The Illinois Funds

The Illinois Public Treasurer's Investment Pool (IPTIP)

Investing on behalf of state and local governments

The Illinois Public Treasurers’ Investment Pool (referred to as “The Illinois Funds”) is a local government investment pool (LGIP) operated by the Office of the Illinois State Treasurer for state and local government agencies.


This program provides a critical service for state and local agencies, enabling them to pool their money and invest in a safe, liquid investment vehicle that exceeds industry benchmarks, and has received the highest rating (AAAmmf) from national credit ratings agencies.


Created in 1975, The Illinois Funds was one of the first local government investment pools established in the nation.


The Illinois Funds is comprised of approximately 1,500 participating entities, holding over 3,000 accounts, with net assets of over $15 billion.

LaSalle Street. Bank of America, Chicago Board of Trade, Federal Reserve Bank

Monthly Investment Summary

As of December 31, 2022



• Net Portfolio Assets*: $ 18,315,967,455.75

• Present Market Value: $ 18,301,088,813.56

• Monthly Investment Earnings: $ 61,370,550.11

• 7-Day Effective Yield**: 4.095%

• One Month Gross Yield: 3.998%

• One Month Effective Yield**: 3.925%

• Net Asset Value (per share): $1.00

• Weighted Average Maturity: 57.4 days

• Weighted Average Life: 97.1 days


*This total includes a State Investment of $ 10,720,938,264

**Yield, Net of Fees



Illinois Funds Performance Update

2022 4th Quarter

The Federal Reserve Bank noted slowing price and wage increases, along with slightly tightening financial conditions in the 7th District. The Illinois General Assembly Committee on Government Forecasting and Accountability (COGFA) noted a continued increase in Federal disbursements to State general funds, while there was an overall decline in State-based revenues, including sales tax gross receipts falling $13 million December 2022, compared to December 2021. University of Illinois Flash Index also noted a slight decline in overall economic activity in state, but with corporate and income taxes up for 2022 (adjusted for inflation).




With this, The Illinois Funds’ quarter-over-quarter net rate of return rose 62%, from 2.167% to 3.52%. Comparably, gross interest rates on 30-day CDs and money market accounts ended the quarter at 0.13% and 0.38%, respectively. The rise in interest rates helped bring net income to Participating governments to $161.5 million for the fourth quarter and over $285 million for calendar year 2022. The velocity in the growth of the Illinois Funds has slowed in the fourth quarter to $245 million, closing the portfolio balance at $18.3 billion at the end of December.


Finally, updates have been made to the Investment Policy Statement and Illinois Public Treasurers Investment Pool (IPTIP) Administrative rules. They have been published on our website. As always, please feel to contact us with any questions or concerns regarding your account, underlying investments, or the Illinois Funds in general.



Thank You.


Thomas Gary

Director, The Illinois Funds




Benchmarks

The Office of the Illinois State Treasurer uses industry benchmarks to ensure dollars are placed in safe, yet lucrative, investments. The Illinois Treasurer's goal is to consistently outperform the competition and exceed benchmarks.


These graphs compares the yield on the Illinois Funds' [Local Government Investment Pool (LGIP)] portfolio to a blended benchmark produced by the Treasurer’s Office. The blended benchmark reflects the actual mix of assets in the Illinois Funds portfolio. For example, if the Illinois Funds invested half of its assets in Repurchase Agreements, 25% in USA agency debt, and the other 25% in Commercial Paper, this benchmark would combine standards from each of those asset classes to produce a new, blended standard. This is the most accurate indicator of the Illinois Funds' overall portfolio performance.





Inventory Reports

Below are links to inventory reports from the last three months, each listing individual holdings as of the reported date: