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Treasurer’s office outlines IPS, proxy rules and plans to buy physical precious metals
Summary
State treasurer staff reviewed the office’s investment policy statement, its use of consultants and approval processes (IFC/SLIB), described compliance with proxy‑voting statute SF191, and outlined a preliminary plan to acquire $10 million in precious metals with options for storage in Casper or COMEX vaults.
CHEYENNE — Senior treasurer staff briefed the Select Committee on Capital Financing & Investments on the office’s investment operations, implementation of proxy‑voting rules from Senate File 191, and an early plan to acquire physical precious metals for the state’s holdings.
Investment process and policies: Samantha Daley, senior policy adviser at the State Treasurer’s Office, summarized how the office develops asset allocations with its consultant (RVK), reviews allocations through the Investment Funds Committee (IFC), and secures approval from the State Loan and Investment Board (SLIB). Daley told the committee the office selects managers based on risk‑adjusted return, track record, team composition and fees and that manager hires require IFC recommendation followed by SLIB approval.
Proxy voting and SF191: Norman LeBlanc, chief operating officer, said SF191’s requirements were already largely in place inside STO policy and that the office will add a single column to the public proxy report and hire a junior staffer to handle proxy and compliance tasks. “From an implementation perspective, there was very little to do,” he told the committee, and the office said proxy votes continue to be published semi‑annually on its website.
Precious metals acquisition: Treasurer staff said the office is pursuing a small allocation in physical precious metals as a capital‑preservation and liquidity diversifier. Seth Consoliver described an initial target purchase of approximately $10 million in gold and/or silver. The treasurer’s office has narrowed storage options to a state‑based facility (Wyoming Reserve in Casper) and institutional COMEX network vaults on the coast; the office said Wyoming Reserve offers easier audit access and COMEX vaults typically provide slightly lower storage fees but would likely commingle holdings for custodial efficiency.
Cost and custody: Andrew Spade, investment analyst, said preliminary storage quotes included an annual storage cost of roughly 18 basis points from the Wyoming Reserve option and a COMEX quote that would convert to a monthly fee; the office also said transport would be insured and that high‑value shipments are typically moved by aircraft while silver may move in armored vehicles. The treasurer’s office said it will finalize vendor negotiations before disclosing detailed commercial quotes and expects to pick a custodial solution after completing negotiated pricing and insurance details.
Wyoming Retirement System note: The Wyoming Retirement System (WRS) clarified for the committee that it does not hold physical bars; WRS told the committee it owns a gold ETF that holds physical metal and that ETF is tradable and liquid for portfolio management.
Next steps: The treasurer indicated a purchase decision and custody plan will be made after final negotiations; staff said they will report the total cost of acquisition, transportation and storage once those proprietary negotiations are complete.
