Cash Management Program

The Short-Term Investment Fund (STIF) is the internally managed portfolio of highly liquid fixed income securities. These securities are primarily money market instruments and short to intermediate treasuries and agencies.

General Statute 147-69.1 governs what securities are eligible for purchase by the fund. The fund can invest in maturities ranging from overnight to seven years.

The primary objectives of the STIF are safety and liquidity, followed by providing maximum income within the parameters of the IRS regulations on bond arbitrage. Since the funds in the STIF can be called at anytime, it is necessary that a conservative investment strategy be utilized.

For the Fiscal Year 2007, the STIF generated a cash return of 4.68 percent compared to 3.56 percent for Fiscal Year 2006.