The State of Kansas Municipal Investment Pool (MIP) offers participants the safety of principal, liquidity, and a competitive market rate on short-term investments. All monies deposited in the MIP are promptly invested as part of the Pooled Money Investment Portfolio in securities authorized by State statutes. Safekeeping and audit controls for all investments made for the Portfolio comply with State statutes and are monitored by the Pooled Money Investment Board.
As defined by K.S.A. 12-1675(a)
"The governing body of any county, city, township, school district, area vocational-technical school, community college, firemen's relief association, community mental health center, community facility for the mentally retarded or any other governmental entity, unit or subdivision in the state of Kansas having authority to receive, hold and expend public moneys or funds may invest any moneys which are not immediately required for the purposes for which the moneys were collected or received, and the investment of which is not subject to or regulated by any other statute."
The Municipal Investment Pool provides municipalities an investment alternative. Municipalities maintain discretion over their investment including the amount and the maturity. Per K.S.A. 12-1675, funds must first be offered for deposit to all eligible banks, savings and loan associations and savings banks which have main or branch offices in the investing community. If a financial institution will not pay the minimum investment rate as defined by K.S.A. 12-1675a, then the municipality may use the MIP.
For investment and cash flow management purposes, the investable state monies are combined with MIP deposits to create the Pooled Money Investment Portfolio. Investments are made in accordance with investment polices provided by statute, rules and regulations and policies set by the Board. The pooling of monies enables PMIB to take advantage of higher yields (lower prices) offered on larger denominated securities not otherwise available to many public entities. Larger denominated securities are exempt from certain investment service charges normally assessed by banks and brokers on smaller purchases. Reduced costs and current market rates result in a better yield on MIP funds. Yields on the Fixed-Rate Investment options are "locked in" for the duration of their term, while the yield on Overnight Investment options can fluctuate daily with current market conditions.
Funds placed in the Overnight Investment option are available daily by 10 am. Withdrawals of $1 million or more require notice by 3:00 pm one prior business day. Deposits in the Fixed-Rate Investment options are available at maturity. The Director of Investments may permit early withdrawal of a Fixed-Rate Investment under extenuating circumstances in which case the Depositor will be assessed a penalty.
All investments made for the Pooled Money Investment Portfolio must comply with Kansas Statutes and the Investment Policy of the Pooled Money Investment Board. The Portfolio primarily consists of government securities (including U.S. Treasuries and Federal Agencies), top-rated commercial paper, overnight repurchase agreements, and certificates of deposit in Kansas banks. All of these investments present very limited risk to the investor.
MIP funds are not insured or otherwise guaranteed by the State of Kansas.
The Director of Investments manages the Portfolio and all activities are reviewed monthly by the Pooled Money Investment Board. Additionally, the PMIB is subject to an audit every two years by the State's independent auditor.
By combining MIP deposits and investable state monies, the MIP can be diversified among many authorized investments. This combination avoids excessive concentration in securities of any one issuer. In accordance with PMIB Investment Policy, the combination of commercial paper and corporate bonds shall never exceed 60% of the total Pooled Money Investment Portfolio, and no more than 5% of that portfolio shall be invested in the commercial paper and corporate bonds of any single business entity.
Notice: This site contains certain limited statistical and financial data relating to activities of the Pooled Money Investment Board of the State of Kansas and has not been prepared or maintained as a source of investor information and should not be relied upon for investment purposes. Investor information regarding State bonds is available at www.emma.msrb.org.