19119_Authority_April_2026

36 The Authority │ April “T here ’ s a PLGIT O ption for T hat …” Investment products are intended to meet local governments’ needs By Paul Robinson, Institutional Sales and Relationship Manager, PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc. Local government officials are responsible for the financial health of the municipalities they oversee, and they take that job seriously. There’s a lot to know: managing cash flow, planning for ongoing expenditures and one-time projects, understanding investment options, and earning solid yields — all while maintaining a focus on seeking safety for public funds. The Pennsylvania Local Government Investment Trust (PLGIT, or the Trust) was formed 45 years ago to help local governments manage those difficult tasks. Over the years, PLGIT devised investment options to help achieve the goals of these specific investors, and continues to strive towards improvement, and updates products based on those investors’ needs and feedback. For example, a few years ago, in an effort to respond to investor feedback and remain competitive, PLGIT consolidated several investment options into the five options the Trust has today. In this article, we’ll look at PLGIT’s investment options and you can consider how they might match up with your local government’s financial goals and needs. A Declaration of Trust PLGIT operates under a Declaration of Trust (the Declaration) that states that PLGIT’s primary purpose will be to offer Pennsylvania’s entities a way to pool temporary cash reserves to gain “greater advantage under the daily supervision of professional investment advisers.” Moreover, the Declaration limits participation in the Trust to “municipal entities of the Commonwealth of Pennsylvania.” PLGIT has had a singular focus on investing solely for member governments from the beginning. With this Declaration as its bedrock, PLGIT has created a mix of investment products and services designed to help optimize municipalities’ returns while maintaining a focus on key goals like preserving safety and liquidity. PLGIT Investment Options By understanding each PLGIT investment option, local governments can better achieve specific goals. Here are highlights on several key investment options, and how investors may consider using them: PLGIT/TERM SM is an investment option for municipalities that want to realize a potentially higher yield, but also have a specific, targeted date and need for invested funds. PLGIT/ TERMSM locks in your rate for the entire term of the investment and maturity dates range from 60 days to one year. PLGIT/TERMSM requires a minimum initial investment of $100,000, a minimum investment period of 60 days, and has a premature withdrawal penalty. An example of how this could benefit your local government: if you know your municipality needs to make a payment for fuel, an insurance premium, or debt service payment on a specific date, it can invest those funds in PLGIT/TERM to mature on that date. That enables a municipality to earn a potentially higher yield in a targeted time than with savings-like accounts, like PLGIT-Class. PLGIT/PRIME SM Updated in May 2016 in response to the expansion of permitted investments for municipal entities and school districts statewide, the PLGIT/PRIME portfolio includes newly permitted investments like commercial paper and negotiable certificates of deposit. It allows municipal investors access to potentially higher-yielding fixed income securities that the PLGIT/ PRIME portfolio can invest in through its broader investment policy. As of Continued on page 46.