Georgia Fund 1 Fee Increase

Georgia Fund 1 participant:

For the last 15 years, the Office of the State Treasurer (OST) has held the administrative fee for Georgia Fund 1 (GF1) at 3.3 basis points.  Administrative fees collected from LGIP participants are to be used to fund expenses related to carrying out the investment functions and operations of the OST.  In the last year, the OST has seen increases in custody fees and other investment services utilized by the Investment Staff.  In addition, we have seen a rise in costs for both investment technology and cyber security.  In order to continue to provide the same level of service and adhere to best practices in safeguarding your assets, effective July 1, 2016, the administrative fee for GF1 will increase to 5 basis points. 

As a reminder, the interest figure reported on your monthly statement and other Georgia Fund 1 literature is net of this fee.  Monthly fees deducted from interest earnings can be calculated as follows:

Monthly fees = .0005 * (# of actual days in month/365) * average daily balance.

If you have any questions in regards to the administrative fee, please do not hesitate to contact to our office.