Investment Options
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 is rated AAAm* by Standard & Poor's and 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 Connect
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 Connect
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**.
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 AAAf rating reflects Fitch Ratings’ (“Fitch”) review of the Term program’s investment and credit guidelines, the portfolio’s credit quality and diversification, as well as the capabilities of PFM Asset Management LLC as investment adviser. It indicates the highest underlying credit quality (or lowest vulnerability to default). However, it should be understood that this rating is a not “market” rating nor a recommendation to buy, hold or sell the securities. For a full description on rating methodology visit www.fitchratings.com.
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Important Announcement
Please read this important announcement from our investment manager. There are no holdings or exposure to Silicon Valley Bank or its parent company, as well as Signature Bank, New York, within the Program.
Click here to learn more.
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