Commonwealth Investments

The Treasurer helps to invest and safeguard more than $150 billion in public funds and is directly responsible for investing funds belonging to nearly all Pennsylvania state agencies, in accordance with state law and Treasury’s Investment Policy.

State funds are invested in a wide range of financial instruments – such as cash equivalents, fixed income, equities, and alternative investments. The Treasurer’s investment authority is contained in Pennsylvania’s Fiscal Code, which requires the Treasurer to exercise a degree of judgment and care that experienced investors would employ – known as the “Prudent Person” test.

Investment Advisors

Treasury contracts with an outside financial advisor, Marquette Associates, Inc, to assist in achieving its investment objectives.

The financial advisor's responsibilities include:

  • Creating quarterly and annual reviews of investment performance;
  • Conducting investment manager searches and making recommendations regarding the selection, scope of responsibility, and discharge of investment managers;
  • Proposing benchmarks for managers under their purview for the Treasurer’s final decision;
  • Assisting in the development and periodic review of the Investment Policy;
  • Making recommendations for asset allocation plans and investment horizons; and
  • Monitoring and evaluating the performance of the investment managers.

Investment Committee

The Treasury Investment Committee advises and assists the Treasurer on investment matters.

The Committee consists of the Pennsylvania State Treasurer , Chief Investment Officer, Chief Counsel and other persons whom the Treasurer may wish to appoint. It meets quarterly to consider reports about Treasury’s investments.

The Investment Committee is responsible for:

  • Providing the Treasurer advice and recommendations on investment policy and investment issues;
  • Evaluating investment strategies and particular investment options;
  • Supervising and evaluating the performance of external financial professionals working for Treasury;
  • Monitoring compliance with the Investment Policy and suggest revisions as necessary; and
  • Reviewing progress towards achievement of Treasury’s investment objectives.

Commonwealth Depositories

The Pennsylvania Treasury keeps deposits in nearly 50 financial institutions throughout the Commonwealth, including about a dozen banks that function as “active depositories” where Treasury maintains accounts from which payments are issued to pay the Commonwealth’s bills.

Collateral Required

Treasury requires collateral for any deposit in excess of FDIC coverage. Treasury worked with the banking community and leaders in the General Assembly to reduce the collateralization requirements for Commonwealth deposits in state depositories from 120% to 102% – bringing Pennsylvania’s collateralization rules into line with modern business practices and those of neighboring states.

Pennsylvania law requires a pledge of securities at the Federal Reserve at 102% of market at par and accrued interest or a Letter of Credit at 100% at market of par and accrued interest from the Federal Home Loan Bank of Pittsburgh.

How to Become a Depository

To become a Commonwealth depository, please submit to Treasury:

  • Your institution’s most recent annual report
  • Your institution’s most recent call report

Treasury will evaluate the questionnaire and reports to ensure compliance with the minimum requirements established by the Pennsylvania Fiscal Code and the Board of Finance and Revenue.

An application for the Deposit of State Funds will be provided at that time. Once completed, the application will be sent to the Board of Finance and Revenue for approval.

Time Deposit Open Account Commonwealth Depository

To initiate the depository relationship, after approval, the Commonwealth will place a six-month Time Deposit with the approved institution. The Time Deposit Open Account is a maximum deposit of $1,000,000 and maintains two fixed-term periods – January 1 through June 30, and July 1 through December 31. The rate on the deposit is set by resolution of the Board of Finance and Revenue prior to each six-month period. Interest is calculated at actual days/365 days and is due electronically upon maturity or roll-over.

Due Diligence Questionnaire for Financial Institution holding a Pa Treasury Deposit. Please forward all completed Due Diligence Questionnaires to Todd Rombach at

Investment Managers

Treasury investment professionals handle cash management and short-term investing; however, for longer-term investment portfolios, Treasury uses the services of external investment managers.

These firms manage their assigned portfolios subject to oversight by Treasury’s Investment Committee and financial advisors.

Specific Duties

  • Discretionary investment management (decisions to buy, sell, or hold individual securities);
  • Submit investment performance reports;
  • Notify Treasury of any significant external factors, such as major changes in economic outlook or capital market trends, that may affect the investment portfolio; and
  • Notify the Deputy State Treasurer for Investments and the Investment Committee, in writing, when external events have caused the manager’s portfolio to include securities that are no longer consistent with the portfolio’s intended composition or discipline.

Potential Investment Managers

Treasury encourages qualified firms to apply to become an investment manager for Treasury by completing and submitting the industry-standard PSN application.

In order to be considered, all managers must submit their product data and performance history to the PSN database by sending an e-mail to with the following information:

  • Name of the investment management firm
  • Address
  • Name of the data contact who will be responsible for submitting the required information and communicating with Informa Investment Solutions (IIS) on any data issues
  • Data contact telephone number
  • Data contact fax number
  • Data contact e-mail address

After being approved by PSN, please send an e-mail to: along with a list of the asset classes you are applying for.

Investment Pools

The investments pools directly managed by Treasury are comprised of 156 funds. The majority of that money – the Commonwealth’s operating funds – is invested in one of two large investment pools:

  • Pool 99 (Liquid Asset Pool) – A stable share price investment vehicle that invests exclusively in fixed income securities, primarily of short duration. This is in essence a money market fund.
  • Pool 198 (Common Investment Pool) – A variable share price investment vehicle that seeks to generate additional investment return over time by investing in a diversified portfolio of fixed income, equity, and alternative securities.

Treasury announced in April 2017 that he will transition all of Treasury’s $2.4 billion public equity investment holdings to a passive investment strategy, saving an estimated $5 million per year in fees (approximately $195 million in total savings when compounded over 20 years).