Doing Business with the Treasurer

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Overview

Treasurer Frerichs is the state’s Chief Investment Officer and Chief Banking Officer.  He oversees an investment portfolio totaling approximately $25 billion.  These investments are spread over a variety of important programs, including (1) the State Investment Portfolio, (2) three 529 College Savings Plans, (3) The Illinois Funds, and (4) two Technology Development Accounts. 

 

On the banking front, Treasurer Frerichs is responsible for managing the state’s multiple banking functions and financial services, which entails treasury operations, cash management services, investment verification, clearing functions, and time deposits.  In fiscal year 2015 alone, the Treasurer's Office processed $292.6 billion in receipts and disbursements.

 

State Investment Portfolio

As the state’s banker, the Treasurer's Office is charged with providing treasury, cash management, and investment support to Illinois government agencies, boards and commissions in a manner that provides the most advantageous solution to their individual needs.  The Treasurer’s Office manages the State Investment Portfolio, with assets of approximately $12 billion, providing the necessary liquidity to meet the state’s daily obligations while investing remaining funds in authorized short/long-term investment opportunities.

 

College Savings Program

Treasurer Frerichs is the trustee of Illinois’ three 529 College Savings Plans:  Bright Start Direct – a plan that individuals can sign-up for and manage on their own – and Bright Start Advisor and Bright Directions – plans that can be purchased through a financial advisor.  These programs together represent approximately $7.5 billion in investments.  All three plans are “qualified tuition programs” under Section 529 of the Internal Revenue Code.  As such, investments grow tax-free as long as withdrawals are used to pay for higher education expenses (e.g., tuition, fees, books, room and board).

 

The Illinois Funds

The Illinois Funds is a Local Government Investment Pool (LGIP) operated by the Treasurer’s Office.  Over 2,200 local and state government agencies have voluntarily participated in the pool since it was created in 1975 to provide a safe, liquid, competitive investment alternative to public agencies.  The Illinois Funds lets government agencies use the Illinois State Treasurer’s resources to safely invest their funds while enjoying the economies of scale available from a $4-6 billion pooled fund investment portfolio.

 

Technology Development Accounts

Illinois' Technology Development Accounts allow the Treasurer’s Office to use a portion of the State’s Investment Portfolio (limited to 3% or less) to provide capital to technology funds in Illinois that finance technology businesses seeking to locate, expand, or remain in Illinois. 

 

Services and Products

In order to maintain and grow the aforementioned programs, the Treasurer’s Office seeks a wide variety of financial services and products from external partners, including brokerage firms, securities dealers, investment consultants, banks, credit unions, and other financial institutions.  These entities provide a number of important services/products, including:

 

Investment-Related Services
  • Brokerage/Dealer Services;
  • Investment Consulting;
  • Capital Markets;
  • Asset Management;
  • Private Equity;
  • Venture Capital; and
  • Other investment services.
Banking-Related Services

The Treasurer’s Office actively partners with qualified banks and other financial institutions to obtain depository, custody, and safekeeping services.  This includes participation in our Linked Deposit and Access to Capital programs, which fill the need for deposits that satisfy specific financing needs; thus allowing qualified borrowers in Illinois to receive low-interest lows, or in the case of Access to Capital, provide needed capital to financial institutions.

 

•  Banking Services – The Treasurer's Office provides banking and cash management support to Illinois government agencies, boards and commissions in a manner that presents the most advantageous solution to their individual needs.  This entails a number of services, including balancing the daily deposit of receipts, processing federal funds received by state agencies, processing payments to vendors, and maintaining general ledger clearing accounts, among other key functions.

 

•  Linked Deposits Linked deposits are made in Illinois financial institutions for a specific purpose/project and generally have a term greater than one year.  For instance, through Ag Invest, the Treasurer's Office partners with approved financial institutions to provide qualified farmers and agriculture professionals below market-rate loans to start or enhance farm operations.

 

•  Access to Capital Deposits – The Treasurer’s Office places Access to Capital deposits in approved financial institutions (banks, savings & loans, and credit unions) throughout Illinois in the form of a time deposit maturing in 30 to 365 days.  Deposits of these funds provide participating financial institutions with added liquidity.

 

•  Become an Approved Depository  To participate in the Linked Deposits or Access to Capital programs, institutions must apply to become an approved state depository with the Treasurer's Office.

 

Broker/Dealers

The Treasurer’s Office seeks to work with qualified brokers/dealers that can execute trades and facilitate transactions that provide the highest return using authorized instruments.  To learn how to become an approved broker/dealer, click here.

 

Minority, Woman, Veteran and Disabled-Owned or Managed Businesses

The Treasurer’s Office is unwavering in its commitment to do business with and utilize services from qualified minority, woman, veteran, and disabled-owned or managed financial companies, particularly those with employees in Illinois.  This includes brokerage firms, securities dealers, investment consultants, banks, credit unions, and other financial institutions.  Visit the MWVD Firms page to learn more.

 

MWVD firms are strongly encouraged to submit this Capabilities Questionnaire, which provides the Treasurer’s Office with information that further enables it to be proactive in identifying opportunities for business transactions or service/product provisions. Submit the complete questionnaires to mwvd@illinoistreasurer.gov.

 

Procurement Opportunities

For non-investment related opportunities, including RFPs, RFIs, invitations to bid, and other related areas, please visit our Procurement Opportunities page

 

Questions

For general questions as to how your company may be able to do business with the Treasurer’s Office, please send an email to investments@illinoistreasurer.gov.