The Virginia Investment Pool Trust Fund (VIP) was established to provide political subdivisions of the Commonwealth of Virginia an investment vehicle to pool their funds and to invest under the direction and daily supervision of a professional fund manager. VIP was developed in 2013 by local Treasurers and investment officers with the sponsorship of the Virginia Association of Counties and the Virginia Municipal League.
VIP offers three investment portfolios:
Stable NAV Liquidity Pool
The Stable NAV Liquidity Pool, rated AAAm by Standard & Poor’s (S&P), offers a stable net asset value, daily liquidity and a competitive yield. The Stable NAV Liquidity Pool is ideal for managing operating funds requiring immediate access. An online interface enables participants to connect their Liquidity Pool accounts to external bank accounts for convenient access.
Fixed Term Portfolios
The Fixed Term Portfolios, rated AAAf by Fitch Ratings, are designed to bridge the gap between the Stable NAV Liquidity Pool and the 1-3 Year High Quality Bond Fund. Fixed Term Portfolios enable participants to lock-in an interest rate for the term that is selected – 3, 6, 9, or 12 months. Each Fixed Term Portfolio will consist of highly rated securities permitted by the Code of Virginia. Fixed Term Portfolios are ideal for managing short-term cash and locking in a rate until funds are needed at a future date over the coming year.
1-3 Year High Quality Bond Fund
The 1-3 Year High Quality Bond Fund, rated AA+f/S1 by Standard and Poor’s (S&P), is designed for funds that can be invested generally for one year or longer. The fund is considered a core investment for local governments, incorporating a diversified portfolio of security types authorized under the Code of Virginia. The 1-3 Year Fund’s returns are benchmarked against the Bank of America Merrill Lynch One-to-Three Year Corporate & Government Index.
VML/VACo Finance is the administrator of VIP. Public Trust Advisors, LLC (PTA) serves as Investment Manager. PTA is a Securities and Exchange Commission registered, independent investment advisor with significant local government investment pool experience. PTA manages more than $90 billion in public funds nationwide. JP Morgan Chase is VIP’s custodian bank. Primary benefits of participation in the VACo/VML Virginia Investment Pool include professional investment management, diversification, shared costs, and competitive rates of return.