News | New Mexico State Treasurer's Office

Santa Fe – State Treasurer Douglas Minge Brown announced today that the New MexiGROW Local Government Investment Pool received Standard & Poor's highest money market fund rating – AAAm. "Only 12 other states have AAAm-rated local government investment pools," stated Treasurer Brown. "We are proud of our investment team's accomplishments that merited the top rating from this industry-leading investment authority. We welcome the scrutiny that S&P's weekly monitoring will provide as it further assures New Mexico citizens of the safety of their investments."

Governor Bill Richardson also expressed his enthusiasm for the rating. "This endorsement of our program represents a welcome acknowledgement of the progress the State Treasurer's Office has made in restoring sound controls, disclosure, and oversight. I am also grateful to see the financial community recognizes the fiscal strength and integrity of this important program and of the state in general."

The New MexiGROW LGIP, established in 1991, invests various funds for eligible participants including counties, cities, villages, school districts, higher educational institutions, tribes, special utility districts, and other local government units that have elected to let the State Treasurer invest on their behalf.

Joelle Mevi, New MexiGROW LGIP Portfolio Manager, stated, "We have strived to provide an exceptionally safe and practical investment opportunity for New Mexico's local government entities. The S&P AAA rating of the improved New MexiGROW LGIP verifies our accomplishment of this goal. With a blended yield today of 5.28 percent, the New MexiGROW LGIP is outperforming most government retail money market funds."

Standard & Poor's defines AAAm-rated funds as those with "extremely strong capacity to maintain principal stability and to limit exposure to principal losses due to credit, market and/or liquidity risks. AAAm is the highest principal stability fund rating assigned by Standard & Poor's."

To achieve this rating, the fund underwent Standard & Poor's extensive evaluation analysis focused on historical performance, creditworthiness, market price risk, pricing policy, portfolio liquidity, controls and procedures, fund governance, and management abilities of key organization officers. Required for continued AAAm rating is weekly S&P monitoring of the fund to ensure stability compliance.