Treasurer seeks to increase yield on investments

By Cy Ryan

Wednesday, May 13, 2015 | 12:08 a.m.

CARSON CITY — Seeking to yield more interest on a nearly $1 billion in state investments, Treasurer Dan Schwartz is moving to hire private companies to handle where the money goes.

Currently, the treasurer’s office makes these investments, but Schwartz believes the state can get more bang for its buck.

Senior Deputy Treasurer Tara Hagan told the state Board of Finance Tuesday that contracts are being readied to hire three firms — two from out of state and one based in Las Vegas.

Hagan said the office has selected Chicago Equity Partners of Chicago and Western Asset Management of Pasadena, Calif., to invest some $630 million in the general portfolio fund. FTN Financial Main Street Advisors of Las Vegas will be investing $440 million in the Local Government Pool Investment Fund.

Investments are limited to bonds. The return on the general portfolio has been 0.20 percent. The return on the local government fund has yielded 0.15 percent. Schwartz wants to make 2 percent yield on the general portfolio and nearly double the return on local government investments.

There were 22 bids to manage the funds. Hagan said the finalists were chosen on such things as how they did during the flat market, the stability of their management teams, the returns on investments and whether they could follow the state guidelines.

Hagan said the contracts would be for four years but the state could pull out early without any penalty.

The contracts are expected to be presented in June to the state Board of Examiners for approval.