INVEST PA Program for Governments and Nonprofits
Created by the Pennsylvania Treasury, INVEST PA is a family of highly rated investment pools designed specifically for local government and nonprofit groups. INVEST PA is similar in concept to money market funds, offering two rated pools with short-term maturity as well as periodic custom investment opportunities for longer-term investment needs.
INVEST PA’s Daily Pool and Community Pool are overseen by Treasury and managed by Federated Hermes.
INVEST PA is monitored by and has earned the highest rating from Standard & Poor’s. The Invest Daily Pool and Invest Community Pool are both rated AAAm.
General Information
Pools
Policies
Application Process
Treasury’s investment staff monitor the investment markets and INVEST pools daily with three objectives:
Conserve Principle
: Treasury works to conserve principle by investing only in high quality instruments. INVEST PA pools are monitored by and have earned the highest rating available from Standard & Poor’s.
Provide Flexible Liquidity
: INVEST PA pools, similar in concept to money market funds, are developed to meet your cash flow needs. The Daily and Community Pools offer daily liquidity without penalty. In addition, Treasury's investment team develops custom pools to meet participants' longer-term investment needs with a potential for larger returns to mature when participants' future bills will come due. Because INVEST PA offers several different pools with varying liquidity, you can structure your investments to meet your needs and goals.
Contain Costs
: Federated can negotiate better rates by buying larger quantities of investment instruments at one time. While INVEST PA funds are never commingled with state funds. In addition, Treasury doesn’t seek a profit from INVEST PA, further helping to minimize costs to shareholders.
Service
Daily Pool
Daily Pool
Specifically developed for local government entities
. (counties, cities, boroughs, townships, municipal authorities, school districts and their Intermediate units, and many other forms of "local government.")
Developed to minimize the risk to principal, while maintaining liquidity and maximizing yield for all participants
Monitored daily by Treasury’s Investment Team and by Standard & Poor Ratings – having earned the highest possible ratings
No minimum balance
No required investment period
No transaction charges
No account maintenance charges
No wire or ACH charges
Unlimited number of accounts
Convenient access to your money
You can manage your investments in this pool online or by calling Investor Relations.
Authorized Investment Instruments
Federal Obligations
- Treasury may invest in Federal Obligations (obligations of the United States of America or any of its agencies or instrumentalities) which have a maturity of up to and including 397 days from the date of settlement. This asset class includes United States Treasury bills, notes, bonds, strips, and “short-term” United States agency obligations. S&P Ratings consider all short term short-term Federal Obligations a Level One rated investment.
Repurchase Agreements
- Treasury may enter into Repurchase Agreements with bank or non-bank financial institutions, which shall be secured by United States Government Obligations and Government National Mortgage Association Obligations delivered to Treasury’s account at the Concentration Bank, (Deliverable Repurchase Agreement) or to Treasury’s account with an independent (money center bank or nationally recognized non-bank financial institution) third party subcustodian (Triparty Agreements). No repurchase agreements shall be effective until a fully executed agreement for repurchase, together with a federal wire transfer agreement, are received by the Treasury Department. For purposes of this Policy, a Repurchase Agreement is defined as an agreement by Treasury to buy Federal Obligations on a certain date from a bank or non-bank financial institution. In turn, Treasury shall sell the same United States Government Obligations and Government National Mortgage Association Obligations back to that particular institution on a specific date in the future at the same price plus an additional amount as agreed to by the parties.
Other Debt Instruments
- The Treasury may only invest in other debt instruments of banks, financial institutions and non-financial institutions that are authorized for the shareholder by Commonwealth of Pennsylvania statute. In addition to strict statutory authority, the INVEST Pool investments in other debt instruments shall be made, as restricted and limited by those investment criteria established by the rating agency, S&P Ratings, so long as those investment criteria are as restrictive as the provisions of Pennsylvania statutory authority. According to these investment criteria, other debt instruments may include certificates of deposit and money market funds.
* Data provided represents past performance which cannot be used to predict future returns that may be achieved by the Portfolios. Note that annual returns can and will fluctuate. An investment in the INVEST program is neither insured nor guaranteed by the U.S. government, and there is no assurance that the fund will be able to maintain a stable net asset value of $1.00 per share. INVEST Daily portfolio is compared to the Pennsylvania School District Liquid Asset Fund (PSDLAF), a fund marketed by RBC Dain Rauscher Corporation, and the Pennsylvania Local Government Investment Trust (PLGIT), operated by Public Financial Management, Inc.
Custom Pool
Custom Pool
Treasury’s investment staff develop special investment opportunities offered only to existing INVEST participants.
Custom Certificate of Deposit Pools
In 1999, Treasury developed Custom Certificate of Deposit Pools to fulfill two goals: meet the needs of INVEST participants who want the potential to earn more in a longer-term investment vehicle designed to mature at a time when participant bills come due, and to meet the Treasurer's goal to invest in Pennsylvania whenever possible.
Treasury pools participant funds together to purchase larger Certificates of Deposit issued by local banks across the state. INVEST participants enjoy better CD interest rates, while local banks get millions of dollars in additional capital to stimulate local economic development.
Since 1999, 165 INVEST participants have invested more than $144 million in the five separate Custom CD Pools Treasury has offered.
Flexible Repurchase Agreement Opportunities
In 2001, Treasury offered a new flexible repurchase agreement option to help INVEST participants invest their bond proceeds in investments with maturity dates that coincide with payout schedules.
Through this option, flexible repurchase agreements provided collateralized fixed rates of return determined through a competitive bid process involving only INVEST approved financial institutions. Each flexible repurchase agreement provides either a fixed or floating rate of return on the deposit amount, with terms that can be from 90 days up to the maturity of the bond.
All repurchase agreements are collateralized at 102% of market value. This ratio is maintained by marking the collateral to market on a daily basis. If at any time the collateral falls below the required amount additional collateral must be pledged.
Community Pool
Community Pool
Specifically developed for nonprofit entities
– defining factor is entity tax code status: 501(c)(3), 501(c)(4), 501(c)(6):
Charities and Foundations
- 501(c)(3) - Hospitals, museums and orchestras, private schools, public television and radio stations, libraries, fire and emergency services and many social service or care based organizations are 501(c)(3) nonprofits.
Social Welfare or Advocacy Organizations
- 501(c)(4) nonprofits have greater latitude to participate in legislative advocacy, lobbying, and political campaign activities. Nonprofits such as the National Association for the Advancement of Colored People, the National Rifle Association, and the National Organization for Women are considered social welfare organizations.
Professional and trade associations
- 501(c)(6), Chambers of commerce, business leagues, credit unions, and other organizations that promote the business or professional interests of a community, an industry, or a profession generally qualify for tax-exemption under Section 501(c)(6) of the tax code.
Developed to minimize the risk to principal, while maintaining liquidity and maximizing yield for all participants.
Monitored daily by Treasury’s Investment Team and Standard & Poor’s – having earned the highest possible ratings.
No minimum balance
No required investment period
No transaction charges
No account maintenance charges
No wire or ACH charges
Convenient access to your money
You can manage your investments in this pool online or by calling Investor Relations.
Authorized Investment Instruments
Federal Obligations
- Treasury may invest in Federal Obligations (obligations of the United States of America or any of its agencies or instrumentalities) which have a maturity of up to and including 397 days from the date of settlement. This asset class includes United States Treasury bills, notes, bonds, strips, and “short-term” United States agency obligations. S&P Ratings consider all short term short-term Federal Obligations a Level One rated investment.
Repurchase Agreements
- Treasury may enter into Repurchase Agreements with bank or non-bank financial institutions, which shall be secured by United States Government Obligations and Government National Mortgage Association Obligations delivered to Treasury’s account at the Concentration Bank, (Deliverable Repurchase Agreement) or to Treasury’s account with an independent (money center bank or nationally recognized non-bank financial institution) third party subcustodian (Triparty Agreements). No repurchase agreements shall be effective until a fully executed agreement for repurchase, together with a federal wire transfer agreement, are received by the Treasury Department. For purposes of this Policy, a Repurchase Agreement is defined as an agreement by Treasury to buy Federal Obligations on a certain date from a bank or non-bank financial institution. In turn, Treasury shall sell the same United States Government Obligations and Government National Mortgage Association Obligations back to that particular institution on a specific date in the future at the same price plus an additional amount as agreed to by the parties.
Other Debt Instruments
- The Treasury may only invest in other debt instruments of banks, financial institutions and non-financial institutions that are authorized for the shareholder by Commonwealth of Pennsylvania statute. In addition to strict statutory authority, the INVEST Pool investments in other debt instruments shall be made, as restricted and limited by those investment criteria established by the rating agency, S&P Ratings, so long as those investment criteria are as restrictive as the provisions of Pennsylvania statutory authority. According to these investment criteria, other debt instruments may include certificates of deposit and money market funds.
Administration Fee
9 Basis Points
6 Basis Points
9 Basis Points
Transaction Fee
None
None
None
Transactions
Unlimited
At Maturity
Unlimited
Balance Requirement
None
As Per Specific Investment
None
Term
Same Day
Same Day or Designated Day
Same Day
Accounts
Unlimited
Unlimited
Unlimited
Deposits
No Maximum No Minimum
$100,000 Minimum
No Maximum No Minimum
Interest
Calculated Daily Paid Monthly
Paid At Maturity
Calculated Daily Paid Monthly
Transaction Confirmation
Next Business Day
Next Business Day
Next Business Day
Statements
Monthly
Initial Deposit and Maturity
Monthly
Authorized investments are limited to the following investment instruments:
Federal Obligations
Treasury may invest in Federal Obligations (obligations of the United States or any of its agencies or instrumentalities) which have a maturity of up to and including 397 days from the date of settlement. This asset class includes United States Treasury bills, notes, bonds, strips, and "short-term" United States agency obligations. S&P Ratings consider all short-term Federal Obligations a Level One rated investment.
Repurchase Agreements
Treasury may enter into Repurchase Agreements with bank or non-bank financial institutions, which shall be secured by United States Government Obligations and Government National Mortgage Association Obligations delivered to Treasury’s account at the Concentration Bank, (Deliverable Repurchase Agreement) or to Treasury’s account with an independent (money center bank or nationally recognized non-bank financial institution) third party subcustodian (Triparty Agreements). No repurchase agreements shall be effective until a fully executed agreement for repurchase, together with a federal wire transfer agreement, are received by the Treasury Department. For purposes of this Policy, a Repurchase Agreement is defined as an agreement by Treasury to buy Federal Obligations on a certain date from a bank or non-bank financial institution. In turn, Treasury shall sell the same United States Government Obligations and Government National Mortgage Association Obligations back to that particular institution on a specific date in the future at the same price plus an additional amount as agreed to by the parties.
Other Debt Instruments
The Treasury may only invest in other debt instruments of banks, financial institutions and non-financial institutions that are authorized for the shareholder by Commonwealth of Pennsylvania statute. In addition to strict statutory authority, the INVEST PA Pool investments in other debt instruments shall be made, as restricted and limited by those investment criteria established by the rating agency, S&P Ratings, so long as those investment criteria are as restrictive as the provisions of Pennsylvania statutory authority. According to these investment criteria, other debt instruments may include certificates of deposit and money market funds.
Two categories of entities are eligible to apply for INVEST PA participation:
Local government agencies (county, city, township, school district, intermediate unit, council of government, municipal authority, or other form of “local government” in Pennsylvania).
Nonprofit organizations with a tax status of 501(c)(3), 501(c)(4), or 501(c)(6).
To apply, you must complete two forms, both of which are available here as fillable PDFs:
INVEST PA Application
INVEST PA Agreement (contract)
To fill out these forms on your mobile device you will need to use/download an outside PDF application, otherwise you will need to print out the forms or use a computer.
Please be sure the Agreement is signed by an authorized representative, then email the completed documents to
investoperations@patreasury.gov
The links to the right provide more information, including current S&P Ratings, the Investment Policy Statement, the most recent INVEST PA Annual Report, and the most recent audit of INVEST PA conducted by the Pennsylvania Department of the Auditor General.
If you have any questions, contact INVEST PA by calling (844) 468-7202.
My INVEST PA
INVEST PA
ACCOUNT ACCESS
INVEST PA
P.O. Box 219210
Kansas City, MO 64121-9210
(844) 468-7202
investpaparticipantservices@federatedhermes.com
INVEST PA Daily
INVEST PA Community
INVEST PA Program Annual Report
INVEST PA Daily S&P
INVEST PA Community S&P
Investment Policy
Act 10
INVEST PA Audit Report
129 Finance Building
Harrisburg, PA 17120
Executive Office
(717) 787 2465
Unclaimed Property
(800) 222 2046
Useful Links
Treasurer Stacy Garrity
About Treasury
Careers at Treasury
Email Newsletter
Unclaimed Property
Money Match
PA 529
PA ABLE
Keystone Scholars
INVEST PA
OpenBookPA
Contracts e-Library
BF&R
Procurement
TABS
UC/SWIF/SSP
PUA/UC/FAQs
Newsroom
Historical Biographies
Forms
Contact
Disclosures
Privacy & Disclaimers
Account Login Quick Links
PA 529 IP
PA 529 GSP
PA ABLE
Keystone Scholars
My INVEST PA
Holders
Unclaimed Property
Claim Search
Holders
Finders
Tangible Property
Reports
Investment Reports
TABS Reports
Divestment Reports
Gaming Market Analysis (2011)
Social Media
(current)
About
Treasurer
Procurement
Accomplishments
Careers at Treasury
Historical Biographies
Transparency
Account Validation Services
OpenBookPA
TABS
Contracts e-Library
Right to Know
Programs
Unclaimed Property
Start Your Search
Search Military Decorations
Money Match
Finder
Holders
Tangible
PA 529 College and Career Savings
Keystone Scholars
PA ABLE Savings Program
Consumer Programs
Budget Bridge Loan
UC/SWIF/SSP
UC/SWIF/SSP
UC Debit Card
UC Debit Card FAQ
SWIF Debit Card
SWIF Debit Card FAQ
PUA/UC FAQs
INVEST PA
Board of Finance & Revenue
Made in PA Mondays
Agri-Link
PennSEF
Account Validation Services
Commonwealth Checks Policy
Investments
Newsroom
Contact
Copyright © 2017 Pennsylvania Treasury.