State Pooled Investment Hits $12 Billion

Thursday, May 24, 2018

State Treasurer David H. Lillard, Jr. announced that for the first time in history, the State Pooled Investment Fund (SPIF) has surpassed a $12 billion balance.

Managed by the Tennessee Department of Treasury, the SPIF is made up of the state’s cash, dedicated reserves and trust funds, and funds from local governments throughout Tennessee who choose to invest with the state.

The Tennessee Department of Treasury actively invests this combination of savings and collections to help the State and local governments grow their financial resources safely and effectively. This active management reduces the need to raise taxes in order to fund day-to-day operations.

“We are proud to be keepers of the public’s money and always look to provide safety and liquidity as we invest and work to grow the funds to provide essential services to citizens,” said Treasurer Lillard.

The Tennessee Department of Treasury earned $61 million last year for the state and local governments that participate in the SPIF. That $61 million is additional monies earned by the Department on world investment markets - investment earnings that help provide the opportunity to better serve Tennesseans in the future.

Treasurer Lillard points to sound financial management and proactive investment management as the source of success for all of the programs managed by the Tennessee Department of Treasury Investments Division, including the SPIF. This year, the Department of Treasury is projected to earn more than $110 million on behalf of the state and local governments.

“Over the course of the last two years, our team has been able to earn the state and participating local governments more than $170 million. This was accomplished while operating in a near-zero interest rate environment,” said Tim McClure, who serves as assistant chief investment officer and director of Cash Management.

Treasury’s Investment Division maintains an in-house investment management staff with extensive education and training. 29 members have professional designations. This team includes members with a wealth of experience from various fields, including substantial institutional investor experience in both the public and private sectors. The department achieves investment returns consistent with its peers while maintaining an investment expense that is among the lowest in the southeast.

You can learn more about the Tennessee Department of Treasury and its impact on the state at Treasury.TN.gov.