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Local Government Investment Pool - Frequently Asked Questions

What is the LGIP?
The LGIP is a special purpose state-administered investment pool offered to public entities for the investment of public funds. Statutory authority is granted by the Code of Virginia "Local Government Investment Pool Act".

Who manages the LGIP?
The Investment Division of the Virginia Department of the Treasury manages the LGIP.

Who can invest in the LGIP?
Treasurers or any other person collecting, disbursing, or otherwise handling public funds.

What are the permitted investments for the LGIP portfolio?
The Treasury Board of the Commonwealth sets the LGIP investment policy. The policy adheres to the requirements of the Code of Virginia "Investment of Public Funds Act" with the Treasury Board imposing further limits and restrictions.

Permitted investments include U.S. government obligations, repurchase agreements, certificates of deposit, banker's acceptances, commercial paper, short-term corporate notes, and short-term taxable municipal obligations. Please refer to the "Investment Policy and Guidelines" section of the LGIP Investment Circular for a complete description and credit quality requirement.

What are the LGIP investment objectives?
The LGIP investment objectives in priority order are safety, liquidity, and return. The LGIP is managed in accordance with Statement No. 79 of the Governmental Accounting Standards Board. The LGIP is rated AAAm by Standard & Poor’s and in compliance with their AAAm requirements. Performance benchmarks include Money Fund Report Institutional monthly averages and the 3-mo U.S.-Treasury Bill secondary market monthly yield from the Federal Reserve Statistical Release H.15.

How do I open an account?
Opening an account with the LGIP requires submission of a properly completed application signed by the public official responsible for the funds. Applications are available on the LGIP web site or telephone us at 800-643-7800 to request a packet of information. The completed application should be mailed to:

C/O Treasurer of Virginia
Cash Management and Investments
P.O. Box 1879
Richmond, VA 23218-1879

Accounts can be opened via fax, but an original copy of the application must be on file before withdrawal requests can be honored.

Is there a minimum opening investment balance?
Yes. The LGIP requires an opening deposit of $1,000. A balance of $1 is required to keep an account open.

How many accounts can I open?
There is no set limit. However, a separate application must be completed for each individual account.

How do I send funds to the LGIP?

  1. By Wire: This is the preferred method of sending funds to the LGIP. To receive same day credit for your funds you must notify LGIP staff by 10:00 a.m. that you plan to wire funds that day. LGIP staff can be reached at (800) 643-7800 or (804) 225-3166. Wire instructions are:
    Bank of America
    ABA #0260-0959-3
    For credit to LGIP Account #00000-2236801
    FBO: Your Account Name
    LGIP Fund Number
  2. By Mail: Checks must be payable to the LGIP and drawn on the account named on the application. Third party checks are not acceptable. When sending a check be sure to include the LGIP Fund Number to be credited. Checks sent by mail will delay credit to your account and the anticipated loss in earnings should be compared with the cost of a wire. Checks should be mailed as follows:
    ATTN: Process Immediately
    C/O Treasurer of Virginia
    Cash Management and Investments
    P.O. Box 1879
    Richmond, VA 23218-1879
  3. Direct Deposit: Arrangements can be made for EDI transfers from the Commonwealth of Virginia to be directly invested into your LGIP account. Your account will automatically receive credit on the transfer date and the normal telephone advice to the LGIP is not required. Additional information may be obtained by calling the LGIP or by visiting the Department of Accounts online at

How can I withdraw funds from my LGIP account?
To withdraw funds advise LGIP staff of your transaction by 10:00 a.m. Requests received after 10:00 a.m. will be processed the next business day. Withdrawal requests can only be accepted from authorized callers listed on the application. The funds will be wired per the application instructions.

Is there a minimum transaction amount?
No, but we do want to remind you that the LGIP does incur fees associated with wires. You may also incur fees from your financial institution.

Is there a limit to the number of transactions I can do in one day?

What fee does the LGIP charge?
The LGIP management fee is totally transparent to participants. A four-basis point management fee is deducted from the daily earnings rate prior to calculating participants’ daily dividends. On an annual basis, the fee for each $1,000 invested in the LGIP is $0.40. All yields quoted to participants are net of the fee.

What is the difference between the average yield and effective yield?
The average yield is the simple average of the daily yields for the current month. The effective yield reflects compounding, which assumes monthly dividends are reinvested at the current rate throughout a twelve-month period.

When are the statements mailed?
The statements are printed and mailed by the fifth business day of each month.

Can I consolidate accounts on a single statement?
Yes. Individual accounts can be consolidated on the same statement. The statement will have summary information as well as individual account information.

When Is Interest Credited To My Account?
Interest is posted to accounts on the last business day of each month.