FLORIDA FIXED INCOME TRUST (FL-FIT)
The Florida Fixed Income Trust (FL-FIT) is an investment solution designed specifically to fit the needs of Florida’s local governments.
The trust features various investment pools including:
- Preferred Deposit Pool
- Cash Pool
- Enhanced Cash Pool
- Select Cash Pool
Preferred Deposit Pool
The FL-FIT Preferred Deposit Pool (PDP) offers FDIC insured capacity of up to $30mm for each participating client. The PDP Pool is a resource that assists local governments in maximizing their yield while maintaining same-day liquidity and protecting principal through FDIC insured bank deposits. This pool offers a compelling strategy to generate interest income while maintaining prudent cash management.
The FL-FIT Cash Pool is a high-quality money market alternative that is managed to a dollar-in/dollar-out strategy. The pool is a hybrid approach that allows the portfolio management team flexibility in managing current market conditions and the portfolio’s duration when compared to traditional money market accounts. The Cash Pool is rated AAAf/S1+ by S&P Global Ratings (S&P) and is an excellent option to assist local governments in maximizing their yield while maintaining same-day liquidity and preservation of principal.
Enhanced Cash Pool
The FL-FIT Enhanced Cash Pool is a liquid investment pool that is best suited for cash reserves or proceeds that are not allocated for day to day funds. The Enhanced Cash Pool is rated AAAf /S1 by S&P Global Ratings (S&P) and offers diversification through multiple asset classes. The portfolio management team works towards minimizing price fluctuations and tactically adjusting the portfolio’s duration to address changes in the money markets. The Enhanced Cash Pool offers next day liquidity, interest income, and seeks to preserve capital.
Select Cash Pool
The FL-FIT Select Cash Pool offers a duration strategy different than the Cash Pool or the Enhanced Cash Pool. This pool is rated AAAf/S1 by S&P Global Ratings (S&P) and offers diversification through multiple asset classes. The Select Cash Pool is designed to minimize volatility while providing next day liquidity, interest income, and preservation of principal. This portfolio provides an efficient approach for local governments that want to utilize a longer-term strategy without developing a separately managed account.