Little Rock, Ark. – Arkansas’ investment receipts for the second quarter of fiscal 2019, which ended Dec. 31, were $28.5 million, putting the total for the first half of FY 2019 at $53.9 million, Treasurer of State Dennis Milligan told the State Board of Finance today.
“That’s more than what we receipted in all of FY 2016 and just shy of the $57.5 million we receipted in all of FY 2017,” Milligan said. “We are again setting records.”
Historically, the State Treasury’s investment strategy was to put a large portion of money in long-term investments while keeping a very small percentage in short-term investments. Under Milligan’s administration, the focus has been more towards short-term investments.
“And at nearly $54 million dollars in six months, it is evident that our more active management style is performing well for the State,” Milligan told the Board. “By continually monitoring economic conditions, we’ve been able to increase our returns at a pace that precedes interest rate hikes.”
Second-quarter earnings consisted of $16.5 million earned from short-term investments in commercial paper, the State Treasury Money Management Trust, and demand and money market accounts; and $11.9 million earned from long-term investments made up mostly of mortgage-backed securities.
“We’re being patient as we monitor economic conditions and look for more appealing long-term investment opportunities,” Milligan said.
Milligan also gave a quarterly report on the earnings from the State Treasury Money Management Trust, stating that the ROI has increased progressively and is now at 2.79 percent.
“This program is open to any state agency, city, county, or school district that has funds they might be able to invest. And we’d love to have more participants take advantage of this unique investment opportunity,” Milligan said.
To view more information about the State Treasury’s investment receipts, visit: https://www.artreasury.gov/graphics.html.