In 2005 the CSAC Finance Corporation and the League of California Cities established the Investment Trust of California (CalTRUST) in conjunction with public agencies in California for the purpose of pooling and investing local agency funds, such as operating reserves and bond proceeds. Legislation signed into law in 2004 increased the ease with which public agencies can participate in this investment program.
Any California local agency can participate in CalTRUST’s pooled investment program. CalTRUST provides interested California local agencies with two options for participation: to join as a member of the joint powers authority that operates the program; or to directly invest in shares of CalTRUST without the need for joining the joint powers authority. In the case of counties, funds of other agencies that have invested with the County Treasurer’s Office are eligible for investment.
CalTRUST offers the option of three active accounts to provide local agencies with a convenient method of pooling funds: money market fund, short-term and medium-term. A long-term account has also been established and can be activated when the markets are favorable. Each of the accounts seeks to attain as high a level of current income as is consistent with the preservation of principal. The accounts are managed by Wells Capital Management.
A Board of Trustees, comprised of experienced public agency investment officers and policy makers, supervises the investment program of the Trust. The CSAC Finance Corporation serves as program administrator of CalTRUST.
For more information visit the CalTRUST Web site at www.caltrust.org.