Investment Division

The State Treasurer invests taxpayers’ money safely and prudently, while minimizing service costs and maximizing investment yields. The investments help manage the State’s cash flow and enhance local governments’ financial security. The Treasurer carries out these duties through the Pooled Money Investment Account (PMIA).

Investment Division staff invest PMIA funds in a wide range of securities, using more than 100 brokers, dealers, banks and direct issuers of commercial paper and corporate debt.

Through the PMIA, the Investment Division manages two programs of particular note: the Local Agency Investment Fund (LAIF) and time deposits.

The LAIF allows cities, counties and special districts to place money in a major portfolio and, at no additional costs to taxpayers, use the expertise of Investment Division staff. Participating agencies can withdraw their funds from the LAIF at any time.

Under the time deposit program, the PMIA provides money to community banks at competitive rates. Eligible institutions are commercial banks, savings banks and credit unions that are federally insured and licensed to accept deposits in the State of California. Banks which receive time deposit funds can use the money to expand economic opportunity and create jobs in the communities they serve.

The PMIA is governed by the Pooled Money Investment Board, while the LAIF receives oversight and guidance from the Local Investment Advisory Board. The State Treasurer chairs both boards.