Investment Reports

DISCLAIMER: The information contained on this website should not be considered an offer to sell securities or a solicitation to buy securities. The information contained on this website has been included for general information purposes only, is limited in scope, and thus does not contain all material information concerning the State of Georgia (the “State”) necessary to make an informed investment decision. No person should make an investment decision in reliance solely on the information contained within this website. All information contained in this website speaks only as of its date and is provided on an “as is” basis. The information is provided for quick reference only and is subject to change without notice. The posting of information on this website does not imply that there has been no change in the affairs, finances, or operations of the State since the date of such information. Historical results or performance may not be indicative of future results or performance due to a variety of factors including, without limitation, changes of facts or assumptions. This website also may contain certain “forward-looking” statements and information that are subject to a variety of risks and uncertainties and actual results relative to such statements and information may differ from projected results. Generally, forward looking statements contain words such as “may,” “will,” “should,” “intends,” “expects,” “believes,” “anticipates,” “estimated,” “forecast,” “budget,” “project,” or other words of like form.

Investment of State Funds

All funds within the State Treasury are invested in accordance with Georgia law and the investment policy established by the State Depository Board (the “Investment Policy”).  The Investment Policy has four objectives and each portfolio is managed in a manner that is intended to:  (1) preserve principal; (2) ensure adequate liquidity; (3) obtain a market rate of return taking cash flow requirements into consideration; and (4) diversify the portfolio.  The Investment Policy also sets forth various credit constraints and limitations, as discussed more fully below.

Investment of State General Funds

Under Georgia law the State may invest its general fund monies in:  (i) bankers’ acceptances; (ii) commercial paper; (iii) bonds, bills, certificates of indebtedness, notes, or other obligations of the United States and its subsidiary corporations and instrumentalities or entities sanctioned or authorized by  the  United  States  government  including,  but  not  limited  to, obligations or securities issued or guaranteed by Banks for Cooperatives regulated by the Farm Credit Administration, the Commodity Credit Corporation, Farm Credit Banks regulated by the Farm Credit Administration, Federal Assets Financing Trusts, the Federal Financing Bank, Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Financial Assistance Corporation chartered by the Farm Credit Administration, the Government National Mortgage Association, the Import-Export Bank, Production Credit Associations regulated by the Farm Credit Administration, the Resolution Trust Corporation, and the Tennessee Valley Authority; (iv) obligations of corporations organized under the laws of Georgia or any other state but only if the corporation has a market capitalization equivalent of at least $100 million; provided, however, that such obligation shall be listed as investment grade by a nationally recognized rating agency; (v) bonds, notes, warrants, and other securities not in default which are the direct obligations of the government of any foreign country which the International Monetary Fund lists as an industrialized country and for which the full faith and credit of such government has been pledged for the payment of principal and interest, provided that such securities are listed as investment grade by a nationally recognized  rating  agency;  or  (vi) obligations  issued, assumed, or guaranteed by the International Bank  for  Reconstruction  and  Development  or  the International Financial Corporation, provided that such securities are listed as investment grade by a nationally recognized rating agency and are fully negotiable and transferable.  The Depository Board may also permit the lending of any securities of the type identified in this paragraph. 

Georgia law also provides that the State may invest in the securities described above by selling and purchasing such obligations under agreements to resell or repurchase the obligations at a date certain in the future at a specific price which reflects a premium over the purchase or selling price equivalent to a stated rate of interest (“Repurchase Agreements”).

Because of the credit constraints and limitations contained in the Investment Policy established by the State Depository Board, the State currently is authorized to invest the monies on deposit in its general fund in:  direct obligations of the United States Treasury; obligations unconditionally guaranteed by agencies of the United States government; obligations of subsidiary corporations and instrumentalities or entities sanctioned or authorized by the United States government; and other permitted investments subject to certain criteria established by statute and the State Depository Board which include, among other things, credit and diversification requirements.     Such  other  permitted  investments  include: repurchase agreements, certificates of deposit, commercial paper, negotiated investment deposit agreements, prime bankers’ acceptances, obligations of the State or state agencies, obligations of other political subdivisions of the State, obligations of corporations, obligations issued by the government of any foreign country, obligations issued by the International Bank for Reconstruction and Development or the International Financial Corporation, and other such limitations as determined by the State Treasurer to be necessary for the preservation of principal, liquidity, or marketability of any of the portfolios.

Other State Treasury Investments

The Office of the State Treasurer (OST) manages the Local Government Investment Pools (comprised of "Georgia Fund 1” and the “Georgia Extended Asset Pool”). The local government monies invested in Georgia Fund 1 are commingled with State operating funds and State agencies’ funds in the Georgia Fund 1 portfolio. Georgia Fund 1 maintains Standard & Poor’s ratings of AAAf for fund credit quality and S1+ for fund volatility. The Georgia Extended Asset Pool consists of deposits of the State, State agencies, and local governments. The Georgia Extended Asset Pool maintains Standard & Poor’s ratings of AA+f for fund credit quality and S1 for fund volatility. OST also manages investments for the Georgia State Financing and Investment Commission, the Georgia Department of Transportation, the Georgia Lottery for Education Account, the Department of Administration Services’ Risk Management Fund, the Department of Community Health State Health Benefits Plan, the Guaranteed Revenue Debt Common Reserve Fund, and the Revenue Shortfall Reserve Fund.

Investment Financial Reports

Georgia Fund 1 (GF1): The local government investment pool primary liquidity portfolio comprised of state and local government funds. GF1 is managed to maintain a constant net asset value (NAV) of $1.00 and is rated AAAf by Fitch. The primary objectives of the pool are safety of capital, liquidity, investment income, and diversification. Performance objective is to meet or exceed the S&P’s Rated Government Investment Pool Index.

Georgia Fund 1 Plus (GF1+): A second investment option for state agencies to benefit from higher yields available by adding credit. GF1 Plus is managed as a low-risk rates/credit portfolio employing both internal and external investment managers.

Georgia Fund 1 Prime (GF1 Prime): An Investment offering predominately for local governments designed to provide an opportunity for higher yields than GF1 while maintaining a constant NAV of $1.00 and rated AAAm/S1 by Fitch.

Georgia Extended Asset Pool Plus (GEAP+): GEAP+ is established as an additional investment option for the state of Georgia. GEAP+ offers target maturity funds on a periodic basis with emphasis on principal preservation. GEAP+ funds are intended for buy and hold investors and employ an external investment manager with OST oversight. Some credit may be authorized for GEAP+ funds.

Georgia State Financing and Investment Commission (GSFIC): Three dedicated portfolios, two of which invest unspent general obligation bond proceeds and the third invests a portion of sales tax proceeds used for transportation projects pursuant to the Transportation Investment Act (TIA).

Georgia Department of Administrative Services (Risk Management): A dedicated portfolio investing the portion of state self-insurance funds not invested in GF1 including worker’s compensation, liability and property coverage.  The dedicated portfolio is managed for the Office of the State Treasurer by Invesco. The portfolio is designed to enhance total rate of return of the State’s risk management funds. Eligible investments include residential mortgage-backed securities, commercial mortgage-backed securities, negotiable CDs, asset-backed securities and corporates.

Guaranteed Revenue Debt Common Reserve Fund (GTD Reserve):  A dedicated portfolio restricted to obligations constituting direct and general obligations of the U.S. government or obligations guaranteed as to payment of principal and interest by the U.S. government and maturing no longer than 12 months from the date of purchase.

Federal Stimulus Funds: A dedicated portfolio investing federal stimulus funds pending disbursement to state and local entities.