
Illinois Treasurer Churns $12.5 Billion Portfolio Every 3 – 4 days — $1 Trillion Per Year – WP Original
By: Mark Glennon* Illinois Treasurer Michael Frerichs said last week on CNBC that his office does a staggering $1 trillion per year of investment activity. Why? That’s an astonishing amount of churn for a portfolio with a consistent balance of $11.5 to $14 billion. To illustrate, let’s take five zeros off everything. Suppose you have an investment account, the balance of which is always $115,000 to $140,000. It fluctuates between those numbers as you deposit new money and pay bills, but always stays within that range. When you get the annual statement it shows that your