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Florida Calls for Investment Review

TALLAHASSEE, Fla. (AP) – Florida Chief Financial Officer Alex Sink on Thursday directed state investment managers to go carefully through the state's holdings to assess whether Florida's portfolio has gotten too risky with changes in the market.

Sink noted the volatility in securities markets in recent months resulting from fallout from the mortgage crisis. She said it made sense to double-check the quality of the state's investments, particularly as it relates to mortgage-backed securities and other investments that may be affected by trouble in the sub-prime lending market.

Florida invests a $140 billion pension fund for its retirees. The State Board of Administration, which is responsible for managing the fund, answers to Sink and other members of the Florida Cabinet. She also ordered state money managers to review how other state funds, such as the state's prepaid college fund and Hurricane Catastrophe Fund, are invested.

Sink asked state money managers to prepare a report for the Nov. 14 Cabinet meeting.

“I want to ensure we are safeguarding the taxpayers' money,” Sink said. “I have ordered a thorough review of the state treasury's investments to uncover and identify any previously unknown risk.”