The Illinois Funds is a Local Government Investment Pool (LGIP) operated by the Illinois State Treasurer’s Office. Over 1,600 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.
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 $4-6 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:
- The Illinois Funds complements and does not replace your local banking relationships.
- Investments can be overnight or long-term.
- Free online account access to view transaction history, perform financial transactions, including account inquiries, transfers, purchases, and redemptions.
- No minimum investment is required.
- Money cannot be swept by the General Assembly and used for some 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.
- The Illinois Funds annually receives a AAAm score from Standard and Poor’s.
The Illinois Funds, which is managed in a manner generally consistent with SEC regulated Rule 2a-7 money market funds, has earned Standard & Poor’s highest rating (AAAm). The rating is based on S&P’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. Read S&P’s Illinois Funds rating sheet.
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 December 2019, Illinois Funds participants included:
- 78 county government units
- 487 municipalities
- 102 townships
- 431 education agencies (i.e. school districts, libraries, etc.)
- 47 colleges and universities
- 146 special taxing districts
- 18 state agencies
- 55 public utilities
- 34 public pensions
- 26 miscellaneous
To open or update an Illinois Funds account, click here.
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.