Letter sent to participants reassuring them that their investments are protected
HARRISBURG, PA – Dec. 6, 2007 – Treasurer Robin L. Wiessmann today reassured Pennsylvanians that the state’s investment program for local governments and nonprofit groups has not been exposed to investments backed by subprime-mortgage loans.
“For our participants, the INVEST program serves as a critical investment and financial management tool enables these local entities to earn more money while paying less in management fees for their investments,” Treasurer Wiessmann said. “I am pleased to reassure participants that our investment policy fully protects INVEST assets from exposure to the subprime-related debt that caused concern for multiple state programs.”
Treasury’s investment policy mandates that all INVEST assets be invested either in U.S. Government Securities and/or securities that are fully collateralized by U.S. Government Securities.
On Monday, December 3, 2007, Treasury mailed a letter to the program’s 770 participants reassuring them that their INVEST assets have no exposure to subprime-backed investments and explaining the requirements of the program’s investment policy.
INVEST is a family of highly rated investment pools designed specifically by the Pennsylvania Treasury Department for local government and nonprofit groups, with 770 participants and assets totaling $914.7 million. INVEST is similar in concept to money market funds, offering two rated pools with short-term maturity as well as periodic custom investment opportunities for longer-term investment needs. In addition to daily monitoring by Treasury investment professionals, INVEST is monitored by and has earned the highest rating from two of the financial world’s premier rating companies: Standard & Poor’s and Fitch Ratings. To learn more about the INVEST program or to read the Investment Policy, visit, http://www.painvest.org/.
The Pennsylvania Treasury Department, under the leadership of Treasurer Robin L. Wiessmann, acts as the Commonwealth’s bank, serving as custodian, investor and disburser of the Commonwealth’s funds. Treasury also offers a wide range of programs and services to Pennsylvania families, such as helping to make college possible with the nowU Pennsylvania College Savings Program; returning abandoned and unclaimed property to its rightful owner or heir; offering Pennsylvanians an alternative to payday lending through Better Choice; and funding energy efficient home improvements through the KeystoneHELP low-interest loan program. For more information about Treasurer Wiessmann and the Pennsylvania Treasury Department, visit http://www.patreasury.org/.