...Public Sector Investment Alternative: Local government investment pools (LGIPS) are offered to public entities for the investment of public funds, with the goal first of safety and second competitive yield. Managers may be government employees or outside investment firms. Managers are responsible for managing a pool's liquidity and diversity and following the stated guidelines. Investment Best Practices Vary: LGIPS should apply industry best practices to reduce operational and investment risk to the pools. Such best practices evolve over time and include: investment guidelines that suit the needs of pool participants, clear and transparent investment guidelines and portfolio reporting, regular review of compliance procedures and investment guidelines, and understanding impacts of ongoing regulatory change. Participants' Profile Drives Investment Strategy: Pools have unique objectives based on the fundamental cash management and investment needs of participants; operating pools focus on...
