FLORIDA FIXED INCOME TRUST (FL-FIT)
The Florida Fixed Income Trust (FL-FIT) is an investment solution designed specifically to fit the needs of Florida’s local governments.
The trust features various investment pools including:
- Preferred Deposit Pool
- Cash Pool
- Enhanced Cash Pool
- 1-3 Year Pool
The FL-FIT Preferred Deposit Pool (PDP) is a pool of FDIC-insured bank deposits across a broad range of US Banks. The PDP is a stable product that provides guaranteed principal value as well as same day liquidity. With an FDIC insured capacity of up to $30MM for each client, this pool is a great alternative investment to complement the cash portfolio and provide additional diversification.
The FL-FIT Cash Pool is a high-quality money market alternative for local government investors. The Cash Pool is a great complement to other money market options and provides protection of principal, liquidity, and market return. Appropriate for short-term cash portfolios, the pool is managed to provide minimal volatility of net asset value and positive holding period returns for 30 days or greater. The adviser seeks to accomplish this objective by maintaining a portfolio of high-quality short-duration fixed-income instruments. The Cash Pool is a short-term investment product, which is rated AAAf / S1+ by S&P Global Ratings (S&P). The pool is designed to add diversification with multiple asset classes and a competitive yield to other cash alternatives. Providing same day liquidity to participants, the pool is managed as a dollar-in/dollar-out product and has a floating net asset value. This pool is excellent for public sector participants’ cash needs.
The FL-FIT Enhanced Cash Pool (EC) is a short-term investment product that is appropriate for cash reserves or proceeds that are not considered day to day funds. The EC is designed to add diversification through multiple asset classes and a solid yield with a little longer duration than typical cash alternatives. With a rating of AAAf / S1 by S&P, the EC provides participants with next day liquidity and has a fluctuating net asset value but is managed for minimal volatility. This pool is a great complement for public sector clients looking to extend cash reserves with a little longer duration than daily needs but not quite as long as a typical 1-3 year investment strategy.
The FL-FIT 1-3 Year Pool (1-3 Year) is designed for investors who seek high credit quality and a longer duration strategy that provides additional yield above the cash and money market strategies. The pool provides participants with a highly liquid 1-3 Year investment strategy and is rated AA+f/ S1 by S&P. With protection of principal, liquidity and market return as the investment mandate, the 1-3 Year is designed to add diversification through multiple asset classes and to provide a competitive yield with a duration similar to a typical 1-3 year strategy. The 1-3 Year has a floating net asset value and is managed to minimize volatility, but also provides participants with next day liquidity. This pool is great for public sector participants that want to utilize a longer-term strategy without having to go through the efforts to hire an outside investment advisor and custodian to manage the portfolio separately.