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Frequently Asked Questions
Welcome to the New Mexico State Treasurer's New MexiGROW LGIP, a short-term 2a-7 money market like fund created by state statute and available for use exclusively by governmental entities in New Mexico. As of September 30, 2010 the fund holds $794 million in pooled assets from over 140 participating local governments, primary schools, colleges, special districts, quasi-state agencies, and tribal governments.
1. What is the State Treasurer's Investment Policy? LGIP investments are governed by the State Treasurer's Investment Policy, a document approved by the State Treasurer's Investment Committee and the New Mexico State Board of Finance. It sets forth investment guidelines for investments allowed by state statute. Pursuant to that policy, all investments made by the State Treasurer adhere to three fundamental principles: SAFETY, LIQUIDITY, and RETURN – in that order.
userfiles/Signed STO Invest Polciy 05-14-10(4).pdf
2. Who may participate in the New MexiGROW LGIP? Eligible participants include school districts, post-secondary educational institutions, special purpose districts, cities and counties, and tribal governments and pueblos.
3. What are the advantages of participation in the Pool? The fund's purpose is to provide a tool for local governments to manage short-term liquid funds. The New MexiGROW LGIP is rated AAAm by Standard & Poor's; the highest principal stability fund rating assigned by S&P.
4. Where are the securities held? The state's fiscal agent bank contracts with JP Morgan, one of the nations’s leading fiduciaries, to act as a third-party custodian to hold all purchased securities along with the required collateral pledged for the overnight repurchase agreements.
5. In what types of securities are the New MexiGROW LGIP funds invested? The types of investments which may be made with state funds by the State Treasurer are defined by statute. Pooled assets may be invested in the following: U.S. Government Obligations, Commercial Paper, Asset-Backed Obligations, Money Market Mutual Funds, and Repurchase Agreements. It is the policy of the Treasurer's Office to comply with all applicable investment statutes.
userfiles/Signed STO Invest Polciy 05-14-10(5).pdf
6. Who manages the investments of the fund? The State Treasurer's LGIP Bureau is comprised of a qualified fund manager, portfolio manager, and accountant. The fund manager is responsible for the daily function, administration, and required reporting for the LGIP Bureau. The portfolio manager is responsible for the investing for the LGIP Bureau. The accountant is responsible for the daily accounting functions of the LGIP Bureau. The LGIP Bureau staff utilizes an investment software system to track participant holdings, compute, and distribute investment earnings based on the balance and term of deposits, and issue monthly participant statements.
7. Is my local public money available when I need it? You can call the Local Government Investment Pool Bureau at 505-955-1154 or 505-955-1120 and process withdrawals less than $30 million within 24 hours. Withdrawal requests in excess of $30 million are processed within 48 hours.
8. What interest do I earn on my investment? The rate changes every day and is on the State Treasurer's telephone rate line, 505-955-1171, as well as the website: www.nmsto.gov. Interest income is distributed to participants monthly via automated clearing house (ACH) transaction or reinvestment by the fifth business day of the following month.
9. Is my local public money kept separate from other public money in the investment account? Your local public money is accounted for and tracked separately but is pooled with other public money for investment purposes. By law, accurate and detailed accounting records must be maintained for each individual LGIP account.
10. What are the costs to my local public body to participate in the Pool? The State Treasurer's Office is allowed by statute to charge a fee for use of the Pool. The STO charges a fixed rate fee which is assessed at the end of each month. The fee is 5 basis points and one of the lowest fees available on any money market fund, covers the costs involved to manage and operate the Pool.
11. What is the risk? All investments purchased for the New MexiGROW LGIP must be high quality, with a credit rating of A or better to ensure the highest level of safety; U.S. Government securities are rated AAA and commercial paper investment is A-1+. The quality and security of the investments in the Pool ensure an extremely minimal risk as indicated by the AAAm rating. For more information about portfolio composition, please see the investment policy and posted statements.
12. How does the Pool's performance compare to other investment options? Currently, the LGIP compares favorably to similar money market funds and with other state LGIPs, while consistently outperforming bank-offered options.
13. What changes have been made to the LGIP by the Treasurer? The State Treasurer's Investment Policy has been revised to limit exposure by reducing the term of maturities in order to maintain liquidity and attain optimum yield. The State Treasurer's Office is actively incorporating the needs of New MexiGROW LGIP participants into operations of the Pool in order to offer a fund with not only competitive performance but also exceptional customer service.
14. What is required to get my public entity participating in the LGIP? Contact us at the numbers listed below; we will send you a packet that includes an application, an authorized person’s designation, and a sample resolution. In order for an entity to participate in the New MexiGROW LGIP, a resolution stating this intent must be adopted by the entity's governing body.
Contact us: Kirene Bargas LGIP Bureau Chief/ Investment Compliance Officer
505-955-1136 Kirene.Bargas@state.nm.us Eamon Cargo
LGIP Portfolio Manager
505-955-1197
Hannah Chavez LGIP Account
505-955-1154 Hannah.Chavez@state.nm.us 505-955-1180 Fax 505-955-1120 State Treasurer’s Office |
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