Searches and Hires

Arkansas Teachers assigns $60 million to alternatives, returns 16.1% for fiscal year

Arkansas Teacher Retirement System, Little Rock, committed up to $60 million total to two alternatives fund, said George Hopkins, director, in an email.

In real assets, the $16.1 billion pension fund committed up to $30 million to Calmwater Capital's Real Estate Credit Fund III, which will focus on senior secured commercial real estate loans in the U.S.

Calmwater Capital is the institutional investment arm of Karlin Asset Management.

In private equity, the pension fund committed up to $30 million to Clearlake Capital Partners V, managed by Clearlake Capital Group and which will target opportunistic debt and equity investments in North American middle-market companies undergoing change and/or in undeserved industries, said materials prepared for Monday's board meeting.

In other news, the pension fund returned 16.1% for the fiscal year ended June 30 , ahead of its 13.2% performance benchmark.

By asset class, public equities returned 22.1%; private equity, 16.7%; timber, 8%; real assets, 7.5%; real estate, 6.9%; opportunistic/alternatives, 6.8%; fixed income, 5.2%; and agriculture, 4.3%.

The real assets and private equity returns and market values are on a one-quarter lag.

As of June 30, the pension fund had an asset allocation of 57.3% public equity, 15.9% fixed income, 11.7% real assets (8.2% real estate, 1.7% timber, 1.1% agriculture and 0.7% infrastructure), 10.1% private equity, 4.1% opportunistic/alternatives and the rest in cash.

Longer term, for the three, five and 10 years ended June 30, the pension fund returned an annualized 6.7%, 10.6% and 6%, respectively, ahead of its benchmark returns of 6.6%, 10.2% and 5.9%, in each of those periods.