boroughs, townships, municipal authorities, school districts and their Intermediate units, and many other forms of "local government.")
• Developed to minimize the risk to principal, while maintaining liquidity and maximizing yield for all participants
• Monitored daily by Treasury’s Investment Team and by Standard & Poor Ratings – having earned the highest possible ratings
• No minimum balance
• No required investment period
• No transaction charges
• No account maintenance charges
• No wire or ACH charges
• Unlimited number of accounts
• Convenient access to your money You can manage your investments in this pool online or by calling Investor Relations.
• Authorized Investment Instruments
• Federal Obligations - Treasury may invest in Federal Obligations (obligations of the United States of America 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 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.
  
  * Data provided represents past performance which cannot be used to predict future returns that may be achieved by the Portfolios. Note that annual returns can and will fluctuate. An investment in the INVEST program is neither insured nor guaranteed by the U.S. government, and there is no assurance that the fund will be able to maintain a stable net asset value of $1.00 per share. INVEST Daily portfolio is compared to the Pennsylvania School District Liquid Asset Fund (PSDLAF), a fund marketed by RBC Dain Rauscher Corporation, and the Pennsylvania Local Government Investment Trust (PLGIT), operated by Public Financial Management, Inc.

Treasury’s investment staff develop special investment opportunities offered only to existing INVEST participants.

Custom Certificate of Deposit Pools

In 1999, Treasury developed Custom Certificate of Deposit Pools to fulfill two goals: meet the needs of INVEST participants who want the potential to earn more in a longer-term investment vehicle designed to mature at a time when participant bills come due, and to meet the Treasurer's goal to invest in Pennsylvania whenever possible.

Treasury pools participant funds together to purchase larger Certificates of Deposit issued by local banks across the state. INVEST participants enjoy better CD interest rates, while local banks get millions of dollars in additional capital to stimulate local economic development.

Since 1999, 165 INVEST participants have invested more than $144 million in the five separate Custom CD Pools Treasury has offered.

Flexible Repurchase Agreement Opportunities

In 2001, Treasury offered a new flexible repurchase agreement option to help INVEST participants invest their bond proceeds in investments with maturity dates that coincide with payout schedules.

Through this option, flexible repurchase agreements provided collateralized fixed rates of return determined through a competitive bid process involving only INVEST approved financial institutions. Each flexible repurchase agreement provides either a fixed or floating rate of return on the deposit amount, with terms that can be from 90 days up to the maturity of the bond.

All repurchase agreements are collateralized at 102% of market value. This ratio is maintained by marking the collateral to market on a daily basis. If at any time the collateral falls below the required amount additional collateral must be pledged.

• Specifically developed for nonprofit entities – defining factor is entity tax code status: 501(c)(3), 501(c)(4), 501(c)(6):
• Charities and Foundations - 501(c)(3) - Hospitals, museums and orchestras, private schools, public television and radio stations, libraries, fire and emergency services and many social service or care based organizations are 501(c)(3) nonprofits.
• Social Welfare or Advocacy Organizations - 501(c)(4) nonprofits have greater latitude to participate in legislative advocacy, lobbying, and political campaign activities. Nonprofits such as the National Association for the Advancement of Colored People, the National Rifle Association, and the National Organization for Women are considered social welfare organizations.
• Professional and trade associations - 501(c)(6), Chambers of commerce, business leagues, credit unions, and other organizations that promote the business or professional interests of a community, an industry, or a profession generally qualify for tax-exemption under Section 501(c)(6) of the tax code.
• Developed to minimize the risk to principal, while maintaining liquidity and maximizing yield for all participants.
• Monitored daily by Treasury’s Investment Team and Standard & Poor’s – having earned the highest possible ratings.
• No minimum balance
• No required investment period
• No transaction charges
• No account maintenance charges
• No wire or ACH charges
• Convenient access to your money You can manage your investments in this pool online or by calling Investor Relations.
• Authorized Investment Instruments
• Federal Obligations - Treasury may invest in Federal Obligations (obligations of the United States of America 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 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.