SPRINGFIELD — S&P Global Ratings has issued The Illinois Funds investment pool a AAAm credit rating, the highest available, Illinois State Treasurer Michael Frerichs said.
The strong, positive rating of the treasurer’s office investment fund counters the string of downgrades and negative outlooks issued to instruments issued by Gov. Bruce Rauner.
“This top-notch rating reflects our approach to investing taxpayer money,” Frerichs said. “The rating shows our success at balancing the access and availability of funds while receiving a strong return on investment for this type of product.”
The Illinois Funds is a local government investment pool that invests dollars from local units of government such as counties, municipalities, and school districts. Investing together generates rates of return typically not available if participants invested alone. The Illinois treasurer’s office has managed The Illinois Funds since 1975. The fund balance typically is about $5 billion.
More than 7,000 government units in Illinois can participate in The Illinois Funds. Deposits and withdrawal s are available daily. Any custodian of public funds in Illinois can participate. The pool invests in liquid, high-quality short-term investments. The Illinois Funds has been rated since 1996.
The AAAm rating indicates the fund “demonstrates extremely strong capacity to maintain principal stability and to limit exposure to principal losses due to credit risk,” according to S&P Global Ratings.
About the Illinois Treasurer
The Illinois Treasurer is the state’s chief investment officer and Frerichs is a Certified Public Finance Officer. He protects consumers by encouraging savings plans for college or trade school, increasing financial education among all ages, and removing barriers to a secure retirement. As the state’s Chief Investment Officer, he actively manages approximately $25 billion. The portfolio includes $13 billion in state funds, $7 billion in college savings plans and $5 billion on behalf of local and state governments.
The investment approach is cautious to ensure the preservation of capital and returns $28 to the state for every $1 spent in operations. The Treasurer’s Office predates Illinois incorporation in 1818. Voters in 1848 chose to make it an elected office.
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