What is Michigan CLASS?

Established in 1991…

Michigan Cooperative Liquid Assets Securities System (Michigan CLASS) is a local government investment pool that emphasizes safety, liquidity, convenience, and competitive yield. Since 1991, Michigan CLASS has provided Michigan public agencies a safe and competitive investment alternative. Michigan CLASS invests only in instruments applicable to Michigan state laws governing investment options for local agencies. Michigan CLASS is established pursuant to a Participation Agreement (the Agreement) and is governed by a 13 member Board of Trustees elected by the program Participants (the Participants). Michigan CLASS is rated ‘AAAm’ by S&P Global Ratings Services.

Section 28 of Article 7 of the Michigan Constitution of 1963 provides, among other things, that the legislature may authorize two or more local governmental entities to enter into contractual agreements to provide for the joint administration of functions which each entity would have the power to perform independently and to share in the related costs and responsibilities with each other. In accordance with this constitutional provision and certain statutory provisions incorporated in the Urban Cooperation Act of 1967 of the State of Michigan, the Agreement constitutes an interlocal trust agreement creating a legal entity established for the purpose of facilitating the joint investment of public sector surplus funds. This type of program is included in Public Act 20 as amended in 1997, under Section 1 (1) h.

The program’s Investment Advisor is Public Trust Advisors, LLC, and the program’s Custodian is Wells Fargo Bank.

 

Michigan CLASS has four general objectives:

  1. Legality
    • To invest only in investments legally permitted under Michigan State Law.
  2. Safety
    • To minimize risk by managing portfolio investments to preserve principal and maintain a stable Net Asset Value (NAV).
    • To maintain the highest money market rating for the Michigan CLASS portfolio from a nationally recognized statistical rating organization.
  3. Liquidity
    • To manage portfolio investments in a way that ensures that cash will be available as required to finance Participants’ operations.
  4. Yield
    • To maximize current income to the degree consistent with legality, safety, and liquidity.

 

Take Your First Step Towards Investing in Michigan CLASS!

 

Learn more about investing public funds on behalf of your public agency. We encourage you to try out our Investment Calculator and see how much your investments could have earned if you had already started your investment journey. Let us help you determine the right investment option for your public agency!

Investment Calculator

 

 

A ‘AAAm’ rating by S&P Global Ratings is obtained after S&P evaluates a number of factors, including credit quality, market price exposure, and management. Ratings are subject to change and do not remove credit risk.

General Questions

  • Who oversees Michigan CLASS?

  • The Michigan CLASS Board of Trustees (the Board) oversees the investments made on behalf of the Participants. The Board consists of thirteen active members of the pool who are elected by the Participants for staggered terms. The Board approves the program’s investment parameters which must additionally fall within the investment stipulations mandated under Michigan statute for the investment of surplus funds of the Participants. Currently, the Board retains the services of Public Trust Advisors, LLC (Public Trust) located in Denver, CO. Public Trust serves as the Administrator and Investment Advisor.

  • Who is eligible to use Michigan CLASS?

  • Participation in Michigan CLASS is available to any county, city, village, township, school district, authority, the state of Michigan, or any other political subdivision organized under the laws of the state of Michigan. To join, such public agencies need to execute an authorizing resolution joining the Participation Agreement and provide a certified copy of such resolution to the Administrator.  Pursuant to applicable state law, Public Trust Advisors, LLC will review each entity’s investment policy and return the appropriate acknowledgment.