State treasurer Chip Flowers has released an independent report he commissioned from Credit Suisse with recommendations on how to improve Delaware’s investment portfolio.
Among the recommendations in the report released Friday are increasing the diversification in the state’s investment holdings and adding new investment asset categories.
Specific recommendations include cutting the percentage of cash and short-term investments in the state’s liquidity account in half and reducing U.S. Treasury holdings in the reserve account. Credit Suisse also recommends increasing the international debt and municipal obligation holdings in both accounts.
Flowers has recently quarreled with Gov. Jack Markell over the hiring of Credit Suisse and the role of the state’s cash management policy board in overseeing the portfolio. The board would have to approve many of the recommendations in the report.