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Permissible State Investments

Permissible State Investments

Pursuant to IC 5-13-9-2(a)(3), IC 5-13-9-2.5, IC 5-13-9-11, IC 5-13-10-1, and IC 5-13-10.5

The State Treasurer may invest in fixed income securities issued by any of the following:

  1. United States Treasury
  2. Federal agencies, instrumentalities, or government sponsored enterprises (GSEs)
  3. Supranational issuers having the highest rating by at least 1 nationally recognized credit rating agency with final state maturity of 270 days or less
  4. State of Israel
  5. Commercial paper with the highest rating by at least 1 nationally recognized credit rating agency with final stated maturity of 270 days or less
  6. Indiana Bond Bank obligations secured by tax anticipation warrants or notes
  7. Municipal securities issued by an Indiana entity that has not defaulted in the preceding 20 years from the date of purchase with a final stated maturity of not more than 10 years
  8. Money market mutual funds, purchased through an approved depository, that are AAA rated with a portfolio limited to obligations of the U.S. Government and U.S. agencies, instrumentalities, and GSEs, and/or repurchase agreements fully collateralized with these like securities
  9. Repurchase agreements, entered into with an approved depository, for the purchase and resale of any obligation issued by U.S., or a U.S. agency, instrumentality, or GSE
  10. Local government investment pool

Also, the State Treasurer may invest available funds in deposit accounts, include certificate of deposits, with any approved depository as defined in IC 5-13-4-8.

The Treasurer of State may make investments in securities with a final stated maturity of up to 5 years. However, no more than 25% of the entire portfolio may be invested in securities having a final maturity that is more than 2 years but not more than 5 years from the date of purchase.

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