Indiana Treasurer Daniel Elliot, who lobbied hard against inserting politics into state funds, chooses to invest state monies into Israel. Photo by Whitney Downard of Indiana Capital Chronicle.

By Whitney Downard
Indiana Capital Chronicle

INDIANA — Indiana State Treasurer Daniel Elliott, who championed removing personal ideologies from state investment strategies throughout the legislative session, announced on Wednesday a significant purchase of Israel funds to support the U.S. ally.

“Israel is our most important ally in the world.  This investment reflects the confidence that I have in the Israeli people and the Israel economy,” said Elliott in a release. “… October 7th remains one of the darkest days in the history of the word.  Yet, I remain confident that Israel will prevail over the forces of evil.  This bond purchase reflects the confidence we have in Israel’s victory and the strength of their marketplace.”

The release said it was the largest known purchase of Israel bonds since the country retaliated against a deadly Hamas attack and kidnappings. Hamas is considered a terrorist organization and doesn’t represent all Palestinian people

Indiana’s investment in Israel increased from $65 million to $100 million following Elliott’s move.

On Oct. 7, Hamas killed more than 1,400 and kidnapped 200 Israeli citizens. At least 8,000 Palestinians have died following attacks from Israel as the country cut off food, electricity and humanitarian aid to Gaza. A ground invasion is now commencing.

Elliott’s duties include overseeing the investment of $17 billion in state assets and managing state funds. He heavily lobbied on behalf of an ‘anti-ESG’ bill in the General Assembly, calling for funds to stop investing based on political priorities such as the environment or gun control.

Instead, he and lawmakers emphasized the need to prioritize only return on investment — something he said in his statement Israel would provide.

“Israeli bonds have provided high rates of returns for investors, even outperforming their American counterparts.  Historical data… suggests that this is a great opportunity for Hoosier taxpayers,” Elliott said.

An office spokesperson said the decision to invest came after a presentation to Elliott and his team where they learned about “an opportunity to purchase bonds at a 28 basis points higher than US Treasuries, which are the baseline that most tend to use as comparison.”

The bonds were purchased as they became available.

“We look at risk versus stability, and often portfolio managers use America as a baseline measurement.  Our team believes that the risk long-term on these investment is less than the return and that this purchase will be a good investment for Hoosiers,” the office continued.