About the Fund > Investment Options

MSDLAF+ Portfolio This short-term money market portfolio is a cash-management vehicle created exclusively for Minnesota school districts. The Portfolio is managed to maintain a dollar-weighted average portfolio maturity of no greater than 60 days and seeks to maintain a constant net asset value (NAV) per share of $1.00. The MSDLAF+ Portfolio offers two share classes:

Liquid Class  

  • Designed for flexibility and daily liquidity; 
  • Competitive money market returns; 
  • Minimum balance requirement of $1.00, no minimum investment deposit or redemption requirements; 
  • Check-writing privileges upon request; 
  • 2 p.m. Eastern Time transaction deadline; 
  • Unlimited number of deposits and withdrawals; 
  • Transactions by wire, ACH and check; 
  • Sub-accounting to track multiple funds/accounts ; and 
  • Manage account online with Easy Online Network (EON)
  • Rated AAAm* by Standard & Poor's.

 MAX Class  

  • Competitive money market returns;
  • No minimum investment deposit or redemption requirements; 
  • Investments may not be redeemed for at least 14 calendar days with the exception of direct investments of funds distributed by the State of Minnesota; 
  • 24 hour hold on all requests for redemptions; 
  • Redemptions prior to 14 days may be subject to penalty; 
  • Unlimited number of deposits and withdrawals; 
  • Transactions by wire and ACH; and 
  • Manage account online with Easy Online Network (EON)

 MSDLAF+ Term  This fixed rate investment is designed to match the cash flow requirements of Investors with the cash flows from the portfolio.

  • Minimum maturity of 60 days;
  • Maximum maturity of one year; 
  • Minimum investment of $100,000; 
  • Projected dividend rate provided upon purchase and paid upon redemption date;
  • Early withdrawal may result in substantial early redemption penalty; and 
  • Rated AAAf by Fitch and AAAfk by Kroll**.

Individually Managed Portfolios 

MSDLAF+ offers school districts the option to have an individual portfolio managed to meet each school district’s specific investment objectives. An individually managed portfolio provides a school district with:

  • The investment advisory resources of PFMAM, a leading investment advisory firm serving the public sector; 
  • Investments tailored to meet the school district’s liquidity needs or specific draw schedule; 
  • Professional portfolio management focused on enhancing earnings and managing risks; 
  • Investment purchases determined by each school district’s investment policy or bond documents; 
  • Competitive shopping for every security to seek the most favorable price and execution; 
  • Third-party custody of all assets ; and 
  • Investment management and custody services at a reasonable cost.

Individually managed portfolios are linked to the Investor’s MSDLAF+ account so that maturities and coupon payments are invested at all times. Individually managed investment portfolios, which are not a part of the Fund, are available under a separate agreement with PFMAM.

Arbitrage Rebate Compliance Services  

For bond proceeds invested with MSDLAF+, PFMAM tracks the proceeds for arbitrage rebate compliance purposes. Investors can receive the following correspondence/reports:

  • Spending exception compliance; including notification of an upcoming benchmark;
  • Yield restriction compliance notification; 
  • Annual estimates of accrued arbitrage rebate and yield restriction liabilities; 
  • Notification of Installment Calculation Date sent 60 days in advance of the required calculation date; 
  • Retention of arbitrage related documents and investment records; and 
  • Rebate Calculation Reports that are available at a nominal charge 

 Investors can check the arbitrage status of any of their bond issues invested with MSDLAF+ by contacting MSDLAF+ at 1-888-4-MSDLAF or 1-717-724-4997.


 *Standard & Poor's fund ratings are based on analysis of credit quality, market price exposure, and management.  According to Standard & Poor's rating criteria, the AAAm rating signifies excellent safety of investment principal and a superior capacity to maintain a $1.00 per share net asset value.  However, it should be understood that the rating is not a "market" rating nor a recommendation to buy, hold or sell the securities.  For a full description on rating methodology, visit Standard & Poor's website (http://www.standardandpoors.com/en_US/web/guest/home).

**The Term portfolio has received a rating of AAAf from Fitch Ratings ("Fitch") and a AAAfk rating from Kroll Bond Rating Agency ("Kroll").  The ratings reflect Fitch's and Kroll's review of the Term program's investment and credit guidelines, the porfolio's credit quality and diversification, as well as the capabilities of PFM Asset Management LLC as investment adviser.  The Fitch AAAf rating indicates the highest underlying credit quality (or lowest vulnerability to default).  The Kroll AAAkf rating is based on the credit quality of the underlying instruments that comprise the portfolio and is influenced by the results of a qualitative assessment of the investment adviser.  However, it should be understood that these ratings are not "market" ratings nor a recommendation to buy, hold or sell the securities.  For a full description on rating methodology visit www.fitchratings.com and www.krollratings.com/ratings/methodologies/rating-scales.


 

This information is for institutional investor use only, not for further distribution to retail investors, and does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security. Investors should consider the investment objectives, risks, charges and expenses before investing in any of the Fund's series. This and other information about the Fund's series is available in the Fund's current Information Statement, which should be read carefully before investing. A copy of the Fund's Information Statement may be obtained by calling 1-888-4-MSDLAF or is available on the Fund's website at www.msdlaf.org. While the MSDLAF+ Liquid Class and Max Class seek to maintain a stable net asset value of $1.00 per share and the MSDLAF+ TERM series seek to achieve a net asset value of $1.00 per share at its stated maturity, it is possible to lose money investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Shares of the Fund are distributed by PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA) (www.finra.org) and Securities Investor Protection Corporation (SIPC) (www.sipc.org). PFM Fund Distributors, Inc. is a wholly owned subsidiary of PFM Asset Management LLC.