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 S&P Global¹
• 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 Fitch Ratings²
• 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 its investment adviser to have an individual portfolio managed to meet specific investment objectives. An individually managed portfolio provides an investor with:

• The resources of PFM Asset Management² (PFMAM), a firm with more than 40 years of experience serving the public sector
• Investments tailored to meet the agency's liquidity needs or specific draw schedule
• Professional portfolio management focused on enhancing earnings and managing risk
• Investment purchases determined by the agency'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 are not a part of the Fund. They are available under a separate agreement with the investment adviser.

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 the MAGIC Fund by contacting a Fund representative at 800.731.7150.

1  S&P Global AAAm Rating: S&P evaluates a number of factors, including credit quality, market price, exposure, and management. Please visit SPGlobal.com/Ratings for more information and ratings methodology.

2  Fitch AAAf Rating: portfolios with this rating indicate having the highest underlying credit quality. Please visit fitchratings.com for more information and ratings methodology.

3  PFM Asset Management is a division of U.S. Bancorp Asset Management Inc., the MAGIC Fund’s investment adviser and administrator, that services public sector clients.