Schroder Points to 0.31% of $45B In-State Investing as Motivation for Retirement Funds Reporting

BATON ROUGE, La (press release) – In support of a resolution intended to increase transparency and encourage Louisiana economic development investment, Treasurer John M. Schroder has released initial stats showing less than 1 percent of the state’s $45 billion retirement funds are currently invested in Louisiana. House Concurrent Resolution 70 by Rep. Beau Beaullieu passed unanimously out of both the House and Senate.

HCR70 calls for reports of the geographic locations of asset allocation by all 13 of the state and statewide pension systems, as well as Treasury.

“I would like all current and future retirees and taxpayers to see where our money is invested, especially whether in Louisiana or internationally,” said Schroder. “We all deserve to know where these funds are being invested.”

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A review of information shared by the state retirement boards and Treasury as of June 2022 found the following breakdown: (1.) 0.31 percent invested in Louisiana; (2.) 26.2 percent inside the United States; (3.) 38.4 percent internationally; (4.) 34.2 percent labeled as Alternative (no location available) and (5.) 1.2 percent cash. Private equity, private debt, hedge funds, real estate, commodities, agriculture and other items not invested in a market make up the Alternative category.

Calculations are based on the “flash reports” and previously self-reported percentages of investment in stocks of Louisiana-based companies. For systems that did not report, holdings data was derived from publicly available sources such as Bloomberg, Indices, etc. While not exact calculations, they reflect the magnitude of investments in Louisiana, or lack thereof.

The reports stemming from HCR70 will indicate if investments are in Louisiana, in the United States or international.

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“If we don’t invest in our own state, why should we expect anyone else to do so? We need to get creative with our investment options and find ways to help our local businesses and Louisiana corporations,” he said.

Schroder added that pension plan managers from other states and countries reach out to Treasury regularly to discuss Bayou State investments that do exist and are lucrative for investors.

“We need to do a better job of investing in our own assets,” he said. “If we don’t invest in Louisiana, who will?”

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