Indiana Treasurer Daniel Elliott, pictured at the 2023 Indiana Pork ham breakfast, announced the purchase of an additional $5M in Israeli bonds, bringing Indiana’s total investment to $110M. Photo by Whitney Downard for Indiana Capital Chronicle.

By Whitney Downard
Indiana Capital Chronicle

INDIANA — Indiana State Treasurer Daniel Elliott announced the purchase of another $5 million in Israeli Bonds on Wednesday, bringing Indiana’s total investment in the U.S. ally to $110 million.

“Despite the hardships currently faced by the nation of Israel and their citizens, the economy and will of the Israeli people remains unbroken,” Elliott said in a release. “These investments are a reflection of my confidence in those markets and will provide great value for Hoosier taxpayers.”

As treasurer and chief investment officer, Elliott oversees Indiana’s investment of nearly $17 billion in state assets.

In the 2023 legislative session, Elliott spearheaded an effort to remove politics — specifically environmental social and governance conscious investing, or ESG — from state investments before approving the purchase of $35 million in Israeli bonds several months later.

The office told the Indiana Capital Chronicle the November investment still has 18 months left on its term at a bond rate of 5.28%. It noted that compared to an 18-month note from the U.S. Treasury, the Israeli bonds are 16 basis points higher.

Wednesday’s purchase has a three-year term at 5.5%, or 65 basis points over U.S. Treasury notes. Additionally, the office noted the bond purchases make up .8% of the state’s overall portfolio.

Elliott, in his statement, tied the move to ongoing protests at Indiana universities demanding a Gaza ceasefire and divestment of campus assets in Israel. Several students at Indiana University have been arrested, adding to the hundreds of students nationwide who have been arrested in campus protests calling for fighting to stop after the deaths of more than 34,000 Palestinians and over 1,400 Israelis.

“While there may be a few loud individuals on college campuses and other places that want us to abandon Israel, I believe now is the time to refocus and recommit to our most important ally,” Elliott said. “We don’t need to boycott and divest, but engage and invest.”

The move was lauded by the Indianapolis Jewish Community Relations Council, which decried the “shocking sharp increase in antisemitism … and the anti-Israel protests emerging on college campuses.”

“Thank you to Treasurer Elliott for his leadership,” says Jamie Ratner Rich, the organization’s president. “Investing in Israel bonds sends a loud and clear signal that Indiana stands with and supports Israel.”

Indiana State Comptroller Elise Nieshalla also shared her support for the move.

“What a privilege to represent a state that is offering further investment to Israel that aligns with our fiduciary duty to deliver solid yield, low risk and high liquidity with state dollars,” said Nieshalla in a statement. “As an American, seeing what is happening to Israel and the Jewish people is devastating and there is a strong sense of duty to stand with our friends. As a Hoosier, I value the opportunity for our state to partner with a country that has offered us decades of innovation and security support.”