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).
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 Fifth Third Bank.
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.
New local governments looking to invest in either of the Michigan portfolios will first need to complete the Michigan Registration Packet. For more information, please contact the Michigan CLASS Relationship Team to receive the necessary paperwork to get started.
No, there is no limit to the number of subaccounts a Participant may have. Furthermore, Participants may invest in either of the Michigan CLASS portfolios.
There is no minimum investment amount for either of the Michigan CLASS portfolios.
Michigan CLASS can provide your local government with a comprehensive, professionally managed approach to investing your funds. Michigan CLASS currently offers two investment options:
‘AAAm’ Rated by S&P Global Ratings
‘AAAf/S1’ Rated by FitchRatings
≤ 60 Days
> 60 Days
Stable $1.00 per share
Variable $10.00 per share
Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. Investment involves risk including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. Michigan CLASS is rated ‘AAAm’ by S&P Global Ratings. 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. For a full description of rating methodology, please visit www.spglobal.com.
Michigan CLASS EDGE is rated ‘AAAf/S1’ by FitchRatings. The ‘AAAf’ rating is Fitch’s opinion on the overall credit profile within a fixed-income fund/portfolio and indicates the highest underlying credit quality of the pool’s investments. The ‘S1’ volatility rating is Fitch’s opinion on the relative sensitivity of a portfolio’s total return and/or net asset value to assumed changes in credit spreads and interest rates. The ‘S1’ volatility rating indicates that the fund possesses a low sensitivity to market risks. For a full description of rating methodology, please visit www.fitchratings.com. Ratings are subject to change and do not remove credit risk. Past performance is no guarantee of future results. Any financial and/or investment decision may incur losses.