Filter by topic: Investment Objectives and Management | Invested Treasurer's Cash Pool | Other State Cash Accounts | Performance
The SBI manages the cash balances of more than 400 state agency accounts with the objectives of preserving capital, meeting state agency liquidity needs, and providing competitive returns on invested cash.
State Cash Account assets represent funds invested in the Invested Treasurer’s Cash (ITC) Pool and in Other State Cash Accounts. Certain state agencies with varying investment objectives, investment restrictions, and time horizons, are not invested in the ITC Pool and are invested in separate accounts.
The investment objectives for investing State Cash Accounts are to preserve capital, to meet the agencies' cash needs without the forced sale of securities at a loss, and to provide a level of current income consistent with the goal of preserving capital.
All State Cash Accounts are managed internally by SBI investment staff.
The majority of the State Cash Accounts are invested in a short-term pooled fund referred to as the Invested Treasurer’s Cash Pool (ITC). As of June 30, 2025, the assets invested in the ITC Pool totaled $29.6 billion, representing 98% of total State Cash Account assets. The ITC Pool invests the cash balances of special or dedicated accounts necessary for the operation of certain state agencies and non-dedicated cash in the State's general account.
Approximately $637.5 million of assets (as of June 30, 2025) are held in Other State Cash Accounts, representing dedicated separately managed accounts with varying investment objectives and restrictions. In these cases, the state agency either directs the SBI to make specific investments or provides the SBI with investment guidelines, and the SBI manages the investment strategy on the agency's behalf. Most of the assets in the Other State Cash Accounts are related to State or state agency debt issuance, including debt service reserves and proceeds.
Excess Debt Reserve
The SBI manages excess debt reserve accounts separately from the ITC Pool in order to conform with requirements related to the issuance of general obligation bonds.
When the full faith and credit of the State has been pledged for the payment of the State’s bonds, the Minnesota Constitution and statutes require the State to have on hand by December 1 of each year an amount sufficient to pay principal and interest on the State’s general obligation debt for the next nineteen months.
The U.S. Internal Revenue Code establishes rules surrounding debt issuance, debt service, and yield management. The SBI complies with these rules by separating the nineteen months of funds set aside for debt service into two accounts:
- A “bona fide debt service account” to comply with federal regulations; and
- An “excess reserve account” to comply with the Minnesota Constitution and statutes.
The primary investments for the reserve accounts are U.S. Treasuries and tax-exempt municipal bonds. As of the end of fiscal year 2025, the SBI had approximately $133.2 million invested in the Excess Debt Service Reserve accounts.