Public Funds Investment Institute

State and local governments are a sizable segment of the financial markets.

They hold more than $4 trillion in cash and investment securities in their operating and reserve accounts.   Their investment activities are constrained by cash operating needs and prescribed by state laws.  They are significant institutional participants in the fixed income markets where other participants—banks, brokers, corporate treasurers—have access to scale, resources and sophistication that few public funds investors enjoy.   

The market is characterized by a small number of very large investors— including state treasurers and Local Government investment Pools—the largest of which manage more than $200 billion (California)--some large local governments (Los Angeles County manages more than $40 billion), and thousands of mid-sized and smaller investors some of whom act for their own accounts and many of whom rely on pooled investments to intermediate for them.  

The goals of the Public Funds Investment Institute are to assist public officials who oversee the management and investment of these funds to implement investment best practices, educate their constituents, advocate for supportive policies from government regulators and adopt and implement the best technologies.