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 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":
- Call 1-866-300-4603 for the Local Government Investment Pool Application Form.
- Complete the Local Government Investment Pool Application Form.
- 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.
- 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)]:
- Call 1-866-300-4603 for the Community Investment Pool Application Packet.
- Complete the Community Investment Pool Application Form, attaching all pertinent additional documents as requested including bylaws and/or formally approved investment policy or guidelines.
- 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.