Key Takeaways
- • The Arkansas Highway Employees Retirement System's investments fell $246 million to $1.46 billion in fiscal 2022 (year ended June 30), with a return of minus 9.16%, according to executive secretary Robyn Smith.
- • The highway system's return was slightly better than the median of minus 9.35% for similarly sized public pension systems, per Callan Inc.'s performance evaluation program.
- • The Arkansas Judicial Retirement System's investments dropped $50.3 million to $296.9 million, with a return of minus 12.32% that lagged the peer median of minus 10.10%.
- • The Arkansas Public Employees Retirement System, the state's second-largest, returned minus 10.54% and lost $1.5 billion to $10.04 billion, ranking in the bottom 32% of peers.
- • Arkansas Teacher Retirement System, the largest state system, has a preliminary fiscal 2022 return estimate of roughly minus 4.5%, with final figures due later in September.
Summary
Arkansas's state government retirement systems posted investment losses in fiscal 2022, the year ended June 30, amid turbulence in stock and bond markets. The Arkansas Highway Employees Retirement System's investments declined by $246 million to $1.46 billion, producing a return of minus 9.16%, according to executive secretary Robyn Smith. That result ranked slightly ahead of the median of minus 9.35% for public pension systems of similar size, based on performance data from San Francisco-based investment consultant Callan Inc. The system reduced its stock holdings from $1.11 billion on June 30, 2021, to $743 million a year later, while increasing government bonds from $244.3 million to $319.2 million and cash from $244 million to $297 million.
The Arkansas Judicial Retirement System fared worse. Its investments fell $50.3 million to $296.9 million, and its return of minus 12.32% lagged the median of minus 10.10% for similarly sized systems, according to Callan. Its domestic stock holdings declined from $131 million to $108.9 million, and its international equity holdings fell from $49.9 million to $32.1 million.
The Arkansas Public Employees Retirement System, the state's second-largest retirement system, reported a return of minus 10.54%. Its value dropped $1.5 billion to $10.04 billion, and Callan reported that its return ranked in the bottom 32% of similar public systems nationwide.
For the Arkansas Teacher Retirement System, the largest state system, final fiscal 2022 figures are not yet available. Executive Director Clint Rhoden said in mid-August that his preliminary estimate of the return was roughly minus 4.5%, and that the portfolio was valued at about $20.3 billion, down from $21.1 billion on June 30, 2021. The system's fiscal 2022 value was supported by net proceeds from a lawsuit settlement earlier this year.
The Arkansas Judicial Retirement System fared worse. Its investments fell $50.3 million to $296.9 million, and its return of minus 12.32% lagged the median of minus 10.10% for similarly sized systems, according to Callan. Its domestic stock holdings declined from $131 million to $108.9 million, and its international equity holdings fell from $49.9 million to $32.1 million.
The Arkansas Public Employees Retirement System, the state's second-largest retirement system, reported a return of minus 10.54%. Its value dropped $1.5 billion to $10.04 billion, and Callan reported that its return ranked in the bottom 32% of similar public systems nationwide.
For the Arkansas Teacher Retirement System, the largest state system, final fiscal 2022 figures are not yet available. Executive Director Clint Rhoden said in mid-August that his preliminary estimate of the return was roughly minus 4.5%, and that the portfolio was valued at about $20.3 billion, down from $21.1 billion on June 30, 2021. The system's fiscal 2022 value was supported by net proceeds from a lawsuit settlement earlier this year.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.