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What is a Short-term Investment Pool (STIP)?

by Team Goseeko

Short-term Investment Pool (STIP) is cash, an investment pool established by Regents in 1976. All university endowment groups, including severance pay , donation ,cash to meet salary, management with costs, and funding for the construction of all campuses. Similarly , STIP participants can maximize their bottom line as their short-term cash balance by using Economies of scale of investment in large cash investment pools.

Short term Investment Pool Purpose

The basic investment purpose of Short-term Investment Pool STIP is to maximize returns that matches the safety of the principal. Likewise , STIP investments are managed by the Treasury Department that includes a wide range.

  1. Firstly, high quality money market and bond spectrum products with a maximum maturity of 5 and a half years. The maturity of such investment is an appropriate flow of funds.
  2. Secondly, provision of the expected liquidity to facilitate the rebalancing of resource categories and other important liquidity occasions.
  3. Further in September 2009, Regent approved the change to STIP Investment guidelines effective October 2009, University liquidity requirements changed due in part to the state’s all position.
  4. Moreover California maintains improved levels of liquidity in the STIP portfolio which has portfolios implicitly have two components. It is a combination of both components.
  5. In addition to the new benchmark the rate of return and the weighted average of rate of return on Constant Maturity’s two-year treasuries and 30-day US Weights are set to the actual average weights of pool bonds and cash equivalents and are rebalanced monthly.
  6. Lastly there are certain changes which permits supervisors to keep on overseeing STIP in accordance with store rules others permits fluctuation in the measure of money comparable required.

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