PROVIDENCE, R.I. – General Treasurer Gina M. Raimondo, along with Fidelity Investments, today officially launched the Ocean State Investment Pool (OSIP). This new, voluntary program will help the state and municipalities better manage and improve the investment performance of their liquid assets.
Liquid assets are used by the state and cities and towns for day-to-day operations, such as payroll, operating expenses and capital projects.
"In these challenging times, this program will help municipalities improve investment returns by creating economies of scale," Raimondo said. "The goal of the program is to provide a competitive cash investment option for government finance professionals, including high quality investments, exceptional customer service and access to innovative account management technology."
The pool, created by Treasury under the guidance of the Rhode Island State Investment Commission, is a voluntary, safe, liquid, low-cost alternative investment vehicle that should help to improve and grow resources. The goals of the pool are to balance capital preservation with competitive returns, while providing trusted investment options.
"As one of the nation's largest providers of Institutional Liquidity Management services, Fidelity is pleased to partner with Treasury to assist municipalities in effectively and efficiently managing their portfolios on behalf of the state's cities and towns," said Joyce Marsilia, Executive Vice President of Fidelity Investments. "We look forward to bringing Fidelity's deep expertise, vast resources and outstanding customer experience to this program."
The benefits of joining the OSIP Cash Portfolio, a money market portfolio include:
- Consistent and competitive yields at costs lower than other products in the market
- Flexible and convenient access to portfolio funds with withdrawal, purchase and account information available by phone or web
- Access to experienced, professional portfolio managers and credit research analysts
- Daily access for liquidity
- Daily accrual of dividends, regardless of the size or time of the investment
In November 2011, the State Investment Commission selected Fidelity Investments as the OSIP vendor. The legislation to create the pool passed the General Assembly in June 2011.
Municipalities interested to learn more about OSIP should call 1-855-900-OSIP.