Posted: Jul 12, 2011 4:17 PM by Matt Stafford
DENVER (AP) - An audit of Colorado's Treasury Department recommends that it should consider expanding investments beyond only U.S. securities and look into foreign securities.
Tuesday's audit says lawmakers should examine the possibility of eliminating statutory limits that require only domestic security investments. The audit conducted by Buck Global Investment Advisors notes that other states already authorize non-U.S. fixed income investments.
The analysis found that although foreign fixed income securities may be based in a foreign currency, the states investments are in U.S. dollars and "there is no risk of loss from currency changes." The states referenced are New Jersey, Oregon, Florida and Pennsylvania.
New state Treasurer Walker Stapleton agreed with the recommendation.
The audit surveying the Treasury Department's investments from 2007 to 2010 found they "performed better than their benchmarks in difficult financial markets."