Building on our long-standing expertise in investing public funds, Chandler has expanded its role as a trusted local government investment pool manager. Our Firm now serves as the investment and operations manager for FL SAFE, Florida Surplus Asset Fund Trust, and as both investment manager and administrator for CalFIT, California Fixed Income Investment Trust. These responsibilities demonstrate Chandler’s ability to provide comprehensive investment management, fund administration, compliance oversight, and client service for large-scale pooled investment programs.
Chandler combines disciplined portfolio management, rigorous credit research, and proactive risk management with exceptional client support to help public agencies navigate changing market conditions. We deliver fixed income management solutions backed by experienced professionals, transparent reporting, and a steadfast commitment to fiduciary excellence. As a trusted partner in financial services, Chandler helps public entities preserve capital, maintain liquidity, and achieve their long-term investment goals.
To help public finance professionals stay informed, Chandler has developed this series of educational white papers covering topics that matter most to local government investment pool participants. From cash flow management and liquidity strategies to investment policy development, public fund regulations, and evolving market conditions, these resources provide practical insights for finance officers, treasurers, and public agency decision-makers. Whether you participate in CalFIT, FL SAFE, or manage public funds through another investment program, our goal is to provide timely, actionable guidance that supports sound investment decisions and strengthens your organization’s financial stewardship. As a trusted provider of financial services and fixed income management solutions, Chandler is committed to sharing the expertise public agencies need to confidently navigate today’s investment landscape.
Following the 2008–09 financial crisis, the SEC implemented significant reforms to Rule 2a-7 governing money market funds, including floating net asset values and liquidity restrictions for institutional prime funds. Because GASB guidance for external investment pools had long relied on references to SEC money market fund rules, these regulatory changes created the need for a new accounting framework tailored specifically to public-sector investment pools such as LGIPs.
To learn more about the evolving regulatory landscape for public funds and investment pools, download our latest white paper on GASB 79 guidance.
Local government investment pools (LGIPs) are one of the most common investment products utilized by state and local governments nationwide. Because public funds must be protected while remaining liquid, LGIPs typically invest in low-risk, short-term instruments. One of the most common investments utilized in LGIPs are repurchase agreements, or “repo(s).” Repos are widely used in money market funds and LGIPs because they support the key investment objectives: safety, liquidity, and yield.
Additionally, repos allow investment managers to maintain flexibility in managing the pool’s cash flows. Because local government participants may deposit or withdraw funds frequently, LGIP managers must ensure that the portfolio contains enough short-term investments to meet these needs. For LGIPs that follow the rules of GASB 79, 10% of the assets must have maturity of one day and 30% must mature in seven days or less. As a result, repos serve as a core investment to meet short-term liquidity needs.
Commercial paper (CP) is a high-quality, short-term credit instrument used in money market funds and local government investment pools (LGIP) to enhance portfolio yield, maintain liquidity and diversify holdings. This paper provides an overview of the commercial paper market, examines the different types of commercial paper and describes the role it plays in the portfolio structure of an LGIP.
