Florida CLASS representative pitches daily‑liquidity pool to Palatka officials, cites 4.38% yield
Summary
A representative of Public Trust Advisors (manager of Florida CLASS) briefed Palatka commissioners on the state-authorized Florida CLASS cash fund as an option for city cash balances, noting a current net yield of about 4.38% on the daily liquidity share and explaining fees and liquidity features under Florida Statute 218.415.
A representative of Public Trust Advisors gave a presentation on Florida CLASS (the state-authorized cooperative investment pool) during the Palatka budget workshop, describing it as a daily‑liquidity vehicle that currently posts a net yield near 4.38% and can pay dividends into participants’ accounts daily.
The presenter said Florida CLASS is authorized under Florida Statute 218.415 and is triple‑A rated by Standard & Poor’s. The pool offers two main share classes: an overnight daily‑liquidity fund (presenter-stated yield: 4.38% at the time of the presentation) and an enhanced cash vehicle that sacrifices some liquidity for a modestly higher yield. The manager’s fee for the pool was stated as 15 basis points, deducted daily from gross yield so participants see a net posted rate.
Commissioners and staff asked for a participant list and for an explanation of why the fund’s yield has decreased from its 2024 highs; the presenter said the fund’s yield follows the federal funds rate and that recent Federal Reserve cuts have reduced short-term yields. Staff said they are evaluating whether to move non‑essential city cash from bank balances into a higher‑yielding vehicle and requested the presenter provide the participant list and additional materials.
The presentation did not bind the city to any transfer; staff said any move would follow internal policy and require banking/treasury steps.
The presenter was identified as a representative of Public Trust Advisors (Florida CLASS).
