Illinois Funds FAQs

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Note:  To review the FAQs related to the recent custodian conversion efforts please click here.

 

What is The Illinois Funds?

The Illinois Funds, created in 1975 by State statute (15 ILCS 505/17), is the State’s Public Treasurers’ Investment Pool, administered by the Illinois State Treasurer, offering another investment opportunity for custodians of “Public Funds” for “Public Agencies”.

 
Who can participate in The Illinois Funds?

Custodians of “Public Funds” may participate in The Illinois Funds.  “Public Funds” and “Public Agencies” are described in (30 ILCS 235/1).

 

How often do rates change?

Rates change daily and are posted online and accessible via 1-800-947-8479 between 3:30 p.m. and 4:30 p.m. daily.

 

Is there a required time for funds to be invested in the Fund?

No, funds may be invested one day and withdrawn the next. The funds would earn interest for that one day.

 

How do I make deposits into my Illinois Funds account?

Please see all of the options to you at Account Access.

 

How do I close an account?

You may close an Illinois Funds account by submitting a letter requesting the closure, signed by an authorized person.  There is no penalty to close an account.  Accounts may be closed at any time.

 

Is there a minimum balance requirement?

No, there is no minimum balance requirement with Illinois Funds accounts. You may draw your account down to a zero balance without the account being closed.

 

How many accounts may I have?

You may have as many accounts as you need. There is no fee for Illinois Funds accounts.

 

Does interest compound?

Yes, interest accrues daily and is posted to each account on the last business day of the month.

 

Are there any fees for transactions?

We do not apply a fee for any transaction on your Illinois Funds account, however, your local institution may assess a fee for any ACH or wire transfers to or from your Illinois Funds account.

 

How safe are funds invested in The Illinois Funds?

Safety of principal is the foremost objective of the investment program. Illinois Funds investments are made in a manner that seeks to ensure the preservation of capital in the portfolio. Standard & Poor's highest rating (AAAm) is proof positive that the safety objective is being met on your behalf. You may read The Illinois Funds Investment Policy by clicking here.

 

Where do we send our audit confirmation request?

The Illinois Funds

c/o U.S. Bancorp Fund Services, LLC

P.O. Box 701

Milwaukee, WI 53201-0701

For dates prior to February 12, 2016

Email: creditreferenceservices@usbank.com

 
Are Illinois Funds investment account statements available through the online portal? 

Illinois Funds investment account statements are mailed out monthly. They are not available through the online portal.  However, Illinois Funds participants are able to run a report of transaction history and export the data.  The report may be ran by week, month, quarter, or annually.

 

What are the purchase cutoff times for Wire and ACH?

Same day credit is available through wire only.

 

All wire purchases (deposits) received in good order prior to 11:00 a.m. Central (“CT”) will be processed that same day and will participate in that day’s income accrual.  Wire purchases received in good order after 11:00 a.m. CT, but prior to the Illinois Funds’ close (3:00 p.m. CT), will be processed that same day, but will receive the next day’s income accrual. All wires purchase transactions received in good order after the Illinois Funds’ 3:00 p.m. close will be processed the next business day.

 

All ACH purchases (deposits) received in good order prior to 11:00 a.m. Central (“CT”) will be processed the next business day and will participate in the next day’s income accrual.  All ACH purchase transactions received in good order after the Illinois Funds’ 3:00 p.m. close will be processed the next business day.

 

What are the redemption cutoff times for Wire and ACH?

Wire redemption requests received in good order prior to 11:00 a.m. Central (“CT”) will be processed that same day and will not participate in that day’s income accrual.  Wire redemptions received in good order after 11:00 a.m. CT but prior to the Illinois Funds’ close (3:00 p.m. CT) will be processed that same day, but will receive that day’s income accrual.  All wire redemption transactions received in good order after the Illinois Funds’ 3:00 p.m. close will be processed the next business day.

 

Please note that ACH redemption proceeds may take 2 to 3 business days to settle to your bank account.

The exception to this is when the purchase check for the shares has not cleared the bank yet, if this occurs it may take 12-15 days for proceeds to settle to your bank account.

 

How are earnings distributed/calculated?

As part of a pooled investment fund, participants own the assets of the fund in proportion to their participation. U.S. Bancorp Fund Services, is the fund’s accounting and independent valuation agent that calculates participant earnings on each day the fund is open.

 

Is an Illinois Funds account FDIC insured?

The Illinois Funds account is not FDIC insured. The Illinois Funds is not a bank, it is an investment pool and does not qualify for FDIC insurance.

 

How is my money protected from financial losses?

The portfolio management team adheres to a strict investment policy that includes weekly ratings agency oversight. Investments are submitted to Standard & Poors (S&P)on a weekly basis for compliance and risk review. The Illinois Funds holds a AAAm rating by S&P Global Ratings and has never been downgraded in its entire history.

 

As part of SEC Rule 2a-7 requirements, The Illinois Funds undergoes monthly stress testing to ensure its net asset value (NAV) remains at a constant $1.00 per share. The portfolio is run through a series of tests mimicking extreme economic conditions to assess the stability of its NAV during periods of market unrest.  To date, these stress tests have never resulted in possible losses to principal balances.

 

Each account in The Illinois Funds is collateralized by the other accounts in the fund as the investment risks are shared on a percentage-of-contribution basis.  As such, the State of Illinois is the largest investor in The Illinois Funds, therefore, the State bears the largest risk.  The fiduciary responsibility of The Illinois Funds team is to preserve principal for the State and its taxpayers, in addition to providing safe, liquid investments for all participants within the Fund.

 
May I request my US Bancorp Fund Services (USBFS) online credentials over the phone?

Yes. If the primary authority has submitted an Illinois Funds application and it has been processed  (5-7 business days) the an authorized online trader may call 800-947-8479  to inquire about the status of their online credentials.  The primary account authority on any Illinois Funds investment account, may call USBFS and request the credentials for all authorized users on the account. A non-primary authority, who is authorized for online, may only request their  own credentials. 

 
Where do I mail my deposits?

The Illinois Funds

c/o U.S. Bancorp Fund Services, LLC

P.O. Box 701

Milwaukee, WI 53201-0701

 

 


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