The Illinois Funds
The Illinois Public Treasurers' 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.
Monthly Investment Summary
As of August 31, 2023
• Net Portfolio Assets*: $ 19,166,024,273
• Present Market Value: $ 19,166,009,535
• Monthly Investment Earnings: $ 90,901,264,
• 7-Day Effective Yield**: 5.490%
• One Month Gross Yield: 5.529%
• One Month Effective Yield**: 5.456%
• Net Asset Value (per share): $1.00
• Weighted Average Maturity: 58.6 days
• Weighted Average Life: 118.6 days
*This total includes a State Investment of $ 10,575,378,774
**Yield, Net of Fees
Illinois Funds Performance Update
2023 2nd Quarter
Analytical Comment
The chief economist for the Illinois General Assembly’s joint Commission on Government Forecasting and Accountability (CGFA) noted strong employment data in June and low unemployment claims in July (though Illinois’ unemployment rate continues to track about one-half a percentage point higher than the US rate). We anticipate increased governmental spending, as agencies and governments have been able to plan and budget for relief and recovery funds received over the previous three calendar years. But, unlike previous externally-driven stimulus spending cycles, pre-existing investment streams should lower the overall costs over the projects' lifespans.
The Illinois Funds closed the quarter with over $19 billion in net assets for the quarter. The monthly net yield (less expenses) over the previous three months was 5.049%, bringing in $235 million in quarterly net income to Fund participants, and nearly $700 million in net income for Fiscal Year 2023—well over the $37 million in net income brought in for Fiscal Year 2022.
As always, we will be monitoring economic conditions and adjusting accordingly to ensure portfolio safety and liquidity.
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 US Government 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 security holding as of the reported date:
To see a report of all holdings since 2015, please see the Security Holdings page.