Illinois Metropolitan Investment Fund: An Overview and FAQ

The Illinois Metropolitan Investment Fund (IMET) is a local government investment pool designed to help public entities in Illinois effectively manage their surplus funds. Established in 1996, IMET provides municipalities, counties, school districts, park districts, and other government units with a secure and convenient platform for investing public funds. The pool allows these entities to invest in high-quality, low-risk securities, ensuring their funds remain safe while earning competitive returns.

Purpose and Structure

IMET was created to address the specific investment needs of Illinois’ public sector. Local government entities often have surplus funds that require prudent management to achieve reasonable returns without unnecessary risks. By pooling resources, IMET offers participants the advantage of professional investment management, larger-scale investments, and better returns compared to what individual entities might achieve on their own.

IMET is governed by a board of local government officials who oversee the fund’s operations and ensure that the investment strategies remain aligned with the needs of its public sector participants. These investment strategies focus on three key priorities:

  • Safety: Protecting public funds by adhering to conservative investment policies.
  • Liquidity: Ensuring that funds are available when needed.
  • Yield: Striving to earn competitive returns without compromising safety.

IMET Investment Options

IMET offers two primary investment options, allowing public entities to choose the product that best suits their needs:

  1. 1-3 Year Fund: This is a long-term investment option that targets high-quality fixed-income securities. It is ideal for public entities that can invest for longer periods, seeking stable returns while minimizing risk.
  2. Convenience Fund: Similar to a money market fund, the Convenience Fund provides high liquidity, allowing participants to access their funds whenever needed. This option is designed for short-term investments and immediate liquidity, while still offering competitive returns.

Frequently Asked Questions (FAQ)

1. What is the Illinois Metropolitan Investment Fund (IMET)?

IMET is a local government investment pool that allows public entities in Illinois to invest their surplus funds in a secure, low-risk manner. By pooling their funds together, IMET participants benefit from professional management, economies of scale, and competitive returns.

2. Who can participate in IMET?

IMET is open to all public entities in Illinois, including municipalities, counties, park districts, school districts, fire districts, and other units of government.

3. What types of investments does IMET offer?

IMET offers two primary investment products:

  • 1-3 Year Fund: A fixed-income fund designed for longer-term investments with a focus on safety and moderate returns.
  • Convenience Fund: A liquid investment option that allows participants to withdraw funds at any time while still earning competitive returns.

4. How safe is it to invest in IMET?

IMET follows strict investment policies aimed at preserving capital. It invests primarily in high-quality, low-risk securities like U.S. government obligations, federal agency securities, and other highly rated investments. The fund is subject to regular audits and oversight to ensure its compliance with state laws and investment guidelines.

5. How can public entities access their funds?

Funds invested in IMET’s Convenience Fund are fully liquid, allowing participants to withdraw their money at any time. The 1-3 Year Fund is more suited for long-term investments, meaning funds may not be as readily available for immediate withdrawal without penalty.

6. What are the fees associated with IMET?

IMET operates with a low-fee structure, ensuring that the majority of earnings are passed back to the participants. The fees cover administrative costs and investment management, which are typically lower than traditional investment services due to IMET’s not-for-profit status.

7. How are returns distributed to participants?

IMET calculates earnings daily, and interest is credited to participant accounts on a monthly basis. The fund strives to provide a balance between liquidity, safety, and returns, ensuring that participants receive a fair yield on their investments.

8. What are the benefits of participating in IMET?

Public entities that invest in IMET enjoy several advantages, including:

  • Professional investment management: Expert oversight to maximize returns while maintaining safety.
  • Economies of scale: By pooling resources, participants achieve better rates and returns.
  • Low administrative fees: IMET’s not-for-profit structure helps keep costs down.
  • Flexibility: With both long-term and liquid investment options, participants can tailor their investments to their specific needs.

9. Is IMET regulated?

Yes, IMET operates under the guidelines of the Illinois Public Funds Investment Act and is subject to regular audits by an independent firm. The fund’s operations are also overseen by a board of public sector officials to ensure compliance with state regulations and best practices.

10. How can public entities join IMET?

Public entities interested in participating in IMET can visit the fund’s website or contact IMET directly to learn more about membership requirements, enrollment procedures, and how to get started.

Conclusion

The Illinois Metropolitan Investment Fund (IMET) plays an essential role in helping Illinois public entities manage their funds securely and efficiently. By providing a range of investment products tailored to the unique needs of local governments, IMET helps its participants optimize their returns while ensuring the safety and liquidity of their public funds. Through its focus on safety, transparency, and professional management, IMET remains a trusted partner for public sector investment across Illinois.

For more information on the Illinois Metropolitan Investment Fund, visit their website or contact their support team to explore how your public entity can benefit from their services.