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What are the investment objectives of FLCLASS Enhanced Cash?
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The general objective of FLCLASS Enhanced Cash is to obtain an increased level of investment income while preserving capital and offering weekly liquidity to its Participants. The Enhanced Cash pool will invest in high-quality, short-term fixed-income investments authorized by Florida Statutes. The Enhanced Cash pool is structured to provide an investment vehicle for participants who wish to invest monies not needed for daily liquidity.
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What types of securities are purchased for FLCLASS Enhanced Cash?
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All investments made on behalf of FLCLASS Enhanced Cash will comply with the provisions of the FLCLASS Enhanced Cash Investment Policy and Florida law relating to the investment of public funds; investment funds may only be invested in a manner that is permitted pursuant to Florida’s Investment of Local Government Surplus Funds Act, Chapter 218, Part IV and the Florida Interlocal Cooperation Act of 1969. For a complete list of eligible investments for FLCLASS Enhanced Cash, please contact the FLCLASS Relationship Team.
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Is FLCLASS Enhanced Cash rated?
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Yes, the FLCLASS Enhanced Cash portfolio 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.
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Does FLCLASS Enhanced Cash seek to maintain a stable $1.00 net asset value (NAV)?
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Enhanced Cash will be a variable NAV fund managed to approximate a $10.00 transactional share price, calculating and publishing a fair value NAV on a daily basis. The FLCLASS Enhanced Cash portfolio has designated a $10.00 transactional share price in order to clearly differentiate the portfolio from a traditional $1.00 stable NAV fund. While $0.50 and $2.00 are examples of other variable NAV strike prices, a $10.00 per share NAV is one of the most commonly used strike prices for variable NAV funds.
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Does Board oversight differ between FLCLASS and FLCLASS Enhanced Cash?
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No, the FLCLASS Board of Trustees administers and oversees all investment portfolios offered by FLCLASS now and in the future.
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I need to add information regarding FLCLASS Enhanced Cash to my CAFR notes in our financial statements; can you provide suggested language to include?
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Yes; below please find our recommended language that you can customize to meet your specific reporting requirements and period. You can find the Enhanced Cash WAM and WAL for your specific reporting date on the Yields page.
“FLCLASS Enhanced Cash is a variable net asset value (NAV) local government investment pool that offers weekly liquidity to Participants. Enhanced Cash is suitable for a local government’s strategic reserves/non-operating funds and has a NAV that is managed to approximate a $10.00 transactional share price. FLCLASS Enhanced Cash measures its investments at fair value so investments in Enhanced Cash are not required to be categorized within the fair value hierarchy. Enhanced Cash is rated ‘AAAf/S1’ by FitchRatings. As of DATE, FLCLASS Enhanced Cash possessed a weighted average maturity of XXX days and a weighted average life of XXX days.”
If you need additional assistance or have further questions about this language, please contact the FLCLASS Client Service team.
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How can I become a FLCLASS Enhanced Cash Participant?
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Current FLCLASS Participants simply need to complete the Enhanced Cash Registration Form in order to begin investing.
Local governments looking to invest in any of the FLCLASS portfolios will first need to complete the FLCLASS Registration Packet. For more information, please contact the FLCLASS Relationship Team to receive the necessary paperwork to get started.
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Is there a minimum dollar amount required for a FLCLASS Enhanced Cash investment?
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No, there is no minimum initial investment or ongoing minimum account balance to participate.
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Will I see my FLCLASS Enhanced Cash account when I log in to the online portal?
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Yes, you will see your FLCLASS Enhanced Cash account alongside your FLCLASS account. You may also view any reports, such as monthly statements, that are associated with your FLCLASS Enhanced Cash account in the Documents section under the Accounts tab.
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How do I make transactions?
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To invest in Enhanced Cash, FLCLASS Participants must enter contributions through the Online Participant Portal. Withdrawn funds are available the business day after the transaction date that is entered in the online portal.
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Is there a maximum number of transactions?
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No, there is no limit to the number of transactions a Participant may execute with FLCLASS Enhanced Cash.
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Which of my funds are best suited for investment with FLCLASS Enhanced Cash?
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FLCLASS Enhanced Cash offers next-day liquidity and is best suited for funds not needed on a frequent or near-term basis. FLCLASS Enhanced Cash is designed to complement the daily liquidity offered by the FLCLASS portfolio.