Israel
The State of Texas now holds approximately $280 million in Israeli government bonds. Why? To be clear, I do not object to Texas investing outside the United States. The Permanent School Fund invests internationally as part of a diversified investment strategy. Prudent financial management means investing where we can achieve appropriate risk-adjusted returns and diversifying to manage risk. But Israel is different. In February, Acting Comptroller Kelly Hancock announced that Texas would double its investment in Israel Bonds from approximately $140 million to $280 million—the largest one-time Israel Bond purchase in Texas history. He said the investment “reinforces our long-standing…