Florida State Board of Administration, Tallahassee, plans to make available an additional $4 billion of liquidity to investors for potential withdrawal from its Local Government Investment Pool by the end of September, according to a statement by the board, which oversees $184 billion. The board raised the liquidity ceiling on the $7.5 billion Local Government Investment Pool Fund A by about $1.7 billion, or to 50% from 37% of participating governmental units legacy balances as of December.
By the end of June, it expects to transfer $440 million to Fund A from Local Government Investment Pool Fund B. In September, it expects to make an additional $1.88 billion in liquidity available within Fund A.
Fund B, set up as a workout portfolio of less liquid assets the board eventually plans to move into Fund A, has an estimated value of $1 billion.
Federated Investors was hired by the board in March to run the formerly internally managed pool, which had some $30 billion in assets before reports of subprime credit-related investment problems caused a run of withdrawals last fall.
We aim to put this tumultuous period permanently behind us by year-end 2008, Robert Milligan, the state boards interim executive director, said in the statement.