About The Illinois Funds

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YIELD

The Illinois Funds investment portfolio is designed to obtain the highest available return, taking into account investment risk restraints and liquidity needs. The Treasurer's Office uses industry benchmarks to ensure state dollars are placed in safe and lucrative investments. The Treasurer's goal is to consistently outperform the competition. Participants earn interest on 100% of their Illinois Funds account balance unlike commercial demand deposits, which earn interest on only 90% of the balance due to the Federal 10% reserve requirement.

 

The Illinois Funds (LGIP) Composition 9-30-2020 The Illinois Funds (LGIP) Composition 9-30-2020

(as of 30 September 2020)

The Illinois Funds, LGIP vs. Blended Benchmark 9-30-2020 The Illinois Funds, LGIP vs. Blended Benchmark 9-30-2020

(as of 30 September 2020)

 

 

To access The Illinois Funds' investment summary and benchmarks, please visit Money Market Fund Portfolio page. Daily fund interest rates are available by phoning the Illinois Funds Custodian at 1-800-947-8479 or by visiting the The Illinois Funds daily rates page.

 

STATUTORY COMPLIANCE

Participants can be comfortable knowing that their Illinois Funds accounts comply with the Public Funds Investment Act, 30 ILCS 235. Some local government investment pools operating in Illinois do not comply with the Public Funds Investment Act. These pools may include instruments such as bankers' acceptances, asset-backed corporate obligations (like mortgages and credit card receivables), or municipal securities outside of Illinois, which we believe are inappropriate for most public investors.

 

The Illinois Funds complies with Illinois law and is limited to the following:  direct United States Treasury obligations and issues of United States Agencies or Instrumentalities; agreements to repurchase United States Treasury obligations and issues of United States Agencies or Instrumentalities; Commercial Paper rated A1, P1 or equivalent; and AAA-rated Money Market Funds.

 

Furthermore, the Treasurer's Office is responsible for the creation, revision, implementation, and publication of The Illinois Funds Investment Policy, which is accessible at the Investment and Financial Policies page.  This Policy provides an appropriate set of guidelines and parameters to ensure that the program is operated in a lawful, prudent, and effective manner, including incorporating the Sustainable Investing Act (PA 101-473) into the Investment Policy. Should your agency seek to create an investment policy to guide your actions, feel free to refer to our sample investment policy or contact our office.

 

PERFECTED COLLATERAL

There are two types of collateral currently used by public investors in Illinois, perfected collateral and non-perfected collateral. Perfected collateral is the only type that provides true safety for public funds.

 

Collateral ratios are as follows:  repurchase agreements at 102%.

 

Annual financial audit reports from the Office of the Illinois Auditor General provide participants with independent assurance in the safety and soundness of The Illinois Funds.  Click here to access recent Illinois Funds audit reports.

 

To contact The Illinois Funds, call 1-800-947-8479

 

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SAFETY

Safety of principal is the foremost objective of the investment program. Illinois Funds investments are executed and managed in a manner that seeks to ensure the preservation of capital in the portfolio. Fitch's highest rating (AAAmmf) is proof positive that the safety objective is being met. 

 

The Illinois Funds also is subjected to monthly stress-testing by an independent research firm, which further ensures that (1) The Illinois Funds is compliant with Rule 2a7 of the Securities and Exchange Commission and (2) the investment portfolio is well-positioned to withstand events beyond the norm of both the economy and the competitive marketplace. 

 

In addition, U.S. Bank provides the program with professional administrative and distribution services, which further contributes to the safe, secure, and efficient operation of the program.

 

FITCH'S HIGHEST RATING (AAAmmf)

Fitch Rating seal

The Illinois Funds has earned the highest investment grade rating (AAAmmf) for a government-managed money market fund. The rating is based on Fitch's analysis of the pool's credit quality, market price exposure and management. The rating demonstrates that the fund has an extremely strong capacity to maintain principal stability and to limit exposure to principal losses due to credit risk. This is accomplished through prudent investment practices and strict internal controls.

 

LIQUIDITY

Money invested in The Illinois Funds is available at all times. This is ensured by maintaining a relatively low weighted average maturity (WAM) and weighted average life (WAL), and subjecting the portfolio to regular stress-testing to ensure compliance with Rule 2a7 of the Securities and Exchange Commission.

 

Weighted Average Maturity (as of 05/28/21):  59 days

Weighted Average Life (as of 05/28/21):  91 days

 

The Illinois Funds offers free deposits, transfers, and withdrawals (ACH or wire) online and by phone. Participants can also sign up for direct deposit, which allows state distributions to be deposited into their Illinois Funds account the same day they are paid by the state.

 

ANNUAL REPORT

View the annual report for The Illinois Funds here: