PROVIDENCE, R.I. - General Treasurer Gina M. Raimondo today announced that she is beginning a comprehensive review of every aspect of the Treasury. Under evaluation will be all contracts, investment portfolios, operations, cash management and investment policies, and practices around disclosure to institutional bond investors. She will focus particularly on the management of the CollegeBoundfund.
“As I settle into my new position, it is important to understand every aspect of the playing field I have inherited,” said Raimondo. “This top-to-bottom review will provide me with an essential blueprint as my team moves forward to strengthen our state’s finances.”
Raimondo has assembled a group of outside financial experts who will help conduct the assessment. The volunteer group includes:
Arthur X. Duffy, president of the Rex Capital Advisors, LLC
Timothy V. Geremia, chief investment officer of Coastline Trust Company
Martha Conn Hultzman, principal at Lefkowitz, Garfinkel, Champi & DePienzo P.C. (LGC&D)
Douglas L. Jacobs, retired executive vice president and treasurer of FleetBoston Financial Group
Peter D. Kiernan, III, chief executive officer of Kiernan Ventures
Edwin J. Santos, former group executive vice president and general auditor for Citizens Financial Group
“I am extremely grateful that this top-notch team of executives has agreed to help me assess our current practices,” said Raimondo. “By tapping into their financial management expertise, which has been developed over decades in the private sector, I hope to receive a fresh perspective on the work of Treasury.”
In addition to the general assessment, Raimondo believes it is also imperative to launch a comprehensive review of Rhode Island’s bond disclosure practices.
“We are in an era of heightened financial scrutiny, and it is prudent to complete a full review of how we report financial information surrounding our bond offerings,” continued Raimondo. “The state’s current bond disclosures are in good shape, but there is room for improvement. We will take the next couple of months to upgrade all pertinent information to be certain that the state has access to the bond market on the most favorable terms possible.”
A consulting firm that specializes in the college savings industry will review the CollegeBoundfund. According to its contract with its 529 plan vendor, Alliance Bernstein, the state reserves the right to hire an outside consultant. The consulting fee is part of the overall contract.
Lastly, Treasurer Raimondo has decided that as each contract expires, it will be re-bid. She has also started meeting with all major vendors doing business with the office.
TREASURY ADVISORY TEAM
ARTHUR X. DUFFY - As president of Rex Capital Advisors, LLC, a registered investment advisory firm, Mr. Duffy is the chairman of its Investment Committee, responsible for all asset allocation and investment manager selections. Client funds are invested in every major asset category, including domestic and international equity, fixed income, currencies, futures, options, hedge funds, commodities, venture capital and private equity. Prior to establishing Rex Capital, he was a consultant at Vertex Partners and an investment professional at the Harvard Management Company. He received his MBA from the Harvard Business School.
TIMOTHY V. GEREMIA - As chief investment officer of the Coastline Trust Company, Mr. Geremia is responsible for investment management and all related duties for the company. He chairs the Investment Committee and is a member of the Trust Management Committee. Mr. Geremia holds both the Chartered Financial Analyst and Certified Financial Planner designations. He has more than 18 years of portfolio management experience, including nine years with Bank Boston/Rhode Island Hospital Trust’s Private Bank. He has served as a senior investment counselor to high-net worth individuals and organizations, and as a client service team leader, whose duties included the management of a team of 17 investment and fiduciary managers and assistants. He holds an MBA from the Babcock Graduate School of Management at Wake Forest University.
MARTHA CONN HULTZMAN - As a principal at Lefkowitz, Garfinkel, Champi & DePienzo P.C. (LGC&D), Ms. Hultzman provides auditing, accounting and business-consulting services to closely-held, entrepreneurially-operated companies, women-owned businesses and not-for-profit organizations. She also performs many of the Firm's retirement plan audits. She serves as president-elect of the RI Society of CPAs (RISCPA) Board of Directors as well as an advisory board member for the Center for Women and Enterprise and is a Leadership RI graduate, class of 1991. She is a graduate of Providence College.
DOUGLAS L. JACOBS – As the retired executive vice president and treasurer of the FleetBoston Financial Group, Mr. Jacobs was responsible for management of Fleet’s $200 billion balance sheet, including funding, asset securitization, capital management, securities and residential mortgage portfolios, and asset/liability management oversight. He currently holds directorships at four public companies: Fortress Investment Group, Clear Channel Outdoor Holdings, American General Financial Services and Doral Financial Group. Among his philanthropic commitments, he is the current board chair of Women and Infants Hospital and a trustee of Care New England. He holds an MBA from the Wharton School at the University of Pennsylvania.
PETER D. KIERNAN, III - Serves as the CEO of Kiernan Ventures, a venture firm, and as chairman of the Christopher and Dana Reeve Foundation. He was president of Cyrus Capital, a multi-billion dollar hedge fund, until he left in 2006 to become chairman and CEO of the Reeve Foundation after the untimely death of the founders. Mr. Kiernan spent 18 years at Goldman Sachs, most as a partner in Investment Banking and Asset Management. He is chairman of TechHealth, a high-growth home health care company and was chairman of Heliflite Shares, a leading provider of helicopter services. He is a director of Sonostar Fund, a private equity fund and serves on several company boards. Among his many philanthropic commitments, he served for 15 years on the Williams College Investment Committee and chaired the Strategic Investment Committee. He also chaired the Robin Hood Foundation in New York for nearly five years, where he chaired the Investment Committee and continues as chair of the Finance Committee. Mr. Kiernan received his MBA from Darden School of Business at the University of Virginia, where he now serves as vice chair.
EDWIN J. SANTOS – As the former group executive vice president and general auditor for Citizens Financial Group, a $129 billion multi-state bank holding company and one of the nation’s 10 largest banks, Mr. Santos has over 28 years of financial service experience. Previously, he was the chief auditor for FleetBoston Financial Group’s global operations, overseeing approximately 300 employees in various audit, compliance and operating risk functions throughout the U.S. and Latin America. He also served on Fleet’s Leadership Advisory Council, and participated in all major acquisitions, mergers and re-engineering efforts during Fleet’s growth to a $200 billion financial services company. He currently serves as the chairman of the board of Rhode Island’s newest hospital system, CharterCARE Health Partners. He is also vice chairman of the board of Crossroads, R.I., among other organizations. He is a graduate of Bryant University.
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