Arkansas Public Employees Retirement System
| Arkansas Public Employees Retirement System (APERS) | |
 | |
| Basic facts | |
| Location: | Little Rock, Arkansas |
| Top official: | Larry Walther, chair |
| Year founded: | 1957 |
| Active members: | 42,771 |
| Website: | Official website |
| Total assets under management | |
| 2022: | $10,220,000,000 |
- See also: Public pensions in Arkansas
The Arkansas Public Employees Retirement System (APERS) is a Arkansas state pension fund that provides retirement, disability, and survivor benefits to the state's public employees. APERS had $10,220,000,000 ($10.2 billion) in total assets under management as of June 30, 2022.[1]
The management of public pension funds can indicate support or opposition to environmental, social, and corporate governance (ESG) investment practices. ESG investing considers the extent to which corporations align with and promote certain non-financial standards, such as net carbon emission or corporate board diversity goals. States typically hire asset management companies (AMCs) to direct pension plan investments, some of which have ESG commitments that guide their strategies.
This article features the following sections:
- Background: Information about the structure and functions of APERS.
- Pension performance overview: Overview of the funding level and assets managed by APERS.
- Assets and asset management: Information about the asset management companies (AMCs) that contract with APERS, including a list of contracting AMCs that are participants in the Net Zero Asset Managers Initiative and the Climate Action 100+ initiative.
- Governance and accountability: Details about APERS' oversight board, including members and selection.
Background
- See also: Public pensions
The Arkansas Public Employees Retirement System (APERS), founded in 1957, invests the assets of and provides funding for the retired members, survivors and disabled public employees of Arkansas. APERS operates as a defined contribution plan under which both employers and employees contribute to the system.[2]
APERS served over 42,771 active members and approximately 41,390 retirees and beneficiaries as of February 2024.[1]
Pension performance overview
The following table features information about the funding level and assets managed by the Arkansas Public Employees Retirement System (APERS) as of June 30, 2022:[1]
| APERS pension performance (June 30, 2022) | |||
|---|---|---|---|
| Fiscal year | Percent funded | Unfunded liabilities | Total market value of assets |
| 2022 | 79% | $411,958,495 | $10,220,000,000 |
Assets and asset management
| Environmental, social, and corporate governance |
|---|
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| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
Asset management companies (AMCs) are hired to manage asset investment for state pension funds across all 50 states.
As of October 2024, 330 AMCs were members of the Net Zero Asset Managers Initiative (NZAM), and 391 AMCs were investor participants in the Climate Action 100+ initiative. Both international asset manager initiatives aimed to align the investment decisions of signatories with the goal of achieving net zero greenhouse gas emissions by 2050.[3][4]
NZAM announced on January 13, 2025, that it was suspending operations and removing the commitment statement and list of signatories from its website. The group said in a statement it would reevaluate its plans and operations in light of “[r]ecent developments in the U.S. and different regulatory and client expectations in investors’ respective jurisdictions.”[5]
List of AMCs contracting with the Arkansas Public Employees Retirement System (APERS)
APERS contracted with 28 asset management companies (AMCs) as of December 1, 2023. Of those companies, four were investor participants in Climate Action 100+, and five were members of NZAM, as of October 2024. The following list identifies the AMCs (and in some cases, the specific funds) contracting with APERS:[6]
| Arkansas Public Employees Retirement System (APERS) asset management companies Click on a column header below to sort the list of asset managers. | |||||
|---|---|---|---|---|---|
| AMC name | Investment type | Assets under management | Percentage of total fund assets | NZAM Initiative signatory as of October 2024[7] | Climate Action 100+ signatory as of October 2024 |
| Acadian Asset Management | International Equity; | 187,373,390 | 1.713% | Yes | Yes |
| Artisan Partners | International Equity; | 691,962,595 | 6.326% | No | No |
| Baillie Gifford Overseas Ltd. | International Equity; | 538,088,001 | 4.919% | No | No |
| Blackstone Alternative Asset Management, LP | Diversifi ed Strategies; | 219,312,431 | 2.005% | No | No |
| Carlyle Property Investors LP | Real Assets; | No | No | ||
| CastleArk Management, LLC | Domestic Equity, Real Assets; | 518,010,314 | 4.736% | No | No |
| Clarion Partners LLC | Real Assets; | 81,860,518 | 0.748% | No | No |
| DoubleLine Capital | Domestic Fixed Income; | 600,332,285 | 5.488% | No | No |
| Franklin Templeton Institutional | International Equity; | 154,442,291 | 1.412% | No | No |
| Harrison Street Real Estate Partners | Real Assets; | 44,609,947 | 0.408% | No | No |
| Heitman America Real Estate | Real Assets; | 362,783,136 | 3.317% | No | No |
| Horrell Capital Management | Domestic Equity; | 206,818,033 | 1.891% | No | No |
| International Farmland Corporation | Real Assets; | 52,722,782 | 0.482% | No | No |
| Invesco Real Estate | Real Assets; | 579,019,606 | 5.293% | Yes | No |
| LaSalle Investment Management | Real Assets; | $33,878,312 | 0.310% | Yes | No |
| Lazard Asset Management | Domestic Equity, International Equity; | $1,085,233,866 | 9.921% | Yes | Yes |
| LSV Asset Management | Domestic Equity; | 358,342,617 | 3.276% | No | No |
| MacKay Shields | Domestic Fixed Income; | 639,242,354 | 5.844% | No | No |
| Mellon Capital | ; | No | Yes | ||
| PGIM U.S. Agriculture | Real Assets; | 37,814,521 | 0.346% | No | No |
| PGIM, Inc. | ; | No | No | ||
| Pinnacle Forest Investments, LLC | Real Assets; | 94,610,040 | 0.865% | No | No |
| Principal Real Estate Investors LLC | Real Assets; | No | No | ||
| SSI Investment Management | Domestic Equity; | 422,312,007 | 3.861% | No | No |
| Starwood Management LLC | Real Assets; | 16,552,752 | 0.151% | No | No |
| Stephens Investment Management Group | Domestic Equity; | 470,103,300 | 4.298% | No | No |
| TA Associates Realty | Real Assets; | $125,353,668 | 1.146% | No | No |
| Wellington Management Company | Domestic Equity; | 472,588,558 | 4.320% | Yes | Yes |
Governance and accountability
This section features information about the 13-member board of trustees that oversees the Arkansas Public Employees Retirement System (APERS). The board is specific to oversight of APERS and does not exercise oversight duties for other state funds.[8]
Board selection method
The board of trustees that oversees the APERS is made up of 13 members. The board comprises the Auditor of State, Treasurer of State, and the Secretary of the Department of Finance and Administration; three members who are state employees and three members who are nonstate employees appointed by the Governor; two members who retired from the system, one of whom is a retired law enforcement officer, to be appointed by the President Pro Tempore of the Senate; and two members who retired from the system, one of whom is a retired law enforcement officer, to be appointed by the Speaker of the House of Representatives.[8]
Board of trustees membership
A 13-member board of trustees oversees the operation and administration of APERS. The following individuals served on the board as of February 2024:[8]
- Larry Walther, chair
- Daryl Bassett, vice chair
- Barry Moehring
- Dale Douthit
- Richard Wilson
- Gary Wallace
- Jim Hudson
- Gary Carnahan
- Joe Hurst
- Candace Franks
- Kaye Donham
- Russell White
- Dennis Milligan
See also
- Public pensions in Arkansas
- Environmental, social, and corporate governance (ESG)
- Arguments about environmental, social, and corporate governance (ESG)
- Opposition to environmental, social, and corporate governance (ESG) investing
- Reform proposals related to environmental, social, and corporate governance (ESG)
- State legislative approaches opposing ESG investing
- State legislative approaches supporting ESG investing
External links
Footnotes
- ↑ 1.0 1.1 1.2 APERS.org, "Arkansas Public Employees Retirement System for Fiscal Year 2022 Annual Comprehensive Financial Report," February 14, 2024
- ↑ APERS.org, "About the System," February 14, 2024
- ↑ The Net Zero Asset Managers Initiative, "The Net Zero Asset Managers Initiative," accessed January 26, 2023
- ↑ Climate Action 100+, "The Three Goals," accessed June 20, 2023
- ↑ Pensions and Investments, "Net Zero Asset Managers initiative to suspend activities in wake of BlackRock departure," accessed January 15, 2024
- ↑ Ballotpedia, "Ballotpedia: Asset management data for state-administered pension funds across the 50 states," March 2023
- ↑ Note: NZAM announced on January 13, 2025, that it was suspending operations and removing the commitment statement and list of signatories from its website.
- ↑ 8.0 8.1 8.2 APERS.org, "APERS Board," February 14, 2024
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