The General Assembly created the first local government investment pool in 1975 so communities statewide could invest their money together to earn greater returns. Today, the pool is called The Illinois Funds. The portfolio holds over $5 billion, up from $1.3 billion in 1995.

Why should you invest in The Illinois Funds?

Online and Telephone Banking
The Illinois Funds offers free deposits, transfers, withdraws and other services online and by phone. You can also sign up for direct deposit, which allows state distributions to be deposited into your Illinois Funds account the same day they are paid by the state. Your interest income starts on the day of deposit.

Free Checks
The Illinois Funds Money Market Fund offers 1,000 free checks per year. You may choose from a variety of business check formats. However, if you purchase your own checks, you will qualify for a credit to your Illinois Funds account.

Standard & Poor's Highest Rating (AAAm)
The Illinois Funds Money Market has earned Standard & Poor's highest rating (AAAm). The rating is based on Standard & Poor's analysis of the pool's credit quality, market price exposure and management. The rating signifies excellent safety of invested principal and a superior capacity to maintain a stable $1 per share net asset value at all times. This is accomplished through conservative investment practices and strict internal controls. Read S&P's MMF rating sheet.

Safety
The safety of principal is the foremost objective of the investment program. Money Market investments are made in a manner that seeks to ensure the preservation of capital in the portfolio. Standard & Poor's highest rating (AAAm) is proof positive that the safety objective is being met on your behalf.

Liquidity
Money invested in the Money Market Fund is available at all times.

Yield
The Illinois Funds investment portfolio is designed to obtain the highest available return, taking into account investment risk restraints and cash flow needs. You earn interest on 100% of your Illinois Funds account balance unlike demand deposits, which earn interest on only 90% of the balance due to the federal 10% reserve requirement. Daily fund interest rates are available by phoning the Illinois Funds Custodian at 1.800.947.8479 or by visiting this web site.

Statutory Compliance
You can be comfortable knowing that your Illinois Funds accounts comply with the Public Funds Investment Act, 30 ILCS 235.

Some local government investment pools operating in Illinois do not comply with the Public Funds Investment Act. These pools may include instruments such as bankers' acceptances, asset-backed corporate obligations like mortgages and credit card receivables, or municipal securities outside of Illinois, which we believe are inappropriate for most public investors.

The Illinois Funds program complies with Illinois law and is limited to the following: Direct United States Treasury obligations and issues of United States Agencies or Instrumentalities, agreements to repurchase United States Treasury obligations and issues of United States Agencies or Instrumentalities, certificates of deposit at Illinois financial institutions backed by U.S. Treasuries, Commercial Paper rated A1, P1 or equivalent, and AAA rated Money Market Funds.

Perfected Collateral
There are two types of collateral currently used by public investors in Illinois, perfected collateral and non-perfected collateral. Perfected collateral is the only type that provides true safety for public funds.

The Illinois Funds perfects collateral on investments in the aggregate and, in the case of certificates of deposit, perfected collateral is on amounts in excess of the FDIC limits.

Collateral ratios are as follows: repurchase agreements at 102% and certificates of deposit exceeding FDIC insured limits at 105 percent.

Annual financial audit reports from the Illinois Auditor General provide you with assurance in the safety and soundness of The Illinois Funds.

To contact The Illinois Funds, call 1-800-346-7414 or e-mail info@illinoisfunds.com.