The process of making deposits to and withdrawals from the CSU System investment accounts is similar to using a LAIF Account. Funds will be wired in and out of a single campus bank account outside the State Treasury system. Campuses that are able to reasonably estimate their cash flow needs at least one month in advance will be able to benefit from the anticipated higher earnings of the Total Return Account. Campuses will receive notification to make their first deposit from the Chancellor's Office shortly. The investment objective of the Short-Term Account is to maximize current income, consistent with the preservation of capital.
Capital appreciation is a secondary consideration of the account.
This Account invests in a portfolio of fixed-income securities of varying maturities with an approximate portfolio duration of 0.75 to 2 years. This Account's dollar-weighted average maturity will exceed its portfolio duration. Valuation of this Account will take place daily, allowing for campus deposits and withdrawals on a daily basis. The investment objective of the Total Return Account is to maximize long-term total return. This Account invests in a diversified portfolio of fixed-income securities of varying maturities with an approximate portfolio duration of 3.75 to 5.75 years.