Arkansas Teachers Outpaces Benchmarks Despite FY2022 Losses

By Mario Marroquin

Despite posting the largest annual gain in the program’s history during the 2021 fiscal year, the Arkansas Teacher Retirement System saw a drop in value approaching U$1.4 billion for the 2022 fiscal year. Meeting materials from the retirement system’s September board of trustees meeting show the system outpaced its one-, three- and five-year benchmarks despite suffering losses in public equity and fixed income.

An asset allocation and performance report prepared by AON Hewitt Investment Consulting stated the nearly $20 billion retirement system saw positive returns across its alternatives, real assets, real estate, timber, agriculture, private equity and infrastructure investments through the end of the fiscal year.

Arkansas Teachers outpaced its one-year total equity, fixed income, alternatives, timber, infrastructure, private equity and agriculture benchmarks, and underperformed its one-year real asset and real estate benchmarks.

The retirement system’s returns, and one- and three-year performance benchmarks for equities and fixed income, were negative through the end of June, according to meeting materials.

The board of trustees also reported the system closed a $75 million commitment to Blackstone Real Estate Partners X LP June 30 and a $30 million commitment to BIP Fund XI L.P. July 1.  

The Arkansas Democrat Gazette also reported this week that a $642.8 million settlement following a 2020 lawsuit over alleged negligence and breach of fiduciary duties by Allianz Global Investors and other defendants netted the retirement system $507.4 million.