Bill > SB1721

This bill amends the Public Funds Investment Act to expand the investment options for public agencies by adding a new provision that allows them to invest public funds in broad-based index funds. Specifically, the bill introduces a sixth category of permissible investments (Section 2(a)(6)) that enables public agencies to invest in index funds that track the performance of a large group of stocks representing the broader market. An index fund is a type of investment fund that aims to mirror the composition and performance of a specific market index, such as the S&P 500, providing a diversified investment approach. This change gives public agencies more flexibility in managing their investments by allowing them to potentially benefit from the overall market performance, rather than being limited to more traditional, potentially lower-yielding investment vehicles like government bonds or certificates of deposit. The bill maintains existing safeguards and investment restrictions while providing public agencies with an additional, potentially more dynamic investment option that could help maximize returns for public funds.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1721&GAID=18&DocTypeID=SB&SessionID=114&GA=104