PFII on CA, NY, NH and PA LGIPs
The Public Funds Investment Institute (PFII) writes on "LGIPs: New Pools and Manager Changes." They explain, "In October 2024 we wrote about local government investment pools changing managers. It's unusual but not unheard of in the LGIP business. Sometimes an LGIP simply replaces a manager and sometimes local governments band together to create a new fund to bring in a manager or expand competition in a state. We've seen both recently." The PFII writes, "California: CalFIT (California Fixed Income Trust) is a new LGIP that began offering a stable value portfolio in the fall. It invests in government and high grade corporate and bank obligations and is managed by Chandler Asset Management, a California based firm that entered the LGIP business in 2024 when it replaced Public Trust Advisors as manager of the FL SAFE LGIP in Florida. As of December 31, 2025, CalFIT reported $331 million in assets. California has a long-established state-sponsored and three other local-sponsored LGIPs. Large states are well able to support multiple LGIPs. California joins Florida and Texas in this regard." The piece continues, "New York: The EPIC Fund, (Empire Public Investment Cooperative Fund of New York) is in creation. It is sponsored by the Association of Towns and will be managed by US Bank's PFM Asset Management organization. S&P Global issued a rating for the new fund (AAAm) in December. The rating describes the fund as seeking to maintain a stable asset value by investing only in U.S. government obligations, repurchase agreements and collateralized bank deposits. Other New York LGIPs are managed by Dreyfus, a division of BNY, and PTMA Financial Solutions.... New Hampshire: The State-sponsored Public Deposit Investment Pool replaced PFM Asset Management with PTMA Investment Advisors (a successor by merger to Public Trust Advisors and PMA Advisors) after it issued a request for proposals in May 2025 for investment management, record keeping administration and custody services. The fund also replaced US Bank as custodian with UMB Bank. PFM Asset Management had managed the fund since 2015. The fund offers a prime-type stable value portfolio. It reported $679 million in assets in September 2025." Finally, the add, "Pennsylvania: The state sponsored Invest LGIP outsourced its investment management late in 2025 to Federated Hermes, Inc. For the first 20 plus years of existence Invest was managed and distributed by state Treasury staff. It is the smallest of three LGIPs in the state with $1.4 billion in assets (as of October 2025) invested in prime portfolios managed with the objective of maintaining a stable value. It offers a Daily Pool for local governments and a Community Pool for nonprofit organizations."
