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5 <br />The LGIP <br />The Local Government Investment Pool (the "LGIP") is an investment pool of public funds placed in the custody of <br />the Office of the Washington State Treasurer (the "State Treasurer") for investment and reinvestment as defined <br />by RCW 43.250.020. The purpose of the LGIP is to allow eligible governmental entities to participate with the state <br />in the investment of surplus public funds, in a manner that optimizes liquidity and return on such funds. In <br />establishing the LGIP, the legislature recognized that not all eligible governmental entities are able to maximize the <br />return on their temporary surplus funds, and therefore it provided a mechanism whereby they may, at their <br />option, utilize the resources of the State Treasurer to maximize the potential of their surplus funds while ensuring <br />the liquidity of those funds. <br />The State Treasurer has established a sub -pool within the LGIP whose shares are offered by means of this <br />Prospectus: The LGIP-Money Market Fund (the "LGIP-MMF" or the "Fund"). The State Treasurer has the authority <br />to establish additional sub -pools in the future. <br />The Fund offered in this Prospectus seeks to provide current income by investing in high -quality, short term money <br />market instruments. These standards are specific to the Fund, as illustrated in the following table. The LGIP-MMF <br />offers daily contributions and withdrawals. <br />FUND SNAPSHOT <br />The table below provides a summary comparison of the Fund's investment types and sensitivity to interest rate <br />risk. This current snapshot can be expected to vary over time. <br />LGIP-Money Market Fund <br />Current Investments (as of November <br />1, 2013) <br />Cash 60 days <br />Bank Deposits <br />US Treasury bills <br />Repurchase agreements <br />US Government agency obligations <br />Fees and Expenses <br />Administrative Fee. The State Treasurer charges pool participants a fee representing administration and recovery <br />costs associated with the operation of the Fund. The administrative fee accrues daily from pool participants' <br />earnings prior to the earnings being posted to their account. The administrative fee will be paid monthly. In the <br />event that there are no earnings, the administrative fee will be deducted from principal. <br />The chart below illustrates the operating expenses of the LGIP-MMF for past years, expressed in basis points as a <br />percentage of fund assets. <br />21 <br />