Pool Benefits New Mexico Municipalities, Counties, Colleges, Tribes, and Pueblos
The New Mexico State Treasurer’s Office (STO) announced that assets in the Local Government Investment Pool (LGIP) have almost doubled in the past five years to a recent high of $930 million. The LGIP is a very short-term U.S. government fund that endeavors to maintain a stable net asset value (NAV) of $1.00. It is rated AAAm by Standard & Poor’s (S&P), the highest credit quality rating obtainable in S&P’s Principal Stability Fund Rating category, and has been reaffirmed since 2007.
The LGIP was created pursuant to NMSA 1978 6-10-10.1 to allow city, town, village, county, tribe, educational, and quasi-governmental bodies to voluntarily remit money to STO to receive professional money management on a pooled basis. More than 100 eligible New Mexico participants have been able to take advantage of the increases in short-term interest rates as reflected in the Pool’s yield. The LGIP’s 30-day yield is 0.15% to 0.20% greater than similarly structured U.S. government money-market mutual funds due to its extremely low expense ratio.
Recently STO hired Anna Murphy as a fixed-income portfolio manager to assist in the management of more than $5 billion in assets. Ms. Murphy brings institutional investment expertise from her previous employment at the New Mexico Public Employees Retirement Association (PERA). She obtained her MBA from the University of New Mexico and her BA from Wesleyan University, Connecticut, and passed Level III of the Chartered Financial Analyst (CFA) Program in 2018. Ms. Murphy serves on the Women’s Advisory Committee and the Programs Committee for the CFA Society of New Mexico.
For more information, visit https://www.nmsto.gov/investment-division/#lgip or email Vikki.Hanges@state.nm.us.