Florida State Board of Administration will rename its $5.8 billion Local Government Investment Pool as Florida PRIME, effective Aug. 10.
The board, which oversees $124 billion, wants the name to reflect changes it has made in the past 18 months to improve the fund’s transparency, compliance and conservative investment policy, according to a statement today by the FSBA.
The fund now operates like a registered money market fund, with external money manager Federated Investors following conservative investment polices that rank, in order of importance, the preservation of capital, liquidity and competitive yield, as well as improving governance and enhanced reporting to investors, the statement said.
The fund seeks to maintain an AAAm rating, the highest for money market-type funds, from Standard & Poor’s, the statement said.
The fund, which invests money from some 800 governmental entities in Florida, had $30 billion under management in the fall of 2007, all managed internally, until reports of subprime-related investment problems caused a run of withdrawals. That led to the hiring of Federated in 2008 and the placing of restrictions on withdrawals while working out illiquid securities.
“The SBA and Federated Investors … believe that the internal controls and reporting changes made over the last 18 months have made this pool the most transparent, safe and investor-friendly pool available statewide, and perhaps across the nation,” Ash Williams, FSBA executive director and CIO, said in the statement.
The fund’s new name will be accompanied by an enhanced investor website, launching on Aug 10.