by Tyler Hale
Arkansas’ State Treasury posted its highest fiscal year in a decade in 2018 with $77.2 million in investment receipts.
According to a press release from the Treasurer of State’s office, the State Board of Finance received the investment report today from Treasurer of State Dennis Milligan. The strong investment totals, according to Milligan, can be attributed to his office’s “active management” of the state’s portfolio.
“If you look at years 2004-2007, you’ll notice that our treasury receipts lagged behind the increasing interest rates. If you look at years 2016-2018, you see the opposite: Treasury receipts are rising in advance of the interest rate hikes,” Milligan said. “We’re proactively managing the treasury portfolio – making calculated decisions based on market analysis – instead of simply reacting to market conditions.”
In the fourth quarter of 2018, the state’s investment receipts totaled $21.29 million. In a video breakdown of the investment report, Milligan said this year’s fourth quarter receipts are higher than the total year’s investment receipts for fiscal years 2003, 2004, 2013 and 2014.
Fiscal year 2018 marks a continued increase in investment receipts from a low of $18.18 million in 2013. Receipts have risen steadily each fiscal year since 2013.
The State Treasury’s investment portfolio was approximately $3.7 billion at the end of the fiscal year, which ended June 30. The Treasury’s portfolio included $2.95 billion in bonds and commercial paper, $474.5 million in demand and money market accounts and $283.4 million in the State Treasury Money Management Trust.