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. It seeks to maintain a constant net asset value (NAV) per share of $1.00. The MSDLAF+ Portfolio is rated AAAm by S&P Global1 and offers two share classes:
Liquid Class
- Designed for flexibility and daily liquidity
- 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
- 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
- Manage account online with Connect
MSDLAF+ Term: A fixed-rate investment portfolio designed to match the cash flow requirements of investors with the cash flows from the portfolio.
- Maturities ranging from 60 days to 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
- Rated AAAf by Fitch Ratings2
Individually Managed Portfolios
In addition to the Fund, MSDLAF+ offers investors the option to contract with its investment adviser to have an individual portfolio managed to meet specific investment objectives. An individually managed portfolio provides an investor with:
- The resources of PFM Asset Management3 (PFMAM), a firm with more than 40 years of experience serving the public sector
- Investments tailored to meet the agency's liquidity needs or specific draw schedule
- Professional portfolio management focused on enhancing earnings and managing risk
- Investment purchases determined by the agency'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
- Investment management and custody services at a reasonable cost
Individually managed portfolios are automatically linked to the investor’s MSDLAF+ account so that maturities and coupon payments are invested at all times. Individually managed investment portfolios are not a part of the Fund. They are available under a separate agreement with the investment adviser.
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
- 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 calling 888.4.MSDLAF.
1 S&P Global AAAm Rating: S&P evaluates a number of factors, including credit quality, market price, exposure, and management. Please visit SPGlobal.com/Ratings for more information and ratings methodology.
2 Fitch AAAf Rating: portfolios with this rating indicate having the highest underlying credit quality. Please visit fitchratings.com for more information and ratings methodology.
3 PFM Asset Management is a division of U.S. Bancorp Asset Management Inc., the MSDLAF+’s investment adviser and administrator, that services public sector clients.
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