In 1975, the General Court of the Commonwealth enacted legislation permitting the Massachusetts State Treasurer, with the advice of an Investment Advisory Council, to establish one or more investment funds or "pools" and to offer participation units in such funds to cities/towns, counties, housing and redevelopment authorities, public retirement systems, regional transit authorities, regional school districts, state and community colleges, and other public entities. These combined investment funds allow eligible entities to pool their money together, creating economies of scale, in an effort to receive professional investment management at a competitive cost. The Massachusetts Municipal Depository Trust has grown over the years offering two investment pools: the Cash Portfolio and the Short Term Bond Portfolio.
