When a state fund gets too much exposure, it should focus on its own funds
The U.S. Treasury has raised more than $3 billion to invest in the state of Colorado.
Its state funds have outperformed other funds by a wide margin, and its own state fund has made an estimated $1.5 billion since it launched last year, according to data compiled by The Wall St. Journal.
The state funds were established to support education, infrastructure and research in Colorado.
They are meant to act as a safety net for states when their finances are in bad shape, according the state’s website.
But their performance has been uneven, and they have been unable to match the performance of their more established peers.
For example, Colorado’s state funds had a 7.2 percent return on assets last year and have a net portfolio of $11.6 billion.
In comparison, its state funds’ net portfolio is $11 billion.
The fund’s average return on capital in 2017 was just 4.9 percent, well below the 3.7 percent average for state funds over the same period, according data compiled in the last few years by Morningstar, a market research firm.
Colorado’s state fund, which was created by the Colorado General Assembly in 2020, has outperformed the overall performance of its peers by a huge margin.
Its average return over the past five years is a stunning 8.9.
In contrast, the average return for its more established state funds was just 3.6 percent.
Colorado has made its state fund the target of a federal government crackdown over its financials, which has resulted in a loss of nearly $5 billion in assets.
The state is currently seeking to recover some of that loss through new taxes and fees.
A separate U.K. fund, called the State Asset Allocation Fund, which is managed by the Treasury, has also been criticized for its poor performance.
Its performance has also gotten worse, according a recent report by Morningstars.
The fund had a net loss of $7.1 billion last year.
The Treasury Department is currently evaluating the fund’s future.