The Diversified Bond Fund (DBF) has been created by the Idaho State Treasurer's Office as an alternative investment
to the short term investment funds such as the Local Government Investment Pool (LGIP)
and IDLE, for
those state agencies and public agencies who are able to assume less liquidity and more price volatility for the potential of greater
returns over the long run.
The investment objective for the DBF is to provide a reasonable level of current income which, when combined with potential
capital appreciation as measured on a long-term basis, will accommodate growth satisfying all potential distributions. Since
the DBF is by nature invested with a relatively longer weighted average maturity and since proportionate ownership in the
fund is based on market value, participants can expect the value of their investment in the fund to fluctuate over time.
Participating agencies should therefore only invest monies that they consider longer-term in nature (ex. 3.5 years or longer).
In general, the investment guidelines require that funds be invested in high quality securities in a manner that provides
a high level of total return at a reasonable level of risk measured over a long period. The investment manager will achieve
the investment objectives through active management of the portfolio to meet or exceed the Barclay's Capital Intermediate
A+ Aggregate Fixed Income Index.
* Securities in the DBF are shared positions valued at current market values. Due to interest rate changes and market movements,
it is possible to lose money by investing in the DBF.
- Idaho Statutes
DBF Investment Policy
DBF Statement of Understanding
DBF Portfolio Summary
- DBF Rates
- Idaho State Treasurer’s Office – Assets Under Management Financial Statements
- DBF Forms
- DBF FAQs
- Who is eligible to participate?
- Participation is open to all state agencies and to all political subdivisions including: Cities, Towns, Counties, Public
Retirement Systems, Regional School Districts, Local Public Agencies, Public Health Districts, Irrigation and Soil Conservation
Districts and Water and Sewer Districts.
- What is the cost to participate?
- The Idaho State Treasurer’s Office charges an annual fee of 0.036%. This fee is deducted monthly prior to distribution of
interest. Management fees are roughly 0.1735% and are also deducted monthly prior to distribution of interest.
- Is there a risk associated with the DBF?
- Since the DBF is by nature invested with an intermediate weighted average maturity and since proportionate ownership
in the fund is based on market value, participants can expect the value of their investment in the fund to fluctuate over
time. Participating agencies should therefore only invest monies in the DBF that they consider longer-term in nature (ex.
3.5 years or longer).
- Is it possible to lose money in this fund?
- Securities in this fund are share positions valued at current market values.
Due to interest rate changes and market movements, it is possible to lose money by investing in the fund.
- What is the minimum and maximum investment?
- A minimum initial investment of $250,000 is required to open an account. There is no maximum investment amount.
- What is the application process?
- Complete the application listed under "DBF Forms" on this page. The form must be completed and signed by an authorized member
of the agency’s governing body.
Submit DBF Comments and Questions