Clayton hears NC Capital Management Trust briefing emphasizing safety, liquidity and current yields

Lee Carter, a long-time representative of the North Carolina Capital Management Trust, gave the council a history of the fund and its operating rules, telling Clayton officials the trust was created to provide safe, liquid investment options for medium and small local governments. Carter stressed that the fund is SEC-registered and that the program’s priorities are "safety first, liquidity second," a risk posture designed to protect principal for participating governments.

Donna Wood, who described herself as a former county finance director and current trust representative, gave an update on current yields and operational features. "So our current rate, our 1 day is 3.60. Our compounding rate is 3.66," Wood said, and she explained that the trust limits average maturity and keeps a large share of assets available on a daily or weekly basis to permit withdrawals. She also noted the trust uses Fidelity as the investment manager and that Bank of New York serves as custodian.

The presentation included details about allowable investments and liquidity rules: the fund limits holdings to treasuries and government agencies, targets average maturities of 60 days or less, and requires a portion of assets to be available daily and weekly. Council members asked clarifying questions about access and the town’s accounts; staff said the trust’s administrative team in Charlotte handles account operations and that Clayton has participated in the trust for many years.

The briefing closed with council appreciation for the trust’s focus on preserving public funds and a reminder that yield figures are recalculated daily on the trust’s public rates page.