Treasurer Kennedy Says The Fund's Performance Benefits Education

BATON ROUGE, LA – State Treasurer John Kennedy announced at a joint meeting of the Board of Regents (Regents) and the Board of Elementary and Secondary Education (BESE) Thursday that the Kevin P. Reilly, Sr. Louisiana Education Quality Trust Fund (LEQTF) earned more than $113 million this past fiscal year – surpassing the previous year’s record-breaking investment performance. “The LEQTF is an important fund that provides funding for prekindergarten through 12th grade as well as higher education in Louisiana,” said Treasurer Kennedy. “We strategically invest this money to preserve the fund’s capital, enhance market value and provide a stable and predictable income. I couldn’t be prouder of the success of our efforts.”

The LEQTF was established in 1986 to invest money from the Federal Outer Continental Shelf Lands Act. From an initial investment of $540 million, the fund has grown to $1.311 billion and allocated more than $1.5 billion to Regents and BESE over the span of 28 years.

The total return on investments in the LEQTF was 11.35% last year, a jump from the previous year’s return of 5.8%. The fund’s major sources of income are investments, capital gains and losses and royalties.

“The LEQTF total return of 11.35% was the second best year in the history of the fund. Given that the fund can only have 35% of its assets in higher performing equities, this is a testament to the hard work of the Investment Division,” said John Broussard, Chief Investment Officer for the Louisiana Department of the Treasury.

Under the management of Amy Mathews, the LEQTF portfolio manager, the fixed income portfolio returned 5.98%, 170 basis points higher than its benchmark, the Barclays Government Credit Bond Index. The equity portfolio returned 25.34%, 73 basis points higher than its benchmark, the S&P 500.

Treasurer Kennedy presented a report on the LEQTF to Regents and BESE. He also provided members with an update on the state’s Student Tuition and Revenue Trust (START) College Savings Program. START has more than 49,000 active accounts and more than $545 million in investments.

“Beginning a START fund for a child makes a great Christmas present,” said Treasurer Kennedy. “It’s a great investment for a child’s future.”

For more information on the LEQTF and START, visit www.LATreasury.com.

Contact:
Michelle Millhollon
(225) 342-0012
mmillhollon@treasury.state.la.us