Investment income from Ohio's state treasury account increased by more than 155% in 1995, after the state treasurer initiated an investment strategy that banned investments in certain derivative contracts.
Treasurer J. Kenneth Blackwell, a leader in a national movement to limit the use of complex derivatives by municipalities, said 1995 income on the $3 billion portfolio was up by about $113.6 million over the previous year.
The treasurer said that in 1994, more than half the portfolio was tied up in Treasury strips - long-term bonds that pay no interest until maturity. "Through careful management, all Treasury strips not earning current income were sold without a loss," Mr. Blackwell said.
Mr. Blackwell, who is backing investment reform legislation for municipalities in Ohio, said the state's treasury portfolio was managed in accordance with the proposed law.