Investment Programs
FL SAFE Investment Solutions
FL SAFE has three investment solutions that provide tools for Florida local governments to effectively manage investments for operating funds, reserve funds, debt service funds and bond proceeds.
1) Daily Liquidity Fund
The Daily Liquidity Fund seeks to deliver competitive returns with a stable net asset of $1.00 per share. This fund benefits operating funds and those funds with short term liquidity requirements. The fund is rated AAAm by S&P Global Ratings and is compliant with GASB 79.
2) Enhanced Cash Fund
The Enhanced Cash Fund has a target duration of 1 year and seeks to deliver greater return than the Daily Liquidity Fund. The fund invests in a diversified mix of high-quality bonds and can serve as a core investment for operating funds with few liquidity requirements. It is rated AAAf by S&P Global Ratings.
3) Laddered Portfolio Program
The Laddered Portfolio Program (LPP) is designed to meet the needs of local governments which seek a simple way to invest funds with known cash flows such as bond proceeds and core funds. Investments in the LPP are not part of the FL SAFE Trust.
Daily Liquidity Fund Highlights
- The primary objectives of the Daily Liquidity Fund in priority order, shall be safety, liquidity, transparency and yield
- The Daily Liquidity Fund seeks to comply with Florida Statutes 218.415
- Seeks to maintain stable $1.00 Net Asset Value (NAV) and provide same day liquidity for transactions entered by 1 pm ET
- Meets the need of investors which seek to diversify their liquidity investments
- No account minimum, unlimited number of accounts
- The Daily Liquidity Fund is rated AAAm by S&P Global Ratings
- GASB 79 compliant (10% daily liquidity, 30% weekly liquidity in high quality investments)
- Weighted Average Maturity limited to 60 days
- Weighted Average Life limited to 90 days
Enhanced Cash Fund Highlights
- The Enhanced Cash Fund seeks to provide current income with limited price volatility
- The Enhanced Cash Fund’s net asset value (market value) is calculated daily
- Suitable for investors with a slightly longer time horizon than the Daily Liquidity Fund
- The Enhanced Cash Fund seeks to maintain a target duration of 1 year
- The Enhanced Cash Fund longer duration profile seeks to produce additional income compared to the Daily Liquidity Fund
- Invests in a diversified portfolio of short-term, high-quality, investment-grade fixed income securities
- The Enhanced Cash Fund seeks to comply with Florida Statutes 218.415 and is rated AAAf by S&P Global Ratings
- The net asset value of the Enhanced Cash Fund will fluctuate as the market value of the underlying securities change over time, and the net asset value of a Participant’s investment could decline below the amount originally invested. A Participant that cannot bear this risk should not invest in Enhanced Cash Fund.
- Dividends are automatically reinvested each month
- Provides next day liquidity for transactions entered by 1:00 pm ET
Laddered Portfolio Program Highlights
- Investments offered with maturity dates up to five years
- Program aligned to meet specific cash flow needs, ideal for investing bond proceed project funds and core funds
- Permitted investments are U.S. Treasury securities, providing a high degree of safety and liquidity
- Online transaction and reporting available 24/7 as well as consolidated FL SAFE statements
- Maturities are automatically reinvested in the FL SAFE Daily Liquidity Fund and remain fully invested unless directed otherwise
- The annualized investment advisory fee is 0.05% (5 basis points)
- The FL SAFE Information Statement provides for other additional services as approved by the Board of Trustees of the Trust. Participants in the Trust may invest in a value-added program of the Trust, which is not a Series of or investment in the Trust, called the Laddered Portfolio Program. Chandler Asset Management, Inc. is authorized, as investment adviser to the Trust, to engage in direct client relationships with any participant under the guidelines of the Laddered Portfolio Program.
For more information on how the LPP can be used to manage bond proceeds, please click here.