The Illinois Funds is a Local Government Investment Pool (LGIP) administered by Illinois Treasurer Michael W. Frerichs. Over 1,500 local and state government agencies have voluntarily participated in the pool since it was created in 1975 to provide public agencies with a safe, liquid, competitive investment alternative pursuant to 15 ILSC 505.
Local governments that are eligible to join include: cities and towns, counties, special taxing districts, municipal corporations, housing authorities, community and technical colleges, and four-year universities. As of September 2020, Illinois Funds participants included:
- 106 Agriculture & Environmental agencies (including Park, Forest, and Soil & Conservation districts)
- 695 Local Governments (including Municipalities, Townships, and Counties)
- 478 Public Education institutions (including School Districts, Library Systems, Regional Offices of Education, Community Colleges, Vocational & Technical Schools, and Universities)
- 109 Public Health & Safety agencies (including Public Hospitals & Nursing Homes, Mental Health districts, Fire Protection districts, Area Aging districts, Mosquito Abatement districts, and Public Safety/911 districts)
- 15 Public Pension systems (including for Police, Firefighters, and Teachers)
- 14 Public Transportation systems (including Airport authorities, Mass Transit authorities, Road & Bridge districts, and Port Authority districts)
- 50 Public Utilities (including Water & Sewer districts, Sanitary & Reclamation districts, electricity, and gas districts)
- 19 State Government agencies (including the State Treasurer’s Office, ICCB, IDES, IHFS, IDCEO, CMS)
- 13 Miscellaneous Public Agencies (including Building & Planning commissions, Housing Authorities, Cemetery Boards, and Intergovernmental Agencies)
For more information, please visit our FAQ page, read the investment guidelines outlined in The Illinois Funds Investment Policy, or feel free to contact The Illinois Funds custodian at 1-800-947-8479 or the Treasurer’s Office by submitting a contact form.
The Illinois Funds, which is managed in a manner generally consistent with SEC regulated Rule 2a-7 money market funds, has earned Fitch’s highest rating (AAAmmf). The rating is based on Fitch’s analysis of the pool’s credit quality, maturity, diversification, and management. The rating demonstrates that the fund has an extremely strong capacity to maintain principal stability and limit exposure to losses due to interest rate and/or credit risk. The Illinois Funds has continuously received the highest prime investment grade for a government money market fund since 1996.
The Illinois Funds lets government agencies use the Illinois State Treasurer’s resources to safely invest their funds while enjoying the economies of scale available from a $7 billion pooled fund investment portfolio. The Illinois Funds’ investment objectives are, in priority order: (1) safety of principal; (2) maintaining sufficient liquidity to ensure that investors have immediate access to funds; and (3) providing a competitive rate of return relative to comparable investment options.
Additional benefits include:
- Investments can be overnight or long-term.
- The Illinois Funds complements and does not replace your local banking relationships.
- No minimum investment is required.
- Free online account access to view transaction history, perform financial transactions, including account inquiries, transfers, purchases, and redemptions.
- Money cannot be swept by the General Assembly or used for any other purpose.
- Government agencies participating in ePAY under The Illinois Funds will have their funds deposited into their Illinois Funds investment account(s) daily. To learn more, visit the ePAY website.
- Since 1996, The Illinois Funds has annually received the highest prime investment grade for a government-managed money market fund. Currently, The Illinois Funds is rated AAAmmf by Fitch Ratings, Inc.