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 Kirene Bargas, LGIP Bureau Chief / Portfolio Manager
Hannah Chavez, LGIP Account Technician
Eliza Anaya, LGIP Account Technician
The New MexiGROW Local Government Investment Pool (LGIP) is a Standard & Poor's AAAm rated money market fund offered by the State Treasurer to eligible local public bodies. The Treasurer's ability to combine moneys received from local public entities into an investment pool offers these entities greater purchasing power and the economy of scale necessary to secure the best yields. All securities purchased for the LGIP portfolio must comply with the State Treasurer’s Investment Policy, which is approved by the State Board of Finance. The Investment Policy contains specific investing guidelines such as allowable security types, asset mix and diversification, maximum maturity and weighted average maturity minimum, investment credit quality, and approved broker/dealers. The overriding investing principles for the LGIP are safety, liquidity, and return.
Participant Balances: The LGIP has experienced increasing balances through the 2007 fiscal year as a result of regained confidence in the Treasurer's Office. The Pool's balance as of March 31, 2007, was $861.6 million, an increase of 21% from June 2006.
Diversification: As of March 31, 2007, the LGIP had $861.6 million invested. The portfolio maintained 99 percent of the holdings as investment grade (A-1+ or AAA) or better, with a weighted average maturity of less than 50 days. Investment is in U.S. Agencies, commercial paper, and institutional money market funds.
Investment Earnings: In fiscal year 2006, the LGIP earned $31.9 million in interest for the 133 New Mexico entities that participated in the program with an average of $2.6 million in interest distributed per month. Through three quarters of fiscal year 2007 the LGIP portfolio has earned $28.7 million, or approximately $3.2 million per month.
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