Pennsylvania Treasury

State Treasurer Stacy Garrity holds final authority over investment decisions, but the Treasury's professional investment staff executes the day-to-day portfolio strategy. The office does not have a standalone CIO; investment officers report to the Treasurer. The board of SERS and PSERS—which oversee the pension funds—are separate but coordinate with the Treasury.

The Treasury relies on relationships with state-approved asset managers, bank partners, and federally registered investment advisors. It issues RFPs for most external managers and does not actively source proprietary deals beyond infrastructure projects through PENNVEST.

It does both. A large portion of its fixed-income and public equity exposure is through external fund managers, while private equity and infrastructure allocations include direct co-investments alongside GPs. The short-term investment pool uses primarily money-market and treasury securities, managed internally.

Given its public fund mandate, the Treasury focuses on liquid public securities for the bulk of its portfolio. Private equity allocations target buyout and growth-stage funds. Infrastructure investments are typically large-scale, cash-flow-generating assets.

It is not typically replicated—most states separate their treasury from pension management. However, its infrastructure co-investing through PENNVEST is cited as an innovation in state-level investment. The Treasury's conservative posture and AAA-rated investment pool are frequently referenced in municipal finance literature.

The Treasury manages the cash and investment pools that SERS and PSERS use for their portfolios. Those pension boards set their own asset allocation and hire external managers; the Treasury provides the custody, cash management, and some pooled funds. It does not control the pensions' investment strategies.

The wealth originates from state tax revenue, federal transfers, pension contributions from public employees and school districts, and investment earnings. There is no private fortune underlying the fund—it is a pool of public assets managed for the benefit of Pennsylvania citizens and public retirees.