Treasurer Frerichs is the state’s Chief Investment Officer and Chief Banking Officer. He oversees an investment portfolio totaling approximately $25 billion (as of December 2015). These investments are spread over a variety of important programs, including, but not limited to:
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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 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.
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College Savings Program
The Treasurer’s Office administers two Illinois 529 college savings plans: Bright Start and Bright Directions. These programs together represent approximately $7.5 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).
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The Treasurer's Office invests approximately $5.5 billion of those dollars on behalf of state agencies and local governments. They pool their money into short-term investments called The Illinois Funds in order to get better returns and prudent management.
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Technology Development Accounts allow the Treasurer's Office to segregate a portion of the investment portfolio (limited to 3% or less) to provide venture capital to technology businesses seeking to locate, expand, or remain in Illinois by placing money with Illinois venture capital firms.
Services and Products
In order to maintain and grow these important programs, the Treasurer’s Office seeks a wide variety of financial services and products from outside parties, including brokerage firms, securities dealers, investment consultants, banks, credit unions, and other financial institutions. These entities can provide a number of important services/products, including:
Investment-Related Services
- Brokerage/Dealer Services;
- Depository Services;
- Custody and Safekeeping;
- Investment Consulting;
- Capital Markets;
- Asset Management;
- Private Equity;
- Venture Capital; and
- Other investment services.
Banking-Related Services
The Treasurer’s Office actively seeks qualified banks and other depositories to participate in our Linked Deposit and Access to Capital programs, which fill the need for deposits that satisfy specific financing needs (thus allowing qualified borrowers to receive low-interest lows), or in the case of Access to Capital, provide needed capital to financial institutions.
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Linked Deposits
Linked deposits are made in Illinois financial institutions for a specific purpose/project and generally have a term greater than 1 year.
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Ag Invest
Ag Invest partners with approved financial institutions, providing banks with linked deposits so they can presents qualified farmers and agriculture professionals with below-market rate loans to start or enhance their farm operations.
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Community Invest
The Treasurer’s Office provides an interest rate reduction to residents and businesses in need of available financing, such as disaster victims whose property has sustained weather-related damage or homebuyers with bruised credit.
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Business Invest
The Treasurer’s Office provides eligible businesses, non-profits, child care providers, and health care providers with an interest rate reduction for fixed asset (“hard cost”) financing (real estate, equipment/machinery, construction).
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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 needed liquidity.
To learn how to become an Approved Depository, please click here.
Brokers/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 brokers or dealer, click here.
Minority, Woman, Veteran and Disabled-Owned or Managed Financial Firms
The Treasurer’s Office makes a concerted effort 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 also strongly encouraged to submit this Capabilities Questionnaire, which provides the Treasurer’s Office with a basis to be proactive in identifying opportunities for business transactions or service/product provisions. Submit the completed questionnaire to Max Dulberger at MDulberger@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 positioned to do business with the Treasurer’s Office, send and email to info@illinoistreasurer.gov.