Highest returns in almost a decade
LITTLE ROCK-–Arkansas investment receipts for fiscal year 2017, which ended June 30, rose $8.6 million – or 17 percent – from the previous year, Treasurer of State Dennis Milligan announced to the State Board of Finance today.
Treasury investment receipts totaled $18.1 million for the fourth quarter, and $57.5 million for the fiscal year. Investment returns haven’t been that high since 2009.
“I’m very excited about these results,” Milligan said. “This money is, I hope, going to help us build a solid foundation for the future financial needs of our state.”
What makes the increased returns even more impressive is that the Treasury has had to deal with lower federal interest rates since the recession hit in 2008. The federal interest rate for the fourth quarter of 2017 was 1 percent, compared to 5.25 percent in fiscal 2007.
“To say I’m excited is an understatement, but I’m also humbled because we’ve been able to do more with less,” Milligan said.
He attributed the increase to a more active management style.
The State Treasury currently has a total investment portfolio of about $3.5 billion: $3.2 billion in bonds, $277.5 million in demand accounts, and about $155,500 in money market accounts.