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municipalauthorities.org | 57 mentioned in the topic of liquidity, local governments may benefit from having readily accessible funds to take advantage of investment opportunities. For example, if a municipality commits all of its assets to a single investment with a fixed rate, it may risk missing out on potential earnings if rates rise. 4. Compliance with legal restrictions/regulations: Pennsylvania law requires a high level of security and safety for investment of public funds, charging local governments with finding investment options with the objective of optimizing returns as it focuses on the safety of principal. Local governments should research potential investments to ensure that their investment planning conforms to those restrictions. In the Commonwealth of Pennsylvania, these investments include: • U.S Treasury obligations • Short term federal agency obligations • Collateralized bank deposits • FDIC-insured certificates of deposit • General obligation Pennsylvania municipal debt securities • Commercial paper • Bankers’ acceptances • Negotiable certificates of deposit (CDs) • Insured Bank Deposit Reciprocals 5. Flexibility: A strong investment policy remains strong by being reevaluated and updated on a regular basis. A static policy can overlook missed new industry standards and best practices, which could result in missed opportunities or worse. PFMAM recommends local governments reassess these elements at least once a year: • Update language to meet current industry standards and best practices • Update language to conform to current Code requirements • Revaluate use of different investment sectors • Reevaluate maturity limits • Incorporate diversification and maturity standards • Strengthen controls These are just a few examples of what PFMAM considers top priorities of solid investment policy planning. There are several other elements, including the statements of Internal Controls, Performance Benchmarks, and Reporting Requirements. If you have any questions about your local government’s investment policy, contact your PFMAM team member for more information. S PLGIT article continued from page 37. Reading | Hawley | Lititz | Mountaintop | Pottsville | Pittsburgh 800.825.1372 | entecheng.com Inf ras t ructure means more to the people who rel y on i t . We not only understand the needs of the systems and people who have to work non-stop to serve our communites with water and wastewater services; we depend on them too. Matt Conlin is an institutional Sales and Relationship Manager with U.S. Bancorp Asset Management, Investment Adviser and Administrator to PLGIT. Public sector client services are offered through PFM Asset Management, a division of the adviser. He can be reached at conlinm@pfmam.com. *PFMAM, a division of U.S. Bancorp Asset Management, Inc., services public sector clients. Important Disclosure Information This information is for institutional investor use only, not for further distribution to retail investors, and does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security. Investors should consider the investment objectives, risks, charges and expenses before investing in any of the Trust’s portfolios. This and other information about the Trust’s portfolios is available in the current Information Statement, which should be read carefully before investing. A copy of the Information Statement may be obtained by calling 1-800-572-1472 or is available on the Trust’s website at www.plgit.com. While the PLGIT and PLGIT/PRIME portfolios seek to maintainw a stable net asset value of $1.00 per share and the PLGIT/TERM portfolio seeks to achieve a net asset value of $1.00 per share at its stated maturity, it is possible to lose money investing in the Trust. An investment in the Trust is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Shares of the Trust’s portfolio are distributed by U.S. Bancorp Investments, Inc., member FINRA (www.finra.org ) and SIPC ( www.sipc.org ). PFMAsset Management is a division of U.S. Bancorp Asset Management, Inc., which serves as administrator and investment adviser to the Trust. U.S. Bancorp Asset Management, Inc. is a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bancorp Investments, Inc. is a subsidiary of U.S. Bancorp and affiliate of U.S. Bank N.A.