About the Virginia Investment Pool

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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

August 20245.41%
July 20245.42%
June 20245.42%
May 20245.44%
April 20245.45%
March 20245.47%
February 20245.51%
January 20245.53%
December 20235.55%
November 20235.55%
October 20235.53%
September 20235.52%
August 20235.47%
July 20235.33%
June 20235.25%
May 20235.15%
April 20235.00%
March 20234.84%
February 20234.73%
January 20234.54%
December 20224.23%
November 20223.76%
October 20223.11%
September 20222.56%
August 20222.19%
July 20221.64%
June 20221.13%
May 20220.72%
April 20220.40%
March 20220.25%
February 20220.14%
January 20220.11%

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, 20234.42%4.31%3.96%4.35%
December 31, 2022-3.53%-3.66%1.90%4.51%
December 31, 2021-0.47%-0.53%0.50%0.69%
December 31, 20203.30%3.12%1.06%0.18%
December 31, 20193.73%3.64%2.28%1.67%
December 31, 20181.70%1.64%2.36%2.62%
December 31, 20170.73%0.55%1.45%1.94%
December 31, 20161.07%0.93%1.15%1.27%
December 31, 20150.75%0.59%0.96%1.12%
December 31, 20140.46%*0.49%*0.73%0.77%

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

FY2024-25

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
Leigh Henderson, CTP, MGT (Vice Chairman)City of Virginia Beach
Jody Acosta, MGTCity of Falls Church
Dinah Babb, MGTCity of Franklin
Jay A. Bernas, P.E.Hampton Roads Sanitation District
Carla de la Pava, MGTArlington County
Bonnie Dickson, MGTLancaster County
Charles Evelyn IIICounty of New Kent
Howard Kartel, CPA, MBATown of Culpeper
Rebecca Longnaker, CPAChesterfield County
Patricia Richie-Folks, MGTCity of Manassas
Delores Smith, CPA, MGTWise County
Dean A. Lynch, CAE (ex officio)Virginia Association of Counties
Michelle Gowdy (ex officio)Virginia Municipal League

Investment Manager

Public Trust Advisors, LLC (Public Trust), an investment adviser registered with the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940, as amended, serves as investment manager for VIP. Principal Financial Group is VIP’s custodian bank.

About Public Trust Advisors

Public Trust is a client-focused independent investment advisor that specializes in managing and servicing local government investment pools. The firm was founded in 2011 by investment professionals with extensive experience in the management and administration of public-sector local government investment pools nationwide. The experienced and well-resourced team at Public Trust combines significant portfolio management experience with robust credit research analysis to structure portfolios that meet each local government investment pool’s investment objectives and enhance the potential for increased income to the investment pool participants.

Public Trust specializes in local government investment pool investment management services based on a cost-effective and value-driven approach. Public Trust currently services eleven local government investment pools across eight states.

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.