01-12-1994 Council Agenda - Laserfiche WebLink

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PROXY STATEMENT Introduction This Proxy Statement, together with the accompanying proxy, is being furnished to each Participant of the Minnesota Municipal Money Market Fund (4M Fund) in connection with the solicitation by the Trustees of the Fund of proxies to be used at a meeting of the Participants of the Fund and any adjournment thereof. The meeting will be held on Wednesday, February 2, 1994 at 2:00 p.m., at the League of Minnesota Cities' offices, 3490 Lexington Avenue North, Shoreview, MN. The Purpose of the Meeting Amendment of the Declaration of Trust At the meeting, the Participants will be asked to consider and approve amendments to the Declaration of Trust of the Fund. The changes to the Declaration to be effected by the amendment and the purpose of such changes are summarized below. In addition to such summary, the text of the amended declaration of Trust to be considered and voted upon at the meeting is set forth in full in the Appendix to this Proxy Statement. In the Appendix, language that would be deleted by the amendment is stricken and language that would be added by the amendment is underlined. The Trustees recommend that the Participants vote in favor of the amendments. The principal change embodied in the amendments to the Declaration of Trust is authority permitting the Board of Trustees to create multiple investment Portfolios within the Fund. Fund investments would of course continue to be restricted to those instruments in which Minnesota municipalities can lawfully invest. Since January, 1987, the 4M Fund has provided a liquid, short -term, money market investment option. The permitted investments and their duration have been specifically articulated in the Declaration of Trust. In short, the 4M Fund may invest in those securities permitted by any municipality in Minnesota. The maximum duration of any investment is currently one year. Additionally, there has been no limitation on the length of time a city has to keep money in the Fund. Recently the 4M Fund Technical Advisory Board, consisting of finance directors and other municipal officials, considered recommending expansion of the 4M Fund Declaration of Trust to create an additional fund or portfolios with slightly longer average maturities and, therefore, offer participants the potential of slightly higher yields. For instance, a second type of Portfolio (the "MAX Portfolio ") might be invested in short -term money instruments Page 65