The Colorado Surplus Asset Fund Trust (CSAFE) has provided liquidity management services to local governments in Colorado since 1988. Today, CSAFE remains as committed to the foundational principles of Safety-Liquidity-Yield in managing public funds as it was when the statutory trust was initially established.
“Breaking the buck” is industry jargon for when a money market fund or local government investment pool’s (LGIP) stable net asset value (NAV) falls below $1.00. Breaking the buck signals financial distress, evaporation of trust, and direct losses to investors. LGIPs’ essential purpose to investors is liquidity and capital preservation. Even a minor drop in NAV can lead not only to principal loss but also to a panic-driven run, forcing funds to sell assets at unfavorable prices. Past cases, such as the 2008 Reserve Primary Fund breaking the buck after Lehman Brothers’ collapse, resulted in immediate and significant losses for investors, as well as wider market reverberations that eventually resulted in significant regulatory reforms by the Securities Exchange Commission.
CSAFE’s history of excellence is best understood against this backdrop of risk. Throughout volatile periods, including the 2008 Global Financial Crisis (GFC), CSAFE maintained disciplined investment policies and proactive liquidity management, vigorously safeguarding every Participant’s principal. Even through tumultuous times following the GFC, CSAFE did not break the buck – ever. This is not just a historical footnote, but a reflection of CSAFE’s unwavering commitment to stability, conservative management, and scrupulous oversight. Not a single CSAFE participant has ever realized a loss for either the Cash or Core Fund
Complementing this track record of strict adherence to the tenets of Safety, Liquidity, and Yield, the team at CSAFE is committed to providing a best-in-class investment experience in Colorado. CSAFE’s best trade ideas stay in Colorado for the benefit of Colorado’s local governments. At a time when the LGIP industry is undergoing significant nationwide consolidation and merger activity, CSAFE’s service providers will continue to maintain their LGIP focus exclusively upon Colorado.
When an LGIP is able to maintain a stable $1.00 NAV year after year, it reassures participants that their assets are protected, even in times of volatility. Against an investment management backdrop in which “never break the buck” is more than just a slogan, CSAFE’s record stands as a powerful argument for the importance of investing in an LGIP with a demonstrated history of reliability.