This page provides information about how the Bureau of Trust Funds Administration invests money on behalf of Native American beneficiaries and Tribes. Use the links below to jump to a section:
BTFA will make investments in a prudent manner under prevailing circumstances including, but not limited to, the general economic conditions and anticipated distribution needs of Tribes and IIM accounts. Prudent investment should incorporate risk mitigation and return objectives reasonably suitable for each investment account (Uniform Prudent Investor Act of 1994 (UPIA)).
Employees involved in the investment process who conduct investment transactions on behalf of DOI with a specific firm, individual, or other party will not conduct personal investment or other financial transactions with the same firm, individual, or other party.
It is BTFA’s policy to ensure that we invest Tribal funds in a manner consistent with the individual Tribe’s objectives and the Secretary’s fiduciary trust responsibility to ensure that Tribal trust funds are properly maintained and invested. Selection of the appropriate investment strategy is undertaken after either consultation with the Tribe or documented attempts to consult with the Tribe and evaluation of their plans for the funds in each account. However, as the Trustee, BTFA has the ultimate decision-making authority regarding investments. In making investment decisions, BTFA will balance safety, liquidity, and investment return, which are as follows:
In accordance with the policy in above, BTFA will use the following four strategies: liquidity, blended, income, or growth to invest trust funds.
It is BTFA policy to develop an investment plan for each Tribal account according to the Tribe’s needs. Instruments that BTFA purchases under an investment plan will consist of the following:
For BTFA purposes, short-term investments are categorized as debt-bearing maturities not to exceed 24 months. Examples of permissible short-term investments include:
For BTFA purposes, medium- to long-term investments are categorized as investment instruments with maturities exceeding 24 months. Medium-Term maturities range from 2–7 years and Long-Term maturities range from 7–30 years. Examples of permissible medium- and long-term debt include:
Pursuant to 25 US Code 162a, the Secretary of the Interior is authorized to invest Indian trust funds, or any part there-of, in guaranteed or public debt obligations of the United States or in a mutual fund, otherwise known as an open-ended diversified investment management company, if:
Under the Secretary’s authority, BTFA may invest in Investment pools, such as money market mutual funds, that hold solely permissible debt that includes U.S. dollar denominated Treasuries, Agency debt, Repos, and Reverse Repos.
BTFA may invest in certain Repurchase Agreements. Examples include:
BTFA will manage risk in accordance with this Investment Policy Statement.
BTFA generally holds assets to maturity. However, in some economic circumstances, BTFA may rebalance a portfolio’s assets to optimize income.
OTFI will prepare periodic investment reports for BTFA leadership and beneficiaries.