Safety in a Rising Rate Environment

Texas CLASS Think Safety

As summer heats up, we are pleased to be in the midst of the first rising rate environment in the last decade. We have seen three 25 basis point increases in the Fed funds target rate within the past seven months which has led to a meaningful increase for the TrustINdiana rate. While increasing rates are always welcome, we want to remind our TrustINdiana Participants that the safety of Participants’ funds is always our primary objective.

How does TrustINdiana focus on safety?

TrustINdiana has an all-encompassing view on safety. This means that we want your funds to be safe, your information to be secure, and all transactions to be safeguarded. Below are some highlights regarding the safety features of TrustINdiana:

Experience: The portfolio management team responsible for the day-to-day management of TrustINdiana has successfully managed local government investment pools for more than 25 years through multiple interest rate cycles and economic environments.

This team is guided by a proven credit research process approved by the Indiana Treasurer of State that features strategic investments based on the time and research devoted to each investment decision. Investments are made via an approved list compiled by our portfolio management professionals who have a wealth of knowledge about the public funds sector, with over 75 combined years of experience.

State Statutes: TrustINdiana was authorized by the Indiana General Assembly’s passage of Indiana Code §  5-13-9-11 during its 2007 session. TrustINdiana investments are only made in accordance with Indiana state law. Under established guidelines, TrustINdiana seeks out investments that optimize the opportunity to maximize safety and minimize risk while providing a competitive return.

Additional Oversight: The Indiana Treasurer of State has been designated by statute as the administrator of TrustINdiana. The Treasurer has contracted with Public Trust Advisors, LLC, an SEC-registered investment advisor, to provide portfolio management, fund accounting, client services, and certain marketing services.

MYACCESS: TrustINdiana is committed to ensuring a secure online transaction experience through MYACCESS. We have implemented and maintain strong security measures for MYACCESS because we understand the risks associated with retrieving public financial information online. MYACCESS features include multifactor authentication, masked account numbers, and “The Safe Zone” (data secured in a stored environment monitored by a live person who identifies any unauthorized access attempts).

As rates continue to rise, so does the continued need for safety and security within the management of public funds. TrustINdiana is committed to taking every precaution to best ensure the safekeeping of Participants’ public funds. If you have any questions regarding TrustINdiana safety or the current rising rate environment, please feel free to contact our TrustINdiana investment professionals by clicking here.

*Source: 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. Ratings are subject to change and do not remove market risk.
Data unaudited. Performance results are shown net of all fees and expenses and reflect the reinvestment of dividends and other earnings. 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. All comments and discussions presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. The information above is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.