About the Virginia Investment Pool

The Virginia Investment Pool (VIP) was established in 2013 by local Treasurers and Investment Officers through the sponsorship of the Virginia Association of Counties and the Virginia Municipal League. The impetus behind the creation of VIP was to develop an investment vehicle in which local governments could jointly invest to prudently achieve higher earnings on operating and reserve funds. VIP enables local governments to take advantage of the full range of investments authorized in the Code of Virginia with the guidance of a professional fund manager.

 

Participants own and control VIP, which is a governmental trust under Section 115 of the Internal Revenue Code. Established through the Joint Exercise of Powers provisions of the State Code, governments and authorities elect to participate in VIP by adopting an ordinance or resolution. In localities with elected Treasurers, Treasurers are empowered by state law to participate in VIP without the ordinance/resolution requirement. Jointly-administered investment pools, such as VIP, are now recognized as an allowable investment in the Investment of Public Funds Act by a unanimous vote of the General Assembly in 2017.

VIP offers two investment portfolios:

Stable NAV Liquidity Pool

The Stable NAV Liquidity Pool, rated AAAm by Standard & Poor’s (S&P), offers a stable net asset value, daily liquidity and a competitive yield. The Stable NAV Liquidity Pool is ideal for managing operating funds requiring immediate access. An online interface enables participants to connect their Liquidity Pool accounts to external bank accounts for convenient access.

1-3 Year High Quality Bond Fund

The 1-3 Year High Quality Bond Fund, rated AA+f/S1 by Standard and Poor’s (S&P), is designed for funds that can be invested generally for one year or longer. The fund is considered a core investment for local governments, incorporating a diversified portfolio of security types authorized under the Code of Virginia. The 1-3 Year Fund’s returns are benchmarked against the Bank of America Merrill Lynch One-to-Three Year Corporate & Government Index.

Primary benefits of participation in the VACo/VML Virginia Investment Pool include professional investment management, diversification, shared costs, and competitive rates of return.

Historical Performance

Stable NAV Liquidity Pool

Avg Monthly Yield (Net)
January 20181.48%
February 20181.55%
March 20181.68%
April 20181.88%
May 20181.96%
June 20182.03%
July 20182.13%
August 20182.16%
September 20182.16%
October 20182.30%
November 20182.36%
December 20182.45%
January 20192.57%
February 20192.59%
March 20192.58%

1-3 Year High Quality Bond Fund

Twelve-month Total Return (Gross)Gross Yield (at period end)
1-3 Year HQ Bond Fund† Benchmark† Book‡Market‡
December 31, 20140.46%*0.49%*0.73%0.77%
December 31, 20150.75%0.59%0.96%1.12%
December 31, 20161.07%0.93%1.15%1.27%
December 31, 20170.73%0.55%1.45%1.94%
December 31, 20181.70%1.64%2.36%2.62%

Performance is not guaranteed. Past performance is not necessarily indicative of future results.

* Since inception on February 1, 2014 through December 31, 2014. Figures are not annualized.

Total Return – Total return consists of two components: income and capital appreciation or price return. In the context of VIP, income is interest payments received from debt issuers. Capital appreciation or price return refers to the change in the market price of a security. Total return figures are presented before fees. Benchmark is ICE Bank of America Merrill Lynch 1-3 Year AAA – AA Corp/Govt Index.

Yields – Yields presented are yields to maturity, the rate of return (annualized) an investor could earn by purchasing a fixed income security and holding it to maturity. This assumes all interest payments from the security are reinvested at a constant rate. Market Yield is the yield to maturity an investor could earn given the current market price of a security. Book  Yield is the yield to maturity based on a security’s amortized costs. A new participant would receive the market yield at the exact moment of purchase; the yield will fluctuate going forward. Yields are presented before fees.

Board of Trustees

The Board of Trustees is composed of participating local Treasurers and chief investment officers elected by participating political subdivisions.  The Executive Directors of VML and VACo serve as ex officio board members.

Fred W. Parker, Chairman

Washington County

Evelyn W. Powers, MGT, Vice Chairman

City of Roanoke

Jody Acosta, MGT

City of Falls Church

Jay A. Bernas

Hampton Roads Sanitation District

Barbara O. Carraway, MGT, CPA

City of Chesapeake

Carla de la Pava

Arlington County

Josephine Gilbert

Fairfax County

Leigh Kovacs Henderson, CTP, MGDT

City of Virginia Beach

Michael Longhi

Northern Virginia Transportation Authority

Delores Smith, CPA, MGT

Wise County

Kendel Taylor

City of Alexandria

Valerie Tweedie

Town of Christiansburg

Dean A. Lynch, CAE

Virginia Association of Counties

(ex officio)

Michelle Gowdy

Virginia Municipal League

(ex officio)

Investment Manager

Public Trust Advisors, LLC (PTA) serves as Investment Manager.  PTA is a Securities and Exchange Commission registered, independent investment advisor with significant local government investment pool experience.  PTA manages more than $30 billion in public funds nationwide. Wells Fargo Bank is VIP’s custodian bank.

About Public Trust Advisors

Public sector entities trust the professionals at Public Trust Advisors, LLC (Public Trust) to provide investment management and advisory services for their liquidity, operating, reserve, and bond funds while first considering the safety and liquidity of the funds under management. Public Trust’s experienced and well-resourced team combines significant portfolio management experience with robust credit research analysis to structure portfolios that meet each client’s investment objectives and enhance the potential for higher returns.

Public Trust specializes in Local Government Investment Pool (LGIP) investment management services based on a cost-effective and value-driven approach. Public Trust currently serves eight (8) LGIP’s by providing both administration (fund accounting, participant accounting, transfer agency, client services, sales and marketing) and investment management (portfolio management, credit research, risk management, portfolio valuation) functions. Public Trust has served as the investment advisor and manager to the VIP Program since February of 2015.

PTA has assets under management and administration/advisement of over $30 billion as of June 2018. Public Trust is headquartered in Denver, Colorado, has offices in Ohio, California, Michigan, New York, Florida, Texas, and New Mexico.

Thomas N. Tight

Managing Director
tom.tight@publictrustadvisors.com
(407) 514-2727

John F. Grady

Managing Director
john.grady@publictrustadvisors.com
(407) 514-2727

VML/VACo Finance is the administrator of VIP. To learn more about VML/VACo Finance, please visit our website, valocalfinance.org.