Overview

The SBA's investment responsibility extends to a wide range of similar trust and investment funds, including portfolios for supplemental retirement benefits, economic development, lottery payouts, and a variety of special purposes. The portfolio structures vary in each fund, depending on the investment objectives, time horizon, and size.

Debt Service Funds

The SBA administers Debt Service Funds for bonds issued by the Division of Bond Finance on behalf of any state agency. All monies are invested in a manner consistent with the provisions of the authorizing bond resolutions and official statements. Permissible investments are limited to U.S. Treasury securities, repurchase agreements backed by U.S. Treasuries and any other investments specified in bond indentures and approved by the Division of Bond Finance. Investment maturities are dictated by the schedule of principle and interest payments on the various bond issues.

Periodically, the SBA acts as a trustee and escrow agent for the purpose of defeasing previously issued debt. The proceeds of any new debt will be placed in an irrevocable trust fund to provide for all future debt service payments of the old bonds.

Lottery Fund

The SBA has been the investment manager of the Florida Department of Lottery since 1989. Upon written instructions, the SBA invests prize winnings in equal face amounts of U.S. Government debtor U.S. Government guaranteed debt. U.S. Government zero-coupon bonds (STRIPS) are currently the only securities held in the Lottery Fund.

Health Insurance Subsidy

The Retiree Health Insurance Subsidy Trust Fund (HIS) supports the monthly health insurance subsidy payments to retired members of state-administered retirement systems. Cash flow projections by the Division of Retirement guide the level of liquidity required to meet monthly obligations. Most of the HIS assets are in a separately managed account. The HIS is also a participant in the SBA's CAMPMM Investment Fund.

Inland Protection Financing Corporation

Florida Statutes created the Inland Protection Financing Corporation (IPFC) for the purpose of financing the rehabilitation of petroleum contamination sites. The Corporation, which is administratively housed within and staffed by the SBA, can issue bonds to pay claimants and is authorized to use funds from the Inland Protection Trust Fund to pay debt service. In 1998, the Corporation issued $253.3 million in bonds. Once all bonds are repaid, the Corporation's statutory responsibilities will cease. Under state law, the Corporation will terminate on July 1, 2011. The funds are held and invested pursuant to a trust agreement between the Inland Protection Financing Corporation and the SBA. The Bank of New York is the custodian of the assets. Liquidity and preservation of capital are important considerations of the Fund.

Mcknight Fund

The SBA manages endowment monies for the McKnight Doctoral Fellowship Program under a trust agreement with the Florida Education Fund, Inc., a not-for-profit statutory corporation. The program assists candidates with educational endeavors and enhances opportunities for program graduates to be hired for faculty positions in Florida.

Bond Proceeds Trust Fund

The Bond Proceeds Trust Fund is a fiduciary fund established to temporarily hold good faith deposits from brokers and underwriters of Florida government bonds received by the Division of Bond Finance. Monies are invested in U.S. Treasury securities or repurchase agreements backed by U.S. Treasuries until the bonds are issued. The proceeds are then transferred to the indebted unit of government. Because the monies reside with the SBA only briefly, the objective of the Fund is safety and liquidity.

Gas Tax Trust Fund

The Gas Tax Trust Fund is a conduit for the distribution of debt service payments generated from County Gas Tax collections and remitted to the Department of Revenue and to the Department of Highway Safety and Motor Vehicles. Funds held in anticipation of scheduled debt repayment are invested in U.S. Treasury securities or short-term repurchase agreements collateralized by U.S. Treasuries. Investment maturities are dictated by the schedule of principal and interest payments on the various debt issues.

Scripps Florida Funding Corporation

The Scripps Florida Funding Corporation was created in late 2003 when the Florida Legislature approved a $310 million incentive package for the Scripps Research Institute to build a biotechnology center in Palm Beach County. The SBA administers the fixed income investments for the Scripps Florida Funding Corporation. The primary investment objective is to provide liquidity and meet the scheduled Scripps disbursement plan through 2010. Authorized investments include U.S. government and agency securities, investment grade corporate debt and high quality money market instruments.

Florida Endowment for Vocational Rehabilitation

The Florida Endowment for Vocational Rehabilitation was enacted to enhance the opportunities for Florida's disabled citizens to become self-supporting, productive members of society. Fines and penalties for certain civil infractions generate proceeds for investment. The principal of the endowment was set at $1 million in fiscal year 2000-01 and increases by 5% per fiscal year thereafter. Any monies in the endowment in excess of its principal requirement are available to the Florida Endowment Foundation for Vocational Rehabilitation.

Police and Firefighters Premium Tax Trust Fund

Under state law, the SBA invests the monies deposited into the Police and Firefighters Premium Tax Trust Fund. Funding is generated from quarterly payments of a tax on property insurance premiums. The Division of Retirement makes annual distributions to eligible municipalities. The investment horizon for these funds is short term and a high degree of liquidity is essential.

Division of Blind Services

Under a trust agreement, the Division of Blind Services of the Florida Department of Education invests in the SBA's CAMP Pools.