About The Fund
Since 1990, the MAGIC Fund has been serving the investment and arbitrage compliance needs of Minnesota counties and instrumentalities of counties. The investment options offered to investors through the MAGIC Fund are the Fund and individual portfolios.
Arbitrage rebate compliance services are available for bond proceeds invested through the Fund.
MAGIC Portfolio Highlights
- A short term portfolio rated AAAm by Standard and Poor’s1
- Daily liquidity
- Competitive money market returns
- Unlimited number of deposits and withdrawals
- Transactions by wire, ACH and check
- Sub-accounting to track multiple funds/accounts.
The Portfolio is managed to maintain a dollar-weighted average portfolio maturity of 60 days or less and seeks to maintain a constant net asset value per share of $1.00. The Portfolio invests in obligations of the United States Government and its agencies, high quality debt obligations of U.S. companies and obligations of financial institutions
MAGIC Term Portfolio Highlights
- A fixed-rate, fixed-term portfolio rated AAAf by Fitch2
- Designed to match the cash flow requirements of investors with the cash flows from the portfolio
- Minimum maturity of 60 days
- Maximum maturity of one year
- Minimum investment of $100,000
- Projected dividend rate provided upon purchase and paid upon redemption date
- Early withdrawal may result in substantial early redemption penalty
Individually Managed Portfolios
In addition to the Fund, MAGIC offers investors the option to contract with PFMAM to have an individual portfolio managed to meet specific investment objectives. An individually managed portfolio provides an investor with:
- The investment advisory resources of PFMAM, a leading investment advisory firm serving the public sector
- Investments tailored to meet the Investor’s liquidity needs or specific draw schedule
- Professional portfolio management to focused on enhancing earnings and managing risks
- Investment purchases determined by the Investor’s investment policy or bond documents
- Competitive shopping for every security to seek the most favorable price and execution
- Third-party custody of all assets
- Investment management and custody services at a reasonable cost
Individually managed portfolios are automatically linked to the investor’s MAGIC Fund account so that maturities and coupon payments are invested at all times. Individually managed investment portfolios, which are not a part of the Fund, are available under a separate agreement with PFMAM.
Arbitrage Rebate Compliance Services
For bond proceeds invested with the MAGIC Fund, PFMAM tracks the proceeds for arbitrage rebate compliance purposes. Investors can receive the following correspondence/reports:
- Spending exception compliance reports, including notification of an upcoming benchmark
- Yield restriction compliance notification
- Annual estimates of accrued arbitrage rebate and yield restriction liabilities
- Notification of Installment Calculation Date sent 60 days in advance of the required calculation date
- Retention of arbitrage related documents and investment records
- Rebate Calculation Reports that are available at a nominal charge
Investors can check the arbitrage status of any of their bond issues invested with MAGIC by contacting a Fund representative at 1-800-731-7150.
1 Standard & Poor’s fund ratings are based on analysis of credit quality, market price exposure, and management. According to Standard & Poor’s rating criteria, the AAAm rating signifies excellent safety of investment principal and a superior capacity to maintain a $1.00 per share net asset value. However, it should be understood that the rating is not a “market” rating nor a recommendation to buy, hold or sell the securities. For a full description on rating methodology, visit Standard & Poor’s website (http://www.standardandpoors.com/en_US/web/guest/home).
2 The AAAf rating reflects Fitch Ratings’ (“Fitch”) review of the Term program’s investment and credit guidelines, the portfolio’s credit quality and diversification, as well as the capabilities of PFM Asset Management LLC as investment adviser. It indicates the highest underlying credit quality (or lowest vulnerability to default). However, it should be understood that this rating is a not “market” rating nor a recommendation to buy, hold or sell the securities. For a full description on rating methodology visit www.fitchratings.com.
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This information is for institutional investor use only, not for further distribution to retail investors, and does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security. Investors should consider the investment objectives, risks, charges and expenses before investing in any of the Fund's portfolios. This and other information about the Fund's portfolios is available in the Fund's current Information Statement, which should be read carefully before investing. A copy of the Fund's Information Statement may be obtained by calling 1-800-731-7150 or is available on the Fund's website at www.magicfund.org. While the MAGIC Portfolio seeks to maintain a stable net asset value of $1.00 per share and the MAGIC Term Portfolio seeks to achieve a net asset value of $1.00 per share at the stated maturity, it is possible to lose money investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Shares of the Fund's portfolios are distributed by PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA) (www.finra.org) and Securities Investor Protection Corporation (SIPC) (www.sipc.org). PFM Fund Distributors, Inc. is an affiliate of PFM Asset Management LLC.