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.
|Service||Daily Pool||Custom Pool||Community Pool|
|Administration Fee||11 Basis Points||6 Basis Points||11 Basis Points|
|Balance Requirement||None||As Per Specific Investment||None|
|Term||Same Day||Same Day or Designated Day||Same Day|
|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|
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.
Two categories of entities are eligible to apply for INVEST participation:
- Local government agencies (county, city, township, school district, intermediate unit, council of government, municipal authority, or other form of “local government” in Pennsylvania).
- Nonprofit organizations with a tax status of 501(c)(3), 501(c)(4), or 501(c)(6).
To apply, you must complete two forms, both of which are available here as fillable PDFs:
Please be sure the Agreement is signed by an authorized representative, then email the completed documents to email@example.com.
The links to the right provide more information, including current S&P Ratings, the Investment Policy Statement, the most recent INVEST Annual Report, and the most recent audit of INVEST conducted by the Pennsylvania Department of the Auditor General.
If you have any questions, contact INVEST at 866-300-4603.