Fitch Affirms Top AAA Rating to Illinois Funds

For Immediate Release – January 17, 2025

$10 Billion Local Government Investment Pool Complements Local Banking Relationships

The Illinois Funds, a mutual fund investment used by local governments through the Illinois State Treasurer’s Office, has earned the top AAA rating from Fitch Ratings, Illinois State Treasurer Michael Frerichs said today.

The Illinois Funds rating reaffirms the confidence Fitch and other ratings agencies have shown throughout all of Frerichs’ tenure. The funds have consistently received an AAA rating since he took office.

“This is an example of an outside firm pointing out that we’re doing things right,” Frerichs said. “Every dollar we can earn through safe, smart investing is a dollar that local governments that take part in Illinois Funds don’t have to raise in property taxes or cut from vital services.”

Established in 1975, more than 1,500 units of government such as cities, counties, libraries and school districts have invested in The Illinois Funds because it is a safe, liquid and competitive investment.

The $10 billion local government investment pool (LGIP) invests in assets focused on safety, preservation of principal, liquidity and income. The investment can be as short as overnight. The weighted average maturity is less than 60 days.

“The key rating drivers for the affirmations are the fund’s overall credit quality and diversification, holdings of daily and weekly liquid assets consistent with shareholder profiles, asset maturity profiles meeting Fitch’s rating criteria, and the capabilities and resources of the investment advisor,” Fitch wrote. “Fitch views the investment advisor’s capabilities, resource commitments, operational controls, corporate governance, and compliance procedures as consistent with the ratings assigned to the funds.”

U.S Bank is the pool’s primary service provider and custodian. The fund officially is named the Illinois Public Treasurers’ Investment Pool (IPTIP).

For more information about the Fitch rating, click here.