Government investment pool
What is a government investment pool?
A government investment pool (GIP) is a scheme offered to public bodies to invest public funds. These pools are considered low risk, and offer reasonable returns.
Where have you heard about government investment pools?
GIPs are offered in the US. Many are managed by government employees, although some are run by outside investment firms. Participants may include state municipalities, counties, school districts, public utility districts and local government units.
What you need to know about government investment pools.
GIPs, which are required to report regularly to their investors, have a history of careful management, although there have been some instances of a fund making a loss.
Similar to other funds, GIPs follow a set of investment guidelines. Although they're not regulated by the Securities and Exchange Commission, the pools seek to maintain safe investment strategies. Many US states adhere to guidelines recommended by various public associations, and many also obtain a rating from credit rating agency Standard & Poor's.