Treasurer Frerichs is the state’s Chief Investment Officer and Chief Banking Officer. He oversees an investment portfolio totaling approximately $28 billion (as of September 2017). These investments are spread over a variety of important programs, including, but not limited to:
State Investment Portfolio – As the state’s top banker, the Treasurer 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-$15 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 Plans – The Treasurer’s Office administers two Illinois 529 college savings plans: Bright Start and Bright Directions. These programs together represent approximately $10 billion in investments. Both investment portfolios are designed as “qualified tuition programs” under Section 529 of the Internal Revenue Code. Under the Illinois 529 College Savings Plans, 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 General Assembly created the first local government investment pool in 1975 so communities statewide could invest their money together to earn greater returns. Today, the pool is called The Illinois Funds, and its holds approximately $4-6 billion in assets. The Illinois Funds' is designed to ensure the safety of principal, provide liquidity to pay obligations, and provide the highest investment return using authorized investment instruments. With the additional funds earned for communities, it provides more support, services, and stability for local families.
Technology Development Accounts – Within the State Investment Portfolio are Technology Development Accounts, which allow the Treasurer to segregate a portion of the investment portfolio (limited to 3% or less) to provide funds to technology businesses seeking to locate, expand, or remain in Illinois by placing money with Illinois investment firms.
Secure Choice Retirement Savings Program – Secure Choice is a retirement savings tool for workers in Illinois that do not have access to a workplace retirement savings option. An estimated 1.2 million workers will gain access to employer-based retirement savings plans through Secure Choice.
ABLE Savings Program – The Illinois Achieiving a Better Life Experience (ABLE) Program is a federally tax-advantaged savings program that enables Illinois families and individuals to save for disability-related expenses. ABLE is similar to 529 College Savings programs, in that families are allowed to set aside money for future qualified expenses, invest these funds in professionally designed savings accounts, and avoid some tax penalties on the fund.
The Treasurer’s Office is responsible for the creation, revision, implementation, and publication of various investment policies, each relevant to a particular investment program under the purview of the Treasurer. These policies reflect statutory requirements as well as the policy and programmatic objectives of the Treasurer’s Office. As such, they provide an appropriate set of guidelines and procedures for the operation of state investment programs with regard to investment objectives, investment parameters, administrative responsibilities, contractual needs, and reporting requirements.