State fund posts strong returns - Westfair Communications

Connecticut’s Short-Term Investment Fund posted a return on investment for the three years ending June 30 that was three times as high as that paid out by similar money funds, State Treasurer Denise L. Nappier said earlier this week.

STIF money is used as operating cash for the state’s treasury, agencies, municipalities and other subdivisions of the state government.

During the last three years, STIF earned an average return of 0.24 percent while similar money funds earned an average return of 0.07 percent, according to a statement from Nappier’s office. As a result, an additional $24.6 million in interest payments were received by the state.

In 2012, the fund earned 0.16 percent, compared to an average 0.05 percent for similar funds, earning investors an additional $5.3 million.

“We are pleased to have consistently outperformed other funds, particularly during these periods ofÂ extremely low interest rates,” said Nappier in a press release. “The budget pressures that the state and local governments are experiencing makeÂ this incremental revenue all the more important.”The Connecticut STIF is rated AAAm by Standard & Poor’s, which is the rating agency’s highest principal stability fund rating.