SHORT TERM INVESTMENT PROGRAM
STIP Update Memo - November 18, 2008
STIP Update Memo - September 5, 2008
STIP Update & Policy Revision Recommendations - February 13, 2008
OBJECTIVES:
The STIP Program objectives are preservation of capital, maintaining high liquidity and obtaining current income reflective of money market yields.
Investment Policy Statement:
The purpose of this document is to establish policies that will govern the investment activities of the Montana Board of Investments (MBOI) with regard to the management of the Short-term Investment Pool (STIP). These policies are adopted by, and can be changed only by a majority of Board members at a publicly-noticed meeting.
These policies are designed to ensure the prudent management of public funds, conformance to Montana Constitution and law, the availability of operating and capital funds when needed, and an investment return competitive with comparable funds and financial market indices.
All participants in the investment process shall act responsibly as custodians of the public trust and shall recognize that the STIP portfolio is subject to public review and evaluation. The pool shall be designed and managed in accordance with the standards of a “prudent expert” and managed as a “2a-7–like” portfolio.
The Investment Policy Statement for the Short - Term Investment Pool (STIP) was last revised and approved on December 18, 2008. The STIP Investment Policy Statement is available as a PDF document.
PROCEDURES
Applicant Eligibility
• As authorized
by Sections 17-6-202 and 204, MCA, STIP shareholders are qualifying state
agencies and Montana local governmental units, including cities, counties
and school districts. State agencies must have appropriate written, statutory,
grant, or contract authority to invest their funds and receive the investment
earnings.
• STIP Participation Agreements, signed by shareholders, must be on file
with the Board of Investments (BOI) before shareholders can invest.
Shares
• The shareholder’s
STIP ownership is represented by shares. Shareholders having funds to invest
and owning shares are required to give one business day’s notice to buy
or sell shares.
• Share prices are fixed at $1.00 per share.
• The STIP investment portfolio consists of securities with maximum maturity
of 397 days or less. The portfolio is carried at amortized cost.
Confirmations
• Each shareholder who buys or sells STIP shares is able to confirm the transaction by close of business on the day of the transaction on the Boards' web site. The confirmation includes the number of shares bought or sold and the transaction amount. If the transaction has not been properly recorded, please notify the STIP accountant immediately.
Distribution
• STIP income is distributed on the first calendar day of each month. Shareholders have the option to automatically reinvest their distribution income in additional shares.
Administrative Expenses
• The STIP administrative expenses are charged daily against the STIP income.
Investment Procedures
• To buy
shares, each shareholder must transmit funds to the State Treasurer. Only
collected funds received by the State Treasurer will be available to buy STIP
shares.
• Based on the shareholder’s instructions, the STIP Account Manager
electronically transfers the necessary funds from the Treasurer’s account
or Local Government’s bank account to the Board of Investments to buy
STIP shares.
• To sell STIP shares, the STIP Account Manager electronically transfers
or wires the sales proceeds to the shareholder’s treasury or bank account.
• To initiate a buy or sell of STIP shares, one business day’s notice
is required. If instructions to initiate STIP transactions
are received after 2:00 p.m., these transactions will be processed on the
second business day after receipt of the instructions.
Unaudited Fiscal Year 2009 Financial Statement
Click here to view the Unaudited Short Term Investment Pool Financial Statement of Net Asset Value June 30, 2009 and 2008 in PDF format.
Month-End Report
Click here to view the Shareholder Account Statement in HTML format;
or the Shareholder Account Statement in Excel format.This report details each transaction occurring during the month and the Share Balance and the Current Years’ Activity for income. This report is updated monthly. To locate your accounts in the files do the following:
Excel Format ------ Enter Control F and type in the account number. Make sure the "value" box is checked.
HTML Format --------Enter Control F and type in the account number.
Daily STIP Confirmations
Click here to view the STIP Confirmations/Shareholder Account Statement in HTML format;
or the STIP Confirmations/Shareholder Account Statement in Excel format.
This report is updated daily when the STIP report is processed by the BOI Accounting Staff.Or the STIP Confirmation/Cumulative Shareholder Account Statement in Excel format. This report lists all daily STIP transactions since September 1, 2008.
Previous Day Share Balance
Click here to view the STIP share balance report in HTML format. This report is updated daily when the STIP report is processed by the BOI Accounting Staff.
Daily Factor and Yield:
Click here to view the prior month STIP Yield and Daily Factor Calculations in HTML. This report is updated monthly.
Click here to view the month-to-date STIP Yield and Daily Factor Calculations in HTML. This report is updated daily.
The average STIP yield for Fiscal Year 2009 was 1.7373.
Download STIP Form:
Contact Information
Montana Board of Investments Attn: April Madden, STIP Program Manager 2401 Colonial Drive, 3rd Floor P.O. Box 200126 Helena, MT 59620-0126 |
