Illinois Funds FAQs
Get clear answers about the Illinois Funds investment pool, a trusted option for Illinois public agencies to invest and manage public funds. Explore common questions about eligibility, how the pool works, liquidity and safety, and how to get started, so your agency can make informed decisions with confidence.
The Illinois Funds, created in 1975 by State statute (15 ILCS 505/17), is the State’s Public Treasurers’ Investment Pool, administered by the Illinois State Treasurer, offering another investment opportunity for custodians of “Public Funds” for “Public Agencies”.
Custodians of “Public Funds” may participate in The Illinois Funds. “Public Funds” and “Public Agencies” are described in (30 ILCS 235/1).
Rates change daily and are posted online at Illinois Funds Daily Rates and accessible via 800-947-8479 between 3:30 p.m. and 4:30 p.m. daily.
No, funds may be invested one day and withdrawn the next. The funds would earn interest for that one day.
Please see all of the options available to you at Account Access.
Accounts that are fully liquidated will be purged from the custodial bank’s system annually (typically in July) after 12 months of inactivity. Only authorized contacts can send a signed letter to our administrative office requesting to fully redeem funds in an Illinois Funds account or submit a request online to transfer funds to a bank on file.
Further, if The Illinois Funds account has any Comptroller distributions funding to it, the authorized contact needs to also request that these distributions be shut down within the signed letter to our administrative office.
Following the initial liquidation, if any funds are deposited into the account the account will reactivate on the custodial bank’s system.
If no Comptroller distributions are setup, an authorized contact on an Illinois Funds account can bypass the administrative office all together and liquidate their Illinois Funds account online.
No, there is no minimum balance requirement with Illinois Funds accounts. You may draw your account down to a zero balance without the account being closed.
You may have as many accounts as you need. There is no fee for Illinois Funds accounts.
Yes, interest accrues daily and is posted to each account on the last business day of the month.
We do not charge a fee for any transaction on your Illinois Funds account; however, your local institution may charge a fee for ACH or wire transfers to or from your Illinois Funds account.
The safety of the principal is the foremost objective of the investment program. Illinois Funds’ investments are made to preserve capital in the portfolio. Fitch’s highest rating (AAAmmf) is proof positive that the safety objective is being met on your behalf. You may read The Illinois Funds Investment Policy online.
Confirmations are requested online by registering at www.confirmations.com
For dates prior to February 12, 2016
Email: creditreferenceservices@usbank.com
In accordance with GASB Statement No. 40, disclosure of investments in The Illinois Funds in annual financial statements should include: the credit rating of the Funds; the value of your investments as of the reporting date; and the Weighted Average Maturity (WAM).
| The Illinois Funds (LGIP) | AAAmmf Rated | $ 1,234,567.89 | WAM 57.7 Days |
Wire redemption requests received in good order prior to 11:00 a.m. Central (“CT”) will be processed that same day and will not participate in that day’s income accrual. Wire redemptions received in good order after 11:00 a.m. CT but prior to the Illinois Funds’ close (3:00 p.m. CT) will be processed that same day, but will also receive that day’s income accrual. All wire redemption transactions received in good order after the Illinois Funds’ 3:00 p.m. close will be processed the next business day.
Please note that ACH redemption proceeds may take 2 to 3 business days to be settled in your bank account.
ACH redemptions (debits) are considered next-day settlements and may take 2 to 3 business days to settle into the receiving bank account. The following exceptions apply:
- If the purchase was processed through ACH, there is a 5-business-day hold before funds are available for redemption.
Same-day credit is available only by wire.
All wire purchases (deposits) received in good order prior to 11:00 a.m. Central (“CT”) will be processed that same day and will participate in that day’s income accrual. Wire purchases received in good order after 11:00 a.m. CT, but prior to the Illinois Funds’ close (3:00 p.m. CT), will be processed that same day, but will receive the next day’s income accrual. All wire purchase transactions received in good order after the Illinois Funds’ 3:00 p.m. close will be processed the next business day.
All ACH purchases (deposits) received in good order prior to 3:00 p.m. Central (“CT”) will be processed that same day and will participate in the next day’s income accrual. All ACH purchase transactions received in good order after the Illinois Funds’ 3:00 p.m. close will be processed the next business day.
Online and telephone purchases initiated via ACH will not be redeemable for 5 calendar days. Purchases initiated via wire transfer are immediately available.
Yes, in addition to the monthly mailed statements, they may be found on the home page of the online portal under a link titled “View Statements”.
As part of a pooled investment fund, participants own the fund’s assets in proportion to their participation. U.S. Bancorp Fund Services is the fund’s accounting and independent valuation agent, which calculates participant earnings each day the fund is open.
The Illinois Funds account is not FDIC insured. The Illinois Funds is not a bank; it is an investment pool and does not qualify for FDIC insurance.
The portfolio management team adheres to a strict investment policy that includes weekly oversight by the ratings agencies. Investments are submitted to FITCH on a weekly basis for compliance and risk review. The Illinois Funds holds an AAAm rating from FITCH and has never been downgraded in its history.
As part of SEC Rule 2a-7 requirements, The Illinois Funds undergo monthly stress testing to ensure its net asset value (NAV) remains at $1.00 per share. The portfolio is subjected to a series of tests that mimic extreme economic conditions to assess its NAV stability during periods of market unrest. To date, these stress tests have never resulted in possible losses to principal balances.
Each account in The Illinois Funds is collateralized by the other accounts in the fund, with investment risks shared on a percentage-of-contribution basis. As such, the State of Illinois is the largest investor in The Illinois Funds; therefore, the State bears the largest risk. The fiduciary responsibility of The Illinois Funds team is to preserve principal for the State and its taxpayers, as well as to provide safe, liquid investments for all participants in the Fund.
Yes. If the primary authority has submitted an Illinois Funds application and it has been processed (2-3 business days), an authorized online trader may call 800-947-8479 to inquire about the status of their online credentials. The primary account authority on any Illinois Funds investment account may call USBFS and request the credentials for all authorized users on the account. A non-primary authority who is authorized for online use may only request their own credentials.
The Illinois Funds
c/o U.S. Bank Global Fund Services, LLC
P.O. Box 219252
Kansas City, MO 64121-9252
Administrative fees will be charged to the participants. In determining the administrative fees, the Treasurer shall weigh the following factors: the total asset size of IPTIP; projected cash flows; and the Treasurer’s anticipated administrative and management expenses (e.g., custodial bank, participant accounting, and transfer agency services). The Treasurer shall notify all participants of any increase in the total administrative fees above 5 basis points. In no event shall the total administrative fees exceed 25 basis points (annualized), calculated daily.